Massachusetts H4940: An Act to redirect excessive health insurer reserves to support health care safety net programs

What the bill says

From the introduced text, January 23, 2026:

Section 3. Chapter 118E of the General Laws is hereby amended by inserting the following new section:- Section 87. (a) A carrier, as defined in section 1 of chapter 176O, shall pay an assessment to support expenses associated with health care costs covered by chapter 118E. Such assessment shall be based on the net worth surplus available to health insurance carriers exceeding 550% of risk-based capital in calendar year 2023 in accordance with criteria developed by the Division of Insurance, in consultation with the executive office of health and human services. The executive office shall specify by regulation the method of calculating the assessment, procedures for payment of the assessment, and requirements for submission of data by health insurers. (b) The executive office shall establish by regulation the mechanism for enforcing the assessment liability under this section in the event that a carrier does not make a scheduled payment, but the division may, for the purpose of administrative simplicity, establish threshold liability amounts below which enforcement may be modified or waived. This enforcement mechanism may include assessment of interest on the unpaid liability at a rate not to exceed an annual percentage rate of 18 per cent and late fees or penalties at a rate not to exceed 5 per cent per month. (c) The amount of the assessment established …

Read the full official text

Sponsors

• Services, Joint Committee on Financial (I) · primary sponsor
• Danielle Gregoire (D, 4th Middlesex)

Latest actions

1. July 9, 2026: Reporting date extended to Thursday, December 31, 2026
2. January 23, 2026: Reported favorably by committee and referred to the committee on Health Care Financing
3. January 23, 2026: New draft of H1181
4. January 23, 2026: Reported from the committee on Financial Services

Votes

• Committee Vote - Joint Committee on Financial Services (December 23, 2025): 11 yea, 0 nay, passed

Common questions

What is H4940?

H4940 is a bill in the Massachusetts Legislature (194th General Court): An Act to redirect excessive health insurer reserves to support health care safety net programs.

What is the status of H4940?

In committee as of July 9, 2026. Latest action: Reporting date extended to Thursday, December 31, 2026 (July 9, 2026).

Who sponsored H4940?

Services, Joint Committee on Financial (I), with 1 co-sponsor.

Where is the official record for H4940?

On the Massachusetts Legislature website: https://malegislature.gov/Bills/194/H4940