Material change in health care contract – written advance notice
(1) A material change to a contract shall occur only if the person or entity provides in writing to the health care provider the proposed change and gives ninety days’ notice before the effective date of the change. The writing shall be conspicuously entitled “notice of material change to contract”.
(2) If the health care provider objects in writing to the material change within fifteen
days and there is no resolution of the objection, either party may terminate the contract upon
written notice of termination provided to the other party not later than sixty days before the
effective date of the material change.
(3) If the health care provider does not object to the material change pursuant to
subsection (2) of this section, the change shall be effective as specified in the notice of material change to the contract.
(4) If a material change is the addition of a new category of coverage and the health care
provider objects, the addition shall not be effective as to the health care provider, and the
objection shall not be a basis upon which the person or entity may terminate the contract.