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ARTICLE · 09 JANUARY 2013

Insurance Antitrust - January 2013 • Volume 2, Number 1

Dickinson Wright PLLC
Dickinson Wright PLLC
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Dickinson Wright PLLC

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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.

United StatesInsurance
James Burns
James Burns
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MICHIGAN GOVERNOR VETOES LEGISLATION BANNING HEALTH INSURERS FROM UTILIZING MOST FAVORED NATION CLAUSES IN PROVIDER CONTRACTS

by James M. Burns

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.

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