This bill aims to redirect excess reserves from health insurers to support health care safety net programs, specifically through the establishment of a new assessment on health insurance carriers. Under the proposed amendment to Chapter 118E, carriers will be required to pay an assessment based on their net worth surplus that exceeds 550% of risk-based capital for the calendar year 2023. The total assessment is expected to generate $400 million, which will be split equally between the Health Safety Net Trust Fund and the newly created Medicaid Stabilization Trust Fund. The executive office will regulate the assessment calculation, payment procedures, and data submission requirements, while also establishing enforcement mechanisms for non-compliance.

Additionally, the bill introduces the Medicaid Stabilization Trust Fund, which will be a non-budgeted revenue fund managed by the secretary of health and human services. This fund will receive transfers from the executive office, federal financial participation revenues, and other designated appropriations. The funds will be used to ensure continued access to care for MassHealth beneficiaries and to support Medicaid payments, adhering to federal requirements. Importantly, any unspent funds at the end of a fiscal year will not revert to the General Fund, allowing for their use in future fiscal years.