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June 3, 2011

Lawmakers uphold LePage's insurance veto

Lawmakers have upheld Gov. Paul LePage's surprise veto of a bill that would have altered how insurance companies contract with health care providers.

The House yesterday split along party lines, with all 74 Republicans voting to sustain the veto, and 69 Democrats and one Independent voting to override it, falling short of the two-thirds majority needed to overturn it, according to MaineToday Media. LD 1222, which received unanimous legislative support, would have prohibited insurance companies from including clauses in contracts with health care providers that require providers to give the insurance company the lowest rate it negotiates with any other carrier. LePage vetoed the measure because he believes businesses have the right to do business as they see fit.

In a compromise, however, LePage has introduced a similar bill that includes a ban of the "most favored nation" clause, but allows insurance carriers and health care providers to request a waiver of the ban from the superintendent of insurance, according to a press release from the governor's office. The Legislature will take up that bill in the next session.

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