1. (a) No policy delivered or issued in this state shall contain a provision for compensating any provider of outpatient mental health and/or substance abuse treatment service by using the restricted annual rate method of payment.
2. (b) The restricted annual rate method of payment is defined as any method of payment that sets, as all or part of its payment scheme, a total payment limit for mental health and/or substance abuse treatment services for each person seeking treatment based on a per person per unit of time criterion that disregards the extent of treatment and/or degree of services rendered.
3. (c) This prohibition shall not be construed to prohibit or limit capitation or other risk-sharing agreements between providers and insurers otherwise permissible by law.

History of Section.
P.L. 1998, ch. 352, § 1.