| Chapter 370 |
| 2026 -- H 7002 Enacted 06/22/2026 |
| A N A C T |
| RELATING TO BUSINESSES AND PROFESSIONS -- BOARD OF MEDICAL LICENSURE AND DISCIPLINE |
Introduced By: Representatives Corvese, Noret, J. Brien, and Azzinaro |
| Date Introduced: January 07, 2026 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 5-37-5.1 of the General Laws in Chapter 5-37 entitled "Board of |
| Medical Licensure and Discipline" is hereby amended to read as follows: |
| 5-37-5.1. Unprofessional conduct. |
| The term “unprofessional conduct” as used in this chapter includes, but is not limited to, |
| the following items or any combination of these items and may be further defined by regulations |
| established by the board with the prior approval of the director: |
| (1) Fraudulent or deceptive procuring or use of a license or limited registration; |
| (2) All advertising of medical business that is intended or has a tendency to deceive the |
| public; |
| (3) Conviction of a felony; conviction of a crime arising out of the practice of medicine; |
| (4) Abandoning a patient; |
| (5) Dependence upon controlled substances, habitual drunkenness, or rendering |
| professional services to a patient while the physician or limited registrant is intoxicated or |
| incapacitated by the use of drugs; |
| (6) Promotion by a physician or limited registrant of the sale of drugs, devices, appliances, |
| or goods or services provided for a patient in a manner as to exploit the patient for the financial |
| gain of the physician or limited registrant; |
| (7) Immoral conduct of a physician or limited registrant in the practice of medicine; |
| (8) Willfully making and filing false reports or records in the practice of medicine; |
| (9) Willfully omitting to file or record, or willfully impeding or obstructing a filing or |
| recording, or inducing another person to omit to file or record, medical or other reports as required |
| by law; |
| (10) Failing to furnish details of a patient’s medical record to succeeding physicians, |
| healthcare facility, or other healthcare providers upon proper request pursuant to § 5-37.3-4; |
| (11) Soliciting professional patronage by agents or persons or profiting from acts of those |
| representing themselves to be agents of the licensed physician or limited registrants; |
| (12) Dividing fees or agreeing to split or divide the fees received for professional services |
| for any person for bringing to or referring a patient; |
| (13) Agreeing with clinical or bioanalytical laboratories to accept payments from these |
| laboratories for individual tests or test series for patients; |
| (14) Making willful misrepresentations in treatments; |
| (15) Practicing medicine with an unlicensed physician except in an accredited |
| preceptorship or residency training program, or aiding or abetting unlicensed persons in the practice |
| of medicine; |
| (16) Gross and willful overcharging for professional services; including filing of false |
| statements for collection of fees for which services are not rendered, or willfully making or assisting |
| in making a false claim or deceptive claim or misrepresenting a material fact for use in determining |
| rights to health care or other benefits; |
| (17) Offering, undertaking, or agreeing to cure or treat disease by a secret method, |
| procedure, treatment, or medicine; |
| (18) Professional or mental incompetency; |
| (19) Incompetent, negligent, or willful misconduct in the practice of medicine, which |
| includes the rendering of medically unnecessary services, and any departure from, or the failure to |
| conform to, the minimal standards of acceptable and prevailing medical practice in his or her area |
| of expertise as is determined by the board. The board does not need to establish actual injury to the |
| patient in order to adjudge a physician or limited registrant guilty of the unacceptable medical |
| practice in this subsection; |
| (20) Failing to comply with the provisions of chapter 4.7 of title 23; |
| (21) Surrender, revocation, suspension, limitation of privilege based on quality of care |
| provided, or any other disciplinary action against a license or authorization to practice medicine in |
| another state or jurisdiction; or surrender, revocation, suspension, or any other disciplinary action |
| relating to a membership on any medical staff or in any medical or professional association or |
| society while under disciplinary investigation by any of those authorities or bodies for acts or |
| conduct similar to acts or conduct that would constitute grounds for action as described in this |
| chapter; |
| (22) Multiple adverse judgments, settlements, or awards arising from medical liability |
| claims related to acts or conduct that would constitute grounds for action as described in this |
| chapter; |
| (23) Failing to furnish the board, its chief administrative officer, investigator, or |
| representatives, information legally requested by the board; |
