The proposed bill aims to enhance transparency regarding the timeliness of claims payments made by health insurance carriers, health plans, and managed care organizations. It recognizes that delays in payment contribute to financial vulnerabilities for healthcare providers and facilities, ultimately affecting patient care. To address this issue, the bill mandates that these entities report specific metrics related to claims payment timeliness to the Office of the Insurance Commissioner and the Health Care Authority. This information will be made publicly available, allowing for greater accountability and oversight.

Specifically, the bill introduces new reporting requirements for health carriers, managed care organizations, and health plans, which must begin reporting by January 1, 2027, and annually thereafter. The required data includes the total number of claims submitted, the classification of claims as "clean" or "not clean," the average time taken for payment, and the percentage of claims paid within 30 days. Additionally, the Office of the Insurance Commissioner and the Health Care Authority are tasked with compiling and publishing annual reports that summarize the data collected, complaints received, and trends observed, thereby promoting transparency and improving the claims payment process.