§ 27-20-38 - Restricted annual rate payments prohibited.
SECTION 27-20-38
§ 27-20-38 Restricted annual rate paymentsprohibited. – (a) No corporation organized under this chapter shall compensate any providerof outpatient service by using the restricted annual rate method of payment.
(b) The "restricted annual rate method of payment" is definedas any method of payment that sets, as all or part of its payment scheme, atotal payment limit for mental health and/or substance abuse treatment servicesfor each person seeking treatment based on a per person per unit of timecriterion that disregards the extent of treatment and/or degree of servicesrendered.
(c) This prohibition shall not be construed to prohibit orlimit capitation or other risk sharing agreements between providers andinsurers permissible by law.