*EH1359.1*
February 23, 2024
ENGROSSED
HOUSE BILL No. 1359
_____
DIGEST OF HB 1359 (Updated February 21, 2024 1:02 pm - DI 154)
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, the terminating party must
provide written notice to the other party of the decision to terminate the
contractual relationship not less than 90 days before the health provider
contract terminates.
Effective: July 1, 2024.
Carbaugh, Lehman, Smaltz,
Fleming
(SENATE SPONSORS — JOHNSON T, BUSCH, WALKER K)
January 10, 2024, read first time and referred to Committee on Insurance.
January 25, 2024, amended, reported — Do Pass.
January 29, 2024, read second time, ordered engrossed. Engrossed.
January 30, 2024, read third time, passed. Yeas 92, nays 0.
SENATE ACTION
February 12, 2024, read first time and referred to Committee on Insurance and Financial
Institutions.
February 22, 2024, amended, reported favorably — Do Pass.
EH 1359—LS 6982/DI 92 February 23, 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.
ENGROSSED
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) If a party to a health provider contract intends to terminate
6 the contractual relationship with another party to the health
7 provider contract, the terminating party must provide written
8 notice to the other party of the decision to terminate the
9 contractual relationship not less than ninety (90) days before the
10 health provider contract terminates.
11 SECTION 2. IC 27-1-37.1-0.5 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2024]: Sec. 0.5. This chapter does not apply
14 to the termination of a health provider contract under
15 IC 27-1-37-9.
EH 1359—LS 6982/DI 92 2
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.
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Insurance and
Financial Institutions, to which was referred House Bill No. 1359, has
had the same under consideration and begs leave to report the same
back to the Senate with the recommendation that said bill be
AMENDED as follows:
Page 1, delete lines 1 through 17, begin a new paragraph and insert:
"SECTION 1. IC 27-1-37-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2024]: Sec. 9. (a) This section applies to health provider contracts
entered into or renewed after June 30, 2024.
(b) If a party to a health provider contract intends to terminate
the contractual relationship with another party to the health
provider contract, the terminating party must provide written
EH 1359—LS 6982/DI 92 3
notice to the other party of the decision to terminate the
contractual relationship not less than ninety (90) days before the
health provider contract terminates.".
Page 2, delete lines 1 through 7.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1359 as printed January 25, 2024.)
BALDWIN, Chairperson
Committee Vote: Yeas 7, Nays 1.
EH 1359—LS 6982/DI 92