An Act relative to transparency in municipal health insurance

Healthcare Labor

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: John J. Lawn, Jr.
Last action: 2026-05-21
Official status: Referred to House Committee on Bills in the Third Reading
Effective date: Not listed

Plain English Breakdown

The official text does not provide specific details on costs, making it difficult to determine exact financial impacts.

Making Health Insurance Clearer in Towns

This bill sets rules about how towns and cities can hire brokers and consultants to help them buy health insurance for their employees.

What This Bill Does

Defines a 'broker' as someone with a special license from the Commonwealth of Massachusetts who helps place insurance plans for public authorities or governmental units.
Defines a 'consultant' as someone with an advisor license from the Commonwealth of Massachusetts who provides technical expertise to help public authorities, governmental units, or employers buy benefits like medical, dental, and pharmacy coverage.
Allows towns or government units to hire consultants to review insurance renewals, advise on different types of plans, track costs versus claims, complete Requests for Proposals (RFPs) for various benefit plans, provide compliance audits, and educate members of purchasing committees.
Requires brokers to disclose the rate or percentage of commission they will receive from the insurance carrier.

Who It Names or Affects

Towns or cities that buy health insurance for their employees
Brokers who sell insurance plans to towns or government units
Consultants who give advice on buying health benefits

Terms To Know

broker: A person with a license from the Commonwealth of Massachusetts to help place insurance plans for public authorities or governmental units.
consultant: A person with an advisor license from the Commonwealth of Massachusetts who provides technical expertise in buying health benefits like medical, dental, and pharmacy coverage.

Limits and Unknowns

The bill does not specify how much it will cost towns to hire consultants or brokers.
It is unclear if these rules are new or just clarifying existing practices.

Bill History

2026-05-21 House
Committee reported that the matter be placed in the Orders of the Day for the next sitting
2026-05-21 House
Rules suspended
2026-05-21 House
Read second and ordered to a third reading
2026-05-20 House
Reported from the committee on House Rules
2026-05-20 House
Reported on a part of H5312
2026-05-20 House
Bill reported favorably by committee and referred to the committee on House Steering, Policy and Scheduling
2026-03-30 House
Accompanied a study order, see H5312 (under House Rule 27)
2025-07-08 Joint
Hearing rescheduled to 07/09/2025 from 01:00 PM-05:00 PM in A-2
2025-06-30 Joint
Hearing scheduled for 07/09/2025 from 01:00 PM-05:00 PM in B-1
2025-02-27 House
Referred to the committee on Public Service
2025-02-27 Senate
Senate concurred
House
Reported by committee to Clerk’s Office for processing, will accompany a study order

Official Summary Text

An Act relative to transparency in municipal health insurance
By Representative Lawn of Watertown, a petition (accompanied by bill, House, No. 2890) of John J. Lawn, Jr., relative to transparency in municipal health insurance. Public Service.
Status:
Referred to House Committee on Bills in the Third Reading

Current Bill Text

Read the full stored bill text

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Bill H.2890

Section 1: Section 2 of chapter 32B, as appearing in the 2022 Official Edition, is hereby amended by inserting after line 11 the following new definition: -

“Broker”, any person or entity that holds a broker license issued by the Commonwealth of Massachusetts, in the service of an appropriate public authority or governmental unit to place insurance plans with carriers, joint purchasing arrangements or third party administrators for benefits as defined in section 3.

Section 2: Section 2 of chapter 32B, as so appearing, is hereby amended by inserting after line 13 the following new definition: -

“Consultant”, any person or entity that holds an advisor license issued by the Commonwealth of Massachusetts, in the service of an appropriate public authority or governmental unit or employer to provide technical expertise relative to the purchase of benefits as defined in section 3.

Section 3: Chapter 32B of the General Laws is hereby amended by inserting the following new section: -

Section 3B. (a)

A public authority, governmental unit or employer may enter into a contract with a consultant as defined in section 1 to provide expertise in the following areas but not limited to, review annual renewal action, advise on insured vs self-insured plans, track experience (claims vs premium, self-insured plan experience), complete Requests for Proposals (RFPs) for different benefit plans (medical, pharmacy, dental, voluntary products), provide compliance audit and updates to employer,

may help educate members of PEC or IAC. Said contract shall include an explanation of the fees and payment schedule to consultant.

(b)

A public authority, governmental unit or employer may enter into a contract with a broker as defined in section 1 to place insurance plans with carriers. Said broker shall provide the rate or percentage of commission relative to rate of premium, to be paid to said broker by the insurance carrier.

(c)

A consultant shall be prohibited from acting as a broker, regardless of license, on behalf of the same public authority, governmental unit or employer.

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