STATEMENT TO

 

[First Reprint]

 

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 269

 

with Assembly Floor Amendments

(Proposed By Assemblywoman VANDERVALK)

 

ADOPTED: JUNE 19, 1997

 

 

      This amendment to subsection b. of section 9 of this committee substitute concerns the prohibition in a contract between a participating health care provider and a carrier offering a managed care plan against financial incentives for the provider to withhold medically necessary covered health care services.

      The amendment provides that the medical necessity of covered health care services shall be determined in accordance with section 6 of the substitute, except that nothing in this subsection shall be construed to limit the use of capitated payment arrangements between a carrier and a health care provider.