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                                                        PRINTER'S NO. 74

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 52 Session of 2007


        INTRODUCED BY C. WILLIAMS, COSTA, RAFFERTY, KITCHEN, BOSCOLA,
           FONTANA, BROWNE, MELLOW AND STACK, FEBRUARY 7, 2007

        REFERRED TO BANKING AND INSURANCE, FEBRUARY 7, 2007

                                     AN ACT

     1  Authorizing health care providers to negotiate with health care
     2     insurers; and providing for the powers and duties of the
     3     Attorney General and the Insurance Commissioner.

     4     The General Assembly hereby finds and determines that:
     5         (1)  Active, robust and fully competitive markets for
     6     health care services provide the best opportunity for
     7     residents of this Commonwealth to receive high-quality health
     8     care services at an appropriate cost.
     9         (2)  A substantial amount of health care services in this
    10     Commonwealth is purchased for the benefit of patients by
    11     health care insurers engaged in the provision of health care
    12     financing services or is otherwise delivered subject to the
    13     terms of agreements between health care insurers and
    14     providers of the services.
    15         (3)  Health care insurers are able to control the flow of
    16     patients to providers of health care services through
    17     compelling financial incentives for patients in their plans
    18     to utilize only the services of providers with whom the


     1     insurers have contracted.
     2         (4)  Health care insurers also control the health care
     3     services rendered to patients through utilization review
     4     programs and other managed care tools and associated coverage
     5     and payment policies.
     6         (5)  The power of health care insurers in markets of this
     7     Commonwealth for health care services has become great enough
     8     to create a competitive imbalance, reducing levels of
     9     competition and threatening the availability of high-quality,
    10     cost-effective health care.
    11         (6)  In many areas of this Commonwealth, the health care
    12     financing market is dominated by one or two health care
    13     insurers, with some insurers controlling over 50% of the
    14     market.
    15         (7)  Health care insurers often are able to virtually
    16     dictate the terms of the provider contracts that they offer
    17     physicians and other health care providers and commonly offer
    18     provider contracts on a take-it-or-leave-it basis.
    19         (8)  The power of health care insurers to unilaterally
    20     impose provider contract terms jeopardizes the ability of
    21     physicians and other health care providers to deliver the
    22     superior quality health care services that have been
    23     traditionally available in this Commonwealth.
    24         (9)  Physicians and other health care providers do not
    25     have sufficient market power to reject unfair provider
    26     contract terms that impede their ability to deliver medically
    27     appropriate care without undue delay or hassle.
    28         (10)  Inequitable reimbursement and other unfair payment
    29     terms adversely affect quality patient care and access by
    30     reducing the resources that health care providers can devote
    20070S0052B0074                  - 2 -     

     1     to patient care and decreasing the time that physicians are
     2     able to spend with their patients.
     3         (11)  Inequitable reimbursement and other unfair payment
     4     terms also endanger the health care infrastructure and
     5     medical advancement by diverting capital needed for
     6     reinvestment in the health care delivery system, curtailing
     7     the purchase of state-of-the-art technology, the pursuit of
     8     medical research and expansion of medical services, all to
     9     the detriment of the residents of this Commonwealth.
    10         (12)  The inevitable collateral reduction and migration
    11     of the health care work force also will have negative
    12     consequences for this Commonwealth's economy.
    13         (13)  Empowering independent health care providers to
    14     jointly negotiate with health care insurers as provided in
    15     this act will help restore the competitive balance and
    16     improve competition in the markets for health care services
    17     in this Commonwealth, thereby providing benefits for
    18     consumers, health care providers and less dominant health
    19     care insurers.
    20         (14)  Allowing independent health care providers to
    21     jointly negotiate with health care insurers through a common
    22     joint negotiation representative will improve the efficiency
    23     and effectiveness of communications between the parties and
    24     result in provider contracts that better reflect the mutual
    25     areas of agreement.
    26         (15)  This act is necessary, proper and constitutes an
    27     appropriate exercise of the authority of the Commonwealth to
    28     regulate the business of insurance and the delivery of health
    29     care services.
    30         (16)  The procompetitive and other benefits of the joint
    20070S0052B0074                  - 3 -     

