Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S699 Compare Versions

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22 SENATE DOCKET, NO. 1714 FILED ON: 1/16/2025
33 SENATE . . . . . . . . . . . . . . No. 699
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Brendan P. Crighton
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 :Brendan P. CrightonThird EssexErika Uyterhoeven27th Middlesex2/28/2025 1 of 3
1616 SENATE DOCKET, NO. 1714 FILED ON: 1/16/2025
1717 SENATE . . . . . . . . . . . . . . No. 699
1818 By Mr. Crighton, a petition (accompanied by bill, Senate, No. 699) of Brendan P. Crighton and
1919 Erika Uyterhoeven for legislation relative to unilateral contract changes with health care
2020 providers. Financial Services.
2121 The Commonwealth of Massachusetts
2222 _______________
2323 In the One Hundred and Ninety-Fourth General Court
2424 (2025-2026)
2525 _______________
2626 An Act relative to unilateral contract changes.
2727 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2828 of the same, as follows:
2929 1 SECTION 1. Section 15 of chapter 176O of the General Laws is hereby amended by
3030 2striking out subsection j and inserting in place thereof the following new subsection:-
3131 3 (j) No carrier shall make a contract with a health care provider which includes a provision
3232 4permitting termination without cause. A carrier shall provide a written statement to a provider of
3333 5the reason or reasons for such provider's involuntary disenrollment. No carrier shall make a
3434 6contract with a health care provider which includes a provision permitting the carrier to make a
3535 7unilateral change to any material term or condition of such contract, including, but not limited to,
3636 8changes to underlying fee schedules, payment terms, carrier policies or procedures, definitions of
3737 9covered services or covered sites of services, policies associated with utilization review, quality
3838 10management and improvement, credentialing or covered preventive health services, other than a
3939 11change expressly required by law, unless the effective date of such unilateral change is after the
4040 12end of the then-current term of such contract, and notice of such change was provided, in 2 of 3
4141 13writing, to the health care provider more than 90 days before the date by which the health care
4242 14provider must provide notice of termination or non-renewal to the carrier under such contract.
4343 15Nothing herein shall prohibit a carrier and a health care provider from entering into a mutually-
4444 16agreeable amendment to such contract.
4545 17 SECTION 2. Section 4 of chapter 32A of the General Laws is hereby amended by
4646 18inserting after the first paragraph the following new paragraph:-
4747 19 The commission shall not purchase a policy providing health insurance benefits from an
4848 20insurance company whose contract with a healthcare provider under said policy includes a
4949 21provision permitting termination without cause. The commission shall not purchase a policy
5050 22providing health insurance benefits from an insurance company whose contract with a healthcare
5151 23provider under said policy includes a provision permitting the carrier to make a unilateral change
5252 24to any material term or condition of such contract, including, but not limited to, changes to
5353 25underlying fee schedules, payment terms, carrier policies or procedures, definitions of covered
5454 26services or covered sites of services, policies associated with utilization review, quality
5555 27management and improvement, credentialing or covered preventive health services, other than a
5656 28change expressly required by law, unless the effective date of such unilateral change is after the
5757 29end of the then-current term of such contract, and notice of such change was provided, in
5858 30writing, to the health care provider more than 90 days before the date by which the health care
5959 31provider must provide notice of termination or non-renewal to the carrier under such contract.
6060 32Nothing herein shall prohibit an insurance company and a health care provider from entering into
6161 33a mutually-agreeable amendment to such contract. 3 of 3
6262 34 SECTION 3. Section 4A of chapter 32A of the General Laws is hereby amended by
6363 35inserting at the end of the first paragraph the following:-
6464 36 The commission shall not enter into such service-type contracts if said contract includes a
6565 37provision permitting the termination without cause of a healthcare provider. The commission
6666 38shall not enter into such service-type contracts if said contract includes a provision permitting the
6767 39carrier to make a unilateral change to any material term or condition of such contract, including,
6868 40but not limited to, changes to underlying fee schedules, payment terms, carrier policies or
6969 41procedures, definitions of covered services or covered sites of services, policies associated with
7070 42utilization review, quality management and improvement, credentialing or covered preventive
7171 43health services, other than a change expressly required by law, unless the effective date of such
7272 44unilateral change is after the end of the then-current term of such contract, and notice of such
7373 45change was provided, in writing, to the health care provider more than 90 days before the date by
7474 46which the health care provider must provide notice of termination or non-renewal to the carrier
7575 47under such contract. Nothing herein shall prohibit an insurance company and a health care
7676 48provider from entering into a mutually-agreeable amendment to such contract.