In June, state House lawmakers approved a bill that would place $330 million in assessments on health insurers and large hospitals, and included new assessments on urgent care centers, retail clinics and surgery centers.
The House proposal would require urgent care clinics to pay 8.75 percent on what they charge commercial insurers. Shaun Ginter, CEO of CareWell Urgent Care, which has 16 centers in Massachusetts, told the Globe: “This assessment threatens the entire industry. Urgent care centers operate at a very low margin, barely profitable. For an assessment to be levied, it will put much of the industry if not the entire industry at risk of closing down.”
Mr. Ginter added if urgent care centers close, hospital emergency department visits will increase and drive up costs.
While lawmakers intend the tax to help community hospitals offset the high cost of serving low-income, underinsured individuals, other stakeholders affected by the tax, such as businesses groups expecting health insurers to raise rates due to the tax, argue the assessment will increase premiums for consumers.
Massachusetts lawmakers have until July 31 to approve the bill before the formal legislative session ends. Under the bill, health insurers would pay $247.5 million in new assessments and large hospitals would pay $90 million, according to the Globe.
More articles on healthcare finance:
Massachusetts lawmakers further $337M in assessments on insurers, large hospitals to support community hospitals
Massachusetts businesses slam tax to help community hospitals
Alaska asks providers to return $15M in Medicaid overpayments
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