| (24) Violating any provision or provisions of this chapter or the rules and regulations of |
| the board or any rules or regulations promulgated by the director or of an action, stipulation, or |
| agreement of the board; |
| (25) Cheating on or attempting to subvert the licensing examination; |
| (26) Violating any state or federal law or regulation relating to controlled substances; |
| (27) Failing to maintain standards established by peer-review boards, including, but not |
| limited to: standards related to proper utilization of services, use of nonaccepted procedure, and/or |
| quality of care; |
| (28) A pattern of medical malpractice, or willful or gross malpractice on a particular |
| occasion; |
| (29) Agreeing to treat a beneficiary of health insurance under title XVIII of the Social |
| Security Act, 42 U.S.C. § 1395 et seq., “Medicare Act,” and then charging or collecting from this |
| beneficiary any amount in excess of the amount or amounts permitted pursuant to the Medicare |
| Act; |
| (30) Sexual contact between a physician and patient during the existence of the |
| physician/patient relationship; |
| (31) Knowingly violating the provisions of § 23-4.13-2(d); or |
| (32) Performing a pelvic examination or supervising a pelvic examination performed by |
| an individual practicing under the supervision of a physician on an anesthetized or unconscious |
| female patient without first obtaining the patient’s informed consent to pelvic examination, unless |
| the performance of a pelvic examination is within the scope of the surgical procedure or diagnostic |
| examination to be performed on the patient for which informed consent has otherwise been |
| obtained or in the case of an unconscious patient, the pelvic examination is required for diagnostic |
| purposes and is medically necessary. |
| (33) Failing to submit medical bills to a health insurer, based solely on the reason that the |
| bill may arise from third-party claim or incident, other than a workers' compensation claim pursuant |
| to chapter 33 of title 28. |
| SECTION 2. Section 27-18-61 of the General Laws in Chapter 27-18 entitled "Accident |
| and Sickness Insurance Policies" is hereby amended to read as follows: |
| 27-18-61. Prompt processing of claims. |
| (a)(1) A healthcare entity or health plan operating in the state shall pay all complete claims |
| for covered healthcare services submitted to the healthcare entity or health plan by a healthcare |
| provider or by a policyholder within forty (40) calendar days following the date of receipt of a |
| complete written claim or within thirty (30) calendar days following the date of receipt of a |
| complete electronic claim. Each health plan shall establish a written standard defining what |
| constitutes a complete claim and shall distribute this standard to all participating providers. |
| (2) No health care entity or health plan shall deny a claim for payment of any medical bill, |
| based solely on the reason that the bill may have arisen from a third-party claim or incident, other |
| than a workers' compensation claim pursuant to chapter 33 of title 28. |
| (b) If the healthcare entity or health plan denies or pends a claim, the healthcare entity or |
| health plan shall have thirty (30) calendar days from receipt of the claim to notify in writing the |
| healthcare provider or policyholder of any and all reasons for denying or pending the claim and |
| what, if any, additional information is required to process the claim. No healthcare entity or health |
| plan may limit the time period in which additional information may be submitted to complete a |
| claim. |
| (c) Any claim that is resubmitted by a healthcare provider or policyholder shall be treated |
| by the healthcare entity or health plan pursuant to the provisions of subsection (a) of this section. |
| (d) A healthcare entity or health plan that fails to reimburse the healthcare provider or |
| policyholder after receipt by the healthcare entity or health plan of a complete claim within the |
| required timeframes shall pay to the healthcare provider or the policyholder who submitted the |
| claim, in addition to any reimbursement for healthcare services provided, interest which shall |
| accrue at the rate of twelve percent (12%) per annum commencing on the thirty-first (31st) day |
| after receipt of a complete electronic claim or on the forty-first (41st) day after receipt of a complete |
| written claim, and ending on the date the payment is issued to the healthcare provider or the |
| policyholder. |
| (e) Exceptions to the requirements of this section are as follows: |
| (1) No healthcare entity or health plan operating in the state shall be in violation of this |
| section for a claim submitted by a healthcare provider or policyholder if: |
| (i) Failure to comply is caused by a directive from a court or federal or state agency; |
