Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H1267 Compare Versions

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22 HOUSE DOCKET, NO. 951 FILED ON: 1/14/2025
33 HOUSE . . . . . . . . . . . . . . . No. 1267
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Frank A. Moran
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to unilateral contract changes.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Frank A. Moran17th Essex1/14/2025 1 of 3
1616 HOUSE DOCKET, NO. 951 FILED ON: 1/14/2025
1717 HOUSE . . . . . . . . . . . . . . . No. 1267
1818 By Representative Moran of Lawrence, a petition (accompanied by bill, House, No. 1267) of
1919 Frank A. Moran for legislation to further regulate health insurance contracts. Financial Services.
2020 The Commonwealth of Massachusetts
2121 _______________
2222 In the One Hundred and Ninety-Fourth General Court
2323 (2025-2026)
2424 _______________
2525 An Act relative to unilateral contract changes.
2626 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2727 of the same, as follows:
2828 1 SECTION 1. Section 15 of chapter 176O of the General Laws is hereby amended by
2929 2striking out subsection j and inserting in place thereof the following new subsection:-
3030 3 (j) No carrier shall make a contract with a health care provider which includes a provision
3131 4permitting termination without cause. A carrier shall provide a written statement to a provider of
3232 5the reason or reasons for such provider's involuntary disenrollment. No carrier shall make a
3333 6contract with a health care provider which includes a provision permitting the carrier to make a
3434 7unilateral change to any material term or condition of such contract, including, but not limited to,
3535 8changes to underlying fee schedules, payment terms, carrier policies or procedures, definitions of
3636 9covered services or covered sites of services, policies associated with utilization review, quality
3737 10management and improvement, credentialing or covered preventive health services, other than a
3838 11change expressly required by law, unless the effective date of such unilateral change is after the
3939 12end of the then-current term of such contract, and notice of such change was provided, in
4040 13writing, to the health care provider more than 90 days before the date by which the health care 2 of 3
4141 14provider must provide notice of termination or non-renewal to the carrier under such contract.
4242 15Nothing herein shall prohibit a carrier and a health care provider from entering into a mutually-
4343 16agreeable amendment to such contract.
4444 17 SECTION 3. Section 4 of chapter 32A of the General Laws is hereby amended by
4545 18inserting after the first paragraph the following new paragraph:-
4646 19 The commission shall not purchase a policy providing health insurance benefits from an
4747 20insurance company whose contract with a healthcare provider under said policy includes a
4848 21provision permitting termination without cause. The commission shall not purchase a policy
4949 22providing health insurance benefits from an insurance company whose contract with a healthcare
5050 23provider under said policy includes a provision permitting the carrier to make a unilateral change
5151 24to any material term or condition of such contract, including, but not limited to, changes to
5252 25underlying fee schedules, payment terms, carrier policies or procedures, definitions of covered
5353 26services or covered sites of services, policies associated with utilization review, quality
5454 27management and improvement, credentialing or covered preventive health services, other than a
5555 28change expressly required by law, unless the effective date of such unilateral change is after the
5656 29end of the then-current term of such contract, and notice of such change was provided, in
5757 30writing, to the health care provider more than 90 days before the date by which the health care
5858 31provider must provide notice of termination or non-renewal to the carrier under such contract.
5959 32Nothing herein shall prohibit an insurance company and a health care provider from entering into
6060 33a mutually-agreeable amendment to such contract.
6161 34 SECTION 4. Section 4A of chapter 32A of the General Laws is hereby amended by
6262 35inserting at the end of the first paragraph the following:- 3 of 3
6363 36 The commission shall not enter into such service-type contracts if said contract includes a
6464 37provision permitting the termination without cause of a healthcare provider. The commission
6565 38shall not enter into such service-type contracts if said contract includes a provision permitting the
6666 39carrier to make a unilateral change to any material term or condition of such contract, including,
6767 40but not limited to, changes to underlying fee schedules, payment terms, carrier policies or
6868 41procedures, definitions of covered services or covered sites of services, policies associated with
6969 42utilization review, quality management and improvement, credentialing or covered preventive
7070 43health services, other than a change expressly required by law, unless the effective date of such
7171 44unilateral change is after the end of the then-current term of such contract, and notice of such
7272 45change was provided, in writing, to the health care provider more than 90 days before the date by
7373 46which the health care provider must provide notice of termination or non-renewal to the carrier
7474 47under such contract. Nothing herein shall prohibit an insurance company and a health care
7575 48provider from entering into a mutually-agreeable amendment to such contract.