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Bill > HF2249


IA HF2249

IA HF2249
A bill for an act relating to vision benefit plans, vision benefit managers, vision care providers, and vision care provider contracts and including civil penalties and effective date and applicability provisions.


summary

Introduced
01/30/2026
In Committee
01/30/2026
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill relates to vision benefit plans, vision benefit managers, vision care providers, and vision care provider contracts. The bill details the standards of conduct for vision benefit managers (managers), including the requirements for a reimbursement paid by a manager to a vision care provider (provider), annual increases in reimbursement rate fee schedules, the period of time for a manager to recover a reimbursement amount from a provider, the auditing time frame for an audit of a claim or a collection of a claim, a reimbursement for a covered service or covered material provided to a covered person, the identification of participating providers, and the licensure requirements for managers. “Covered person”, “vision benefit manager”, and “vision care provider” are defined in the bill. A manager shall not engage in any of the conduct prohibited by the bill. A contract between a manager and a provider shall not violate the provisions of the bill. A manager shall comply with the national association of insurance commissioners coordination of benefits regulations, and the coordination of benefits shall allow for a covered person to apply all benefits to the cost of a covered service and covered material. Under the bill, for the acquisition or merger of managers, the parties to the acquisition or merger shall provide for a reenrollment period for providers. The reenrollment process and details must be well defined and provide for a minimum of six months notice to providers prior to the activation of a new plan by the prevailing manager after the merger or acquisition. During the merger or acquisition, a provider shall be entitled to opt out of reenrollment without penalty or obligation to the previous contract. The prevailing manager to the merger or acquisition shall enter into updated contracts with all providers who choose to reenroll. A provider adversely affected by a violation of the bill by a manager may bring an action in a court of competent jurisdiction for injunctive relief against the manager. If a provider prevails in such action, in addition to injunctive relief, the provider shall be entitled to recover monetary damages, penalties not to exceed $10,000 for each violation, and attorney fees and costs. The attorney general may bring an action on behalf of a provider for injunctive relief against a manager. The bill applies to policies, contracts, and plans between a manager and a provider delivered, issued for delivery, continued, or renewed in this state on or after the effective date of the bill. The bill also applies to an affiliate or subcontractor used by a manager to supply covered services or covered materials to a provider or a covered person. The commissioner of insurance may adopt rules to administer the bill. The bill makes a conforming change to Code section 714H.3(2). The bill takes effect upon enactment.

AI Summary

This bill establishes new regulations for vision benefit plans, vision benefit managers (companies that administer vision benefits), vision care providers (like optometrists), and their contracts, aiming to ensure fair practices and transparency. Key provisions include setting minimum reimbursement rates for providers, requiring annual adjustments for inflation, and standardizing the timeframes for claim recovery and audits between managers and providers. It also prohibits managers from engaging in certain practices, such as forcing providers to participate in multiple plans, improperly accessing patient information, controlling professional judgment, or retroactively reversing payments when a provider acted in good faith. Contracts between managers and providers are limited to two years and cannot include clauses that force providers to offer services at a loss or accept certain payment methods that incur fees. In cases of mergers or acquisitions of vision benefit managers, a reenrollment period for providers must be provided with at least six months' notice, and providers have the option to opt out without penalty. Providers who are negatively impacted by a manager's violation of these rules can sue for damages, penalties up to $10,000 per violation, and legal fees, and the Attorney General can also take action. These regulations apply to new and renewed contracts and plans starting from the bill's effective date, which is upon enactment.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Subcommittee recommends passage. (on 02/12/2026)

bill text


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