101 CMR 516.02
Definitions
Ambulatory Surgical Center. Any distinct entity located in Massachusetts that operates
exclusively for the purpose of providing surgical services to patients not requiring hospitalization
and meets the U.S. Centers for Medicare and Medicaid (CMS) requirements for participation in
the Medicare program.
Ambulatory Surgical Center Services. Services described for purposes of the Medicare program
pursuant to 42 U.S.C. § 1395k(a)(2)(F)(i). These services include only facility services and do
not include physician fees.
Department of Public Health. The Massachusetts Department of Public Health.
EOHHS. The Executive Office of Health and Human Services established under M.G.L. c. 6A.
Fund. The Behavioral Health Access and Crisis Intervention Trust Fund established by M.G.L. c.
29 § 2WWWWW.
General Appropriations Act. The act of the General Court, or any subsequent amendment or
supplemental act enacting the Commonwealth's fiscal year budget.
Hospital. An acute hospital licensed under M.G.L. c. 111, § 51, that contains a majority of
medical surgical, pediatric, obstetric and maternity beds, as defined by the Massachusetts
Department of Public Health.
Hospital Services. Services listed on an acute hospital's license issued by the Massachusetts
Department of Public Health.
Indirect Payment. A payment made by a payer to a group of providers, including one or more
Massachusetts acute care hospitals or ambulatory surgical centers, that then forward the payment to
member hospitals or ambulatory surgical centers; or a payment made to an individual to
reimburse him or her for a payment made to a hospital or ambulatory surgical center.
Managed Care Organization. A managed care organization as defined in M.G.L. c. 118E, § 64.
Medicaid. The medical assistance program administered by the Executive Office of Health and
Human Services Office of Medicaid pursuant to M.G.L. c. 118E and in accordance with Titles
XIX and XXI of the Federal Social Security Act, and a Section 1115 Demonstration Waiver.
Medicare Program. The medical insurance program established by Title XVIII of the Social
Security Act.
Payer. A surcharge payer that meets the criteria set forth in 101 CMR 516.03 (2).
Payment. A check, draft, or other paper instrument, an electronic fund transfer, or any order,
instruction, or authorization to a financial institution to debit one account and credit another.
Payments Subject to Surcharge. All amounts paid, directly or indirectly, by surcharge payers to
acute hospitals for health services and ambulatory surgical centers for ambulatory surgical
center services; provided however, that it does not include:
(1) payments, settlements, and judgments arising out of third-party liability claims for bodily
injury that are paid under the terms of property or casualty insurance policies; and
(2) payments made on behalf of Medicaid recipients, Medicare beneficiaries or persons
enrolled in policies issued under M.G.L. c. 176K or similar policies issued on a group basis;
provided further, that it includes payments made by a managed care organization on behalf of:
(a) Medicaid recipients younger than 65 years old; and
(b) enrollees in the Commonwealth care health insurance program; and provided further,
that it may exclude amounts established under regulations promulgated by EOHHS for
which the costs and efficiency of billing a surcharge payer or enforcing collection of the
surcharge from a surcharge payer would not be cost effective.
Surcharge. The surcharge on payments made to hospitals and ambulatory surgical centers
established by M.G.L. c. 118E, § 69A.
Surcharge Payer. An individual or entity that pays for or arranges for the purchase of health care
services provided by acute hospitals and ambulatory surgical center services provided by
ambulatory surgical centers; provided however, that it includes a managed care organization; and
provided further, that it does not include Title XVIII and Title XIX programs and their
beneficiaries or recipients, other governmental programs of public assistance and their
beneficiaries or recipients and the workers' compensation program established under
M.G.L. c. 152.
Third-party Administrator. An entity that administers payments for health care services on behalf
of a client plan in exchange for an administrative fee. A third-party administrator may provide
client services for a self insured plan or an insurance carrier’s plan. A third-party administrator
will be deemed to use a client plan's funds to pay for health care services whether the third-party
administrator pays providers with funds from a client plan, with funds advanced by the third-
party administrator subject to reimbursement by the client plan, or with funds deposited with the
third-party administrator by a client plan.
Total Behavioral Health Surcharge Amount. An amount equal to $33,700,000.