Sec. 1. 24-A MRSA §4308, as repealed and replaced by PL 1999, c. 742, §18, is repealed and the following enacted in its place:

§4308. Indemnification and limitation of liability

1-A.__Indemnification.__A contract between a carrier offering a health plan and a provider for the provision of services to enrollees may not require the provider to indemnify the carrier for expenses and liabilities, including, without limitation, judgments, settlements, attorney's fees, court costs and any associated charges incurred in connection with a claim or action brought against the health plan based on the carrier's own fault.__ Nothing in this subsection may be construed to remove responsibility of a carrier or provider for expenses or liabilities caused by the carrier's or provider's own negligent acts or omissions or intentional misconduct.__An indemnification provision in a contract between a carrier and a participating provider must be reciprocal, applying equally to the carrier and the participating provider, and may not require the carrier or the participating provider to indemnify the other for an amount beyond the limit of liability insurance coverage available in this State.

2.__Limitation of liability.__A contract between a carrier offering a health plan and a provider for the provision of services to enrollees may not limit the right of the enrollee, the participating provider or the carrier to pursue those damages available under the law of this State.

SUMMARY

This bill provides that an indemnification provision in a managed care participating provider agreement must apply equally to each party and may not require the carrier or the participating provider to indemnify the other for any amount beyond the limit of liability insurance coverage available in the State. The bill also prohibits a carrier from limiting its liability in a participating provider agreement.