SB22-106 Summary

• Requires managed care entities (MCEs) with 25% or more ownership by behavioral health providers to implement conflict-of-interest policies by January 1, 2023, including restrictions preventing provider-owners from controlling provider network decisions.

• Mandates quarterly reporting by MCEs on provider applications denied and rate comparisons between providers with ownership/board membership versus those without.

• Limits MCE board membership to no more than 50% contracted providers and restricts dual employment between contracted providers and MCEs (except for clinical officers and utilization management directors).

• Applies same conflict-of-interest requirements to administrative service organizations and managed service organizations serving behavioral health and substance use disorder services.

• Appropriates $42,658 in general fund and anticipates $42,657 in federal funds for the 2022-23 fiscal year to implement the requirements (0.9 FTE for personal services and operating expenses).