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SB 2108

AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES

2026 Regular Session Introduced by Jake Bissaillon and 5 co-sponsors

The bill bans health insurers from using charitable foundation funding to set or justify rates after merging with nonprofit hospital or HMO entities, and requires an oath-backed co

05/28/2026 Referred to House Health & Human Services
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Bill Summary · SB 2108

Summary of Bill SB 2108 ( Rhode Island, 2026 Session )

Purpose and intent

SB 2108, titled AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES, would prohibit certain health insurers from paying or charging rates that are linked to or subsidized by charitable foundations related to nonprofit hospital or medical service corporations or health maintenance organizations. The bill seeks to ensure that rates charged to policyholders are not influenced by the value or funding of charitable foundations associated with these nonprofit entities. It takes effect January 1, 2027.

Key provisions and changes

  • Across multiple chapters (27-18, 27-19, 27-20, and 27-41), the bill imposes the same core requirement:

    • If an insurance company that is organized as a stock or mutual corporation merges with, acquires 20% or more of the operating assets of, or otherwise gains control of a nonprofit hospital service corporation (chapter 19), a nonprofit medical service corporation (chapter 20), or a health maintenance organization (chapter 41), then the company may not:
    • File for state rate review or approval with respect to any proposed rate in the state that reflects the value of funds contributed to or allocated toward establishing or funding a charitable foundation linked to those nonprofit entities.
    • Charge a rate or premium in the state that takes into account or reflects the value of any such charitable foundation contributions or allocations.
    • Pay a rate that is less than the Medicaid rate approved by the Rhode Island Executive Office of Health and Human Services (EOHHS).
    • For any rate charged to policyholders (whether or not subject to state rate approval), the company must submit under oath to the RI Commissioner of Insurance at least 30 days before implementing the rate. This submission must document the cost structure of the rate and demonstrate compliance with the section.

  • The applicable sections cover:

    • 27-18-54 (Health insurance rates) – Applies to stock or mutual companies merging with or controlling nonprofit hospital/medical service organizations or HMOs.
    • 27-19-30.1 (Health insurance rates) – Applies to nonprofit hospital service corporations entering into such mergers or control arrangements.
    • 27-20-25.2 (Health insurance rates) – Applies to nonprofit medical service corporations in the same context.
    • 27-41-27.2 (Health maintenance organizations) – Applies to HMOs in the same context.

  • Effective date: January 1, 2027.

Who/what would be affected

  • Insurance companies organized as stock or mutual corporations that merge with or gain substantial (20% or more) control of nonprofit hospital service corporations, nonprofit medical service corporations, or HMOs.
  • Rate-setting processes in Rhode Island for health insurance plans governed by these entities, including:
    • Rates filed with state agencies for review/approval.
    • Rates charged to policyholders (including those not subject to prior approval by state agencies).
  • Rhode Island Department of Insurance (DOI) oversight through the requirement to submit an oath-backed cost-structure accounting 30 days prior to rate implementation.
  • The Medicaid rate benchmark set by the Rhode Island EOHH (EOHH is referenced in the text; the bill mentions “executive office of health and human services,” i.e., EOHH/EOHHS).

Procedural and timeline aspects

  • Introduction: January 16, 2026.
  • Committee action: Referred to Senate Health & Human Services; committee recommended the measure be held for further study (April 16, 2026).
  • Passage or final enactment depends on subsequent legislative steps; the act includes a clear effective date of January 1, 2027.

Practical impact

  • Aims to increase transparency and limit the influence of charitable foundations on pricing for health insurance.
  • Ensures that premium rates reflect actual cost structures and do not subsidize nonprofits’ foundation activities.
  • Establishes an oath-based cost accounting requirement 30 days prior to rate changes, enhancing insurer accountability.
  • Could constrain pricing flexibility for large mergers involving nonprofit health entities, particularly regarding rates that would otherwise be set below Medicaid benchmarks.

Compiled from official sources — confirm details with the bill’s official record.

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