The General Assembly Raised Bill No. 7126 aims to enhance the process of state contracting for employee health insurance coverage and related services. It introduces new definitions for terms such as "third-party administrator," "provider," and "affiliated provider," which are essential for clarifying the roles of entities involved in health insurance under the state employee plan. The bill mandates that employee health and life insurance be subject to a competitive selection process, in accordance with a previously approved pension agreement. Additionally, it requires third-party administrators to provide written notices to key state officials regarding the expiration or termination of provider agreements, ensuring transparency and timely communication.

Furthermore, the bill stipulates that the State Comptroller must initiate a competitive selection process for a new third-party administrator within sixty days of receiving notice of an agreement's expiration. It also imposes a prohibition on any third-party administrator that terminates a provider agreement from participating in future selection processes for up to five years, although this period may be reduced at the Comptroller's discretion. If the parties involved in a terminated agreement reach a new agreement within thirty days of the termination notice, the Comptroller may suspend the competitive selection process. This legislation is set to take effect on July 1, 2025, and aims to improve oversight and accountability in the management of state employee health insurance contracts.

Statutes affected:
Raised Bill: 5-259a