Health Safety Net Surcharge Decrease

Decrease to HSN Surcharge

The Health Safety Net (HSN) Surcharge formerly known as the Uncompensated Care Pool, is a fund created by the state of Massachusetts to finance health care for the low income and uninsured within the state.  As we have previously notified our clients, the surcharge tax is levied upon all health care services rendered at an acute hospital or ambulatory surgical center in Massachusetts. Any individual or entity that makes payments for the purchase of health care services by hospitals and ambulatory surgical centers must pay the surcharge.
 
Each year the state of Massachusetts reviews the surcharge rate and fund usage, to determine if any adjustments need to be made for the following fiscal year. This year effective October 1st, 2016, the Health Safety Net Surcharge percentage is 1.76%. Below is a chart which reflects the surcharge percentage change from last year to this year, and the dates in which they were effective for.


     FY                                 Surcharge %                                               Coverage Period
2017                                     1.76%                                  October 1st, 2016 – September 30th, 2017
2016                                     1.86%                                  October 1st, 2015 – September 30th, 2016

As your TPA, HRC Total Solutions, makes payments to the HSN on your behalf. The HSN Surcharge is calculated and paid on a monthly basis. HRC Total Solutions determines the amount of the payments subject to the surcharge by multiplying the total payments made to qualified Massachusetts acute hospitals and ambulatory surgical centers at the end of each calendar month by the surcharge in effect.


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