ABSTRACT
Over the past several years, discount medical programs have flourished as a result of double digit increases in health insurance premiums. Given the rapid growth and sometimes questionable practices of such programs, several states have taken notice and have begun to regulate discount medical programs. This article summarizes the laws of several states that have chosen to oversee these programs.
Subject(s)
Fees and Charges/legislation & jurisprudence , Government Regulation , Insurance, Health/legislation & jurisprudence , Rate Setting and Review/legislation & jurisprudence , State Government , Financing, Personal , Fraud/prevention & control , Insurance, Health/economics , Licensure , Marketing/legislation & jurisprudence , Reimbursement Mechanisms/legislation & jurisprudence , United StatesSubject(s)
Contracts/legislation & jurisprudence , Managed Care Programs/legislation & jurisprudence , Compensation and Redress/legislation & jurisprudence , Federal Government , Health Benefit Plans, Employee/legislation & jurisprudence , Humans , Medicare Part C/legislation & jurisprudence , Patient Freedom of Choice Laws , State Government , Supreme Court Decisions , United StatesABSTRACT
An "evergreen contract" is one that automatically renews itself from year to year, unless one of the contracting parties acts at specified intervals (which may be annually or as long as several years) to give notice in the manner required to terminate the otherwise perpetual agreement. Such contracts are in contrast to fixed-term agreements, where both parties must affirmatively agree to extend the term beyond the initial specified term. Such "evergreen contracts" are legally valid, but for compelling reasons health plans and providers may want to consider terminating their evergreen provider contracts now in favor of a contract with a fixed term.
