This bill amends the Procurement Code to introduce provisions for contract adjustments related to wage and benefits changes for contractors and healthcare providers. It establishes a new section that allows contractors working with state agencies to request amendments to their contracts if there are statutory changes affecting employee compensation and benefits. Such requests must be made within forty-five days of the changes becoming law, and the state agency is required to respond in writing.

Additionally, the bill mandates that state agencies responsible for Medicaid and Medicare payments must request adjustments to reimbursement rates from the federal Centers for Medicare and Medicaid Services when there are statutory changes impacting the expenses of Medicaid and Medicare providers. Similar to the contractor provisions, these requests must also be made within forty-five days of the relevant changes in state law. The bill aims to ensure that healthcare providers can maintain financial stability in light of changes to employee compensation and benefits.