Rhode Island Unveils Plan to Address Health Care Crisis

Categories: Breaking NewsGovernment NewsHealthNews

Conceptual image representing the collaboration for health care reform in Rhode Island.

News Summary

Attorney General Peter Neronha has announced a comprehensive plan to tackle Rhode Island’s health care crisis, aimed at addressing systemic failures and escalating costs. The initiative includes litigation against major Pharmacy Benefit Managers, increases in Medicaid payment rates, and regulatory oversight of corporate transactions. Key actions are supported by legislative measures and strategic partnerships, indicating a commitment to both immediate and long-term health care reform in the state.

Providence, Rhode Island – Attorney General Peter Neronha has unveiled a comprehensive plan aimed at addressing Rhode Island’s escalating health care crisis, which he describes as a “spectacular failure.” This multi-faceted initiative seeks to tackle the systemic failures that have contributed to rising costs and an inadequate health care system.

The plan includes a mix of legislative measures, litigation, research, and strategic partnerships, all designed to foster both immediate and long-term health care reforms. Key components of the strategy focus on increasing revenue into the health care system while simultaneously cutting unnecessary costs, which Neronha attributes to chronically low reimbursement rates from Medicare, Medicaid, and commercial payers.

Among the plan’s specific actions is a lawsuit against the three major Pharmacy Benefit Managers (PBMs)—CVS Caremark, Express Scripts, and Optum—accused of implementing deceptive practices that have led to drug price increases. This legal pursuit reflects a growing concern regarding the financial implications of these practices for both patients and independent pharmacies.

Recent developments include an $11 million settlement from Barletta Heavy Construction, which will fund expanded dental care access for children in Providence. Furthermore, legislation introduced by Sen. Pamela Lauria and Rep. Megan Cotter aims to raise Medicaid payment rates for primary care providers to align with Medicare rates, a move intended to improve compensation for providers serving vulnerable populations.

Neronha also supports the Rhode Island Prior Authorization Reform Act of 2025, which seeks to eliminate prior authorization requirements for primary care physicians. These requirements have been criticized as barriers to timely patient care. The attorney general is advocating for the authority to petition for the receivership of financially unstable hospitals to better protect patients and health care workers facing systemic challenges.

In addition, Neronha emphasized the need for regulatory oversight of significant corporate transactions involving medical practices to help monitor potentially detrimental mergers that could further compromise health care services. He has expressed a commitment to evaluating the impact of artificial intelligence on health care through an advanced notice of proposed rulemaking.

In collaboration with the Brown Center for Advancing Health Policy, a report detailing potential policy options for state-based universal health system reform has also been released. Neronha envisions a new state agency dedicated to health care data and planning to enhance access and efficiency across the state.

Despite these advancements, Neronha has criticized recent health care reforms proposed by Governor Dan McKee’s administration, labeling them as unimpressive and lacking strategic direction. The McKee administration has indicated that it is reviewing Medicaid reimbursement rates and has introduced regulations aimed at reducing prior authorization requirements for primary care providers.

The urgency of reform is underscored by the recent closures of primary care practices, such as Anchor Medical Associates, which have affected nearly 25,000 patients. This trend highlights the pressing need for systematic change to stabilize Rhode Island’s health care landscape.

The attorney general’s comprehensive plan represents a strategic response to a crisis that officials agree is untenable. Immediate actions paired with long-term solutions are necessary to ensure that the health care system prioritizes patient care over financial gain, marking a critical juncture for Rhode Island’s health care reform efforts.