Bill > SB126

This bill establishes new regulations for health carriers (insurance companies) regarding contract changes with healthcare providers. Under the new rules, health carriers can only make contract modifications four times per year, on specific dates (January 1, April 1, July 1, and October 1), and must provide 60 days' notice before implementing changes. Exceptions to this 60-day notice requirement include mutually agreed waivers between the carrier and provider, changes mandated by state or federal governments, and modifications related to medical terminology codes. When proposing changes, carriers must provide both the original and revised contract versions, with changes clearly marked using underlining, bolding, and strikethrough formatting. Additionally, if contract changes result in aggregate reimbursement modifications exceeding $500,000 annually across all participating providers in the state, the carrier must submit a good faith estimate of the financial impact to each provider and annually report these details to the insurance commissioner. The bill will take effect 60 days after passage, and the fiscal impact is estimated to be less than $10,000 annually from 2025 through 2028.