     1     negotiations and related joint activity authorized by this
     2     act, including, but not limited to, restoring the competitive
     3     balance in the market for health care services, protecting
     4     access to quality patient care, promoting the health care
     5     infrastructure and medical advancement and improving
     6     communications, outweigh any anticompetitive effects.
     7         (17)  It is the intention of the General Assembly to
     8     authorize independent health care providers to jointly
     9     negotiate with health care insurers and to qualify such joint
    10     negotiations and related joint activities for the State-
    11     action exemption to the Federal antitrust laws through the
    12     articulated State policy and active supervision provided in
    13     this act.
    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16  Section 1.  Short title.
    17     This act shall be known and may be cited as the Health Care
    18  Provider Joint Negotiation Act.
    19  Section 2.  Definitions.
    20     The following words and phrases when used in this act shall
    21  have the meanings given to them in this section unless the
    22  context clearly indicates otherwise:
    23     "Attorney General."  The Attorney General of the
    24  Commonwealth.
    25     "Covered lives."  The total number of individuals who are
    26  entitled to benefits under a health care insurance plan,
    27  including, but not limited to, beneficiaries, subscribers and
    28  members of the plan.
    29     "Health care insurer."  An entity, subject to the insurance
    30  laws of this Commonwealth or otherwise subject to the
    20070S0052B0074                  - 4 -     

     1  jurisdiction of the Insurance Commissioner, which contracts or
     2  offers to contract to provide, deliver, arrange for, pay for or
     3  reimburse any of the costs of health care services, including,
     4  but not limited to, an entity licensed under any of the
     5  following:
     6         (1)  The act of May 17, 1921 (P.L.682, No.284), known as
     7     The Insurance Company Law of 1921.
     8         (2)  The act of December 29, 1972 (P.L.1701, No.364),
     9     known as the Health Maintenance Organization Act.
    10         (3)  40 Pa.C.S. Ch. 61 (relating to hospital plan
    11     corporations).
    12         (4)  40 Pa.C.S. Ch. 63 (relating to professional health
    13     services plan corporations).
    14  except as provided in section 14. For purposes of this act, a
    15  third party administrator shall be considered a health care
    16  insurer when interacting with health care providers and
    17  enrollees on behalf of a health care insurer.
    18     "Health care insurer affiliate."  A health care insurer that
    19  is affiliated with another entity by either the insurer or
    20  entity having a 5% or greater, direct or indirect, ownership or
    21  investment interest in the other through equity, debt or other
    22  means.
    23     "Health care provider."  A licensed hospital or health care
    24  facility, medical equipment supplier or person who is licensed,
    25  certified or otherwise regulated to provide health care services
    26  under the laws of this Commonwealth, including, but not limited
    27  to, a physician, dentist, podiatrist, optometrist, pharmacist,
    28  psychologist, chiropractor, physical therapist, certified nurse
    29  practitioner or nurse midwife.
    30     "Health care services."  Services for the diagnosis,
    20070S0052B0074                  - 5 -     

     1  prevention, treatment, cure or relief of a health condition,
     2  injury, disease or illness, including, but not limited to, the
     3  professional and technical component of professional services,
     4  supplies, drugs and biologicals, diagnostic X-ray, laboratory
     5  and other diagnostic tests, preventive screening services and
     6  tests, such as pap smears and mammograms, X-ray, radium and
     7  radioactive isotope therapy, surgical dressings, devices for the
     8  reduction of fractures, durable medical equipment, braces,
     9  trusses, artificial limbs and eyes, dialysis services, home
    10  health services and hospital and other facility services.
    11     "HMO."  A health maintenance organization. The term includes
    12  any health care insurer product that requires enrollees to use
    13  health care providers in a designated provider network to obtain
    14  covered services except in limited circumstances such as
    15  emergencies.
    16     "Insurance Commissioner."  The Insurance Commissioner of the
    17  Commonwealth.
    18     "Joint negotiation."  Negotiation with a health care insurer
    19  by two or more independent health care providers acting together
    20  as part of a formal entity or group or otherwise.
    21     "Joint negotiation representative."  A representative
    22  selected by a group of independent health care providers to be
    23  the group's representative in joint negotiations with a health
    24  care insurer under this act.
    25     "Office of Attorney General."  The Office of Attorney General
    26  of the Commonwealth.
    27     "POS."  A point-of-service plan, including, but not limited
    28  to, a variation of an HMO that provides limited coverage for
    29  certain out-of-network services.
    30     "PPO."  A preferred provider organization. The term includes
    20070S0052B0074                  - 6 -     

