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H 8310Health Insurance

Insurance - Accident and Sickness Insurance Policies - Healthcare Provider Credentialing

This bill mandates faster approval times for doctors by insurance companies and penalizes insurers who miss deadlines.

Held for study
Population
Affected
45
Introduced Mar 18, 2026Committee House Health & Human Services

Plain-English Summary

This legislation modifies the credentialing process for healthcare providers in Rhode Island. It requires health insurance companies to make credentialing decisions within 30 days of receiving a complete application, reduced from the previous 45 days. For providers already credentialed with Medicare, the deadline is shortened to 10 business days. If an insurer fails to meet these deadlines, the provider is automatically deemed provisionally credentialed, and the insurer must pay for services rendered. The bill also empowers the Office of the Health Insurance Commissioner to enforce these rules and impose penalties for non-compliance.

For younger readers

When a doctor wants to see patients who have insurance, they have to get permission from the insurance company first. This is called credentialing. Right now, insurance companies can take a long time to say yes. This bill changes the rules so the insurance company has to decide much faster (30 days). If the insurance company is too slow, the doctor is automatically allowed to start seeing patients, and the insurance company has to pay the doctor for their work. This helps doctors start their jobs sooner.

Who & Where It Applies

Impacted groups
Healthcare ProvidersHealth Insurance CompaniesPatientsOffice of the Health Insurance CommissionerMedical Residents
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Increases access to healthcare for the community by speeding up the process for doctors to accept insurance, potentially reducing patient wait times.
  • Holds large insurance corporations accountable by imposing strict deadlines and financial penalties if they delay the administrative approval of providers.
  • Protects the livelihood of healthcare workers and small practices by ensuring they receive retroactive pay if insurance companies fail to process paperwork on time.
  • Removes the specific requirement for insurers to publish written standards defining what constitutes a "complete application," potentially reducing transparency.
  • Automatic "provisional credentialing" could theoretically allow a provider with red flags to practice temporarily if the insurer is simply administratively backed up, posing a risk to patient safety.
  • Does not address the fundamental structural issues of a private insurance-based system, merely regulating the existing bureaucracy.
For Conservatives
  • Reduces bureaucratic red tape for small business owners (private medical practices) allowing them to operate and generate revenue more quickly.
  • Enforces contract certainty and prompt payment for services rendered, protecting the property rights of healthcare providers.
  • Increases market efficiency by forcing insurance administrators to process applications within a tighter, more business-friendly timeframe.
  • Increases government regulation on private businesses by dictating strict operational timelines and internal processes for insurance companies.
  • Empowers a government agency (Office of the Health Insurance Commissioner) to void private contract provisions and impose administrative penalties.
  • Mandates additional government reporting requirements for businesses, requiring them to submit quarterly reports on timelines.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 56 additions · 24 deletions

SECTION 1. Section 27-18-83 of the General Laws in Chapter 27-18 entitled "Accident and Sickness Insurance Policies" is hereby amended to read as follows: 27-18-83. Healthcare provider credentialing.

(a) For applications received on or after January 1, 2018, a healthcare entity or health plan operating in the state shall be required to issue a decision regarding the credentialing of a healthcare provider as soon as practicable, but no later than forty-five (45) thirty (30) calendar days after the date of receipt of a complete credentialing application. For any provider already credentialed with Medicare, the timeline shall be ten (10) business days.

(b) For minor changes to the demographic information of an individual healthcare provider who is already credentialed with a particular healthcare entity or health plan, such healthcare entity or health plan shall complete such change within seven (7) five (5) business days of receipt of the healthcare provider’s request. Minor changes to demographic information requested by individual providers shall be submitted in the timeframe, and manner required by the healthcare entity or health plan, and shall include all supporting documentation required by the particular healthcare entity or health plan. For purposes of this section, minor changes to the information profile of a healthcare provider shall include, but not be limited to, changes of address and changes to a healthcare provider’s tax identification number.

(c) Each healthcare entity or health plan shall establish a written standard defining what elements constitute a complete credentialing application and shall distribute this standard with the written version of the credentialing application and make such standard available on the healthcare entity’s or health plan’s website. If the payer fails to meet the timeline in subsection (a) of this section, the provider shall be deemed provisionally credentialed, and the payer shall reimburse the provider retroactively for all covered services rendered from the date the completed application was received.

