Section 40 Assessment for expenses associated with health care costs - Massachusetts Statutes

Section 40. (a) Each health insurer, including health insurance companies, health maintenance organizations, hospital service corporations, and medical service corporations, as defined in section 1, that conducts business in Massachusetts shall pay an assessment for fiscal year 2009 for deposit into the General Fund for expenses associated with health care costs. Such assessment shall be based on the net worth surplus available to health insurance carriers in accordance with criteria developed by the division of insurance, in consultation with the division of health care finance and policy. The division of health care finance and policy shall specify by regulation the method of calculating the assessment, procedures for payment of the assessment, and requirements for submission of data by health insurers.

(b) The assessment established by the division of health care finance and policy for fiscal year 2009 shall not exceed the maximum rate of assessment that the laws of the United States or any rules, regulations, or standards issued under those laws, relating to health care assessments will allow without reduction in federal financial participation. The assessment shall be implemented as a broad-based health care related fee as defined in 42 U.S. C. 1396b(w)(3)(B).