S.B. No. 1151 amends the Insurance Code regarding an insurer's responsibilities in relation to third-party administrators. The bill modifies the heading of Section 4151.1042 to reflect new requirements for audits and reviews, replacing the term "semiannual" with "audit and review requirements." Additionally, it specifies that if an administrator manages benefits for over 100 certificate holders, the insurer must conduct a review of the administrator's operations at least semiannually. However, the requirement for an on-site audit has been removed, with the bill now stipulating that audits must occur at least biennially.

This legislation aims to enhance oversight of third-party administrators by ensuring that insurers regularly review their operations, thereby promoting accountability and transparency in the administration of benefits. The changes will take effect on September 1, 2025, providing insurers with a clear framework for their responsibilities in monitoring third-party administrators.

Statutes affected:
Introduced: Insurance Code 4151.1042 (Insurance Code 4151)
Senate Committee Report: Insurance Code 4151.1042 (Insurance Code 4151)