     1  any health care insurer product, other than an HMO or POS
     2  product, that provides financial incentives for enrollees to use
     3  health care providers in a designated provider network for
     4  covered services.
     5     "Provider contract."  An agreement between a health care
     6  provider and a health care insurer which sets forth the terms
     7  and conditions under which the provider is to deliver health
     8  care services to enrollees of the insurer. The term does not
     9  include employment contracts between a health care insurer and a
    10  health care professional.
    11     "Provider network."  A group of health care providers who
    12  have provider contracts with a health care insurer.
    13     "Self-funded health benefit plan."  A plan that provides for
    14  the assumption of the cost of or spreading the risk of loss
    15  resulting from health care services of covered lives by an
    16  employer, union or other sponsor, substantially out of the
    17  current revenues, assets or any other funds of the sponsor.
    18     "Third party administrator."  An entity that provides
    19  utilization review, provider network credentialing or other
    20  administrative services for a health care insurer or a self-
    21  funded health benefit plan.
    22  Section 3.  Negotiations regarding nonfee-related terms.
    23     Independent health care providers may jointly negotiate with
    24  a health care insurer and engage in related joint activity, as
    25  provided in sections 6 and 7, regarding nonfee-related matters
    26  which can effect patient care, including, but not limited to any
    27  of the following:
    28         (1)  The definition of medical necessity and other
    29     conditions of coverage.
    30         (2)  Utilization review criteria and procedures.
    20070S0052B0074                  - 7 -     

     1         (3)  Clinical practice guidelines.
     2         (4)  Preventive care and other medical management
     3     policies.
     4         (5)  Patient referral standards and procedures,
     5     including, but not limited to, those applicable to out-of-
     6     network referrals.
     7         (6)  Drug formularies and standards and procedures for
     8     prescribing off-formulary drugs.
     9         (7)  Quality assurance programs.
    10         (8)  Respective health care provider and health care
    11     insurer liability for the treatment or lack of treatment of
    12     plan enrollees.
    13         (9)  The methods and timing of payments, including, but
    14     not limited to, interest and penalties for late payments.
    15         (10)  Other administrative procedures, including, but not
    16     limited to, enrollee eligibility verification systems and
    17     claim documentation requirements.
    18         (11)  Credentialing standards and procedures for the
    19     selection, retention and termination of participating health
    20     care providers.
    21         (12)  Mechanisms for resolving disputes between the
    22     health care insurer and health care providers, including, but
    23     not limited to, the appeals process for utilization review
    24     and credentialing determination.
    25         (13)  The health insurance plans sold or administered by
    26     the insurer in which the health care providers are required
    27     to participate.
    28  Section 4.  Negotiation regarding fees and fee-related terms.
    29     When a health care insurer has substantial market power over
    30  independent health care providers, the providers may jointly
    20070S0052B0074                  - 8 -     

     1  negotiate with the health care insurer and engage in related
     2  joint activity, as provided in sections 6 and 7 regarding fees
     3  and fee-related matters, including, but not limited to, any of
     4  the following:
     5         (1)  The amount of payment or the methodology for
     6     determining the payment for a health care service.
     7         (2)  The conversion factor for a resource-based relative
     8     value scale or similar reimbursement methodology for health
     9     care services.
    10         (3)  The amount of any discount on the price of a health
    11     care service.
    12         (4)  The procedure code or other description of the
    13     health care service or services covered by a payment.
    14         (5)  The amount of a bonus related to the provision of
    15     health care services or a withhold from the payment due for a
    16     health care service.
    17         (6)  The amount of any other component of the
    18     reimbursement methodology for a health care service.
    19  Section 5.  Substantial market power.
    20     (a)  Standard.--A health care insurer has substantial market
    21  power over health care providers when:
    22         (1)  the insurer's market share in the comprehensive
    23     health care financing market or a relevant segment of that
    24     market, alone or in combination with the market shares of
    25     affiliates, exceeds either 15% of the covered lives in the
    26     geographic service area of the providers seeking to jointly
    27     negotiate or 25,000 covered lives; or
    28         (2)  the Attorney General determines that the market
    29     power of the insurer in the relevant product and geographic
    30     markets for the services of the providers seeking to jointly
    20070S0052B0074                  - 9 -     

