1 | 1 | | 1 of 1 |
---|
2 | 2 | | HOUSE DOCKET, NO. 951 FILED ON: 1/14/2025 |
---|
3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 1267 |
---|
4 | 4 | | The Commonwealth of Massachusetts |
---|
5 | 5 | | _________________ |
---|
6 | 6 | | PRESENTED BY: |
---|
7 | 7 | | Frank A. Moran |
---|
8 | 8 | | _________________ |
---|
9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
---|
10 | 10 | | Court assembled: |
---|
11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
---|
12 | 12 | | An Act relative to unilateral contract changes. |
---|
13 | 13 | | _______________ |
---|
14 | 14 | | PETITION OF: |
---|
15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Frank A. Moran17th Essex1/14/2025 1 of 3 |
---|
16 | 16 | | HOUSE DOCKET, NO. 951 FILED ON: 1/14/2025 |
---|
17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 1267 |
---|
18 | 18 | | By Representative Moran of Lawrence, a petition (accompanied by bill, House, No. 1267) of |
---|
19 | 19 | | Frank A. Moran for legislation to further regulate health insurance contracts. Financial Services. |
---|
20 | 20 | | The Commonwealth of Massachusetts |
---|
21 | 21 | | _______________ |
---|
22 | 22 | | In the One Hundred and Ninety-Fourth General Court |
---|
23 | 23 | | (2025-2026) |
---|
24 | 24 | | _______________ |
---|
25 | 25 | | An Act relative to unilateral contract changes. |
---|
26 | 26 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
---|
27 | 27 | | of the same, as follows: |
---|
28 | 28 | | 1 SECTION 1. Section 15 of chapter 176O of the General Laws is hereby amended by |
---|
29 | 29 | | 2striking out subsection j and inserting in place thereof the following new subsection:- |
---|
30 | 30 | | 3 (j) No carrier shall make a contract with a health care provider which includes a provision |
---|
31 | 31 | | 4permitting termination without cause. A carrier shall provide a written statement to a provider of |
---|
32 | 32 | | 5the reason or reasons for such provider's involuntary disenrollment. No carrier shall make a |
---|
33 | 33 | | 6contract with a health care provider which includes a provision permitting the carrier to make a |
---|
34 | 34 | | 7unilateral change to any material term or condition of such contract, including, but not limited to, |
---|
35 | 35 | | 8changes to underlying fee schedules, payment terms, carrier policies or procedures, definitions of |
---|
36 | 36 | | 9covered services or covered sites of services, policies associated with utilization review, quality |
---|
37 | 37 | | 10management and improvement, credentialing or covered preventive health services, other than a |
---|
38 | 38 | | 11change expressly required by law, unless the effective date of such unilateral change is after the |
---|
39 | 39 | | 12end of the then-current term of such contract, and notice of such change was provided, in |
---|
40 | 40 | | 13writing, to the health care provider more than 90 days before the date by which the health care 2 of 3 |
---|
41 | 41 | | 14provider must provide notice of termination or non-renewal to the carrier under such contract. |
---|
42 | 42 | | 15Nothing herein shall prohibit a carrier and a health care provider from entering into a mutually- |
---|
43 | 43 | | 16agreeable amendment to such contract. |
---|
44 | 44 | | 17 SECTION 3. Section 4 of chapter 32A of the General Laws is hereby amended by |
---|
45 | 45 | | 18inserting after the first paragraph the following new paragraph:- |
---|
46 | 46 | | 19 The commission shall not purchase a policy providing health insurance benefits from an |
---|
47 | 47 | | 20insurance company whose contract with a healthcare provider under said policy includes a |
---|
48 | 48 | | 21provision permitting termination without cause. The commission shall not purchase a policy |
---|
49 | 49 | | 22providing health insurance benefits from an insurance company whose contract with a healthcare |
---|
50 | 50 | | 23provider under said policy includes a provision permitting the carrier to make a unilateral change |
---|
51 | 51 | | 24to any material term or condition of such contract, including, but not limited to, changes to |
---|
52 | 52 | | 25underlying fee schedules, payment terms, carrier policies or procedures, definitions of covered |
---|
53 | 53 | | 26services or covered sites of services, policies associated with utilization review, quality |
---|
54 | 54 | | 27management and improvement, credentialing or covered preventive health services, other than a |
---|
55 | 55 | | 28change expressly required by law, unless the effective date of such unilateral change is after the |
---|
56 | 56 | | 29end of the then-current term of such contract, and notice of such change was provided, in |
---|
57 | 57 | | 30writing, to the health care provider more than 90 days before the date by which the health care |
---|
58 | 58 | | 31provider must provide notice of termination or non-renewal to the carrier under such contract. |
---|
59 | 59 | | 32Nothing herein shall prohibit an insurance company and a health care provider from entering into |
---|
60 | 60 | | 33a mutually-agreeable amendment to such contract. |
---|
61 | 61 | | 34 SECTION 4. Section 4A of chapter 32A of the General Laws is hereby amended by |
---|
62 | 62 | | 35inserting at the end of the first paragraph the following:- 3 of 3 |
---|
63 | 63 | | 36 The commission shall not enter into such service-type contracts if said contract includes a |
---|
64 | 64 | | 37provision permitting the termination without cause of a healthcare provider. The commission |
---|
65 | 65 | | 38shall not enter into such service-type contracts if said contract includes a provision permitting the |
---|
66 | 66 | | 39carrier to make a unilateral change to any material term or condition of such contract, including, |
---|
67 | 67 | | 40but not limited to, changes to underlying fee schedules, payment terms, carrier policies or |
---|
68 | 68 | | 41procedures, definitions of covered services or covered sites of services, policies associated with |
---|
69 | 69 | | 42utilization review, quality management and improvement, credentialing or covered preventive |
---|
70 | 70 | | 43health services, other than a change expressly required by law, unless the effective date of such |
---|
71 | 71 | | 44unilateral change is after the end of the then-current term of such contract, and notice of such |
---|
72 | 72 | | 45change was provided, in writing, to the health care provider more than 90 days before the date by |
---|
73 | 73 | | 46which the health care provider must provide notice of termination or non-renewal to the carrier |
---|
74 | 74 | | 47under such contract. Nothing herein shall prohibit an insurance company and a health care |
---|
75 | 75 | | 48provider from entering into a mutually-agreeable amendment to such contract. |
---|