OMNIBUS INSURANCE BILL
Sponsored By: SENATE LABOR & COMMERCE
Became Law
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Bill Overview
Analyzed Economic Effects
13 provisions identified: 5 benefits, 5 costs, 3 mixed.
Higher fees and licenses for PBMs
A pharmacy benefits manager must be licensed to operate. The initial PBM license costs $20,000, and renewal costs $20,000 every two years. Applicants must list owners and officers, name a compliance officer, and submit two years of certified financial statements showing solvency. The law widens who counts as a PBM to include anyone managing pharmacy networks or paying pharmacies on an insurer’s behalf. Each day of unlicensed operation is a separate violation.
Lower surcharges on assigned‑risk premiums
For assigned‑risk insurance, the first $6,000 of yearly premium is exempt from a surcharge. Any surcharge, up to 25%, can apply only to premium above $6,000. This reduces how much of your premium can be surcharged.
New health coverage and access rules
Health plans must cover colorectal screening for average‑risk people with no copay, coinsurance, or deductible. HMOs must cover emergency care at in‑network cost sharing even if you are treated out of network, and may require transfer after you are stable. If an HMO provider refers you and no in‑network option is available, the HMO covers it at in‑network cost sharing. If your insurer sells a network‑only plan, it must also offer a non‑network option at first enrollment; that option can have higher premiums and cost sharing. Prior authorization forms must show how to request a benefit‑level exception and must say if an approved claim is treated as in‑ or out‑of‑network. Sellers of health discount plans must give clear disclosures, show current provider lists, and allow a 30‑day cancel with a full refund minus a small fee. Insurers must give at least 45 days’ written notice before canceling a health policy or raising a renewal premium by more than 10% for reasons other than more coverage or exposure.
Home insurance can't depreciate labor
Insurers may not reduce home claim payments by depreciating labor costs. Depreciation is allowed only as an optional, stand‑alone endorsement that lists the items and lowers your premium proportionally. Some amendments apply only to contracts entered into, issued, delivered, or renewed on or after their specific effective dates.
Life insurance fraud window and value floor
Prosecutors can start a life‑insurance‑related case within one year after discovery by an aggrieved person or authorized reporter, but the discovery rule cannot add more than 20 years to the usual deadline. The law also sets a minimum interest method for policy nonforfeiture values: the smaller of 3% or the five‑year Treasury rate minus 1.25 points, with a floor of 0.15%.
No insurance penalties for elected officials
Insurers cannot deny, cancel, limit, or raise premiums just because the insured is an elected official. Actions based on sound underwriting or actuarial principles, or required by law, are still allowed.
PBMs banned from spread pricing
Insurers and PBMs cannot block your pharmacy choice or limit access to clinician‑administered drugs. PBMs cannot use spread pricing, misuse your pharmacy‑service data, or pay a non‑affiliate pharmacy less than an affiliate for the same drug service. A PBM can reverse and resubmit a claim after 90 days only with prior notice, just cause, attempted reconciliation, and written justification. Pharmacies may charge for services not covered by a policy when allowed.
New licensing and rules for TPAs
Third‑party administrators must be licensed and operate only within licensed lines. The license costs $2,000 to obtain and $2,000 to renew every two years. TPAs must send quarterly supervisor and insurer‑contract lists to the director and use contracts with fiduciary, recordkeeping, and audit terms, including limits on claim funds held. The director may immediately suspend a TPA without a hearing if it is insolvent, in delinquency proceedings, or operating unsafely. Certain ERISA‑plan service providers and specified financial institutions are exempt, but ERISA providers must certify that status each year by February 1.
State approval for vehicle service contracts
Providers must file motor vehicle service contracts with the Division of Insurance and get approval before issuing them. Any change to an approved contract must also be filed and approved before use.
Broader insurer exams and exam fees
The insurance director can use NAIC handbooks and work with the NAIC when planning and doing examinations. The director may examine TPAs and PBMs whenever needed. Examined firms must pay reasonable exam costs, including staff time, travel, and contractors, using electronic payment; limited hardship waivers are allowed. Several outdated insurance code subsections are repealed to align with these updates.
Risk retention groups: tax and reports
Starting January 1, 2026, risk retention groups must file the insurer report and pay the insurer premium tax required by state law.
When these insurance changes take effect
Most of this law takes effect January 1, 2026. Sections 69 through 71 take effect immediately.
State can seek federal health waivers
Beginning January 1, 2026, the insurance director may apply for federal waivers under 42 U.S.C. 18052 and related laws. Any change takes effect only if the federal government approves the waiver, and then applies by plan year.
Sponsors & Cosponsors
Sponsor
SENATE LABOR & COMMERCE
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
(S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER
7/30/2025Senate(S) SIGNED INTO LAW 6/24 CHAPTER 17 SLA 25
7/30/2025Senate(S) MANIFEST ERROR(S)
7/30/2025Senate(S) 3:20 P.M. 6/23/25 TRANSMITTED TO GOVERNOR
7/30/2025Senate(S) EFFECTIVE DATE(S) SAME AS PASSAGE
5/19/2025Senate(S) CONCUR AM OF (H) Y20 N-
5/19/2025Senate(S) CONCUR MESSAGE READ AND TAKEN UP
5/19/2025Senate(H) VERSION: HCS CSSB 132(FIN) AM H
5/19/2025House(H) TRANSMITTED TO (S) AS AMENDED
5/19/2025House(H) EFFECTIVE DATE(S) SAME AS PASSAGE
5/19/2025House(H) PASSED Y40
5/19/2025House(H) READ THE THIRD TIME HCS CSSB 132(FIN) AM H
5/19/2025House(H) ADVANCED TO THIRD READING UC
5/19/2025House(H) AM NO 1 ADOPTED UC
5/19/2025House(H) FIN HCS ADOPTED UC
5/19/2025House(H) READ THE SECOND TIME
5/19/2025House(H) RULES TO CALENDAR 5/19/2025
5/19/2025House(H) FN2: (CED)
5/19/2025House(H) NR: BYNUM, TOMASZEWSKI, GALVIN, JOSEPHSON, SCHRAGE
5/19/2025House(H) DP: HANNAN, STAPP, JIMMIE, FOSTER
5/19/2025House(H) FIN RPT HCS(FIN) 4DP 5NR
5/19/2025House(H) Minutes (HFIN)
5/18/2025House(H) Moved HCS CSSB 132(FIN) Out of Committee -- Recessed to a Call of the Chair --
5/18/2025House(H) FINANCE at 12:00 PM ADAMS 519
5/18/2025HouseAudio/Video
5/18/2025House
Bill Text
Enrolled SB 132
5/19/2025
HCS CSSB 132(FIN)
5/19/2025
HCS CSSB 132(FIN) am H
5/19/2025
CSSB 132(FIN)
5/16/2025
CSSB 132(L&C)
4/7/2025
SB 132
3/14/2025