Section 122: Supplemental Payments to Cambridge Health Alliance and Boston Medical Center

Notwithstanding any general or special law to the contrary, during fiscal years 2007, 2008, and 2009, the executive office of health and human services shall reimburse certain publicly operated or public-service hospital entities operated by the Cambridge public health commission and the Boston Medical Center Corporation, respectively, providing Title XIX reimbursable services, directly, or through contracts with hospitals under an agreement with the executive office, at levels consistent with their net supplemental payments of $287,000,000 in fiscal year 2006. For fiscal year 2007, the executive office shall hold harmless this amount of $287,000,000 in funding by allocating $200,000,000 in net supplemental payments from the Commonwealth Care Trust Fund and by increasing actuarially sound rates by not less than an additional $87,000,000 for certain publicly operated or public-service hospital entities operated by the Cambridge public health commission and the Boston Medical Center Corporation. For fiscal year 2008, subject to appropriation, the executive office shall hold harmless said amount of $287,000,000 in funding by allocating $180,000,000 in net supplemental payments from the Commonwealth Care Trust Fund and by increasing actuarially sound rates to the maximum extent allowable and eligible for financial participation, including the balance from other financing mechanisms, such as direct supplemental payments for certain publicly operated or public-service hospital entities operated by the Cambridge public health commission and the Boston Medical Center Corporation. For fiscal year 2009, subject to appropriation, the executive office shall hold harmless said amount of $287,000,000 in funding by allocating $160,000,000 in net supplemental payments from the Commonwealth Care Trust Fund and by increasing actuarially sound rates to the maximum extent allowable and eligible for financial participation, including the balance from other financing mechanisms, such as direct supplemental payments for certain publicly operated or public-service hospital entities operated by the Cambridge public health commission and the Boston Medical Center Corporation. Twenty-five per cent of the payments in fiscal years 2008 and 2009 shall be made in accordance with criteria established before each fiscal year by the secretary, in collaboration with said entities, based on the following 3 criteria: (a) the success of each entity in enrolling uninsured patients into said plans, including the commonwealth care health insurance program, other publicly funded health programs, or private insurance plans offered through the commonwealth health insurance connector; (b) reasonable progress made in minimizing the number of individuals utilizing the uncompensated care pool, or any successor thereto, and recognizing that some individuals will be ineligible for the new coverage options under this act; and (c) the submission of a written plan detailing the use of the supplemental funds. The criteria in clauses (a), (b), and (c) shall be established in collaboration with the entities and will be contingent on the administration's execution of the health care reform implementation plan established in section 132 of this act. Payments for fiscal year 2007 shall be made in full in equal monthly payments. In fiscal years 2008 and 2009, payments for 75 per cent of the supplemental funding amount shall be made to the entities on an equal monthly basis, and payments for the remaining 25 per cent shall be paid on a quarterly basis within 30 days after the entities submit data that reflects these requirements of each entity or hospital.

Summary: 
Directs supplemental payments to Cambridge Health Alliance and Boston Medical Center.