Section 12: Relative Prices

As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meaning: [unchanged text not shown]

"Relative prices", the contractually negotiated amounts paid to providers by each private and public carrier for health care services, including non-claims related payments and expressed in the aggregate relative to the payer's network-wide average amount paid to providers, as calculated under section 6 of chapter 118G and regulations promulgated by the commissioner. [unchanged text not shown]

Adds new definition of “Relative Prices” within the Division of Health Care Finance and Policy (DHCFP) statute.
This definition relates to provider reimbursement rates. The Division of Insurance (DOI) and DHCFP will determine uniform methodologies for calculating and reporting insurer medical loss ratios, health status adjusted total medical expenses, hospital costs and expenses, and relative prices paid by insurers to providers. DOI and DHCFP will collect and publicly report this information.