OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

sHB-6471

AN ACT PROHIBITING MOST FAVORED NATION CLAUSES IN HEALTH CARE PROVIDER CONTRACTS.

AMENDMENT

LCO No.: 6154

File Copy No.: 151

House Calendar No.: 104

OFA Fiscal Note

State Impact: See Below

Municipal Impact: See Below

Explanation

The amendment may result in a fiscal impact to the state or municipalities which is indeterminate. The amendment voids the Most Favored Nation Clause (MFN) in contracts in effect prior to October 1, 2011 when the contract is renewed or on January 1, 2014, whichever is earlier. To the extent that the state or municipalities contract with insurers whose contracts are affected by the amendment, there may be an impact to the premiums paid by the state or municipalities for health care. The potential change in premiums assumes the removal of the MFN from the contract between the insurer and provider alters the rates paid by the insurer for services and that the change is subsequently passed on to the state or municipalities.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.