2025 Session Last amended: 2004 session

§ 62Q.739 — Unilateral Terms Prohibited

Plain-Language Summary

This section governs contracts between a health plan company and a health care provider. The contract cannot contain unilateral terms about indemnification or arbitration, though either party may still unilaterally terminate the contract according to its terms. A health plan company also may not terminate or fail to renew a provider's contract without cause unless it gives the provider written notice of the termination or nonrenewal 120 days before the effective date.

62Q.739 UNILATERAL TERMS PROHIBITED.

(a) A contract between a health plan company and a health care provider shall not contain or require unilateral terms regarding indemnification or arbitration. Notwithstanding any prohibitions in this section, a contract between a health plan company and a health care provider may be unilaterally terminated by either party in accordance with the terms of the contract.

(b) A health plan company may not terminate or fail to renew a health care provider’s contract without cause unless the company has given the provider a written notice of the termination or nonrenewal 120 days before the effective date.

History:

2004 c 246 s 8

History: History:

  2004 c 246 s 8

Practical Notes

This statute protects health care providers in their contracts with health plan companies (such as HMOs and insurers), not consumers. Key protections are the ban on one-sided indemnification or arbitration clauses and the 120-day written notice required for a without-cause termination or nonrenewal. Questions about provider contract rights can be directed to the Minnesota Department of Commerce.

Source: Minnesota Office of the Revisor of Statutes