The bill aims to enhance transparency and fairness in the contracting process between health carriers and healthcare providers or facilities by mandating that carriers provide substantial notice regarding significant contract modifications. Specifically, it requires carriers to notify the relevant healthcare provider or facility at least 90 days before any significant changes to payer contracts take effect. This notice must include detailed information about the modification, such as its financial implications and the specific language of the changes. Providers or facilities are given the opportunity to accept or reject these modifications without affecting their existing contracts.

Additionally, the bill outlines that if a carrier fails to comply with these notification requirements, the proposed contract modification will be deemed void. It also specifies that any provisions in existing contracts that violate these new requirements will also be void. The legislation emphasizes the importance of mutual agreement in contract modifications and aims to prevent unilateral changes that could disrupt service delivery and access for patients. The bill also includes a reenactment and amendment of existing law, specifically RCW 41.05.017, to incorporate these new provisions.