New law aims to curb coercive insurance practices

Posted July 10, 2011, at 9:58 a.m.

AUGUSTA, Maine — A bill that is aimed at preventing large insurers from gaining an unfair advantage over small Maine health care providers has been signed into law.

The bill, signed by Gov. Paul LePage last Wednesday, takes effect Sept. 28.

The new law will ban anti-competitive and coercive insurance practices in contracts between small health care providers and bigger insurance companies, similar to “most favored nation” clauses in trade agreements.

Supporters say the law supports small Maine businesses, provides protections to level the playing field with big insurance companies, and keeps independent practices in rural Maine, helping to assure access to health care throughout the state.