Utah Senate Passes Legislation Requiring Insurers To Offer Employers Out-Of-Network Options

The Utah Senate voted 18-11 to pass legislation that would require health insurers to offer employers the option of having their workers visit out-of-network providers in exchange for a higher premium, the Salt Lake Tribune reports. The legislation (SB 66), sponsored by Sen. Michael Waddoups (R), would require that insurance companies offer employers the option of paying extra to choose providers, which would allow employees to keep their doctors if their employers change insurance companies. Employers would be allowed to pass on the premium increases to their employees. In addition, patients could be charged for any services rendered by an out-of-network doctor not covered by their insurance. Opponents, "namely insurance companies," argue that the out-of-network option will discourage doctors from joining insurance networks, in turn, "killing managed care and raising premiums for everyone," according to the Tribune. Opponents also say that doctors might direct patients to get unnecessary tests and treatments at facilities where the doctor has a financial interest, increasing health costs. Lawmakers opposing the legislation say they are worried about contract interference, increases in health care costs, legislative mandates and what the legislation would do to managed care. Waddoups said that the legislation would neither raise nor lower state health costs (Fantin, Salt Lake Tribune, 2/13).