     1     negotiate significantly exceeds the countervailing market
     2     power of the providers acting individually.
     3     (b)  Comprehensive health care financing market.--The
     4  comprehensive health care financing market includes:
     5         (1)  All health care insurer products which provide
     6     comprehensive coverage, alone or in combination with other
     7     products sold together as a package, including, but not
     8     limited to, indemnity, HMO, PPO and POS products and
     9     packages.
    10         (2)  Self-funded health benefit plans which provide
    11     comprehensive coverage.
    12     (c)  Relevant market segments.--Relevant market segments in
    13  the comprehensive health care financing market shall include the
    14  following:
    15         (1)  Health care insurer products and self-funded health
    16     benefit plans.
    17         (2)  Within the health care insurer product category,
    18     private health insurance, Medicare HMO, PPO and POS and
    19     Medicaid HMO.
    20         (3)  Within the private health insurance category,
    21     indemnity, HMO, PPO and POS products.
    22         (4)  Such other segments as the Attorney General
    23     determines are appropriate for purposes of determining
    24     whether a health care insurer has substantial market power.
    25     (d)  Annual calculation by Insurance Commissioner.--
    26         (1)  By March 31 of each year, the Insurance Commissioner
    27     shall calculate the number of covered lives of each health
    28     care insurer and its affiliates in the comprehensive health
    29     care financing market and in each relevant market segment for
    30     each county of the Commonwealth. The Insurance Commissioner
    20070S0052B0074                 - 10 -     

     1     shall make these calculations by averaging quarterly data
     2     from the preceding year unless the Insurance Commissioner
     3     determines that it would be more appropriate to use other
     4     data and information. The Insurance Commissioner may
     5     recalculate covered lives determinations earlier than the
     6     required annual recalculation when the Insurance Commissioner
     7     deems appropriate.
     8         (2)  Recipients of Medicare, Medicaid and other
     9     governmental programs shall not be counted as covered lives
    10     in the health care financing market unless they receive their
    11     governmental program coverage through an HMO or another
    12     health care insurer product.
    13         (3)  When calculating the market power of a health care
    14     insurer or affiliate that has third party administration
    15     products, the covered lives of the health care insurers and
    16     self-funded health benefit plans for whom the insurer or
    17     affiliate provides administrative services shall be treated
    18     as the covered lives of the insurer or affiliate.
    19         (4)  The Insurance Commissioner's covered lives
    20     calculations shall be used for purposes of determining the
    21     market power of health care insurers in the comprehensive
    22     health care financing market from the date of the
    23     determination until the next annual determination or until
    24     the Insurance Commissioner recalculates the determination,
    25     whichever is earlier.
    26         (5)  In cases where the relevant geographic market is
    27     multiple counties, the Insurance Commissioner's calculations
    28     for those counties shall be aggregated when counting the
    29     covered lives of the health care insurer whose market power
    30     is being evaluated.
    20070S0052B0074                 - 11 -     

     1         (6)  The Insurance Commissioner shall collect and
     2     investigate information necessary to calculate the covered
     3     lives of health care insurers and their affiliates.
     4  Section 6.  Conduct of negotiations.
     5     The following requirements shall apply to the exercise of
     6  joint negotiation rights and related activity under this act:
     7         (1)  Health care providers shall select the members of
     8     their joint negotiation group by mutual agreement.
     9         (2)  Health care providers shall designate a joint
    10     negotiation representative as the sole party authorized to
    11     negotiate with the health care insurer on behalf of the
    12     health care providers as a group.
    13         (3)  Health care providers may communicate with each
    14     other and their joint negotiation representative with respect
    15     to the matters to be negotiated with the health care insurer.
    16         (4)  Health care providers may agree upon a proposal to
    17     be presented by their joint negotiation representative to the
    18     health care insurer.
    19         (5)  Health care providers may agree to be bound by the
    20     terms and conditions negotiated by their joint negotiation
    21     representative.
    22         (6)  The health care providers' joint negotiation
    23     representative may provide the health care providers with the
    24     results of negotiations with the health care insurer and an
    25     evaluation of any offer made by the health care insurer.
    26         (7)  The health care providers' joint negotiation
    27     representative may reject a contract proposal by a health
    28     care insurer on behalf of the health care providers as long
    29     as the health care providers remain free to individually
    30     contract with the health care insurer.
    20070S0052B0074                 - 12 -     

