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Insurance committee holds SB 189 after debate over out‑of‑network penalty
Summary
The Senate Insurance Committee postponed consideration of Senate Bill 189 for one week after members questioned a proposed 10% penalty on hospitals when out‑of‑network clinicians are used, raised concerns about the federal IDR process and network adequacy, and asked insurers and providers to continue negotiations.
Chair Mr. Sherman said the committee would pause consideration of Senate Bill 189 to give stakeholders more time to resolve disputes over two amendments, including one that would narrowly allow a 10% penalty in limited nonurgent situations. “I’ve decided to hold this bill another week,” Mr. Sherman said.
The bill as discussed would ban a practice of charging hospitals a 10% penalty when an out‑of‑network clinician provides care and an in‑network clinician was available. Amendment 7, as described by the chair, would limit that penalty to cases where a nonurgent, nonemergent facility had an in‑network clinician available but the hospital used an out‑of‑network clinician; it would also create a 60‑day cure period in which the…
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