The bill amends various sections of the General Laws to prohibit certain contract provisions between health care providers and carriers. Specifically, it disallows contracts that permit termination without cause and those that allow carriers to unilaterally change any material terms or conditions, such as fee schedules, payment terms, and definitions of covered services. Any unilateral changes must take effect only after the current contract term ends, and providers must receive written notice of such changes at least 90 days before they must notify the carrier of termination or non-renewal.

Additionally, the bill mandates that the commission cannot purchase health insurance policies or enter into service-type contracts that include these prohibited provisions. This ensures that health care providers are protected from sudden contract changes and terminations, fostering a more stable and predictable working environment. The bill allows for mutually agreeable amendments to contracts, maintaining flexibility for both parties.

Statutes affected:
Bill Text: 176O-15, 32A-4, 32A-4A