The bill amends the Rhode Island Health Care Reform Act of 2004 to include new provisions aimed at ensuring the solvency of health systems, physicians, and advanced practice providers, as well as protecting consumer interests by defining "interests" to include high-quality, accessible, and safe health systems with substantially similar providers and digital systems. It introduces the concept of "regional rate parity," which requires payment by commercial insurers to Rhode Island hospitals, physicians, and advanced practice providers to be materially equivalent to what is paid in Massachusetts and Connecticut for the same services. The bill also adds a new definition of "region" to include Rhode Island, Massachusetts, and Connecticut, and defines "regional average rate" and "Rhode Island payment shortfall."

The bill mandates that beginning in 2028, insurers are prohibited from entering into contracts that fail to provide payment of not less than the regional average rate. It also specifies that for the three years following the effective date of the act, insurers must enter into annual contracts with healthcare providers that include pay rate increases of at least 33.33% of the Rhode Island payment shortfall plus the rate of healthcare inflation. The health insurance commissioner is required to update and publish the regional average rate at least every two years and rescind any regulations inconsistent with the achievement and maintenance of regional rate parity. Contracts in effect as of the effective date that do not meet the required increase must be reopened to comply with the new requirements. The act is effective upon passage.