Insurance Antitrust Legal News - January 2013 • Volume 2, Number 1


In This Issue:

- Michigan Governor Vetoes Legislation Banning Health Insurers From Utilizing Most Favored Nation Clauses In Provider Contracts

- DOJ Antitrust Division Approves Wellpoint’s Acquisition Of Amerigroup After Divestiture, Permitting The Parties To Close Their Deal

- Auto Repair Trade Association Requests That DOJ Investigate The Use Of Most Favored Nation Clauses By Auto Insurers

- Excerpt from Michigan Governor Vetoes...

On December 6, the Michigan Legislature passed legislation (S.B. 1293) that would have prohibited health insurers and health maintenance organizations in the state from including “most favored nation” clauses in any provider contract. The legislation was expected to be signed into law by Michigan Governor Rick Snyder, but in an unexpected move, on December 28 he vetoed the legislation, reportedly because another provision in the legislation (involving abortion coverage) that he opposed was added to the bill at the eleventh hour. Had the legislation been enacted, Michigan would have become the latest in a growing list of states that statutorily restrict or prohibit the use of “most favored nation” provisions in health care provider contracts.

A “most favored nation” clause, when used by a health insurer or HMO, generally requires that a health care provider offer its services to the insurer/HMO at the lowest price that the provider offers its services to any party.

Please see full newsletter below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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