| (ii) The healthcare entity or health plan is in liquidation or rehabilitation or is operating in |
| compliance with a court-ordered plan of rehabilitation; or |
| (iii) The healthcare entity or health plan’s compliance is rendered impossible due to matters |
| beyond its control that are not caused by it. |
| (2) No healthcare entity or health plan operating in the state shall be in violation of this |
| section for any claim: (i) Initially submitted more than ninety (90) days after the service is rendered, |
| or (ii) Resubmitted more than ninety (90) days after the date the healthcare provider received the |
| notice provided for in subsection (b) of this section; provided, this exception shall not apply in the |
| event compliance is rendered impossible due to matters beyond the control of the healthcare |
| provider and were not caused by the healthcare provider. |
| (3) No healthcare entity or health plan operating in the state shall be in violation of this |
| section while the claim is pending due to a fraud investigation by a state or federal agency. |
| (4) No healthcare entity or health plan operating in the state shall be obligated under this |
| section to pay interest to any healthcare provider or policyholder for any claim if the director of |
| business regulation finds that the entity or plan is in substantial compliance with this section. A |
| healthcare entity or health plan seeking such a finding from the director shall submit any |
| documentation that the director shall require. A healthcare entity or health plan that is found to be |
| in substantial compliance with this section shall thereafter submit any documentation that the |
| director may require on an annual basis for the director to assess ongoing compliance with this |
| section. |
| (5) A healthcare entity or health plan may petition the director for a waiver of the provision |
| of this section for a period not to exceed ninety (90) days in the event the healthcare entity or health |
| plan is converting or substantially modifying its claims processing systems. |
| (f) For purposes of this section, the following definitions apply: |
| (1) “Claim” means: (i) A bill or invoice for covered services; (ii) A line item of service; or |
| (iii) All services for one patient or subscriber within a bill or invoice. |
| (2) “Date of receipt” means the date the healthcare entity or health plan receives the claim |
| whether via electronic submission or as a paper claim. |
| (3) “Healthcare entity” means a licensed insurance company or nonprofit hospital or |
| medical or dental service corporation or plan or health maintenance organization, or a contractor |
| as described in § 23-17.13-2(2) [repealed], that operates a health plan. |
| (4) “Healthcare provider” means an individual clinician, either in practice independently |
| or in a group, who provides healthcare services, and otherwise referred to as a non-institutional |
| provider. |
| (5) “Healthcare services” include, but are not limited to, medical, mental health, substance |
| abuse, dental, and any other services covered under the terms of the specific health plan. |
| (6) “Health plan” means a plan operated by a healthcare entity that provides for the delivery |
| of healthcare services to persons enrolled in those plans through: |
| (i) Arrangements with selected providers to furnish healthcare services; and/or |
| (ii) Financial incentive for persons enrolled in the plan to use the participating providers |
| and procedures provided for by the health plan. |
| (7) “Policyholder” means a person covered under a health plan or a representative |
| designated by that person. |
| (8) “Substantial compliance” means that the healthcare entity or health plan is processing |
| and paying ninety-five percent (95%) or more of all claims within the time frame provided for in |
| subsections (a) and (b) of this section. |
| (g) Any provision in a contract between a healthcare entity or a health plan and a healthcare |
| provider that is inconsistent with this section shall be void and of no force and effect. |
| SECTION 3. Section 27-19-52 of the General Laws in Chapter 27-19 entitled "Nonprofit |
| Hospital Service Corporations" is hereby amended to read as follows: |
| 27-19-52. Prompt processing of claims. |
| (a)(1) A healthcare entity or health plan operating in the state shall pay all complete claims |
| for covered healthcare services submitted to the healthcare entity or health plan by a healthcare |
| provider or by a policyholder within forty (40) calendar days following the date of receipt of a |
| complete written claim or within thirty (30) calendar days following the date of receipt of a |
| complete electronic claim. Each health plan shall establish a written standard defining what |
| constitutes a complete claim and shall distribute this standard to all participating providers. |
| (2) No health care entity or health plan shall deny a claim for payment of any medical bill, |
