The bill amends the "Healthcare Accessibility and Quality Assurance Act" by introducing a new section that prohibits healthcare entities from unilaterally modifying, amending, or reinterpreting any material terms or conditions of contracts with healthcare providers during the term of such contracts. This prohibition applies to healthcare entities, including any affiliates, subsidiaries, or contracted vendors acting on their behalf, that offer, issue, or renew a health plan in the state.

The bill defines "material terms and conditions" to include, but not be limited to, changes to reimbursement methodologies, payment terms, carrier policies, definitions of covered services, utilization review requirements, quality management requirements, credentialing requirements, and billing or documentation requirements. It also specifies that material terms and conditions encompass any policy, protocol, fee schedule, provider manual, or guidance incorporated by reference into the contract.

Changes to a healthcare provider contract may only be implemented upon mutual written agreement between the healthcare entity and the healthcare provider or when expressly required by state or federal law. Any changes not mandated by law shall not take effect until the renewal of the contract term, provided that the healthcare entity has given written notice of the proposed change at least ninety (90) days before the renewal.

This act will take effect upon passage.