     1         (8)  The health care providers may not jointly coordinate
     2     any cessation of health care services by them.
     3         (9)  The health care providers' joint negotiation
     4     representative shall advise the health care providers of the
     5     provisions of this act and shall inform the health care
     6     providers of the potential for legal action against health
     7     care providers who violate the Federal antitrust laws.
     8         (10)  Health care providers may not negotiate the
     9     inclusion or alteration of terms and conditions to the extent
    10     the terms or conditions are required or prohibited by
    11     government regulation. This paragraph shall not be construed
    12     to limit the right of health care providers to jointly
    13     petition government for a change in such regulation.
    14  Section 7.  Attorney General oversight.
    15     (a)  Petition for approval of joint negotiations.--Before
    16  engaging in any joint negotiation with a health care insurer,
    17  health care providers must obtain the Attorney General's
    18  approval to proceed with the negotiations. The petition seeking
    19  approval must include:
    20         (1)  The name and business address of the health care
    21     providers' joint negotiation representative.
    22         (2)  The names and business addresses of the health care
    23     providers petitioning to jointly negotiate.
    24         (3)  The name and business address of the health care
    25     insurer or insurers with which the petitioning providers seek
    26     to jointly negotiate.
    27         (4)  The proposed subject matter of the negotiations or
    28     discussions with the health care insurer or insurers.
    29         (5)  The proportionate relationship of the health care
    30     providers to the total population of health care providers in
    20070S0052B0074                 - 13 -     

     1     the relevant geographic service area, by provider type and
     2     specialty.
     3         (6)  In the case of a petition seeking approval of joint
     4     negotiations regarding one or more fee or fee-related terms,
     5     a statement of the reasons why the health care insurer has
     6     substantial market power over the health care providers.
     7         (7)  A statement of the procompetitive and other benefits
     8     of the proposed negotiations.
     9         (8)  The health care provider's joint negotiation
    10     representative's plan of operation and procedures to ensure
    11     compliance with this act.
    12         (9)  Such other data, information and documents that the
    13     petitioners desire to submit in support of their petition.
    14     (b)  Petition for approval of modification of joint
    15  negotiations.--The health care providers shall supplement a
    16  petition under subsection (a) as new information becomes
    17  available that indicates that the subject matter of the proposed
    18  negotiations with the health care insurer has or will materially
    19  change and must obtain the Attorney General's approval of
    20  material changes. The petition seeking approval shall include:
    21         (1)  The Attorney General's file reference for the
    22     original petition for approval of joint negotiations.
    23         (2)  The proposed new subject matter.
    24         (3)  The information required by subsection (a)(6) and
    25     (7) with respect to the proposed new subject matter.
    26         (4)  Such other data, information and documents that the
    27     health care providers desire to submit in support of their
    28     petition.
    29     (c)  Petition for approval of provider contract terms.--No
    30  provider contract terms negotiated under this act shall be
    20070S0052B0074                 - 14 -     

