RHODE ISLAND

Overview

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.

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.

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.

State Action




2020 Legislative Session: 1/7/2020 - 1/4/2021 (2019-2020 term). *Current session bill updates are ongoing. Check back weekly for updates.

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© 2018-2019 The SLIHCQ DatabaseInitial funding for this project was provided by the Robert Wood Johnson Foundation. The views expressed here do not necessarily reflect the views of the Foundation.

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© 2018-2019 The SLIHCQ DatabaseInitial funding for this project was provided by the Robert Wood Johnson Foundation. The views expressed here do not necessarily reflect the views of the Foundation.
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Additional Resources

STATE BUDGET

Rhode Island operates on an annual budget cycle. The governor submits a proposed budget in January and the legislature adopts a budget in June. The fiscal year begins on July 1 and ends on June 30 in the following year.

REGULATION & ENFORCEMENT

  • Rhode Island Attorney General’s review documents of current and past hospital conversions can be found here.

KEY RESOURCES

 

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