The purpose of this legislation, known as the Patient Refunds for Bad Denials Act of 2026, is to hold health insurance companies accountable for denying a high percentage of claims. It aims to establish civil penalties for insurers that deny too many claims, thereby encouraging fairer practices and protecting consumers. Key provisions of the law include the establishment of a civil monetary penalty for health insurance issuers that have a claims denial rate of 25 percent or higher. The Secretary of Health and Human Services will conduct audits to determine the claims denial percentage.