Sec. 1. 24-A MRSA §4303, sub-§9 is enacted to read:

9.__Mandatory arbitration prohibited.__A carrier may not require mandatory, binding arbitration as the sole mechanism for formal dispute resolution under its health plans or participating provider agreements.__A carrier may provide for arbitration, either binding or nonbinding, as an optional mechanism for dispute resolution under its health plans or participating provider agreements as long as the optional arbitration provision provides for the payment of the costs of the arbitration by the nonprevailing party.

SUMMARY

This bill prohibits a carrier offering a health plan in this State from requiring mandatory, binding arbitration as the sole mechanism for formal dispute resolution under its health plans.