Senate Bill No. 1479, effective October 1, 2025, mandates that the Commissioner of Social Services prohibit health care providers from including mandatory arbitration clauses in their agreements with patients as a condition for receiving Medicaid reimbursement. A mandatory arbitration clause is defined as a provision that requires patients to resolve billing disputes through arbitration rather than through the court system. This legislation aims to protect patients' rights by ensuring they have the option to pursue legal action in billing disputes without being compelled to arbitrate.

The bill introduces new legal language that specifies the prohibition of mandatory arbitration clauses in health care provider agreements, while also clarifying the definitions of "health care provider" and "mandatory arbitration clause." The potential fiscal impact of this bill includes savings for the Department of Social Services, as health care providers who utilize such clauses may become ineligible for Medicaid reimbursement. The bill was reported favorably by the Human Services Committee and reflects a growing trend to enhance patient protections in health care agreements.