*HB1359.1*
January 25, 2024
HOUSE BILL No. 1359
_____
DIGEST OF HB 1359 (Updated January 24, 2024 12:02 pm - DI 141)
Citations Affected: IC 27-1.
Synopsis: Health provider contracts. Provides that if a party to a health
provider contract intends to terminate the contractual relationship with
another party to the health provider contract as of January 1 of the
following calendar year, the terminating party must provide written
notice to the other party before September 1. Provides that if a party
intending to terminate a health provider contract fails to provide the
required written notice before September 1 of a particular calendar
year, the health provider contract remains in effect and is binding upon
the parties in the following calendar year. Allows a party to terminate
a health provider contract after September 1 under certain
circumstances. Provides that the law governing the amendment of a
health provider contract does not apply to the termination of a health
provider contract under the bill.
Effective: July 1, 2024.
Carbaugh, Lehman, Smaltz
January 10, 2024, read first time and referred to Committee on Insurance.
January 25, 2024, amended, reported — Do Pass.
HB 1359—LS 6982/DI 92 January 25, 2024
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1359
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 27-1-37-9 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2024]: Sec. 9. (a) This section applies to health provider contracts
4 entered into or renewed after June 30, 2024.
5 (b) Except as provided in subsection (d), if a party to a health
6 provider contract intends to terminate the contractual relationship
7 with another party to the health provider contract as of January
8 1 of the following calendar year, the terminating party must
9 provide written notice to the other party of the decision to
10 terminate the contractual relationship before September 1.
11 (c) If a party intending to terminate a health provider contract
12 fails to provide the written notice required by subsection (b) before
13 September 1 of a particular calendar year, the health provider
14 contract remains in effect and is binding upon the parties in the
15 following calendar year.
16 (d) A party to a health provider contract may terminate a
17 contract after the September 1 deadline set forth in subsection (b)
HB 1359—LS 6982/DI 92 2
1 for any of the following reasons:
2 (1) Breach of agreement.
3 (2) Investigations or disciplinary actions related to fraud,
4 waste, or abuse.
5 (3) Changes to billing and reimbursement that have not been
6 negotiated by both parties.
7 (4) Violations of state or federal laws or regulations.
8 SECTION 2. IC 27-1-37.1-0.5 IS ADDED TO THE INDIANA
9 CODE AS A NEW SECTION TO READ AS FOLLOWS
10 [EFFECTIVE JULY 1, 2024]: Sec. 0.5. This chapter does not apply
11 to the termination of a health provider contract under
12 IC 27-1-37-9.
HB 1359—LS 6982/DI 92 3
COMMITTEE REPORT
Mr. Speaker: Your Committee on Insurance, to which was referred
House Bill 1359, has had the same under consideration and begs leave
to report the same back to the House with the recommendation that said
bill be amended as follows:
Page 1, line 5, delete "If" and insert "Except as provided in
subsection (d), if".
Page 1, between lines 15 and 16, begin a new paragraph and insert:
"(d) A party to a health provider contract may terminate a
contract after the September 1 deadline set forth in subsection (b)
for any of the following reasons:
(1) Breach of agreement.
(2) Investigations or disciplinary actions related to fraud,
waste, or abuse.
(3) Changes to billing and reimbursement that have not been
negotiated by both parties.
(4) Violations of state or federal laws or regulations.".
and when so amended that said bill do pass.
(Reference is to HB 1359 as introduced.)
CARBAUGH
Committee Vote: yeas 11, nays 0.
HB 1359—LS 6982/DI 92