Increases reimbursement for Massachusetts hospitals with historically low prices.

The bill amends Massachusetts law to increase reimbursement for "low historic relative price hospitals." These are acute hospitals with an average statewide relative price across all carriers of less than 0.90 over a 5-year period. Reimbursement rates will increase incrementally over several benchmark cycles, starting with a minimum of 15% below the average relative price for 2026-2029, then 2% above the health care cost growth benchmark for 2029-2032, and so on.

Increases reimbursement for Massachusetts hospitals with historically low prices.

The bill amends Massachusetts law to increase reimbursement for "low historic relative price hospitals." These are acute hospitals with an average statewide relative price across all carriers of less than 0.90 over a 5-year period. Reimbursement rates will increase incrementally over several benchmark cycles, starting with a minimum of 15% below the average relative price for 2026-2029, then 2% above the health care cost growth benchmark for 2029-2032, and so on.