Bill > H5020

This bill aims to prevent health insurance companies, referred to as "carriers," from making significant changes to their contracts with healthcare providers without mutual agreement or proper notice. Specifically, it prohibits carriers from including clauses in their contracts that allow for termination without cause, meaning either party can end the contract without needing a specific reason. Furthermore, carriers are restricted from unilaterally altering material terms of these contracts, such as payment rates, policies, or definitions of covered services, unless the change is legally mandated. If a carrier wishes to make such a change, they must provide written notice to the healthcare provider at least 90 days before the provider's deadline to terminate or not renew the contract, and the change can only take effect after the current contract term ends. This bill also applies to the commission that purchases health insurance policies, preventing them from buying policies from companies that have such one-sided contract terms with healthcare providers. The intent is to ensure greater stability and fairness in contracts between insurance companies and healthcare providers, while still allowing for mutually agreed-upon amendments.

Health and Social Services

Joint Committee on Financial Services (Joint)

https://malegislature.gov/Bills/194/H5020