Rhode Island Senate Bill S0791

Rhode Island 2025 Regular Session

• Introduced: 3/14/25
• Refer: 3/14/25

Caption

Prohibits insurance companies from paying a rate that is less than the approved Medicaid rate set by the executive office of health and human services.

Impact

If enacted, S0791 would significantly impact the operations of insurance companies organized as stock or mutual corporations within Rhode Island. It mandates that these companies, particularly those merging with or controlling nonprofit hospital service corporations, must comply with stricter regulations around rate approvals. Furthermore, it prevents them from charging any rates based on elements that do not align with the approved Medicaid rates, potentially stabilizing costs across Medicaid services and protecting vulnerable populations reliant on these services.

Summary

S0791, introduced by Senators Bissaillon, Tikoian, Lawson, Murray, DiMario, and Appollonio, is a legislative act relating to health insurance policies. The bill primarily aims to amend existing laws governing health insurance rates, particularly focusing on the stipulations for insurance companies in Rhode Island. A key provision of the bill is the prohibition against insurance companies from charging rates below the approved Medicaid rate set by the executive office of health and human services. This amendment is intended to ensure that policyholder costs reflect an adherence to established Medicaid standards.

Contention

The proposed amendment could generate notable contention among stakeholders in the insurance and healthcare sectors. Supporters may argue that the bill establishes a necessary floor for insurance rates that aligns with government-funded healthcare benchmarks, thereby preserving service quality and access for low-income individuals. Opponents may raise concerns about the implications for insurance companies' profitability and flexibility in setting competitive rates. This could lead to heated debates regarding healthcare funding and the balance between state regulations and free-market practices within the insurance industry.