SB 5579 Washington Senate · 2025-2026 Regular Session

Prohibiting health carriers, facilities, and providers from making any public statements of any potential or planned contract terminations unless it satisfies a legal obligation.

SB 5579 prohibits health carriers, facilities, and providers from making public statements about potential or planned contract terminations until 45 days before the termination date, unless legally required. This aims to provide consistent policies for communicating with health plan enrollees and affected communities during contract negotiations. The bill directs the Insurance Commissioner to develop standard templates for patient notices, which must include information on affected facilities, appointment guidance, and continuity of care rights. Violations by carriers can result in monetary penalties, while violations by providers or facilities can be referred to relevant licensing or disciplinary authorities.
Bill status signed all 5 stages cleared
Introduction
Jan 2025
Committee Review
Apr 2025
Senate Passage
Apr 2025
House Passage
Apr 2025
Signed into Law
May 2025
Introduced Jan 30, 2025 Signed May 20, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Substitute Bill Substitute Passed Legislature · 12 edits
MAJOR
This bill establishes rules to prevent health insurers and providers from publicly announcing contract terminations before a 45-day notice period, protecting patients from sudden disruptions. It also significantly expands the list of unprofessional conduct for medical license holders and updates enforcement penalties and procedures for various healthcare facilities.
Scope change
The bill's scope was expanded to include affiliated providers and hospital-based providers in the contract termination restrictions, and it now explicitly exempts small independent practices from these rules.
REQUIREMENT

The 45-day public notice requirement for contract terminations now explicitly excludes communications made solely to the governor, legislators, or state agency staff.

The requirement for the commissioner to develop standard notice templates was moved from December 1, 2025, to January 1, 2027.

New requirements mandate that all provider contracts must include the new notice provisions by January 1, 2027.

A new list of unprofessional conduct was added to the medical practice act, including conversion therapy on minors and specific violations of the new contract termination law.

Standard template language for termination notices must now be posted on the commissioner's website.

ELIGIBILITY

The contract termination restrictions now apply to any provider employed by, contracted with, or affiliated with a facility, not just the facility itself.

ADDED

A new exemption was added for independent individual providers or small group practices of five or fewer providers.

ENFORCEMENT

Enforcement penalties for early public notices were added, allowing fines of up to $100 per day per enrollee for notices sent before the 45-day period.

New subsections allow for immediate suspension or conditions if a licensee fails to cooperate with an investigation into potential immediate jeopardy.

Fines for private establishments were increased to up to $10,000 per violation with a total cap of $1,000,000.

Fines for hospitals, test sites, and ambulatory surgical facilities were standardized at up to $1,000 per violation.

DEFINITION

The definition of 'provider contract' was updated to clarify it applies to services rendered to an enrollee.

Floor votes · Senate Apr 21, 2025 · House Apr 10, 2025

How they voted

491
Passed
Total votes 50
Apr 21, 2025
D Democratic30
30 Yea
100% Yea
R Republican20
19 Yea 1 Nay
95% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
28
Key actions
13
Committee
8
May 20, 2025
Signed into law
Governor signed.
executive
Apr 23, 2025
Lower · Passed
Speaker signed.
lower
Apr 22, 2025
Upper · Passed
President signed.
upper
Apr 21, 2025
Upper · Passed
Passed final passage; yeas, 47; nays, 1; absent, 0; excused, 0.
upper
Apr 21, 2025
Upper · Passed
Senate concurred in House amendments.
upper
Apr 10, 2025
Lower · Passed
Committee amendment(s) adopted as amended.
lower
Apr 10, 2025
House · Passed
House Vote: pass (97-0-3)
house
Apr 2, 2025
Committee
Referred to Rules 2 Review.
lower
Apr 1, 2025
Lower · Passed
HCW - Majority; do pass with amendment(s).
lower
Apr 1, 2025
Lower · Passed
Executive action taken in the House Committee on Health Care & Wellness at 1:30 PM.
lower
Mar 26, 2025
Lower · Passed
Public hearing in the House Committee on Health Care & Wellness at 1:30 PM.
lower
Feb 21, 2025
Upper · Passed
Minority; do not pass.
upper
Feb 21, 2025
Upper · Passed
Executive action taken in the Senate Committee on Health & Long-Term Care at 8:00 AM.
upper
Feb 4, 2025
Upper · Passed
Public hearing in the Senate Committee on Health & Long-Term Care at 10:30 AM.
upper
1 primary · 2 co-sponsors

Sponsors