An Act relative to unilateral contract changes

This bill restricts health insurance plans in Massachusetts from contracting with healthcare providers if those contracts allow the insurer to terminate the provider without cause or make unilateral changes to key terms like payment rates and covered services. To ensure stability, the law requires insurers to provide written reasons for involuntary provider disenrollment and mandates that any unexpected changes to contract terms must take effect only after the current contract expires and be announced at least 90 days in advance. While the legislation prevents these specific unilateral actions, it explicitly permits insurers and providers to mutually agree to amend contracts together. The rules apply to contracts managed by the Division of Health Care Finance, private health insurance carriers, and policies purchased by the state commission.