Legislation


Ky. Rev. Stat. Ann. § 304.17A-560 – Kentucky

Status: Enacted
Link: http://www.lrc.ky.gov/statutes/statute.aspx?id=17441

Prohibits most favored nation provision in an agreement between an insurance carrier and a participating provider except in cases “where the commissioner determines the market share of the insurer is nominal.” A most favored nations clause is an agreement between a payer (such as an insurance company) and a provider that typically requires a provider to give the payer the lowest rate that it gave to any other comparable payer, which can be anticompetitive by encouraging oligopolistic pricing by large payers and increasing barriers for new entrants.


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