Senate approves Famiglietti bill to prevent health insurers from denying payments involving third-party claims

PROVIDENCE – According to a news release, the Senate approved legislation introduced by Sen. Stefano Famiglietti that would make improvements to the medical claims process to ensure fair and timely reimbursement for healthcare services.

The legislation (2026-S 3028) would prohibit healthcare providers and health plans from denying the payment of a medical bill solely because the bill may have arisen from a third-party claim.

"Claims should not be denied solely because they may be associated with a third-party liability," said Famiglietti (D-Dist. 4, North Providence, Providence). "In addressing this issue, this legislation makes process more predictable for providers, while maintaining appropriate standards and keeping payments timely and fair."

Lisa Tomasso, senior vice president of the Hospital Association of Rhode Island, testified in support of the legislation, telling the Senate Committee on Health and Human Services, "From a hospital perspective, this is a practical and balanced step forward. The proposal simplifies current workflows, reduces avoidable back-and-forth between providers and payers, and promotes more efficient claims processing overall. At the same time, it reinforces a fundamental principle: providers should be fairly compensated for medically necessary services that have been delivered to patients."

The measure now moves to the House, where similar legislation (2026-H 7002) has been introduced by Rep. Arthur J. Corvese (D-Dist. 55, North Providence).