GA SB50

Contracting entities that grant third-party access to a provider's health care services and contractual discounts must ensure the provider network contract explicitly authorizes such access, and third parties are prohibited from reducing provider compensation below the original contracted rate.

Contracting entities must register with the Georgia Commissioner of Insurance within 30 days of commencing business (or within 90 days of July 1, 2010, for existing entities), providing their official name, mailing address, and a primary contact representative.

Contracting entities must provide providers with a written or electronic list of all third parties granted access to their network contracts and maintain an Internet website or toll-free number updated at least every 90 days identifying those third parties.

Knowingly accessing a provider's contractual discount without a proper contractual relationship is classified as an unfair trade practice, carrying penalties of up to $25,000 per violation or up to $50,000 per violation if the person knew or should have known of the violation.

The law exempts provider network contracts for Medicaid, Medicare, and SCHIP beneficiaries, as well as contracts involving entities operating under the same brand licensee program or discount medical plan organizations, and takes effect July 1, 2010.