Bill Text For HB4453 - Committee Substitute

 1|                          STATE OF OKLAHOMA                            |
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 2|             2nd Session of the 60th Legislature (2026)                |
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 3|COMMITTEE SUBSTITUTE                                                   |
  |FOR                                                                    |
 4|HOUSE BILL NO. 4453                  By: Newton                        |
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 7|                        COMMITTEE SUBSTITUTE                           |
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 8|       An Act relating to health insurance; creating the               |
  |       Oklahoma Health Care Cost Transparency Board;                   |
 9|       providing purpose for the Board; directing Board to             |
  |       oversee operation and reporting of the All Payer                |
10|       Claims Database; providing membership of Board;                 |
  |       directing for members to serve staggered terms;                 |
11|       clarifying members shall serve without compensation             |
  |       but may receive travel reimbursement; directing Board           |
12|       to meet at least quarterly; permitting Board to                 |
  |       create technical working groups; directing the                  |
13|       Department to establish and maintain an All Payer               |
  |       Claims Database; directing to the Database to collect           |
14|       and analyze health care costs, utilization, and                 |
  |       spending data; directing the Database to include                |
15|       certain data; directing for collected data to be used           |
  |       for certain purposes; granting Insurance Department             |
16|       rule-making authority; permitting publication of                |
  |       deidentified, aggregated data; directing the Oklahoma           |
17|       Health Care Authority to maintain and update state              |
  |       primary care spend methodology and definitions;                 |
18|       directing all regulated commercial health insurers              |
  |       measure annual primary care spending; directing                 |
19|       commercial health insurers to submit annual reports;            |
  |       directing commercial health insurers to achieve                 |
20|       minimum percentage of total medical spending devoted            |
  |       to primary care by certain date; directing the Board            |
21|       to establish benchmarks; directing the Insurance                |
  |       Department to compile annual analyses of primary care           |
22|       spending levels; granting the Insurance Commissioner            |
  |       exclusive authority to determine and implement                  |
23|       enforcement mechanisms and incentives; granting                 |
  |       certain authority related to benchmark goals to the             |
24|       Commissioner; allowing Board to make advisory                   |
  |       recommendations to Commissioner; directing the                  |
   Req. No. 16673                                                  Page 1
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 1|       Insurance Department to coordinate with the Oklahoma            |
  |       Health Care Authority and other agencies; directing             |
 2|       Board to prepare an annual report; directing for                |
  |       report to be published to Insurance Department                  |
 3|       website; providing for codification; and providing an           |
  |       effective date.                                                 |
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 7|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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 8|    SECTION 1.     NEW LAW     A new section of law to be codified     |
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 9|in the Oklahoma Statutes as Section 8000 of Title 36, unless there     |
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10|is created a duplication in numbering, reads as follows:               |
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11|    A.  There is hereby created within the Oklahoma Insurance          |
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12|Department, the Oklahoma Health Care Cost Transparency Board,          |
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13|hereinafter referred to as the Board.                                  |
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14|    B.  The purpose of the Board is to:                                |
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15|    1.  Measure statewide health care cost growth and primary care     |
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16|investment trends across commercial insurance, Medicaid, and           |
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17|Medicare;                                                              |
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18|    2.  Ensure consistent statewide evaluation of total health         |
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19|expenditures and primary care spending; and                            |
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20|    3.  Foster transparency and accountability in Oklahoma's health    |
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21|care system.                                                           |
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22|    C.  The Board shall oversee the operation and reporting            |
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23|functions of the All Payer Claims Database (APCD) established under    |
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24|Section 3 of this act.                                                 |
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   Req. No. 16673                                                  Page 2
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 1|    SECTION 2.     NEW LAW     A new section of law to be codified     |
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 2|in the Oklahoma Statutes as Section 8001 of Title 36, unless there     |
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 3|is created a duplication in numbering, reads as follows:               |
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 4|    A.  The Health Care Cost Transparency Board shall consist of       |
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 5|fourteen (14) members, as follows:                                     |
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 6|    1.  The Insurance Commissioner, or designee, who shall serve as    |
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 7|chair;                                                                 |
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 8|    2.  The Chief Executive Officer of the Oklahoma Health Care        |
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 9|Authority (OHCA), or designee;                                         |
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10|    3.  The Commissioner of Health, or designee;                       |
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11|    4.  One representative of a licensed commercial health insurer,    |
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12|appointed by the Insurance Commissioner;                               |
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13|    5.  One representative of employers or large purchasers of         |
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14|health care, appointed by the Governor;                                |
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15|    6.  One representative of a hospital or health system, appointed   |
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16|by the Speaker of the Oklahoma Hospital Association;                   |
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17|    7.  One representative of a rural health organization, appointed   |
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18|by the Healthcare Workforce Training Commission;                       |
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19|    8.  One representative recommended by the Oklahoma Academy of      |
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20|Family Physicians (OAFP);                                              |
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21|    9.  One representative recommended by the Oklahoma Chapter of      |
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22|the American Academy of Pediatrics (OKAAP);                            |
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23|    10.  One independent primary care provider practicing in           |
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24|Oklahoma;                                                              |
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   Req. No. 16673                                                  Page 3
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 1|    11.  One consumer advocate, appointed by the Governor;             |
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 2|    12.  One health care economist or data analytics expert,           |
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 3|appointed by the Speaker of the Oklahoma House of Representatives;     |
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 4|    13.  One behavioral health care provider, appointed by the         |
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 5|President Pro Tempore of the Oklahoma State Senate; and                |
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 6|    14.  One primary care provider practicing in Oklahoma              |
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 7|recommended by the Oklahoma Primary Care Association.                  |
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 8|    B.  1.  The first class of members shall serve terms as follows:   |
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 9|         a.    paragraphs 4, 11, and 12 of subsection A of this        |
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10|              section shall serve an initial one-year term,            |
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11|         b.    paragraphs 5, 7, and 10 of subsection A of this         |
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12|              section shall serve an initial two-year term, and        |
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13|         c.    paragraphs 6, 8, 9, and 13 of subsection A of this      |
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14|              section shall serve an initial three-year term.          |
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15|    2.  All members, with the exception of paragraphs 1, 2, and 3 of   |
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16|subsection A of this section following the first class shall serve     |
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17|three-year terms.                                                      |
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18|    3.  All members, with the exception of paragraphs 1, 2, and 3 of   |
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19|subsection A of this section shall be reappointed only once.           |
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20|    C.  Members shall serve without compensation but may receive       |
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21|reimbursement for travel under the State Travel Reimbursement Act.     |
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22|    D.  The Board shall meet at least quarterly and may create         |
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23|technical working groups for data, transparency, and performance       |
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24|evaluation.                                                            |
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   Req. No. 16673                                                  Page 4
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 1|    SECTION 3.     NEW LAW     A new section of law to be codified     |
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 2|in the Oklahoma Statutes as Section 8002 of Title 36, unless there     |
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 3|is created a duplication in numbering, reads as follows:               |
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 4|    A.  The State Coordinator for the Health Information Exchange,     |
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 5|created in Section 1-132.1 of Title 63 of the Oklahoma Statutes,       |
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 6|shall establish and maintain an All Payer Claims Database (APCD) to    |
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 7|collect and analyze health care costs, utilization, and spending       |
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 8|data from all payer types operating within this state.                 |
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 9|    B.  The APCD shall, to the extent permitted by law, include data   |
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10|from:                                                                  |
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11|    1.  Commercial health insurers and third-party administrators;     |
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12|    2.  The Oklahoma Health Care Authority, covering all Medicaid      |
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13|programs; and                                                          |
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14|    3.  The Centers for Medicare and Medicaid Services, providing      |
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15|Medicare data under applicable data use agreements.                    |
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16|    C.  Data collected shall be used to:                               |
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17|    1.  Measure statewide health care cost trends and cost growth;     |
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18|    2.  Determine rates of investment in primary care across all       |
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19|payer segments; and                                                    |
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20|    3.  Support public transparency and policy evaluation.             |
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21|    D.  The Department shall adopt rules setting standards for data    |
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22|submission, validation, and confidentiality consistent with federal    |
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23|and state privacy laws.                                                |
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   Req. No. 16673                                                  Page 5
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 1|    E.  The Department may publish de-identified, aggregated data      |
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 2|through regular public reports and dashboards.                         |
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 3|    SECTION 4.     NEW LAW     A new section of law to be codified     |
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 4|in the Oklahoma Statutes as Section 8003 of Title 36, unless there     |
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 5|is created a duplication in numbering, reads as follows:               |
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 6|    A.  The Oklahoma Health Care Authority (OHCA) shall maintain and   |
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 7|periodically update the state primary care spending methodology and    |
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 8|definitions originally established for Medicaid, which shall serve     |
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 9|as the uniform statewide standard for measuring primary care           |
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10|expenditures under this act.                                           |
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11|    B.  All commercial health insurers regulated under Title 36 of     |
