CT SB00429

Prohibits contracting health organizations (insurers, hospitals, health care centers) from including most-favored-nation clauses in contracts with medical providers or hospitals, effective October 1, 2010.

Defines most-favored-nation clauses as contractual provisions that prohibit providers from contracting with other payers at lower rates, require providers to accept lower rates if they contract elsewhere at lower rates, require contract termination if providers contract at lower rates with others, or require providers to disclose rates to other payers.

Applies to all health insurance and managed care plans offered in the state, including those made by the Department of Social Services for medical assistance programs.

Excludes group hospitalization and medical/surgical insurance plans and dental plans offered in connection with such group plans from the prohibition.

Defines covered medical providers as individuals licensed under specified chapters of general statutes or hospitals licensed under chapter 368v, and payers to include insurers, hospitals, health care centers, and entities making reimbursements for medical services.