Prohibition — Most favored nation clause

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  1. (a) A contracting entity shall not:

    1. (1) Offer to a healthcare provider a healthcare contract that includes a most favored nation clause;

    2. (2) Enter into a healthcare contract with a healthcare provider that includes a most favored nation clause; or

    3. (3) Amend or renew an existing healthcare contract previously entered into with a healthcare provider so that the contract as amended or renewed adds or continues to include a most favored nation clause.

  2. (b)

    1. (1) A violation of this section is:

      1. (A) An unfair trade practice under § 23-66-206; and

      2. (B) Subject to the Trade Practices Act, § 23-66-201 et seq.

    2. (2) If a healthcare contract contains a provision that violates this section, the healthcare contract is void.


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