SB 716
Prohibits agreements between health carriers and health care providers from containing Most Favored Nation Clauses
Sponsor:
LR Number:
5615S.01I
Last Action:
2/2/2012 - Second Read and Referred S Health, Mental Health, Seniors and Families Committee
Journal Page:
Title:
Calendar Position:
Effective Date:
August 28, 2012

Current Bill Summary

SB 716 - This act prohibits any agreement between a health carrier and a participating licensed health care provider from containing a provision which:

(1) Prohibits a provider from contracting with another health carrier to provide health care services at a lower price than the payment specified in the agreement;

(2) Requires the provider to accept a lower reimbursement from the carrier in the event the provider agrees to provide health care services to another health carrier at a lower price;

(3) Requires or allows the health carrier to terminate or renegotiate an existing agreement if the participating provider agrees to provide health care services to another health carrier at a lower price; or

(4) Requires the participating provider to disclose his or her reimbursement rates with other health providers.

A violation of any of these provisions will make an agreement void and unenforceable.

This act is identical to SB 98 (2011).

STEPHEN WITTE

Amendments