| based solely on the reason that the bill may have arisen from a third-party claim or incident, other |
| than a workers' compensation claim pursuant to chapter 33 of title 28. |
| (b) If the healthcare entity or health plan denies or pends a claim, the healthcare entity or |
| health plan shall have thirty (30) calendar days from receipt of the claim to notify in writing the |
| healthcare provider or policyholder of any and all reasons for denying or pending the claim and |
| what, if any, additional information is required to process the claim. No healthcare entity or health |
| plan may limit the time period in which additional information may be submitted to complete a |
| claim. |
| (c) Any claim that is resubmitted by a healthcare provider or policyholder shall be treated |
| by the healthcare entity or health plan pursuant to the provisions of subsection (a) of this section. |
| (d) A healthcare entity or health plan that fails to reimburse the healthcare provider or |
| policyholder after receipt by the healthcare entity or health plan of a complete claim within the |
| required timeframes shall pay to the healthcare provider or the policyholder who submitted the |
| claim, in addition to any reimbursement for healthcare services provided, interest that shall accrue |
| at the rate of twelve percent (12%) per annum commencing on the thirty-first (31st) day after receipt |
| of a complete electronic claim or on the forty-first (41st) day after receipt of a complete written |
| claim, and ending on the date the payment is issued to the healthcare provider or the policyholder. |
| (e) Exceptions to the requirements of this section are as follows: |
| (1) No healthcare entity or health plan operating in the state shall be in violation of this |
| section for a claim submitted by a healthcare provider or policyholder if: |
| (i) Failure to comply is caused by a directive from a court or federal or state agency; |
| (ii) The healthcare provider or health plan is in liquidation or rehabilitation or is operating |
| in compliance with a court-ordered plan of rehabilitation; or |
| (iii) The healthcare entity or health plan’s compliance is rendered impossible due to matters |
| beyond its control that are not caused by it. |
| (2) No healthcare entity or health plan operating in the state shall be in violation of this |
| section for any claim: (i) Initially submitted more than ninety (90) days after the service is rendered, |
| or (ii) Resubmitted more than ninety (90) days after the date the healthcare provider received the |
| notice provided for in § 27-18-61(b); provided, this exception shall not apply in the event |
| compliance is rendered impossible due to matters beyond the control of the healthcare provider and |
| were not caused by the healthcare provider. |
| (3) No healthcare entity or health plan operating in the state shall be in violation of this |
| section while the claim is pending due to a fraud investigation by a state or federal agency. |
| (4) No healthcare entity or health plan operating in the state shall be obligated under this |
| section to pay interest to any healthcare provider or policyholder for any claim if the director of the |
| department of business regulation finds that the entity or plan is in substantial compliance with this |
| section. A healthcare entity or health plan seeking such a finding from the director shall submit any |
| documentation that the director shall require. A healthcare entity or health plan that is found to be |
| in substantial compliance with this section shall after this submit any documentation that the |
| director may require on an annual basis for the director to assess ongoing compliance with this |
| section. |
| (5) A healthcare entity or health plan may petition the director for a waiver of the provision |
| of this section for a period not to exceed ninety (90) days in the event the healthcare entity or health |
| plan is converting or substantially modifying its claims processing systems. |
| (f) For purposes of this section, the following definitions apply: |
| (1) “Claim” means: |
| (i) A bill or invoice for covered services; |
| (ii) A line item of service; or |
| (iii) All services for one patient or subscriber within a bill or invoice. |
| (2) “Date of receipt” means the date the healthcare entity or health plan receives the claim |
| whether via electronic submission or has a paper claim. |
| (3) “Healthcare entity” means a licensed insurance company or nonprofit hospital or |
| medical or dental service corporation or plan or health maintenance organization, or a contractor |
| as described in § 23-17.13-2(2), that operates a health plan. |
| (4) “Healthcare provider” means an individual clinician, either in practice independently |
| or in a group, who provides healthcare services, and referred to as a non-institutional provider. |
| (5) “Healthcare services” include, but are not limited to, medical, mental health, substance |
