"In a perfect world, equal bargaining power would exist between medical care providers and health insurers," said Kelly. "Unfortunately, the typical Alaskan physician in a solo or group practice has no choice but to take the terms of contracts offered by insurance companies. These contracts are very often weighted in favor of the insurers, and can adversely affect the care that patients receive by limiting the treatments physicians are able to provide."

Since 1994, the leading 18 national health insurers have combined into 6, and the trend continues. The Supreme Court foresaw circumstances such as this arising, where Federal Trade Commission oversight and anti-trust laws no longer make sense.

SB 256 creates a state action doctrine to prevent Alaska's doctor and patients from being run over by huge insurers. 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. Under this bill, a group of independent competing physicians are still prevented from engaging in an expressed or implied threat of retaliatory collective action, including boycotts or strikes.

SB 256 goes to the House for consideration.

Attachments:

• Sponsor Statement
• Frequently Asked Questions List