The bill introduces a new section to the "Healthcare Accessibility and Quality Assurance Act" 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. The term "material terms or conditions" is defined to include changes to reimbursement methodologies, payment terms, carrier policies, definitions of covered services, utilization review requirements, quality management requirements, credentialing requirements, and other significant aspects of the contract.

Under the new provisions, changes to a healthcare provider's contract can only be made through mutual written agreement between the healthcare entity and the provider or if such changes are expressly required by state or federal law. Any changes not mandated by law will 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 prior to the renewal. The act will take effect upon passage.