| abuse, dental, and any other services covered under the terms of the specific health plan. |
| (6) “Health plan” means a plan operated by a healthcare entity that provides for the delivery |
| of healthcare services to persons enrolled in those plans through: |
| (i) Arrangements with selected providers to furnish healthcare services; and/or |
| (ii) Financial incentive for persons enrolled in the plan to use the participating providers |
| and procedures provided for by the health plan. |
| (7) “Policyholder” means a person covered under a health plan or a representative |
| designated by that person. |
| (8) “Substantial compliance” means that the healthcare entity or health plan is processing |
| and paying ninety-five percent (95%) or more of all claims within the time frame provided for in § |
| 27-18-61(a) and (b). |
| (g) Any provision in a contract between a healthcare entity or a health plan and a healthcare |
| provider that is inconsistent with this section shall be void and of no force and effect. |
| SECTION 4. Section 27-20-47 of the General Laws in Chapter 27-20 entitled "Nonprofit |
| Medical Service Corporations" is hereby amended to read as follows: |
| 27-20-47. Prompt processing of claims. |
| (a)(1) A healthcare entity or health plan operating in the state shall pay all complete claims |
| for covered healthcare services submitted to the healthcare entity or health plan by a healthcare |
| provider or by a policyholder within forty (40) calendar days following the date of receipt of a |
| complete written claim or within thirty (30) calendar days following the date of receipt of a |
| complete electronic claim. Each health plan shall establish a written standard defining what |
| constitutes a complete claim and shall distribute the standard to all participating providers. |
| (2) No health care entity or health plan shall deny a claim for payment of any medical bill, |
| based solely on the reason that the bill may have arisen from a third-party claim or incident, other |
| than a workers' compensation claim pursuant to chapter 33 of title 28. |
| (b) If the healthcare entity or health plan denies or pends a claim, the healthcare entity or |
| health plan shall have thirty (30) calendar days from receipt of the claim to notify in writing the |
| healthcare provider or policyholder of any and all reasons for denying or pending the claim and |
| what, if any, additional information is required to process the claim. No healthcare entity or health |
| plan may limit the time period in which additional information may be submitted to complete a |
| claim. |
| (c) Any claim that is resubmitted by a healthcare provider or policyholder shall be treated |
| by the healthcare entity or health plan pursuant to the provisions of subsection (a) of this section. |
| (d) A healthcare entity or health plan which fails to reimburse the healthcare provider or |
| policyholder after receipt by the healthcare entity or health plan of a complete claim within the |
| required timeframes shall pay to the healthcare provider or the policyholder who submitted the |
| claim, in addition to any reimbursement for healthcare services provided, interest that shall accrue |
| at the rate of twelve percent (12%) per annum commencing on the thirty-first (31st) day after receipt |
| of a complete electronic claim or on the forty-first (41st) day after receipt of a complete written |
| claim, and ending on the date the payment is issued to the healthcare provider or the policyholder. |
| (e) Exceptions to the requirements of this section are as follows: |
| (1) No healthcare entity or health plan operating in the state shall be in violation of this |
| section for a claim submitted by a healthcare provider or policyholder if: |
| (i) Failure to comply is caused by a directive from a court or federal or state agency; |
| (ii) The healthcare entity or health plan is in liquidation or rehabilitation or is operating in |
| compliance with a court-ordered plan of rehabilitation; or |
| (iii) The healthcare entity or health plan’s compliance is rendered impossible due to matters |
| beyond its control that are not caused by it. |
| (2) No healthcare entity or health plan operating in the state shall be in violation of this |
| section for any claim: (i) Initially submitted more than ninety (90) days after the service is rendered, |
| or (ii) Resubmitted more than ninety (90) days after the date the healthcare provider received the |
| notice provided for in § 27-18-61(b); provided, this exception shall not apply in the event |
| compliance is rendered impossible due to matters beyond the control of the healthcare provider and |
| were not caused by the healthcare provider. |
| (3) No healthcare entity or health plan operating in the state shall be in violation of this |
| section while the claim is pending due to a fraud investigation by a state or federal agency. |
| (4) No healthcare entity or health plan operating in the state shall be obligated under this |