(d) Each healthcare entity or health plan shall respond to inquiries by the applicant regarding the status of an application.

(1) Each healthcare entity or health plan shall provide the applicant with automated application status updates, at least once every fifteen (15) calendar days, informing the applicant of any missing application materials until the application is deemed complete;

(2) Each healthcare entity or health plan shall inform the applicant within five (5) business days that the credentialing application is complete; and

(3) If the healthcare entity or health plan denies a credentialing application, the healthcare entity or health plan shall notify the healthcare provider in writing and shall provide the healthcare provider with any and all reasons for denying the credentialing application.

(e) The effective date for billing privileges for healthcare providers under a particular healthcare entity or health plan shall be the next business day following the date of approval of the credentialing application.

(f) For applications received from resident graduates on or after January 1, 2018, a healthcare entity or health plan shall offer a transitional or conditional approval process such that a resident graduate who has submitted an otherwise complete application and met all other criteria, may be conditionally approved, effective upon successful graduation from the training program.

(g) For the purposes of this section, the following definitions apply:

(1) “Complete credentialing application” means all the requested material has been submitted.

(2) “Date of receipt” means the date the healthcare entity or health plan receives the completed credentialing application whether via electronic submission or as a paper application.

(3) “Healthcare entity” means a licensed insurance company or nonprofit hospital or medical or dental service corporation or plan or health maintenance organization, or a contractor as defined in § 23-17.13-2 [repealed] that operates a health plan.

(4) “Healthcare provider” means a healthcare professional.

(5) “Health plan” means a plan operated by a healthcare entity that provides for the delivery of healthcare services to persons enrolled in those plans through:

(i) Arrangements with selected providers to furnish healthcare services; and

(ii) Financial incentives for persons enrolled in the plan to use the participating providers and procedures provided for by the health plan.

(h) The office of the health insurance commissioner shall enforce the provisions of this chapter and may impose administrative penalties consistent with its existing authority under title 27. Non-compliant contract provisions are void. The commissioner shall adopt rules and regulations to implement this chapter and shall require payers to submit quarterly reports on credentialing timelines.

SECTION 2. Section 27-19-74 of the General Laws in Chapter 27-19 entitled "Nonprofit Hospital Service Corporations" is hereby amended to read as follows: 27-19-74. Healthcare provider credentialing.

(a) For applications received on or after January 1, 2018, a healthcare entity or health plan operating in the state shall be required to issue a decision regarding the credentialing of a healthcare provider as soon as practicable, but no later than forty-five (45) thirty (30) calendar days after the date of receipt of a complete credentialing application. For any provider already credentialed with Medicare, the timeline shall be ten (10) business days.

(b) For minor changes to the demographic information of an individual healthcare provider who is already credentialed with a particular healthcare entity or health plan, such healthcare entity or health plan shall complete such change within seven (7) five (5) business days of receipt of the healthcare provider’s request. Minor changes to demographic information requested by individual providers shall be submitted in the timeframe, and manner required by the healthcare entity or health plan, and shall include all supporting documentation required by the particular healthcare entity or health plan. For purposes of this section, minor changes to the information profile of a healthcare provider shall include, but not be limited to, changes of address and changes to a healthcare provider’s tax identification number.

(c) Each healthcare entity or health plan shall establish a written standard defining what elements constitute a complete credentialing application and shall distribute this standard with the written version of the credentialing application and make such standard available on the healthcare entity’s or health plan’s website. If the payer fails to meet the timeline in subsection (a) of this section, the provider shall be deemed provisionally credentialed, and the payer shall reimburse the provider retroactively for all covered services rendered from the date the completed application was received.

(d) Each healthcare entity or health plan shall respond to inquiries by the applicant regarding the status of an application.

(1) Each healthcare entity or health plan shall provide the applicant with automated application status updates, at least once every fifteen (15) calendar days, informing the applicant of any missing application materials until the application is deemed complete;

(2) Each healthcare entity or health plan shall inform the applicant within five (5) business days that the credentialing application is complete; and

(3) If the healthcare entity or health plan denies a credentialing application, the healthcare entity or health plan shall notify the healthcare provider in writing and shall provide the healthcare provider with any and all reasons for denying the credentialing application.

(e) The effective date for billing privileges for healthcare providers under a particular healthcare entity or health plan shall be the next business day following the date of approval of the credentialing application.

