The General Assembly Raised Bill No. 7116 seeks to improve accountability and transparency in health care contracts by introducing specific prohibitions on certain clauses. The bill defines and prohibits "all-or-nothing clauses," "anti-steering clauses," "anti-tiering clauses," "gag clauses," and a new "revenue neutrality clause," stating that no health care provider, health carrier, or health plan administrator may enter into contracts containing these clauses after July 1, 2025. Any contracts that include these prohibited clauses after this date will be considered null and void, while the remaining provisions will still be enforceable. Additionally, the bill repeals and replaces certain sections of the general statutes to clarify the roles of entities such as "drug manufacturers" and "payers," while ensuring that existing privacy protections under federal laws remain intact.

Furthermore, the bill enhances oversight of health care expenditures by mandating the Commissioner of Health Strategy to submit aggregated data from each payer to the Insurance Commissioner by March 1, 2026, and annually thereafter. This data will be used to assess total health care expenditures and primary care spending as a percentage of total medical expenses. The Insurance Commissioner is also authorized to hire independent experts to audit this data, with findings reported to relevant legislative committees. The bill's amendments will take effect on July 1, 2025, while new sections will become effective upon passage.

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