The bill amends sections of the General Laws related to Accident and Sickness Insurance Policies, Nonprofit Hospital Service Corporations, Nonprofit Medical Service Corporations, and Health Maintenance Organizations. It introduces a new provision that prohibits insurance companies, which are organized as stock or mutual corporations and have merged with, acquired significant control or assets of, or otherwise gained control over nonprofit hospital service corporations, nonprofit medical service corporations, or health maintenance organizations, from paying rates that are less than the approved Medicaid rates set by the executive office of health and human services. This is in addition to existing prohibitions on filing for state review or approval any proposed rate that reflects the value of contributions to charitable foundations associated with these nonprofit entities.

The bill requires that any rate to be charged to policyholders, whether or not it is subject to state agency approval, must be submitted to the commissioner of insurance at least thirty days before implementation. This submission must include an accounting under oath that documents the cost structure of the rate and demonstrates the company's compliance with the section. The bill specifies that these amendments will take effect on January 1, 2025.

Statutes affected:
8056: 27-18-54, 27-19-30.1, 27-20-25.2, 27-41-27.2