SB 716 Prohibits agreements between health carriers and health care providers from containing Most Favored Nation Clauses
Sponsor: Schaaf
LR Number: 5615S.01I Fiscal Note not available
Committee: Health, Mental Health, Seniors and Families
Last Action: 2/2/2012 - Second Read and Referred S Health, Mental Health, Seniors and Families Committee Journal Page: S195
Title: Calendar Position:
Effective Date: August 28, 2012

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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