Bill > HB1589

This bill aims to improve the transparency and fairness of contracts between health carriers, which are insurance companies, and healthcare providers, such as doctors and hospitals. It mandates that before entering into or renewing a contract, health carriers must provide providers with contact information for contract negotiations, a clear copy of the proposed contract showing all changes, and their payment methods at least 60 days in advance. For new contracts, these updates must be sent in an easily accessible format, like email, rather than requiring access to a secure online portal. The bill also requires carriers to give providers at least 90 days' notice before implementing any "significant payer contract modification," which includes changes that decrease provider payments, alter payment methods, restrict where services can be provided, change authorization or claims processes, or significantly increase administrative costs. This notice must detail the impact of the change and be summarized on the carrier's website and in newsletters. These new requirements apply to health plans issued or renewed on or after January 1, 2027, and do not apply to providers who are employees of the health carrier or its affiliates, or those employed by hospitals or certain large provider groups. The bill also clarifies that these provisions apply to health plans regulated by the insurance commissioner, excluding Medicaid managed care plans.