| section to pay interest to any healthcare provider or policyholder for any claim if the director of the |
| department of business regulation finds that the entity or plan is in substantial compliance with this |
| section. A healthcare entity or health plan seeking such a finding from the director shall submit any |
| documentation that the director shall require. A healthcare entity or health plan that is found to be |
| in substantial compliance with this section shall after this submit any documentation that the |
| director may require on an annual basis for the director to assess ongoing compliance with this |
| section. |
| (5) A healthcare entity or health plan may petition the director for a waiver of the provision |
| of this section for a period not to exceed ninety (90) days in the event the healthcare entity or health |
| plan is converting or substantially modifying its claims processing systems. |
| (f) For purposes of this section, the following definitions apply: |
| (1) “Claim” means: (i) A bill or invoice for covered services; (ii) A line item of service; or |
| (iii) All services for one patient or subscriber within a bill or invoice. |
| (2) “Date of receipt” means the date the healthcare entity or health plan receives the claim |
| whether via electronic submission or has a paper claim. |
| (3) “Healthcare entity” means a licensed insurance company or nonprofit hospital or |
| medical or dental service corporation or plan or health maintenance organization, or a contractor |
| as described in § 23-17.13-2(2), that operates a health plan. |
| (4) “Healthcare provider” means an individual clinician, either in practice independently |
| or in a group, who provides healthcare services, and referred to as a non-institutional provider. |
| (5) “Healthcare services” include, but are not limited to, medical, mental health, substance |
| abuse, dental, and any other services covered under the terms of the specific health plan. |
| (6) “Health plan” means a plan operated by a healthcare entity that provides for the delivery |
| of healthcare services to persons enrolled in the plan through: |
| (i) Arrangements with selected providers to furnish healthcare services; and/or |
| (ii) Financial incentive for persons enrolled in the plan to use the participating providers |
| and procedures provided for by the health plan. |
| (7) “Policyholder” means a person covered under a health plan or a representative |
| designated by that person. |
| (8) “Substantial compliance” means that the healthcare entity or health plan is processing |
| and paying ninety-five percent (95%) or more of all claims within the time frame provided for in § |
| 27-18-61(a) and (b). |
| (g) Any provision in a contract between a healthcare entity or a health plan and a healthcare |
| provider that is inconsistent with this section shall be void and of no force and effect. |
| SECTION 5. Section 27-41-64 of the General Laws in Chapter 27-41 entitled "Health |
| Maintenance Organizations" is hereby amended to read as follows: |
| 27-41-64. Prompt processing of claims. |
| (a)(1) A healthcare entity or health plan operating in the state shall pay all complete claims |
| for covered healthcare services submitted to the healthcare entity or health plan by a healthcare |
| provider or by a policyholder within forty (40) calendar days following the date of receipt of a |
| complete written claim or within thirty (30) calendar days following the date of receipt of a |
| complete electronic claim. Each health plan shall establish a written standard defining what |
| constitutes a complete claim and shall distribute this standard to all participating providers. |
| (2) No health care entity or health plan shall deny a claim for payment of any medical bill, |
| based solely on the reason that the bill may have arisen from a third-party claim or incident, other |
| than a workers' compensation claim pursuant to chapter 33 of title 28. |
| (b) If the healthcare entity or health plan denies or pends a claim, the healthcare entity or |
| health plan shall have thirty (30) calendar days from receipt of the claim to notify in writing the |
| healthcare provider or policyholder of any and all reasons for denying or pending the claim and |
| what, if any, additional information is required to process the claim. No healthcare entity or health |
| plan may limit the time period in which additional information may be submitted to complete a |
| claim. |
| (c) Any claim that is resubmitted by a healthcare provider or policyholder shall be treated |
| by the healthcare entity or health plan pursuant to the provisions of subsection (a) of this section. |
| (d) A healthcare entity or health plan that fails to reimburse the healthcare provider or |
| policyholder after receipt by the healthcare entity or health plan of a complete claim within the |
| required timeframes shall pay to the healthcare provider or the policyholder who submitted the |
