Please ensure Javascript is enabled for purposes of website accessibility Venkat to introduce legislation to create fairer healthcare contracts

Venkat to introduce legislation to create fairer healthcare contracts

HARRISBURG, Aug. 31 – In an effort to increase transparency in the healthcare insurance industry, state Rep. Arvind Venkat, the General Assembly’s only elected physician, has announced his intention to introduce legislation that will protect healthcare providers from unfair contract changes.

Health insurers and healthcare providers periodically negotiate contracts establishing reimbursement rates, payment methodologies and administrative requirements for covered services. However, many contracts contain unilateral amendment provisions that allow insurers to change these terms during the contract period, often with limited notice to providers.

Venkat’s proposal would prohibit health insurers from unilaterally modifying, amending, or reinterpreting any material condition during the term of a contract with a healthcare provider – ensuring that reimbursements, covered services and payment terms are not changed mid-contract.

“As a physician-legislator who continues to care for patients, I know how critical it is to make sure healthcare is affordable and accessible,” said Venkat, D-Allegheny. “Having our insurers, hospitals and clinicians contracted on an equal basis is crucial in achieving this. This legislation will ensure basic fairness between providers and insurers while protecting healthcare access.”

Venkat is currently circulating the proposal among his colleagues seeking support for the measure and intends to introduce the legislation in the near future.