Code of Massachusetts Regulations › 801 CMR - EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE › Title 801 CMR 56.00 - Nonprofit Community Hospitals And Nonprofit Community Health Centers Moral Obligation Bond Financing › Section 56.14 - Actions to Ensure Repayment of Funds to the Commonwealth

Current through Register 1525, July 5, 2024
(1) When a borrower fails to reimburse the
			 Commonwealth for any transfers made by the Commonwealth to the Agency to
			 replenish the Community Hospital and Community Health Center Capital Reserve
			 Fund under
			 801 CMR
			 56.12 within six months after any such
			 transfer and as otherwise provided under the terms of the approval under
			 801 CMR 56.11
			 pursuant to the intercept agreement, the A&F Secretary may, in the A&F
			 Secretary's sole discretion, direct the Comptroller to withhold any funds in
			 the Comptroller's custody that are due or payable to the borrower to cover all
			 or a portion of the amount the borrower has failed to pay to the Commonwealth
			 to reimburse the Commonwealth for any such transfers.
(2) To the extent permitted by federal law,
			 in contracts between the Group Insurance Commission and a third party for the
			 purposes of providing health care insurance or health care services paid for by
			 the Commonwealth, the Group Insurance Commission shall make a good faith effort
			 to secure an obligation on the part of the third party to provide that, at the
			 direction of the A&F Secretary, the third party shall withhold payments to
			 a borrower that fails to reimburse the Commonwealth under the terms of the
			 approval granted under
			 801 CMR 56.11 and
			 shall transfer the withheld amount to the Commonwealth pursuant to the
			 intercept agreement. Any such withheld and transferred amounts shall be
			 considered to have been paid to the borrower for all other purposes of law, and
			 the borrower shall be considered to have reimbursed the Commonwealth in an
			 amount equal to such withheld and transferred funds for purposes of the
			 approval granted under
			 801 CMR
			 56.11.
(3) To the extent permitted by federal law,
			 MassHealth and the Commonwealth Health Insurance Connector Authority shall make
			 a good faith effort to secure an obligation on the part of its contracted
			 managed care entities to provide that, at the direction of the A&F
			 Secretary, they will withhold payments to a contracted provider who is also a
			 borrower that fails to reimburse the Commonwealth under the terms of the
			 approval granted under
			 801 CMR 56.11 and
			 shall transfer the withheld amount to the Commonwealth pursuant to the
			 intercept agreement. Any such withheld and transferred amounts shall be
			 considered to have been paid to the borrower for all other purposes of law, and
			 the borrower shall be considered to have reimbursed the Commonwealth in an
			 amount equal to such withheld and transferred funds for purposes of the
			 approval granted under
			 801 CMR
			 56.11.
(4) In addition, to the extent permitted by
			 federal law, at the direction of the A&F Secretary, MassHealth shall
			 withhold payments to a MassHealth contracted provider who is also a borrower
			 that fails to reimburse the Commonwealth under the terms of the approval
			 granted under
			 801 CMR 56.11 and
			 shall transfer the withheld amount to the Commonwealth pursuant to the
			 intercept agreement. Any such withheld and transferred amounts shall be
			 considered to have been paid to the borrower for all other purposes of law, and
			 the borrower shall be considered to have reimbursed the Commonwealth in an
			 amount equal to such withheld and transferred funds for purposes of the
			 approval granted under
			 801 CMR
			 56.11.
(5) In the event that funds are withheld from
			 a borrower pursuant to 801 CMR 56.14(5) and the intercept agreement, the
			 borrower shall deem the withheld amounts to have been paid in full, and shall
			 not seek to recover withheld funds from insured individuals, health plans,
			 MassHealth, the Commonwealth or any other entity insured through the Group
			 Insurance Commission or the Commonwealth Health Insurance Connector
			 Authority.