Bill > LC0304

This bill introduces comprehensive regulations to prevent anti-competitive practices in health care contracts, focusing on prohibiting several specific types of contractual clauses that can limit market competition and consumer choice. The bill defines and bans six key problematic contract provisions: most-favored-nations clauses, anti-steering clauses, anti-tiering clauses, all-or-nothing clauses, gag clauses, and all-products clauses, which can restrict health care providers' ability to negotiate fair rates, prevent patients from accessing alternative providers, or limit transparency about pricing and services. Health carriers, providers, and plan administrators are prohibited from including these clauses in their contracts, with violations considered unfair trade practices subject to enforcement by the Montana Department of Justice and the Insurance Commissioner. The bill provides a waiver process where parties can apply to include such clauses if they can demonstrate substantial consumer welfare benefits, and it establishes penalties including administrative fines up to $5,000 per day for violations, potential injunctions, and the ability for affected parties to seek legal remedies. Additionally, the bill includes a provision amending existing law to expand protections for health care providers' professional mobility, adding registered nurses and advanced practice nurses to the list of professionals who cannot be contractually restricted in their practice after leaving an employment relationship. The bill is set to take effect on October 1, 2025, and requires notification to tribal governments.

https://bills.legmt.gov/#/lc/bill/2/LC0304