SB 716 - Schaaf, Rob
Prohibits agreements between health carriers and health care providers from containing Most Favored Nation Clauses
Bill Details
Sponsor
LR Number
5615S.01I
Title
SB 716
House Handler
N/A
Journal Page
Effective Date
August 28, 2012
Current Status
Second Read and Referred S Health, Mental Health, Seniors and Families Committee
Quick Links
Amendments
No amendments available
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