Monday, March 15, 2010

Bill 429 - "Most-Favored-Nations clauses in Medical Provider Contracts

Bill 429 came before the Public Health Committee of the state legislature last week. The bill would remove the ability to use "Most-Favored-Nations" clauses in contracts between commercial insurers and medical providers such as Bristol Hospital. The goal is to foster more competition by not allowing insurance providers that have a commanding market-share to further control the market through pricing advantages that cannot be shared. You can see the body the bill at the following link:

http://www.cga.ct.gov/2010/TOB/S/2010SB-00429-R00-SB.htm

What does membership think about this approach and do you think that this bill if passed would help with competition and help drive down insurance costs?

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