Maine insurers can use most favored nation clauses--for now

Health insurers in Maine can continue using "most favored nation" clauses when contracting with providers to require they receive the lowest rates--for now, at least.  

Maine Gov. Paul LePage vetoed the bill that would have restricted the provisions insurance companies could include in contracts, and the Maine House voted to let LePage's veto stand, reports the Portland Press Herald.

In his veto message, LePage said he strongly believes that businesses have a right to contract with each other as they deem appropriate to achieve competitive advantages. He added that the state bill would have created a "one size fits all" law, according to the Herald.

However, LePage submitted a new bill that would ban most favored nation clauses but also allow the Maine superintendent of insurance to issue a waiver. "This is a move that will bring this legislation forward," LePage spokesperson Adrienne Bennett said. "It's more of a targeted approach rather than a one-size-fits-all approach."

It is unclear what criteria health insurers would have to meet to earn a waiver. The bill's language is still being reviewed by staff in the Legislature and isn't available for the public. The Legislature won't consider the bill until next year, as there's no time left in this year's session, the Kennebec Journal reports.

Anthem Blue Cross and Blue Shield, which controls more than 50 percent of the commercial insurance market in Maine, argued that most favored nation clauses ensure lower healthcare costs for consumers.

 To learn more:
- check out the Kennebec Journal article
- read the Portland Press Herald article

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