Connecticut Seal

General Assembly

 

Raised Bill No. 994

January Session, 2015

 

LCO No. 4092

 

*04092_______PH_*

Referred to Committee on PUBLIC HEALTH

 

Introduced by:

 

(PH)

 

AN ACT CONCERNING CONTRACT DISPUTES BETWEEN HOSPITALS AND INSURERS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2015) (a) If a contract between an insurer, as defined in section 38a-1 of the general statutes, and a hospital or health system, as such terms are defined in section 19a-508c of the general statutes, for the delivery of and reimbursement for health care services is terminated or nonrenewed and the termination or nonrenewal of the contract was not the result of mutual agreement of the parties, the parties to the contract shall continue to abide by the terms of the contract for a period of not less than sixty days. At the conclusion of the sixty-day period, the parties shall negotiate the terms of the contract for a period of not less than thirty days or until an agreement is reached, whichever occurs first. The parties shall continue to abide by the terms of the contract until the conclusion of the thirty-day period or until an agreement is reached, whichever first occurs.

(b) The Commissioner of Public Health may waive the sixty-day and thirty-day time period requirements set forth in subsection (a) of this section at the request of either party to the contract if the commissioner determines that such party terminated the contract for cause.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2015

New section

Statement of Purpose:

To minimize the impact on consumers during contract disputes between insurers and hospitals or health systems.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]