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June 1, 2011

LePage vetoes insurance clause bill

Gov. Paul LePage for the first time has vetoed a bill, rejecting a measure that would restrict provisions insurance companies could include in contracts.

LePage's veto came as a surprise to lawmakers, who unanimously passed LD 1222 last month, according to MaineToday Media. The measure would have prohibited insurance companies from including "most favored nation" clauses in their contracts with health care providers, which require providers to give the insurance company the lowest rate it negotiates with any other carrier. Independent physicians said the clauses make it harder for them to compete with hospital groups. In vetoing the bill, LePage said his administration believes businesses have a right "to independently organize their affairs," according to the news company.

The House will take up the veto this week, and will need a two-thirds vote to override it and send it to the Senate for another two-thirds vote.

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