The bill aims to enhance continuity of care in health insurance contracts by amending existing statutes and introducing new 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 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 care for a specified period, not exceeding six months, or until they select a new practitioner. This provision also applies to those undergoing prenatal care, allowing them to continue until postpartum care is completed. The bill also includes amendments to existing laws regarding health maintenance organizations, ensuring that similar notice and care continuation requirements are upheld. The effective date for this act is set for July 1, 2026.

Statutes affected:
H 577 Filed: 641.315, 641.51