MontanaHB 6069th Legislature, Regular Session (2025)HouseWALLET

Generally revise state auditor laws

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Bill Overview

Analyzed Economic Effects

21 provisions identified: 10 benefits, 0 costs, 11 mixed.

One-time $40M for school health trust

If a district self‑funded health insurance trust is certified by June 30, 2026 for initial operation on July 1, 2026, the state distributes $40,000,000 to it on July 1, 2026 or upon qualification. The money capitalizes an operating reserve to help keep members’ health insurance costs stable. If no trust qualifies by June 30, 2026, the balance moves to the long‑range building program account.

Protections on out‑of‑state group plans

Group certificates delivered in Montana for group policies issued outside Montana but covering Montana residents must be filed with the state insurance commissioner. Those certificates must meet Montana’s minimum policy rules when Montana law controls. This gives Montana residents more consistent protections.

Stronger Medigap protections for seniors

Beginning Oct 1, 2025, if you pay your Medigap renewal premium on time or within 31 days, the insurer generally cannot refuse renewal unless it stops renewing all similar policies and offers a justified replacement. Insurers must file outlines of coverage 60 days before giving them to residents. They must also notify you of annual Medicare‑related plan changes at least 30 days before the change takes effect, using the commissioner’s format.

Equal coverage for telehealth visits

If your plan covers a service in person, it must cover the same service by telehealth on equal terms. Insurers cannot charge higher copays, coinsurance, or deductibles for telehealth or limit it by where you or your provider are located. Telehealth includes secure audio‑only and video. For certain written medical certifications, audio‑only is allowed only if the doctor previously saw you in person.

Lower costs for breast exams

Plans that cover screening and diagnostic breast exams cannot charge cost‑sharing for diagnostic or supplemental breast exams done by a preferred provider. For HSA‑qualified high‑deductible plans, this no‑cost rule applies only after you meet the HSA minimum deductible if needed to keep HSA eligibility. Preventive items under federal HSA rules still have no deductible.

New limits on claim audits and interest

If an insurer limits how long providers can submit claims, it has the same time after payment to audit and seek reimbursement. If it does not limit submission time, it generally must request reimbursement within 12 months, with narrow exceptions. For provider errors (not fraud), the insurer has up to 24 months, starting when it has actual knowledge. Starting Oct 1, 2025, if an insurer completes retrospective reviews on time, it does not owe interest on those payments.

New insurance rules for self‑funded MEWAs

Beginning Oct 1, 2025, the law changes which insurance‑code provisions apply to self‑funded multiple employer welfare arrangements with active certificates. Several sections are added and one is removed, and parts 7 and 21 of chapter 22 now apply. This updates obligations for employers, plan sponsors, and participants.

Broader securities exemptions, tighter investor suits

The law expands exemptions to cover any security listed on an SEC‑registered exchange and removes a $50 fee and 20‑day notice for certain nonprofit offerings. The commissioner now has 90 days after a registration becomes effective to start a suspension or revocation based on known facts. For certain civil claims, investors must sue within one year after discovery. Restitution assistance is limited to natural persons who lived in Montana at the time of the offense and to entities domiciled in Montana then. These changes ease compliance for some issuers but shorten timelines and narrow some remedies for investors.

New domestic surplus lines insurer option

An insurer with at least $15 million in capital and surplus may be designated a domestic surplus lines insurer with board and commissioner approval. Licensed surplus lines producers can place coverage with domestic surplus lines insurers and with foreign or alien unauthorized insurers, following state rules. Exports are not allowed when the policy is with a domestic surplus lines insurer. These policies are excluded from guaranty protections and some state rating and cancellation rules and pay the surplus lines premium tax.

Grace periods and clear renewal notices

Insurers must give a grace period after the first premium: 7 days for weekly, 10 days for monthly, and 31 days for all other policies. Policies must allow written claim notice within 6 months or as soon as reasonably possible; notice to the insurer or its authorized agent counts. If a policy lets the insurer refuse renewal, it must mail you a nonrenewal notice at least 30 days before the premium due date.

More people can use viatical settlements

The law broadens who counts as a “viator” under viatical settlement rules. It is not limited only to owners or certain certificate holders unless a section specifically says so. This can let more policyholders access viatical settlement options.

Clearer disability insurance cost notices

At application, individual and group disability outlines must clearly say you may owe billed charges for out‑of‑network care and list any preauthorization steps. Before issuing a policy, insurers must give written materials that explain the policy’s cancer screening coverage. For group plans, an outline must also be sent to each employee with the certificate.

Some state jobs can work out‑of‑state

Certain state employees may work from outside Montana. This applies to staff doing out‑of‑state economic development whose duties require living out of state, and to actuaries (associates or fellows). The state budget office must approve the out‑of‑state worksite before work begins.

Exchange training rule for producers repealed

The law removes the state requirement that producers complete commissioner‑approved exchange training and certification before selling through an exchange. Producers can sell on an exchange without that specific state training.

Faster reporting when producers are fired

Insurers must tell the insurance commissioner within 30 days when they end an appointed producer. If the termination is for listed serious causes, they must notify immediately and share documents if asked. Good‑faith information is legally protected. This strengthens oversight of producer misconduct.

Simpler paperwork to form insurers

Incorporators no longer need a deed‑style acknowledgment when filing articles of incorporation for stock or mutual insurers. Required corporate details in the articles still apply.

Fairer payouts for totaled vehicles

When repair costs exceed a vehicle’s worth, damages now use the car’s actual replacement value just before the loss. Any “book” value used must come from the latest national used‑car pricing source. Depending on the vehicle, this can raise or lower the amount paid in a claim.

New rules to sell travel insurance

Limited‑lines travel insurance producers must be licensed, and travel retailers must register. Travel retailers may operate via registration instead of a full producer license. Property and casualty producers may sell travel insurance without an insurer appointment.

When this law takes effect

Most of this law takes effect October 1, 2025. Sections 34 and 36 and this effective-dates section take effect on passage and approval. One subsection ends on June 1, 2029. The change that sets that end date takes effect October 1, 2025.

HIPAA‑covered insurers follow Montana privacy rule

Licensees covered by federal HIPAA are exempt from most state insurance privacy duties, but they must follow Montana statute 33‑19‑321. Business associates working with those licensees must also follow that Montana rule. This aligns with HIPAA while keeping a key Montana privacy requirement.

School health trust money deadline

The law sets a deadline for the school health trust reserve. If no district self-funded health insurance trust is approved by June 30, 2026, the state moves the remaining balance to the long-range building program. The money is then used for capital projects allowed under state law 17-7-209. This means funds go to building projects instead of a district health trust if no trust qualifies in time.

Sponsors & Cosponsors

Sponsor

Ed Buttrey
Republican • House

Cosponsors

Sara Novak
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 283 • No: 15

Senate vote • 2/15/2025

Do Concur

Yes: 39 • No: 9

Senate vote • 2/14/2025