House Bill No. 7116 seeks to improve accountability and transparency in health care contracts by repealing Section 38a-477i and replacing it with new definitions and prohibitions regarding specific clauses. The bill introduces terms such as "all-or-nothing clause," "anti-steering clause," "anti-tiering clause," "gag clause," and a "revenue neutrality clause." It prohibits health care providers, health carriers, and health plan administrators from including these clauses in contracts entered into or renewed after July 1, 2025, rendering any contract with such clauses null and void while allowing other provisions to remain effective. Additionally, the bill amends Section 19a-754f to clarify definitions related to drug manufacturers and health care benchmarks, while removing certain language to enhance transparency and ensure providers can share critical information about pricing and quality.

Furthermore, the bill mandates the Office of Health Strategy (OHS) to submit aggregated payer data to the Insurance Commissioner annually, starting March 1, 2026. This data will be essential for calculating total health care expenditures and primary care spending targets. The Insurance Commissioner is also authorized to hire independent auditors to review this data for accuracy, with potential audit costs estimated at up to $100,000 annually beginning in FY 26. Overall, House Bill No. 7116 aims to create a more open and accountable health care system while maintaining existing privacy protections under federal laws.

Statutes affected:
Raised Bill:
INS Joint Favorable:
File No. 409: