Committee advances NAIC-model rebating bill to let insurers offer risk‑reducing devices and services

A bill modeled on National Association of Insurance Commissioners language won committee approval after proponents said it would modernize anti‑rebating statutes to permit insurers to supply risk‑reducing devices and services. State Senator Justin Boyd said the change would allow insurers to provide items such as water‑leak detectors and continuous glucose monitors that can reduce claims and improve outcomes.

Derek Smith, representing several insurers and industry groups, said the bill requires that gifts or value‑added services be related to the underlying insurance risk and be distributed on a non‑discriminatory basis. Senator Diaz May and others pressed how the bill prevents premium cross‑subsidization if only a subset of policyholders receive devices; proponents said the nondiscrimination requirement and risk‑alignment limit that danger.

Committee members also asked whether federal 'sunshine' rules governing pharma gifts apply; witnesses said the federal restrictions on physician gifts differ from state rebating law and that the bill tracks recently passed state language on token gifts. The committee initially lacked the votes but, after a motion to extend the vote period, the chair announced the bill had passed the committee.