This bill aims to address the rising operational costs faced by health care providers in Washington State, particularly those not employed by hospitals or their affiliates. The legislature recognizes that many providers have not seen an increase in their contracted rates for several years, despite inflation and increasing costs of practice. To promote competition and prevent further consolidation in the health care market, the bill mandates that health carriers adjust compensation annually for these providers, reflecting increases in the consumer price index.

Specifically, starting January 1, 2025, health benefit plans must include provisions in provider contracts that ensure compensation increases align with inflation. The bill clarifies that providers are not obligated to accept these contracts and prohibits health carriers from discriminating against any provider category to circumvent these compensation requirements. Additionally, the bill excludes dental-only plans that rely solely on carrier employees from these provisions. The insurance commissioner is tasked with adopting necessary rules to implement the act, ensuring they align with federal standards for inflationary increases.