CMA kills bill that would have given payors unfair advantage when negotiating physician contracts

June 10, 2016
Area(s) of Interest: Advocacy Payor Contracting 

The California Medical Association (CMA) killed a bill (SB 932) that would have dramatically changed the balance of power and given payors the upper hand when negotiating physician contracts. The bill, couched as an effort to protect consumers from health care consolidations by giving the government more oversight, would have removed essential negotiating provisions from contracts between physicians and payors.

Under the bill, contracts that contain certain provisions enabling physicians to negotiate fair reimbursement would have been void and unenforceable as of January 1, 2017. This would have required plans to issue new contracts to all providers, decimating physician networks, exposing physicians to less favorable contracting terms and leaving many patients without access to care.

This highly problematic bill would have also increased government involvement in private business and had a negative and far-reaching impact on physician practices of all sizes.

SB 932 was held in the Senate Appropriations Committee and is not eligible to move forward this legislative session.

For more information on these and other bills of interest to physicians,subscribe to CMA's Legislative Hot List (CMA members only).

Contact: Juan Thomas, (916) 444-5532 or jthomas@cmadocs.org

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