HP0913
LD 1222
First Regular Session - 125th Maine Legislature
 
LR 1307
Item 1
Bill Tracking, Additional Documents Chamber Status

An Act To Promote Fairness in Negotiations between Health Insurance Carriers and Health Care Service Providers

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 24-A MRSA §4303, sub-§15  is enacted to read:

15 Prohibition on "most favored nation" clauses.   A participation agreement between a carrier and a provider may not include a provision, commonly referred to as a "most favored nation" clause, that:
A Prohibits, or grants the carrier an option to prohibit, the provider from entering into a participation agreement with another carrier to provide services at a lower price than the payment specified in the participation agreement;
B Requires, or grants the carrier an option to require, the provider to accept a lower payment in the event the provider agrees to provide services to any other carrier at a lower price;
C Requires, or grants the carrier an option of, termination or renegotiation of the existing participation agreement in the event the provider agrees to provide services to any other carrier at a lower price; or
D Requires the provider to disclose its reimbursement rates from other carriers.

SUMMARY

This bill prohibits the inclusion of so-called "most favored nation" clauses in the participation agreements between health insurance carriers and health care service providers.


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