This bill introduces a new section titled "Post-acute care prior authorization" to various chapters of the General Laws related to health insurance. It defines post-acute care services as specialized behavioral, medical, rehabilitative, or homecare services provided to patients discharged from acute care hospitals, aimed at improving their functional independence and managing ongoing health conditions.

The bill mandates that all individual or group health insurance contracts, as well as hospital or medical expense insurance policies delivered, issued for delivery, or renewed in the state on or after January 1, 2027, must provide coverage for these post-acute care services for a minimum of seven days without requiring preauthorization.

Additionally, the discharging hospital is required to notify the insurer prior to the patient's discharge and admission to post-acute care. While preauthorization is waived for the initial seven days of care, utilization review procedures may be initiated on the seventh day. The determination of medical necessity for these services will be made by the treating healthcare provider and documented in the patient's medical record and discharge plan. The act is set to take effect upon passage.