HB 1241

                           Second Regular Session
                        Seventy-fifth General Assembly
                          STATE OF COLORADO
                                                                       REENGROSSED
                                                            This Version Includes All Amendments
                                                             Adopted in the House of Introduction
LLS NO. 26-0791.01 Renee Leone x2695  HOUSE BILL 26-1241
                            HOUSE SPONSORSHIP
 Marshall and Bradley, Bacon, Duran, Gonzalez R., Hamrick, Joseph, Slaugh, Soper
                           SENATE SPONSORSHIP
 Marchman,
House Committees  Senate Committees
Health & Human Services
                                    A BILL FOR AN ACT
101     CONCERNING THE NOTICE REQUIRED TO MAKE A MATERIAL CHANGE
102TO A CONTRACT ENTERED INTO WITH A HEALTH-CARE
103PROVIDER.
                                          Bill Summary
                                                                                                             3rd Reading Unamended
             (Note: This summary applies to this bill as introduced and does
                                                                                                                                     March 24, 2026
     not reflect any amendments that may be subsequently adopted. If this bill
                                                                                                     HOUSE
     passes third reading in the house of introduction, a bill summary that
     applies to the reengrossed version of this bill will be available at
     http://leg.colorado.gov.)
            In current law concerning contracts with health-care providers, an
     entity wishing to make a material change to such a contract must provide
     written notice of the change to the health-care provider at least 90 days
                                                                                                     Amended 2nd Reading
     before the effective date of the change. The bill adds language requiring
                                                                                                         March 23, 2026
     a person to give such written notice by registered mail and by email to the
                                                                                                            HOUSE
          Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
       Capital letters or bold & italic numbers indicate new material to be added to existing law.
             Dashes through the words or numbers indicate deletions from existing law.
health-care provider or administrator who signed the contract and adds a
reference to this language in the area of the Colorado Revised Statutes
concerning health-care insurance carriers.
1 Be it enacted by the General Assembly of the State of Colorado:
2SECTION 1. In Colorado Revised Statutes, 10-16-121, add
3 (1)(g) as follows:
410-16-121. Required contract provisions in contracts between
5 carriers and providers - definitions.
6(1)   A contract between a carrier and a provider or its
7 representative concerning the delivery, provision, payment, or offering of
8 care or services covered by a managed care plan must make provisions
9 for the following requirements:
10(g) (I) A PROVISION THAT REQUIRES THE CARRIER TO PROVIDE
11 NOTICE TO THE PROVIDER IF THE CARRIER MAKES A MATERIAL CHANGE TO
12 THE CONTRACT, IN ACCORDANCE WITH SECTION 25-37-104.
13(II) AS USED IN THIS SUBSECTION (1)(g), "MATERIAL CHANGE"
14 HAS THE MEANING SET FORTH IN SECTION 25-37-102 (9).
15SECTION 2. In Colorado Revised Statutes, 25-37-104, amend
16 (1) as follows:
1725-37-104. Material change in health-care contract - written
18 advance notice.
19(1) A material change to a contract shall occur IS AUTHORIZED
20 only if the person or entity provides NOTICE OF THE MATERIAL CHANGE in
21 writing, BY STANDARD ELECTRONIC MEANS, to the health-care provider the
22 proposed change and gives  TWO SEPARATE TIMES AND, IF THE
23 HEALTH-CARE PROVIDER HAS NOT AFFIRMATIVELY RESPONDED, A THIRD
24 TIME BY REGISTERED MAIL OR PERSONAL SERVICE TO THE HEALTH-CARE
                                   -2-  1241
1 PROVIDER OR THE HEALTH-CARE PROVIDER'S ADMINISTRATOR WHO WAS
2 THE INDIVIDUAL WHO SIGNED THE CONTRACT AT LEAST ninety days notice
3 before the effective date of the change. The writing shall WRITTEN NOTICE
4 MUST be conspicuously entitled "notice of material change to contract"
5 AND MUST CLEARLY SET FORTH THE PROPOSED MATERIAL CHANGE. THE
6 PERSON OR ENTITY PROVIDING NOTICE MAY CHARGE THE ACTUAL COST
7 INCURRED FOR THE REGISTERED MAIL OR PERSONAL SERVICE TO THE
8 HEALTH-CARE PROVIDER.
9SECTION 3.       Act subject to petition - effective date -
10 applicability. (1) This act takes effect January 1, 2027, except that, if a
11 referendum petition is filed pursuant to section 1 (3) of article V of the
12 state constitution against this act or an item, section, or part of this act
13 within the ninety-day period after final adjournment of the general
14 assembly, then the act, item, section, or part will not take effect unless
15 approved by the people at the general election to be held in November
16 2026 and, in such case, will take effect January 1, 2027, or on the date of
17 the official declaration of the vote thereon by the governor, whichever is
18 later.
19(2) This act applies to contracts entered into or renewed on or
20 after the applicable effective date of this act.
                                    -3-  1241