Increase in MA Hospital Surcharge

09/06/2012

Massachusetts regulators have slightly increased the surcharge on services received at hospitals and ambulatory surgical centers in the state.

The new surcharge, which applies to bills paid on or after October 1, 2012, will be 1.87%, up from 1.75%. The surcharge increase, announced by the Massachusetts Division of Health Care Finance & Policy, is imposed on third-party claims administrators, health maintenance organizations, preferred provider organizations and self-insured employers that administer their own health care plans. This increase will undoubtedly be passed along to consumers in the form of higher premiums and/or administrative costs.

The surcharge is expected to generate an additional $160 million in revenue for the state to reimburse hospitals for care provided to the uninsured. However, under the state’s 2006 health care reform law, a greater portion of the revenue has been shifted to subsidies for health insurance premiums of lower-income and uninsured state residents.

For more information on this topic, contact your WGA Employee Benefits team.