     1  effective until the terms are approved by the Attorney General.
     2  The petition seeking approval shall be jointly submitted by the
     3  health care providers and the health care insurer who are
     4  parties to the contract. The petition shall include:
     5         (1)  The Attorney General's file reference for the
     6     original petition for approval of joint negotiations.
     7         (2)  The negotiated provider contract terms.
     8         (3)  A statement of the procompetitive and other benefits
     9     of the negotiated provider contract terms.
    10         (4)  Such other data, information and documents that the
    11     health care providers desire to submit in support of their
    12     petition.
    13     (d)  Resumption of negotiations.--Joint negotiations approved
    14  under this act may continue until the health care insurer
    15  notifies the joint negotiation representative for the health
    16  care providers that it declines to negotiate or is terminating
    17  negotiations. If the health care insurer notifies the joint
    18  negotiation representative for health care providers that it
    19  desires to resume negotiations within 60 days of the end of
    20  prior negotiations, the health care providers may renew the
    21  previously approved negotiations without obtaining a separate
    22  approval of the renewal from the Attorney General.
    23  Section 8.  Attorney General determinations.
    24     (a)  Time period for review.--The Office of Attorney General
    25  shall either approve or disapprove a petition under section 7
    26  within 30 days after the filing. If disapproved, the Attorney
    27  General shall furnish a written explanation of any deficiencies
    28  along with a statement of specific remedial measures as to how
    29  such deficiencies may be corrected.
    30     (b)  Standards for reviewing petitions.--
    20070S0052B0074                 - 15 -     

     1         (1)  The Office of Attorney General shall approve a
     2     petition under section 7(a) and (b) if:
     3             (i)  The procompetitive and other benefits of the
     4         joint negotiations outweigh any anticompetitive effects.
     5             (ii)  In the case of a petition seeking approval to
     6         jointly negotiate one or more fee or fee-related terms,
     7         the health care insurer has substantial market power over
     8         the health care providers.
     9         (2)  The Office of Attorney General shall approve a
    10     petition under section 7(c) if:
    11             (i)  The procompetitive and other benefits of the
    12         contract terms outweigh any anticompetitive effects.
    13             (ii)  The contract terms are consistent with other
    14         applicable laws and regulations.
    15         (3)  The procompetitive and other benefits of joint
    16     negotiations or negotiated provider contract terms may
    17     include:
    18             (i)  Restoration of the competitive balance in the
    19         market for health care services.
    20             (ii)  Protections for access to quality patient care.
    21             (iii)  Promotion of the health care infrastructure
    22         and medical advancement.
    23             (iv)  Improved communications between health care
    24         providers and health care insurers.
    25         (4)  When weighing the anticompetitive effects of
    26     provider contract terms, the Attorney General may consider
    27     whether the terms:
    28             (i)  provide for excessive payments; or
    29             (ii)  contribute to the escalation of the cost of
    30         providing health care services.
    20070S0052B0074                 - 16 -     

     1     (c)  Supplemental information.--For the purpose of enabling
     2  the Attorney General to make the findings and determinations
     3  required by this section, the Attorney General may require the
     4  submission of such supplemental information as it may deem
     5  necessary or proper to enable him to reach a determination.
     6  Section 9.  Notice and comment.
     7     (a)  Notice to health insurer.--In the case of a petition
     8  under section 7(a) or (b), the Attorney General shall notify the
     9  health insurer of the petition and provide the insurer with the
    10  opportunity to submit written comments within a specified time
    11  frame that does not extend beyond the date on which the Attorney
    12  General is required to act on the petition.
    13     (b)  Public notice not required.--
    14         (1)  Except as provided in subsection (a), the Attorney
    15     General shall not be required to provide public notice of a
    16     petition under section 7(a), (b) or (c) to hold a public
    17     hearing on the petition or to otherwise accept public comment
    18     on the petition.
    19         (2)  The Attorney General may, at his discretion, publish
    20     notice of a petition for approval of provider contract terms
    21     in the Pennsylvania Bulletin and receive written comments
    22     from interested persons, so long as the opportunity for
    23     public comment does not prevent the Attorney General from
    24     acting on the petition within the time period set forth in
    25     this act.
    26  Section 10.  Attorney General proceedings and appellate review.
    27     (a)  Request for hearing.--Within 30 days from the mailing of
    28  a notice of disapproval of a petition under section 7, the
    29  petitioners may make a written application to the Attorney
    30  General for a hearing.
    20070S0052B0074                 - 17 -     