(f) For applications received from resident graduates on or after January 1, 2018, a healthcare entity or health plan shall offer a transitional or conditional approval process such that a resident graduate who has submitted an otherwise complete application and met all other criteria, may be conditionally approved, effective upon successful graduation from the training program.

(g) For the purposes of this section, the following definitions apply:

(1) “Complete credentialing application” means all the requested material has been submitted.

(2) “Date of receipt” means the date the healthcare entity or health plan receives the completed credentialing application whether via electronic submission or as a paper application.

(3) “Healthcare entity” means a licensed insurance company or nonprofit hospital or medical or dental service corporation or plan or health maintenance organization, or a contractor as defined in § 23-17.13-2 [repealed] that operates a health plan.

(4) “Healthcare provider” means a healthcare professional.

(5) “Health plan” means a plan operated by a healthcare entity that provides for the delivery of healthcare services to persons enrolled in those plans through:

(i) Arrangements with selected providers to furnish healthcare services; and

(ii) Financial incentives for persons enrolled in the plan to use the participating providers and procedures provided for by the health plan.

(h) The office of the health insurance commissioner shall enforce the provisions of this chapter and may impose administrative penalties consistent with its existing authority under title 27. Non-compliant contract provisions are void. The commissioner shall adopt rules and regulations to implement this chapter and shall require payers to submit quarterly reports on credentialing timelines.

SECTION 3. Section 27-20-70 of the General Laws in Chapter 27-20 entitled "Nonprofit Medical Service Corporations" is hereby amended to read as follows: 27-20-70. Healthcare provider credentialing.

(a) For applications received on or after January 1, 2018, a healthcare entity or health plan operating in the state shall be required to issue a decision regarding the credentialing of a healthcare provider as soon as practicable, but no later than forty-five (45) thirty (30) calendar days after the date of receipt of a complete credentialing application. For any provider already credentialed with Medicare, the timeline shall be ten (10) business days.

(b) For minor changes to the demographic information of an individual healthcare provider who is already credentialed with a particular healthcare entity or health plan, the healthcare entity or health plan shall complete the change within seven (7) five (5) business days of receipt of the healthcare provider’s request. Minor changes to demographic information requested by individual providers shall be submitted in the timeframe, and manner required by the healthcare entity or health plan, and shall include all supporting documentation required by the particular healthcare entity or health plan. For purposes of this section, minor changes to the information profile of a healthcare provider shall include, but not be limited to, changes of address and changes to a healthcare provider’s tax identification number.

(c) Each healthcare entity or health plan shall establish a written standard defining what elements constitute a complete credentialing application and shall distribute this standard with the written version of the credentialing application and make the standard available on the healthcare entity’s or health plan’s website. If the payer fails to meet the timeline in subsection (a) of this section, the provider shall be deemed provisionally credentialed, and the payer shall reimburse the provider retroactively for all covered services rendered from the date the completed application was received.

(d) Each healthcare entity or health plan shall respond to inquiries by the applicant regarding the status of an application.

(1) Each healthcare entity or health plan shall provide the applicant with automated application status updates, at least once every fifteen (15) calendar days, informing the applicant of any missing application materials until the application is deemed complete;

(2) Each healthcare entity or health plan shall inform the applicant within five (5) business days that the credentialing application is complete; and

(3) If the healthcare entity or health plan denies a credentialing application, the healthcare entity or health plan shall notify the healthcare provider in writing and shall provide the healthcare provider with any and all reasons for denying the credentialing application.

(e) The effective date for billing privileges for healthcare providers under a particular healthcare entity or health plan shall be the next business day following the date of approval of the credentialing application.

(f) For applications received from resident graduates on or after January 1, 2018, a healthcare entity or health plan shall offer a transitional or conditional approval process such that a resident graduate who has submitted an otherwise complete application and met all other criteria, may be conditionally approved, effective upon successful graduation from the training program.

(g) For the purposes of this section, the following definitions apply:

(1) “Complete credentialing application” means all the requested material has been submitted.

(2) “Date of receipt” means the date the healthcare entity or health plan receives the completed credentialing application whether via electronic submission or as a paper application.

(3) “Healthcare entity” means a licensed insurance company or nonprofit hospital or medical or dental service corporation or plan or health maintenance organization, or a contractor as defined in § 23-17.13-2 [repealed] that operates a health plan.