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12|the Oklahoma Statutes shall:                                           |
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13|    1.  Measure their annual primary care spending using the           |
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14|OHCA-approved methodology; and                                         |
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15|    2.  Submit annual reports of primary care and total medical        |
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16|expenditures to the Insurance Department.                              |
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17|    C.  The Oklahoma Health Care Cost Transparency Board, in           |
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18|consultation with OHCA, shall establish interim benchmarks for the     |
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19|years 2027 through 2029 and monitor progress toward the 2030 goal.     |
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20|    D.  The Insurance Department shall compile annual analyses of      |
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21|primary care spending levels across all payer types and publish a      |
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22|statewide transparency report.                                         |
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   Req. No. 16673                                                  Page 6
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 1|    SECTION 5.     NEW LAW     A new section of law to be codified     |
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 2|in the Oklahoma Statutes as Section 8004 of Title 36, unless there     |
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 3|is created a duplication in numbering, reads as follows:               |
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 4|    A.  The Insurance Commissioner shall have exclusive authority to   |
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 5|determine and implement enforcement mechanisms and incentive           |
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 6|programs under this act.                                               |
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 7|    B.  The Commissioner may:                                          |
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 8|    1.  Require commercial insurers not meeting progress benchmarks    |
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 9|to submit corrective action plans;                                     |
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10|    2.  Impose administrative penalties not to exceed Five Thousand    |
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11|Dollars ($5,000.00) per day for willful noncompliance with data        |
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12|reporting or benchmark requirements;                                   |
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13|    3.  Develop incentive programs or recognition designations for     |
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14|insurers demonstrating sustained investment in primary care,           |
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15|achievement of benchmarks, or innovations in value-based care; and     |
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16|    4.  Consider primary care investment performance when conducting   |
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17|rate, form, or network adequacy reviews.                               |
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18|    C.  The Board may make advisory recommendations to the             |
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19|Commissioner, but all enforcement and incentive actions shall be       |
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20|determined and administered solely by the Insurance Commissioner's     |
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21|Office.                                                                |
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22|    SECTION 6.     NEW LAW     A new section of law to be codified     |
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23|in the Oklahoma Statutes as Section 8005 of Title 36, unless there     |
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24|is created a duplication in numbering, reads as follows:               |
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   Req. No. 16673                                                  Page 7
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 1|    A.  The Insurance Department shall promulgate rules as necessary   |
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 2|to carry out the provisions of this act, including specifications      |
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 3|for data submission, risk adjustment, benchmark evaluation, and        |
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 4|public reporting.                                                      |
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 5|    B.  The Department shall coordinate with the Oklahoma Health       |
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 6|Care Authority (OHCA) and other agencies to ensure consistent          |
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 7|application of methodologies and efficient use of existing data        |
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 8|infrastructure.                                                        |
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 9|    SECTION 7.     NEW LAW     A new section of law to be codified     |
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10|in the Oklahoma Statutes as Section 8006 of Title 36, unless there     |
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11|is created a duplication in numbering, reads as follows:               |
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12|    A.  The Oklahoma Health Care Cost Transparency Board shall         |
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13|prepare an annual report for the Governor, the President Pro Tempore   |
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14|of the Oklahoma State Senate, and the Speaker of the Oklahoma House    |
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15|of Representatives describing:                                         |
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16|    1.  Statewide health care cost growth trends;                      |
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17|    2.  Primary care spending levels across commercial, Medicaid,      |
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18|and Medicare payers;                                                   |
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19|    3.  Commercial insurer performance relative to interim and final   |
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20|benchmarks; and                                                        |
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21|    4.  Policy recommendations to promote value and affordability in   |
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22|the health care system.                                                |
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   Req. No. 16673                                                  Page 8
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 1|    B.  The report shall be published annually on the Insurance        |
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 2|Department website and made available to the public.  The initial      |
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 3|report shall be published no later than December 31, 2027.             |
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 4|    SECTION 8.  This act shall become effective November 1, 2026.      |
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 6|    60-2-16673     TKR    02/24/26                                     |
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   Req. No. 16673                                                  Page 9
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