1 of 1 SENATE DOCKET, NO. 1714 FILED ON: 1/16/2025 SENATE . . . . . . . . . . . . . . No. 699 The Commonwealth of Massachusetts _________________ PRESENTED BY: Brendan P. Crighton _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act relative to unilateral contract changes. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :Brendan P. CrightonThird EssexErika Uyterhoeven27th Middlesex2/28/2025 1 of 3 SENATE DOCKET, NO. 1714 FILED ON: 1/16/2025 SENATE . . . . . . . . . . . . . . No. 699 By Mr. Crighton, a petition (accompanied by bill, Senate, No. 699) of Brendan P. Crighton and Erika Uyterhoeven for legislation relative to unilateral contract changes with health care providers. Financial Services. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act relative to unilateral contract changes. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Section 15 of chapter 176O of the General Laws is hereby amended by 2striking out subsection j and inserting in place thereof the following new subsection:- 3 (j) No carrier shall make a contract with a health care provider which includes a provision 4permitting termination without cause. A carrier shall provide a written statement to a provider of 5the reason or reasons for such provider's involuntary disenrollment. No carrier shall make a 6contract with a health care provider which includes a provision permitting the carrier to make a 7unilateral change to any material term or condition of such contract, including, but not limited to, 8changes to underlying fee schedules, payment terms, carrier policies or procedures, definitions of 9covered services or covered sites of services, policies associated with utilization review, quality 10management and improvement, credentialing or covered preventive health services, other than a 11change expressly required by law, unless the effective date of such unilateral change is after the 12end of the then-current term of such contract, and notice of such change was provided, in 2 of 3 13writing, to the health care provider more than 90 days before the date by which the health care 14provider must provide notice of termination or non-renewal to the carrier under such contract. 15Nothing herein shall prohibit a carrier and a health care provider from entering into a mutually- 16agreeable amendment to such contract. 17 SECTION 2. Section 4 of chapter 32A of the General Laws is hereby amended by 18inserting after the first paragraph the following new paragraph:- 19 The commission shall not purchase a policy providing health insurance benefits from an 20insurance company whose contract with a healthcare provider under said policy includes a 21provision permitting termination without cause. The commission shall not purchase a policy 22providing health insurance benefits from an insurance company whose contract with a healthcare 23provider under said policy includes a provision permitting the carrier to make a unilateral change 24to any material term or condition of such contract, including, but not limited to, changes to 25underlying fee schedules, payment terms, carrier policies or procedures, definitions of covered 26services or covered sites of services, policies associated with utilization review, quality 27management and improvement, credentialing or covered preventive health services, other than a 28change expressly required by law, unless the effective date of such unilateral change is after the 29end of the then-current term of such contract, and notice of such change was provided, in 30writing, to the health care provider more than 90 days before the date by which the health care 31provider must provide notice of termination or non-renewal to the carrier under such contract. 32Nothing herein shall prohibit an insurance company and a health care provider from entering into 33a mutually-agreeable amendment to such contract. 3 of 3 34 SECTION 3. Section 4A of chapter 32A of the General Laws is hereby amended by 35inserting at the end of the first paragraph the following:- 36 The commission shall not enter into such service-type contracts if said contract includes a 37provision permitting the termination without cause of a healthcare provider. The commission 38shall not enter into such service-type contracts if said contract includes a provision permitting the 39carrier to make a unilateral change to any material term or condition of such contract, including, 40but not limited to, changes to underlying fee schedules, payment terms, carrier policies or 41procedures, definitions of covered services or covered sites of services, policies associated with 42utilization review, quality management and improvement, credentialing or covered preventive 43health services, other than a change expressly required by law, unless the effective date of such 44unilateral change is after the end of the then-current term of such contract, and notice of such 45change was provided, in writing, to the health care provider more than 90 days before the date by 46which the health care provider must provide notice of termination or non-renewal to the carrier 47under such contract. Nothing herein shall prohibit an insurance company and a health care 48provider from entering into a mutually-agreeable amendment to such contract.