The proposed bill aims to enhance continuity of care in health insurance contracts by establishing specific requirements for health insurers and contracted health care practitioners. It mandates that both parties must provide a joint written notice to affected policyholders at least 60 days prior to the cancellation or termination of their contracts. This notice must be clear and include information about the policyholder's rights regarding care continuation, timelines for transitioning care, and contact details for inquiries. Additionally, the bill authorizes the Financial Services Commission to adopt rules and imposes administrative penalties of up to $5,000 for non-compliance.

Furthermore, the bill stipulates that when a contract is terminated, policyholders receiving active treatment must be allowed to continue their coverage and care until they select a new practitioner or during the next open enrollment period, not exceeding six months. It also ensures that those who have initiated prenatal care can continue until postpartum care is completed. The bill includes provisions that require both the insurer and the health care practitioner to remain bound by the terms of the terminated contract, and any changes made within 30 days before termination are only effective if agreed upon by both parties. The act is set to take effect on July 1, 2026.

Statutes affected:
H 577 Filed: 641.315, 641.51