Massachusetts boosts surcharge on hospital bills

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

The surcharge, which applies to bills paid on or after Oct. 1, will be 1.75%, up from 1.55%.

The surcharge increase, announced this week 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.

Massachusetts uses revenue from the surcharge to reimburse hospitals for care provided to the uninsured. However, under the http://www.businessinsurance.com/article/20110727/NEWS03/110729938 state’s 2006 health care reform law, a greater portion of the revenue has been shifted to subsidizing health insurance premiums of lower-income, uninsured state residents.