AB 2400 Summary

• Increases notice requirement from 45 to 90 business days when health care service plans amend manuals, policies, or procedures referenced in provider contracts, with providers retaining right to negotiate or terminate.

• Extends the 90 business day notice requirement to health insurers negotiating alternative rates of payment with providers, allowing providers to terminate contracts prior to implementation of changes.

• Prohibits contracts issued, amended, or renewed after January 1, 2015, between plans or insurers and providers from requiring providers to accept additional product networks without disclosing reimbursement rates and materially different terms for each product.

• Prohibits contracts from terminating a provider's contract or eligibility in other product networks when the provider exercises the right to negotiate, accept, or refuse material contract changes.

• Requires health insurers to annually compile and report provider complaints to the Legislature and Governor by March 15 each year.