States strike at “most-favored” pay clause
The most-favored-nation contract clause is becoming least favored by more legislators and regulators.
Indiana and Colorado this year banned the practice of insurers requiring, by contract, that doctors always give them the lowest reimbursement rate, while Maryland did so in 2006. Idaho this year extended its ban to foreign-based insurers. And Ohio’s House has passed a ban that covers any insurer that controls more than 20% of a local market, a measure now being taken up by the state’s Senate.
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Tags: States, strike, "most-favored", clause