State Law

Indiana Code-Title 27-Article 1-Chapter 37.1-Termination of Health Provider Contracts

08/04/2023 Indiana Sections 27-1-37.1-5, 27-1-37.1-6, 27-1-37.1-7, 27-1-37.1-8, 27-1-37.1-9

Notice of amendment of contract; Termination of contract without penalty; Effective date of termination; Compliance with proposed amendment not required; Notification to patient that provider’s contract terminated

Amendments, Termination

Section 27-1-37.1-5. Written notice of amendment required

A person who enters into a health provider contract with a provider shall provide written notice to the provider of any amendment to the health provider contract not less than forty-five (45) days before the proposed effective date of the amendment.

Section 27-1-37.1-6. Termination of contract — Provider’s choice not to approve amendment — Notice

(a) Subject to subsection (b), a provider who receives notice under section 5 of this chapter may terminate the health provider contract without penalty by informing the person with whom the health care provider contracts that the provider chooses not to approve the amendment.

(b) Notice under subsection (a) must be:

(1) given not later than fifteen (15) days after the provider receives notice under section 5 of this chapter; and

(2) in writing.

Section 27-1-37.1-7. Effective date of termination

The termination of a contract under section 6 of this chapter is effective:

(1) ninety (90) days after the person with whom the provider contracts receives written notice from the provider that the provider does not approve the amendment; or

(2) on a date earlier than the date described in subdivision (1), if agreed to by the person with whom the provider contracts and the provider.

Section 27-1-37.1-8. Provider who terminates contract not required to comply with amendment

If a person with whom a provider contracts receives notice from a provider under section 6 of this chapter, the person with whom a provider contracts may not require the provider to comply with the proposed amendment.

Section 27-1-37.1-9. Notice to patients of contract termination

Except in an emergency, a provider who elects to terminate a health provider contract under this section shall, before providing services to a patient who is covered by the contract, notify the patient that the provider’s contract has been or will be terminated.