The bill amends Section 27-20.9-3 of the General Laws in Chapter 27-20.9, titled "Contract with Healthcare Providers." It introduces new language that prohibits health insurers from requiring physicians to participate in financial or reimbursement incentive programs, specifically "capitation" or any "alternative payment model" that incentivizes physicians to limit medically necessary care or selectively retain patients based on their needs. This change aims to protect patient care by ensuring that physicians are not financially motivated to deny necessary treatments or avoid high-need patients.

Additionally, the bill removes existing language that references "pay-for-performance programs" and the associated guidelines endorsed by various quality forums and alliances. By eliminating these requirements, the bill seeks to simplify the contracting process for physicians while emphasizing the importance of maintaining comprehensive patient care without financial constraints that could compromise medical decisions. The act is set to take effect immediately upon passage.