(4) “Healthcare provider” means a healthcare professional.

(5) “Health plan” means a plan operated by a healthcare entity that provides for the delivery of healthcare services to persons enrolled in those plans through:

(i) Arrangements with selected providers to furnish healthcare services; and

(ii) Financial incentives for persons enrolled in the plan to use the participating providers and procedures provided for by the health plan.

(h) The office of the health insurance commissioner shall enforce the provisions of this chapter and may impose administrative penalties consistent with its existing authority under title 27. Non-compliant contract provisions are void. The commissioner shall adopt rules and regulations to implement this chapter and shall require payers to submit quarterly reports on credentialing timelines.

SECTION 4. Section 27-41-87 of the General Laws in Chapter 27-41 entitled "Health Maintenance Organizations" is hereby amended to read as follows: 27-41-87. Healthcare provider credentialing.

(a) For applications received on or after January 1, 2018, a healthcare entity or health plan operating in the state shall be required to issue a decision regarding the credentialing of a healthcare provider as soon as practicable, but no later than forty-five (45) thirty (30) calendar days after the date of receipt of a complete credentialing application. For any provider already credentialed with Medicare, the timeline shall be ten (10) business days.

(b) For minor changes to the demographic information of an individual healthcare provider who is already credentialed with a particular healthcare entity or health plan, the healthcare entity or health plan shall complete the change within seven (7) five (5) business days of receipt of the healthcare provider’s request. Minor changes to demographic information requested by individual providers shall be submitted in the time frame, and manner required by the healthcare entity or health plan, and shall include all supporting documentation required by the particular healthcare entity or health plan. For purposes of this section, minor changes to the information profile of a healthcare provider shall include, but not be limited to, changes of address and changes to a healthcare provider’s tax identification number.

(c) Each healthcare entity or health plan shall establish a written standard defining what elements constitute a complete credentialing application and shall distribute this standard with the written version of the credentialing application and make the standard available on the healthcare entity’s or health plan’s website. If the payer fails to meet the timeline in subsection (a) of this section, the provider shall be deemed provisionally credentialed, and the payer shall reimburse the provider retroactively for all covered services rendered from the date the completed application was received.

(d) Each healthcare entity or health plan shall respond to inquiries by the applicant regarding the status of an application.

(1) Each healthcare entity or health plan shall provide the applicant with automated application status updates, at least once every fifteen (15) calendar days, informing the applicant of any missing application materials until the application is deemed complete;

(2) Each healthcare entity or health plan shall inform the applicant within five (5) business days that the credentialing application is complete; and

(3) If the healthcare entity or health plan denies a credentialing application, the healthcare entity or health plan shall notify the healthcare provider in writing and shall provide the healthcare provider with any and all reasons for denying the credentialing application.

(e) The effective date for billing privileges for healthcare providers under a particular healthcare entity or health plan shall be the next business day following the date of approval of the credentialing application.

(f) For applications received from resident graduates on or after January 1, 2018, a healthcare entity or health plan shall offer a transitional or conditional approval process such that a resident graduate who has submitted an otherwise complete application and met all other criteria, may be conditionally approved, effective upon successful graduation from the training program.

(g) For the purposes of this section, the following definitions apply:

(1) “Complete credentialing application” means all the requested material has been submitted.

(2) “Date of receipt” means the date the healthcare entity or health plan receives the completed credentialing application whether via electronic submission or as a paper application.

(3) “Healthcare entity” means a licensed insurance company or nonprofit hospital or medical or dental service corporation or plan or health maintenance organization, or a contractor as defined in § 23-17.13-2 [repealed] that operates a health plan.

(4) “Healthcare provider” means a healthcare professional.

(5) “Health plan” means a plan operated by a healthcare entity that provides for the delivery of healthcare services to persons enrolled in those plans through:

(i) Arrangements with selected providers to furnish healthcare services; and

(ii) Financial incentives for persons enrolled in the plan to use the participating providers and procedures provided for by the health plan.

(h) The office of the health insurance commissioner shall enforce the provisions of this chapter and may impose administrative penalties consistent with its existing authority under title 27. Non-compliant contract provisions are void. The commissioner shall adopt rules and regulations to implement this chapter and shall require payers to submit quarterly reports on credentialing timelines.

SECTION 5. This act shall take effect upon passage.