Prohibits insurance companies from paying a rate that is less than the approved Medicaid rate set by the executive office of health and human services.

Plain-English Summary

This bill would set a minimum payment floor for how much private insurance companies must pay healthcare providers for medical services. Specifically, it would require that private insurers — such as those offering employer-sponsored health plans or individual insurance policies — pay doctors, hospitals, and other healthcare providers at least as much as the state's Medicaid program pays for the same services. Medicaid rates are set by Rhode Island's Executive Office of Health and Human Services.

The bill would primarily affect healthcare providers (like doctors and hospitals) and private insurance companies operating in Rhode Island. Currently, private insurers can negotiate payment rates with providers, and in some cases those negotiated rates may fall *below* what Medicaid pays — which advocates of this type of legislation often argue shortchanges providers. Under this bill, private insurers would no longer be permitted to pay less than the approved Medicaid rate, effectively making that rate the lowest acceptable payment amount.

Patients with private insurance could also be indirectly affected. If insurers are required to pay more to providers, they may respond by adjusting premiums or other cost-sharing arrangements. The bill is currently in its early stages, having been introduced and referred to the Rhode Island Senate Committee on Health and Human Services, where it will be reviewed before any further action is taken.