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Insights Insights
| 1 minute read

Navigating New State Laws in the Healthcare Industry

As we enter a new year, health providers and insurers must be prepared to navigate a variety of state laws that will go into effect this year. These laws cover a wide range of key issues, including reproductive care, patient documentation, wages, and reimbursement. In fact, at least 17 states have implemented new laws that impact the healthcare industry.

Let's take a closer look at some of the notable laws that have been or will be enacted:

Minimum Wage: In California, healthcare workers will see an increase in their minimum wage. Starting on June 1, the minimum wage will be $23 per hour, gradually increasing to $25 per hour by 2026. 

Mergers & Acquisitions: Illinois now requires healthcare facilities to notify the state attorney general within 30 days of a proposed merger. Failure to do so may result in a fine of $500 per day. Similarly, Minnesota aims to track healthcare facility mergers and acquisitions, requiring facilities with $10-$80 million in revenue to inform the state health department of such changes.

Health Information: Texas has implemented a new requirement for health insurers to provide a website where providers can verify patient insurance coverage. On the other hand, Virginia has introduced the Smart Check Network Program, which aims to enhance transparency by providing a statewide view of the treatment, payment, or operations relationship between providers and patients.

Medical Malpractice: Nevada has set a cap on monetary awards for plaintiffs in medical malpractice cases. The cap currently starts at $80,000 and will gradually increase to $750,000 by 2028. From 2029 onwards, the cap will increase by 2.1% per year.

Discharging Patients: Arizona now mandates more documentation when an assisted living facility discharges a patient to an emergency provider. 

Drug Prices: Several states are enacting laws addressing drug prices and reimbursements. In Connecticut, new requirements have been introduced for pharmacy benefit managers (PBMs) and their contracts with 340B-protected organizations.

These are just a few examples of the new state laws that healthcare providers and insurers need to be aware of. For a more comprehensive list, read Modern Healthcare's summary here.

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Health providers and insurers will have to navigate a bevy of state laws that took effect with the new year, covering key issues such as reproductive care, patient documentation, wages and reimbursement.


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