The bill, HB 705, introduces significant transparency requirements for health plans regarding the disclosure of pricing information related to healthcare services and prescription drugs. It establishes a new subdivision in the Managed Care Law titled "Transparency in Coverage," which defines key terms such as "billed charge," "billing code," and "historical net price." Health plans will be required to publicly disclose in-network provider rates, out-of-network allowed amounts, and negotiated rates through three machine-readable files on their websites. This information must be updated monthly and made accessible without conditions, ensuring compliance with health information privacy laws.

Additionally, the bill mandates that health plans electronically submit pricing information in a standardized format, including details associated with the National Provider Identifier (NPI), Tax Identification Number (TIN), and place of service code for each provider. The implementation of these provisions is contingent upon the finalization of federal guidance under Presidential Executive Order 14221 and will apply to plan years beginning on or after January 1, 2026. Overall, the legislation aims to empower consumers by providing clear and actionable healthcare pricing information, thereby enhancing transparency in the healthcare market.