Substitute Bill No. 87 establishes a Nonprofit Provider Advisory Board within the Office of Policy and Management to enhance service delivery by nonprofit providers. The board will include members from various nonprofit sectors, state agencies, and other stakeholders, tasked with identifying collaboration opportunities, recommending strategies for financial viability, and suggesting a standardized workforce data collection system. The bill also prohibits auto insurance penalties for volunteer drivers of nonprofit organizations, ensuring that insurers cannot refuse policy renewals or impose surcharges based on volunteer status. Additionally, it reduces the recoupment period for insurers from eighteen months to twelve months, protecting providers from retroactive denials.

The legislation introduces new provisions for appealing cancellations, denials, or demands for payment returns from healthcare organizations. It requires organizations to disclose the amount demanded, the specific claim, and the basis for the demand, while granting providers a thirty-day period to appeal, during which any payment return demand is stayed. If the appeal is denied, providers can resubmit an adjusted claim within thirty days, except in cases of payment return demands. Furthermore, providers are allowed one year from the written notice date to file claims with other applicable insurance coverage, regardless of other insurers' timely filing requirements. The bill includes new sections effective January 1, 2027, and amends existing law under section 38a-479b(c), aiming to improve transparency and provide a structured process for addressing payment disputes.