Researcher: JKL Page 1 5/12/23
OLR Bill Analysis
HB 6782 (as amended by House "A")*
AN ACT CONCERNING NOTICES OF TERMINATION OF HEALTH
CARE CONTRACTS.
SUMMARY
This bill requires a health carrier (e.g., insurer or HMO) and each
provider participating in its network (i.e., participating provider) to give
each other at least 90 days’ written notice of an intent to terminate the
contract before the proposed termination date or, if a nonrenewal, the
end of the contract period. (This replaces current law’s requirement for
at least 90 days’ notice before a participating provider is removed from
or leaves a network.)
The bill requires the carrier to make a good faith effort to notify all
insureds who are regular patients of the participating provider at least
30 days before the proposed termination date or, if a nonrenewal, the
end of the contract period. (Current law instead requires this within 30
days after notification that a provider is being removed from or leaving
a network.) Under the bill, this patient notification is not required if the
carrier and participating provider agree in writing to extend the contract
up to one year. The bill also eliminates a requirement that a provider
leaving or removed from a network give the carrier a list of its covered
patients.
By law, when a contract between a health carrier and a participating
hospital or its parent corporation is terminated or not renewed, the
carrier and hospital must continue to abide by the contract for an
additional 60 days. For contracts entered into, renewed, amended, or
continued on or after July 1, 2024, the bill (1) additionally applies this
requirement to hospital intermediaries and (2) specifically requires that
the contract terms the parties must continue abiding by for 60 days
include the reimbursement terms for all health care services. (As under
current law, these provisions do not apply if the carrier and hospital 2023HB-06782-R010774-BA.DOCX
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agree in writing to the contract termination and make the notices
described above.)
However, the bill takes effect upon passage. As a result, the law’s
provisions on continuing contract terms for 60 days (and the bill’s
modifications to those provisions) appear to not apply to contracts
entered into, amended, or renewed before July 1, 2024. Thus, it is unclear
if the current law remains in place until July 1, 2024.
*House Amendment “A” replaces the underlying bill with similar
provisions and makes the following changes: (1) adds reference to a
contract nonrenewal; (2) removes a requirement that a contract
automatically extends or renews if a carrier or participating provider
does not give the required notice; (3) removes a requirement that
providers must give carriers patient lists; (4) changes the carrier’s due
date for notifying patients to at least 30 days before the proposed
termination date, rather than within 30 days before the provider leaves
the network; and (5) moves the effective date from October 1, 2023, to
upon passage.
EFFECTIVE DATE: Upon passage
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable
Yea 10 Nay 2 (03/16/2023)