| claim, in addition to any reimbursement for healthcare services provided, interest that shall accrue |
| at the rate of twelve percent (12%) per annum commencing on the thirty-first (31st) day after receipt |
| of a complete electronic claim or on the forty-first (41st) day after receipt of a complete written |
| claim, and ending on the date the payment is issued to the healthcare provider or the policyholder. |
| (e) Exceptions to the requirements of this section are as follows: |
| (1) No healthcare entity or health plan operating in the state shall be in violation of this |
| section for a claim submitted by a healthcare provider or policyholder if: |
| (i) Failure to comply is caused by a directive from a court or federal or state agency; |
| (ii) The healthcare entity or health plan is in liquidation or rehabilitation or is operating in |
| compliance with a court-ordered plan of rehabilitation; or |
| (iii) The healthcare entity or health plan’s compliance is rendered impossible due to matters |
| beyond its control that are not caused by it. |
| (2) No healthcare entity or health plan operating in the state shall be in violation of this |
| section for any claim: (i) Initially submitted more than ninety (90) days after the service is rendered, |
| or (ii) Resubmitted more than ninety (90) days after the date the healthcare provider received the |
| notice provided for in § 27-18-61(b); provided, this exception shall not apply in the event |
| compliance is rendered impossible due to matters beyond the control of the healthcare provider and |
| were not caused by the healthcare provider. |
| (3) No healthcare entity or health plan operating in the state shall be in violation of this |
| section while the claim is pending due to a fraud investigation by a state or federal agency. |
| (4) No healthcare entity or health plan operating in the state shall be obligated under this |
| section to pay interest to any healthcare provider or policyholder for any claim if the director of the |
| department of business regulation finds that the entity or plan is in substantial compliance with this |
| section. A healthcare entity or health plan seeking that finding from the director shall submit any |
| documentation that the director shall require. A healthcare entity or health plan that is found to be |
| in substantial compliance with this section shall submit any documentation the director may require |
| on an annual basis for the director to assess ongoing compliance with this section. |
| (5) A healthcare entity or health plan may petition the director for a waiver of the provision |
| of this section for a period not to exceed ninety (90) days in the event the healthcare entity or health |
| plan is converting or substantially modifying its claims processing systems. |
| (f) For purposes of this section, the following definitions apply: |
| (1) “Claim” means: (i) A bill or invoice for covered services; (ii) A line item of service; or |
| (iii) All services for one patient or subscriber within a bill or invoice. |
| (2) “Date of receipt” means the date the healthcare entity or health plan receives the claim |
| whether via electronic submission or as a paper claim. |
| (3) “Healthcare entity” means a licensed insurance company or nonprofit hospital or |
| medical or dental service corporation or plan or health maintenance organization, or a contractor |
| as described in § 23-17.13-2(2) [repealed] that operates a health plan. |
| (4) “Healthcare provider” means an individual clinician, either in practice independently |
| or in a group, who provides healthcare services, and is referred to as a non-institutional provider. |
| (5) “Healthcare services” include, but are not limited to, medical, mental health, substance |
| abuse, dental, and any other services covered under the terms of the specific health plan. |
| (6) “Health plan” means a plan operated by a healthcare entity that provides for the delivery |
| of healthcare services to persons enrolled in the plan through: |
| (i) Arrangements with selected providers to furnish healthcare services; and/or |
| (ii) Financial incentive for persons enrolled in the plan to use the participating providers |
| and procedures provided for by the health plan. |
| (7) “Policyholder” means a person covered under a health plan or a representative |
| designated by that person. |
| (8) “Substantial compliance” means that the healthcare entity or health plan is processing |
| and paying ninety-five percent (95%) or more of all claims within the time frame provided for in § |
| 27-18-61(a) and (b). |
| (g) Any provision in a contract between a healthcare entity or a health plan and a healthcare |
| provider that is inconsistent with this section shall be void and of no force and effect. |
| SECTION 6. This act shall take effect upon passage. |
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| LC003564 |
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