Massachusetts House Bill H1397

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

Addressing unfair business practices in health care

Impact

If enacted, this bill would have a considerable impact on the operational conduct of healthcare providers, particularly those affiliated with private equity firms. By restricting charges on non-contracted services to 200 percent of the average contracted rate, the bill seeks to create a more equitable billing system within the healthcare landscape. Furthermore, it establishes a violation of this pricing regulation as an unfair or deceptive practice, potentially subjecting offending providers to legal repercussions under Chapter 93A.

Summary

House Bill 1397 aims to address unfair business practices in the healthcare sector, specifically targeting providers owned by private equity companies. The legislation proposes a significant amendment to Chapter 111 of the Massachusetts General Laws, introducing an additional section that limits the ability of these providers to charge non-contracted services beyond a specified reimbursement rate. This regulation is intended to ensure that healthcare providers negotiate in good faith with both public and private payers, preventing excessive charges that may arise from non-standard billing practices.

Contention

This legislation could provoke debate regarding the balance between regulating healthcare providers and ensuring that they can operate sustainably. Supporters may argue that the bill protects consumers from unexpectedly high medical bills and promotes fairness in healthcare pricing. In contrast, opponents might contend that these regulations could hinder the flexibility of providers to negotiate contracts and maintain operational viability, particularly those that rely heavily on private equity financing.