HCS HB 1880 -- HEALTH INSURANCE CONTRACTS

SPONSOR:  Schaaf

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Healthcare Transformation by a vote of 7 to 0.

This substitute prohibits any agreement between a health
insurance carrier and a licensed health care provider from
containing a provision which:

(1)  Prohibits a provider from contracting with another carrier
to accept a lower reimbursement than the payment specified in the
agreement;

(2)  Requires the provider to accept a lesser reimbursement from
the carrier if the provider agrees with another carrier to accept
the lower reimbursement for services;

(3)  Terminates or renegotiates the agreement if the provider
agrees to accept a lower payment from a different carrier for
services; or

(4)  Requires the provider to disclose his or her contracted
reimbursement rates with all contracted providers.

A violation of any of these provisions will make an agreement
void and unenforceable.

FISCAL NOTE:  Estimated Cost to General Revenue Fund of $36,810
in FY 2009, Unknown greater than $36,810 in FY 2010, and Unknown
greater than $36,810 in FY 2011.  No impact on state funds in
FY 2009, FY 2010, and FY 2011.

PROPONENTS:  Supporters say that the bill promotes competition,
prevents price fixing, allows smaller insurance companies to be
more competitive, and maintains continuity of care for patients.

Testifying for the bill were Representative Schaaf; Missouri
State Medical Association; United Healthcare; Coventry Health
Care; Aetna, Incorporated; Cigna; Elizabeth Wilden, Mid-Missouri
Anesthesiologists, Incorporated; and Missouri Academy of Family
Physicians.

OPPONENTS:  Those who oppose the bill say that it impairs
insurance companies' ability to have the best product and network
of physicians at the best price and takes away the ability of the
health care provider and insurance carrier to negotiate prices.

Testifying against the bill were Blue Cross Blue Shield of Kansas
City; Express Scripts; Wesley Braman, Freeman Health System;
Anthem Blue Cross and Blue Shield; and Missouri Insurance
Coalition.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:11 pm