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Committee considers limits on public notice of provider contract terminations
Summary
Substitute Senate Bill 5,579 would restrict public communications about non‑cause provider contract terminations until 45 days before the termination date, require OIC‑approved notice templates and allow civil penalties; supporters say the measure will reduce consumer anxiety caused by premature notices, carriers and hospitals largely support it.
Substitute Senate Bill 5,579 would prohibit health carriers and health care providers or facilities from making public statements to enrollees or the public about an intended termination of a provider contract without cause until 45 days before the termination date, unless a legal disclosure is required or the termination is already publicly required.
Kim Weidner, committee staff, summarized current practice: carriers file provider contracts with the Office of the Insurance Commissioner (OIC) and OIC rules require 60 days’ notice between…
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