     1     (b)  Hearing to be conducted.--Upon receipt of a timely
     2  written application for a hearing, the Attorney General shall
     3  schedule and conduct a hearing as provided for in 2 Pa.C.S. Ch.
     4  5 Subch. A (relating to practice and procedure of Commonwealth
     5  agencies) and Ch. 7 Subch. A (relating to judicial review of
     6  Commonwealth agency action). The hearing shall be held within 30
     7  days of the application unless the petitioner seeks an
     8  extension.
     9     (c)  Mandamus action.--If the Attorney General does not issue
    10  a written approval or disapproval of a petition under section 7
    11  within the required time period, the parties to the petition
    12  shall have the right to petition the Commonwealth Court for a
    13  mandamus order requiring the Attorney General to approve or
    14  disapprove the petition.
    15     (d)  Parties to proceedings.--The sole parties with respect
    16  to any petition under section 7 shall be the petitioners and the
    17  Attorney General. Notwithstanding any otherwise applicable
    18  provision of 2 Pa.C.S. Ch. 5 Subch. A and Ch. 7 Subch. A, the
    19  Attorney General shall not be required to treat any other person
    20  as a party and no other person shall be entitled to appeal the
    21  Attorney General's determination.
    22  Section 11.  Confidentiality and disclosure.
    23     (a)  General rule.--All information, documents and copies
    24  thereof obtained by or disclosed to the Attorney General or any
    25  other person in a petition under section 7 or pursuant to a
    26  request for supplemental information under section 8(c) shall be
    27  given confidential treatment, shall not be subject to subpoena
    28  and shall not be made public or otherwise disclosed by the
    29  Attorney General or any other person without the written consent
    30  of the petitioners to whom the information pertains, except as
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     1  provided in subsection (b).
     2     (b)  Exceptions.--
     3         (1)  In the case of a petition under section 7(a) or (b),
     4     the Attorney General may disclose the information required to
     5     be submitted pursuant to section 7(a)(1) through (4) and
     6     (b)(1) and (2).
     7         (2)  The Attorney General may disclose provider contracts
     8     negotiated under this act provided that the Attorney General
     9     removes or redacts those provider contract provisions that
    10     contain payment rates and fees. The Attorney General may
    11     disclose payment rates and fees to the Insurance
    12     Commissioner, the insurance department of another state, a
    13     law enforcement official of this Commonwealth or any other
    14     state or agency of the Federal Government, so long as the
    15     agency or office receiving the information agrees in writing
    16     to hold it confidential and in a manner consistent with this
    17     act.
    18  Section 12.  Good faith negotiations.
    19     A health care insurer shall negotiate in good faith with
    20  health care providers regarding the terms of provider contracts.
    21  Section 13.  Construction.
    22     Nothing contained in this act shall be construed:
    23         (1)  To prohibit or restrict activity by health care
    24     providers that is sanctioned under Federal or State laws.
    25         (2)  To prohibit or require governmental approval of or
    26     otherwise restrict activity by health care providers that is
    27     not prohibited under the Federal antitrust laws.
    28         (3)  To require approval of provider contracts terms to
    29     the extent that the terms are exempt from State regulation
    30     under section 514 of the Employee Retirement Income Security
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     1     Act of 1974 (Public Law 93-406, 88 Stat. 829).
     2         (4)  To expand a health care provider's scope of practice
     3     or to require a health care insurer to contract with any type
     4     or specialty of health care providers.
     5  Section 14.  Exclusions.
     6     Nothing contained in this act shall authorize joint
     7  negotiations regarding health care services covered under the
     8  following insurance policies or coverage programs:
     9         (1)  Workers' compensation.
    10         (2)  Medical payment coverage issued as part of a motor
    11     vehicle insurance policy.
    12         (3)  Medicare supplemental.
    13         (4)  Civilian Health and Medical Program of the Uniformed
    14     Services (CHAMPUS).
    15         (5)  Accident only.
    16         (6)  Specified disease.
    17         (7)  Long-term care insurance.
    18         (8)  Disability insurance.
    19         (9)  Credit insurance.
    20  Section 15.  Regulations.
    21     The Attorney General may promulgate such regulations as are
    22  reasonably necessary to implement the purposes of this act.
    23  Section 28.  Repeals.
    24     All acts and parts of acts are repealed insofar as they are
    25  inconsistent with this act.
    26  Section 29.  Effective date.
    27     This act shall take effect in 60 days.


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