The bill amends the Rhode Island Health Care Reform Act of 2004 to enhance the oversight of health insurance with a focus on maintaining the solvency of health insurers and the health systems, physicians, and advanced practice providers affected by the commissioner's regulation of insurers. It introduces new definitions and concepts such as "regional rate parity," which aims to ensure that payment rates by commercial insurers to Rhode Island healthcare providers are equivalent to those paid in Massachusetts and Connecticut for the same services. The bill also adds a new section that mandates insurers to provide payment of not less than the regional average rate starting in 2028, with a three-year period to phase in rate increases to address any payment shortfalls relative to the regional average rate plus healthcare inflation.

The bill specifies that up to 25% of the rate increase for hospitals may be comprised of quality incentive payments, and it requires the health insurance commissioner to update and publish the regional average rate at least every two years. Additionally, the bill requires the commissioner to rescind any regulations inconsistent with the achievement and maintenance of regional rate parity. It also stipulates that any insurance contracts in effect that do not meet the new rate requirements must be reopened to comply with the new standards. The act is set to take effect upon passage, and it aims to protect the interests of consumers by ensuring high-quality, accessible, and equitable healthcare services while encouraging fair treatment of healthcare providers and the establishment of regional rate parity.