This bill establishes a prohibition on health insurance carriers from altering contracts with network providers in a manner that would decrease the reimbursement rates during the contract's term. Specifically, it ensures that once a contract is in place, the financial terms agreed upon cannot be modified to the detriment of the provider.

The legislation is set to take effect on the first day of the third month following its passage and will apply to all contracts that are entered into or renewed on or after that effective date. This measure aims to protect network providers from potential financial instability caused by unilateral changes made by health insurance carriers.