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Senate Lets Physicians
Negotiate Collectively

(JUNEAU) -The Alaska Senate passed a bill designed to prevent Alaska's physicians and patients from being run over by large health insurance companies.

"Physicians in a solo or small group practice are at a distinct disadvantage when it comes to bargaining with companies that hold a large portion of Alaska's health insurance market," said Sen. Pete Kelly (R-Fairbanks), sponsor of the bill. "A gross inequity in bargaining power exists, and health insurers only negotiate with doctors on a take-it-or-leave-it basis."

The bottom line is that this adversely affects the care that patients receive, said Kelly. Insurance companies can require physicians to use a lower-cost treatment when a higher-cost treatment may be medically necessary, or can prevent a physician from discussing alternative treatments.

Senate Bill 37 allows independent, competing physicians to collectively bargain with insurance companies regarding the provisions of physician services contracts. When the provisions set forth in the state action doctrine are met, behavior that would otherwise violate the anti-trust laws will be exempt as long as there is active state oversight of the collective bargaining process.

Groups of independent competing physicians are still prohibited from retaliating, striking or engaging in boycotts.

"Our physicians need to be able to provide the best care for their patients without being hampered by unreasonable insurance restrictions, and SB 37 helps make that possible," said Kelly. "This is a sensible bill, and it is voluntary for both physicians and insurance companies."

SB 37 passed the Senate 13-6, and a notice of reconsideration was filed.

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