Collective bargaining legislation is making its way through the New York legislature that would give physicians leverage when negotiating payer contracts, according to a General Surgery News report.
Here are five key notes on the legislation:
1. Physicians currently aren’t able to communicate about their payer contracts or discuss rates, which fosters a market where solo practitioners and surgical centers undercut each other to obtain contracts with insurance companies. Insurance companies know the variable rates and can use that knowledge to negotiate prices down.
2. The bill passed the New York Senate and has been sent to the Assembly and the Governor for approval. The bill is designed to make the contract negotiations between providers and managed care plans fairer; providers would be able to join together to negotiate contract provisions.
3. The legislation doesn’t authorize providers to strike health benefit plans.
4. As reimbursement drops, particularly for colonoscopies among GI providers, groups seek to cut costs which could lead to inferior technology and techniques or poorer quality for patients.
5. Similar legislation has passed through Washington State and if the bill in New York is passed, it could lay the groundwork for similar bills in other states in the future, according to the report.