State News

Delaware has passed legislation to establish a hospital cost review board, reports the Delaware
Business Times. The Diamond State Hospital Cost Review Board will oversee hospital budgets,
aiming to control rising health care costs. This initiative is expected to increase transparency
and affordability in health care services, particularly for low-income residents. The board will
consist of members with expertise in health care economics and policy, ensuring informed
decision-making to benefit the state's health care system.

Beginning October 2024, Minnesota will prohibit reporting medical debt to credit bureaus and
transferring medical debt to spouses, reports CBS News Minnesota. Additionally, providers may
not withhold care due to outstanding medical debt and wage garnishment will be limited based
on income.

Oklahoma has enacted a new law to protect patients from surprise ambulance bills, reports
News 9. The law, effective November 1, 2024, aims to shield patients from unexpected charges
during emergency ambulance rides. It also provides financial support for rural EMS services,
helping them acquire equipment and offer competitive wages. This legislation is expected to
improve the financial stability of EMS providers and ensure better patient protection without
increasing insurance premiums.

Washington will require insurance companies to explain to policyholders why their premiums
have gone up, reports My Northwest. Starting June 1, 2024, insurers will have to include a
disclaimer on the first page of renewal notices and billings statements notifying policyholders
they can request more details about their premium increase, and the insurer must respond
within 20 days. Effective June 1, 2027, insurance companies will have to provide explanations
automatically before renewing a policy with a 10 percent or more increase. The rule from the
Washington State Insurance Commissioner’s office is reportedly the first of its kind in the
country.

The Oregon Health Authority’s annual report on cost growth trends found health care costs grew
3.6 percent in Oregon between 2021-2022, reports KTVZ. Overall spending growth was slightly
above the benchmark rate of 3.4 percent, however more than half of plans and provider
organizations met the target. Cost growth was driven by increases in hospital outpatient
services, behavioral health services, and changes in how providers were paid, with more
providers receiving prospective payments, quality payments, and other value-based
arrangements.

Oklahoma passed legislation addressing price transparency in an effort to limit medical debt,
reports KSWO. The new law aims to alleviate the burden of medical debt for Oklahomans by
establishing more transparent billing practices and limiting predatory debt collection tactics.

Michigan will require insurance providers to cover mental health and substance abuse disorder
treatments at the same level as medical coverage, according to the Detroit Free Press. State-
regulated health plans will be barred from imposing greater deductibles, co-payments, and out-
of-pocket maximums on mental health and substance use disorder treatment than they would
for medical coverage. The legislation mirrors federal parity requirements and aims to limit
loopholes for paying for certain mental health services.

Vermont passed legislation directing the Green Mountain Care Board to explore and create a
plan to regulate the cost of prescription drugs in the state, reports VT Digger. The board will
review of options for cost regulation, including Prescription Drug Affordability Boards (PDABs) in
other states, the Medicare Drug Price Negotiation Program, and other programs. The board
must provide a final plan to the legislature by January 15, 2026.

Vermont has eliminated prior authorization for select primary care services in state-regulated
plans, according to Vermont Public. The legislation allows primary care physicians to order tests
and certain medications for their patients without first seeking prior authorization from insurance
companies.