The 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 negatively impact 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 submit detailed data annually starting January 1, 2027. This 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 reports that summarize this data and any complaints received regarding claims payment timeliness. The definition of a "clean claim" is also clarified to ensure consistency in reporting.