In the 2017 legislative session, Rhode Island passed legislation improving price transparency by requiring hospitals to provide patients with a cost estimate of the anticipated services. However, a number of other initiatives designed to contain health care costs for health care consumers failed to pass. Two bills sought to directly set the prices health care providers can bill patients for their health care records. Another bill aimed to improve health care transparency by studying and analyzing patient liability health plans and by requiring health insurers to make their plans’ assessment, restriction, and utilization information available on their websites.
In the 2018 legislative session, several innovative health care bills were proposed, but few were signed into law. The Rhode Island legislature successfully passed a bill to decrease the size of premium increases through reinsurance — this newly enacted statute will lower healthcare costs for consumers by mitigating the impact high-risk individuals have on health insurance premiums. Rhode Island has also passed a bill that will allow small business owners to purchase health plans offered by their State Exchange. Rhode Island is seeking a 1332 State Innovation waiver in conjunction with both bills.
With the goal of containing health care costs, the legislature proposed additional bills that would have created restrictions on premium rates or increases, but these bills failed to pass. The Senate also unsuccessfully proposed a bill that sought to create a universal single-payer health care insurance program for Rhode Islanders. Similarly, both the House and Senate proposed, but did not pass, a resolution to encourage Congress to pass legislation creating a “Medicare for all” single payer program. On the drug pricing side, the legislature attempted to regulate the pharmaceutical industry by increasing drug price transparency and empowering consumers with purchasing power, but the two houses could not come to an agreement regarding any of the proposed bills, which included price gouging regulation and price transparency efforts.
Early in 2019, Rhode Island Governor signed an executive order that set a 3.2 percent growth cap on all spending on hospitals and doctors by commercial insurers, government health programs, employers, and consumers. Thee growth cap will be effective through 2022 and will be administered and monitored by the Rhode Island Health Care Costs Trends Steering Committee. Rhode Island is the second state, after Massachusetts, to limit how much health costs can increase each year.
The State Database
The Source tracks state activities impacting healthcare price and competition in both legislation and litigation in a searchable database to help stakeholders at the state level understand their legal and regulatory environment as they make efforts to improve access, quality, and efficiency, and reduce costs in healthcare.
LEGISLATION: The Database of State Laws Impacting Healthcare Cost and Quality (SLIHCQ), created by The Source on Healthcare Price & Competition and Catalyst for Payment Reform, catalogues state legislation governing price transparency, provider market power, provider payment, provider networks, and benefit design. The database also includes pharmaceutical legislation beginning in the 2017-2018 legislative session. *Note: Current legislative session bill updates are ongoing. Check back weekly for updates.
LITIGATION: The Source tracks major litigation and antitrust enforcement action by federal entities (FTC or DOJ), state attorney generals, and private parties in the main provider and insurer markets, particularly legal challenges of healthcare consolidation and anticompetitive contract provisions. Additionally, the database contains major pharmaceutical cases including legislation challenges and significant appellate cases.
Search the database across all jurisdictions on the State Overview page, or view and filter existing legislation or litigation on individual state pages. The database allows customized search and filter by keyword, status, and/or key issue category. *Multiple filter/selections enabled. Click here for User Guide.
LEGISLATIVE CALENDARRhode Island’s current legislative session runs from 1/1/2019 – 12/31/2019. Bills from 2019 will carry over to 2020 as part of the 2019-2020 legislative term.
FY 2019 BUDGETRhode Island’s fiscal year begins on July 1 and ends on June 30 in the following year. Rhode Island enacted its FY 2019 Budget during the 2018 regular legislative session. The FY 2019 Budget totals $9.37 billion and focuses on education & training programs, attracting and retaining jobs, and helping Rhode Islanders in need. The Governor proposes funding $3.9 billion to maintain existing services for Rhode Island’s most vulnerable populations, such as addressing the opioid and mental health crisis. Overall, the Governor’s five-year plan allocates 0.5% to health and human services on-going projects and asset protection. To view Rhode Island’s FY 2019 Budget, click here.
REGULATION & ENFORCEMENT
- Rhode Island Attorney General’s review documents of current and past hospital conversions can be found here.