S.B. No. 1151 amends the Insurance Code to clarify an insurer's responsibilities regarding the review and audit of third-party administrators. The heading of Section 4151.1042 is updated to reflect "AUDIT AND REVIEW REQUIREMENTS," removing the term "SEMIANNUAL." Additionally, the bill specifies that if an administrator manages benefits for more than 100 certificate holders, injured employees, plan participants, or policyholders, the insurer is required to conduct a review of the administrator's operations at least semiannually. Furthermore, the requirement for an "on-site" audit has been deleted, with the insurer now mandated to conduct an audit of the administrator's operations at least biennially.

This legislation aims to enhance oversight of third-party administrators by ensuring that insurers regularly review their operations and conduct audits, thereby promoting accountability and transparency in the administration of benefits. The bill is set to take effect on September 1, 2025, following its passage in both the Senate and House with unanimous support.

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