SB 98 Prohibits agreements between health carriers and health care providers from containing Most Favored Nation Clauses
Sponsor: Schaaf
LR Number: 0760S.02I Fiscal Note: 0760-02N.ORG
Committee: Small Business, Insurance and Industry
Last Action: 4/12/2011 - Hearing Conducted S Small Business, Insurance and Industry Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2011

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Current Bill Summary


SB 98 - 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.

STEPHEN WITTE