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Bill would bar public notices of potential insurer‑provider contract terminations until legally required; insurers and providers split on approach
Summary
SB 5,579 would prohibit public statements about potential or planned contract terminations between health carriers and providers unless disclosure is required by law; sponsors said the measure would spare patients repetitive notices, while hospitals and provider groups warned of unintended harms and urged narrower approaches.
Senate Bill 5,579 would prohibit a health carrier, facility or provider from making public statements about a potential or planned contract termination unless required to satisfy a legal obligation. The Senate Health and Long Term Care Committee heard testimony on the bill, which sponsor Sen. Cleveland described as an effort to protect patients from multiple, potentially alarming notices while contract negotiations proceed.
Committee staff noted carriers already must file contracts with the Office of the Insurance Commissioner and that carriers must provide at least 60 days' written notice before terminating a contract without cause; carriers…
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