RI H7346

Insurance companies that have acquired control of or merged with nonprofit hospital service corporations, medical service corporations, or health maintenance organizations are prohibited from paying rates below the approved Medicaid rate set by the Executive Office of Health and Human Services

The restriction applies to stock or mutual insurance corporations that acquire 20% or more of the operating assets of these nonprofit healthcare entities

Companies must submit cost structure documentation under oath to the Commissioner of Insurance at least 30 days before implementing any rate charged to policyholders

Amends four sections of Rhode Island General Laws covering accident and sickness insurance policies, nonprofit hospital service corporations, nonprofit medical service corporations, and health maintenance organizations

Effective date: January 1, 2027