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S2108aa
2026 -- S 2108 AS AMENDED
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LC003844
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
____________
A N A C T
RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES
Introduced By:
Senators Bissaillon, Ciccone, Tikoian, Gallo, Murray, and DiMario
Date Introduced:
January 16, 2026
Referred To:
Senate Health & Human Services
It is enacted by the General Assembly as follows:
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SECTION 1. Section 27-18-54 of the General Laws in Chapter 27-18 entitled "Accident
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and Sickness Insurance Policies" is hereby amended to read as follows:
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27-18-54. Health insurance rates.
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No insurance company organized as a stock or mutual corporation that merges or
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consolidates with, acquires ownership or control or possession of twenty percent (20%) or greater
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of the operating assets of, or otherwise acquires control of a nonprofit hospital service corporation
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organized under chapter 19 of this title, a nonprofit medical service corporation organized under
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chapter 20 of this title, or a health maintenance organization organized under chapter 41 of this title
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may: (1) File with any state agency for review or approval any proposed rate to be used by the
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company in the state;
or
(2) Charge to any party in the state any rate or premium, that takes into
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account or reflects in any manner the value of any contribution, distribution, or allocation the
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company expends or incurs in establishing or funding a charitable foundation organized to maintain
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or account for the assets of a nonprofit hospital service corporation, nonprofit medical service
14
corporation, or health maintenance organization
; or (3) Pay a rate that is less than the approved
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Medicaid rate for behavioral health services set by the executive office of health and human
16
services
. For any rate that is to be charged to policy holders, regardless of whether the rate is subject
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to approval by a state agency under this or another chapter, the company shall at least thirty (30)
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days before implementing the rate submit under oath to the commissioner of insurance an
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accounting that documents the cost structure on which the rate is based and demonstrates the
1
company’s compliance with this section.
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SECTION 2. Section 27-19-30.1 of the General Laws in Chapter 27-19 entitled "Nonprofit
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Hospital Service Corporations" is hereby amended to read as follows:
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27-19-30.1. Health insurance rates.
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No insurance company organized as a stock or mutual corporation that merges or
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consolidates with, acquires ownership or control or possession of twenty percent (20%) or greater
7
of the operating assets of, or otherwise acquires control of a nonprofit hospital service corporation
8
organized under this chapter, a nonprofit medical service corporation organized under chapter 20
9
of this title, or a health maintenance organization organized under chapter 41 of this title, may: (1)
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File with any state agency for review or approval any proposed rate to be used by the company in
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the state
, or
;
(2) Charge to any party in the state any rate or premium that takes into account or
12
reflects in any manner the value of any contribution, distribution, or allocation the company
13
expends or incurs in establishing or funding a charitable foundation organized to maintain or
14
otherwise account for the assets of a nonprofit hospital service corporation, nonprofit medical
15
service corporation, or health maintenance organization
; or (3) Pay a rate that is less than the
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approved Medicaid rate for behavioral health services set by the executive office of health and
17
human services
. For any rate that is to be charged to policyholders, regardless of whether the rate
18
is subject to approval by a state agency under this or another chapter, the company shall at least
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thirty (30) days before implementing the rate submit under oath to the commissioner of insurance
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an accounting that documents the cost structure on which the rate is based and demonstrates the
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company’s compliance with this section.
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SECTION 3. Section 27-20-25.2 of the General Laws in Chapter 27-20 entitled "Nonprofit
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Medical Service Corporations" is hereby amended to read as follows:
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27-20-25.2. Health insurance rates.
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No insurance company organized as a stock or mutual corporation that merges or
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consolidates with; acquires ownership or control or possession of twenty percent (20%) or greater
27
of the operating assets of; or acquires control of a nonprofit hospital service corporation organized
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under chapter 19 of this title, a nonprofit medical service corporation organized under this chapter,
29
or a health maintenance organization organized under chapter 41 of this title may: (1) File with any
30
state agency for review or approval any proposed rate to be used by the company in the state
, or
;
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(2) Charge to any party in the state any rate or premium, that takes into account or reflects in any
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manner the value of any contribution, distribution, or allocation the company expends or incurs in
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establishing or funding a charitable foundation organized to maintain or account for the assets of a
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nonprofit hospital service corporation, nonprofit medical service corporation, or health
LC003844 - Page 2 of 4
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maintenance organization
; or (3) Pay a rate that is less than the approved Medicaid rate for
2
behavioral health services set by the executive office of health and human services
. For any rate
3
that is to be charged to policyholders, regardless of whether this rate is subject to approval by a
4
state agency under this or another chapter, the company shall at least thirty (30) days before
5
implementing the rate submit under oath to the commissioner of insurance an accounting that
6
documents the cost structure on which the rate is based and demonstrates the company’s
7
compliance with this section.
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SECTION 4. Section 27-41-27.2 of the General Laws in Chapter 27-41 entitled "Health
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Maintenance Organizations" is hereby amended to read as follows:
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27-41-27.2. Health insurance rates.
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No insurance company organized as a stock or mutual corporation that merges or
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consolidates with, acquires ownership or control or possession of twenty percent (20%) or greater
13
of the operating assets of, or acquires control of a nonprofit hospital service corporation organized
14
under chapter 19 of this title, a nonprofit medical service corporation organized under chapter 20
15
of this title, or a health maintenance organization organized under chapter 41 of this title: (1) May
16
file with any state agency for review or approval any proposed rate to be used by the company in
17
the state
, or
;
(2) May charge to any party in the state any rate or premium, that takes into account
18
or reflects in any manner the value of any contribution, distribution, or allocation the company
19
expends or incurs in establishing or funding a charitable foundation organized to maintain or
20
account for the assets of a nonprofit hospital service corporation, nonprofit medical service
21
corporation, or health maintenance organization
; or (3) Pay a rate that is less than the approved
22
Medicaid rate for behavioral health services set by the executive office of health and human
23
services
. For any rate that is to be charged to policyholders, regardless of whether this rate is subject
24
to approval by a state agency under this or another chapter, the company shall at least thirty (30)
25
days before implementing the rate submit under oath to the commissioner of insurance an
26
accounting that documents the cost structure on which the rate is based and demonstrates the
27
company’s compliance with this section.
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SECTION 5. This act shall take effect on January 1, 2027.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES
***
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This act would prohibit insurance companies from paying a rate that is less than the
2
approved Medicaid rate set by the executive office of health and human services.
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This act would take effect on January 1, 2027.
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