2022 -- S 2086

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LC003946

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES

     Introduced By: Senators DiMario, Miller, Euer, Lawson, Valverde, Zurier, Murray, and
Burke

     Date Introduced: January 25, 2022

     Referred To: Senate Health & Human Services

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-18-65 of the General Laws in Chapter 27-18 entitled "Accident

and Sickness Insurance Policies" is hereby amended to read as follows:

     27-18-65. Post-payment audits.

     (a) Except as otherwise provided herein, any review, audit, or investigation by a health

insurer or health plan of a healthcare provider's claims that results in the recoupment or set-off of

funds previously paid to the healthcare provider in respect to such claims shall be completed no

later than eighteen (18) twelve (12) months after the completed claims were initially paid. This

section shall not restrict any review, audit, or investigation regarding claims that are submitted

fraudulently; are known, or should have been known, by the healthcare provider to be a pattern of

inappropriate billing according to the standards for provider billing of their respective medical or

dental specialties; are related to coordination of benefits; are duplicate claims; or are subject to any

federal law or regulation that permits claims review beyond the period provided herein.

     (b) No healthcare provider shall seek reimbursement from a payer for underpayment of a

claim later than eighteen (18) twelve (12) months from the date the first payment on the claim was

made, except if the claim is the subject of an appeal properly submitted pursuant to the payer's

claims appeal policies or the claim is subject to continual claims submission.

     (c) For the purposes of this section, "healthcare provider" means an individual clinician,

either in practice independently or in a group, who provides healthcare services, and any healthcare

facility, as defined in § 27-18-1.1, including any mental health and/or substance abuse treatment

facility, physician, or other licensed practitioner as identified to the review agent as having primary

responsibility for the care, treatment, and services rendered to a patient.

     (d) Except for those contracts where the health insurer or plan has the right to unilaterally

amend the terms of the contract, the parties shall be able to negotiate contract terms that allow for

different time frames than is prescribed herein.

     SECTION 2. Section 27-19-56 of the General Laws in Chapter 27-19 entitled "Nonprofit

Hospital Service Corporations" is hereby amended to read as follows:

     27-19-56. Post-payment audits.

     (a) Except as otherwise provided herein, any review, audit, or investigation by a nonprofit

hospital service corporation of a healthcare provider's claims that results in the recoupment or set-

off of funds previously paid to the healthcare provider in respect to such claims shall be completed

no later than eighteen (18) twelve (12) months after the completed claims were initially paid. This

section shall not restrict any review, audit, or investigation regarding claims that are submitted

fraudulently; are known, or should have been known, by the healthcare provider to be a pattern of

inappropriate billing according to the standards for provider billing of their respective medical or

dental specialties; are related to coordination of benefits; are duplicate claims; or are subject to any

federal law or regulation that permits claims review beyond the period provided herein.

     (b) No healthcare provider shall seek reimbursement from a payer for underpayment of a

claim later than eighteen (18) twelve (12) months from the date the first payment on the claim was

made, except if the claim is the subject of an appeal properly submitted pursuant to the payer's

claims appeal policies or the claim is subject to continual claims submission.

     (c) For the purposes of this section, "healthcare provider" means an individual clinician,

either in practice independently or in a group, who provides healthcare services, and any healthcare

facility, as defined in § 27-18-1.1, including any mental health and/or substance abuse treatment

facility, physician, or other licensed practitioner identified to the review agent as having primary

responsibility for the care, treatment, and services rendered to a patient.

     (d) Except for those contracts where the health insurer or plan has the right to unilaterally

amend the terms of the contract, the parties shall be able to negotiate contract terms that allow for

different time frames than is prescribed herein.

     SECTION 3. Section 27-20-51 of the General Laws in Chapter 27-20 entitled "Nonprofit

Medical Service Corporations" is hereby amended to read as follows:

     27-20-51. Post-payment audits.

     (a) Except as otherwise provided herein, any review, audit, or investigation by a nonprofit

medical service corporation of a healthcare provider's claims that results in the recoupment or set-

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off of funds previously paid to the healthcare provider in respect to such claims shall be completed

no later than eighteen (18) twelve (12) months after the completed claims were initially paid. This

section shall not restrict any review, audit, or investigation regarding claims that are submitted

fraudulently; are known, or should have been known, by the healthcare provider to be a pattern of

inappropriate billing according to the standards for provider billing of their respective medical or

dental specialties; are related to coordination of benefits; are duplicate claims; or are subject to any

federal law or regulation that permits claims review beyond the period provided herein.

     (b) No healthcare provider shall seek reimbursement from a payer for underpayment of a

claim later than eighteen (18) twelve (12) months from the date the first payment on the claim was

made, except if the claim is the subject of an appeal properly submitted pursuant to the payer's

claims appeal policies or the claim is subject to continual claims submission.

     (c) For the purposes of this section, "healthcare provider" means an individual clinician,

either in practice independently or in a group, who provides healthcare services, and any healthcare

facility, as defined in § 27-20-1, including any mental health and/or substance abuse treatment

facility, physician, or other licensed practitioner identified to the review agent as having primary

responsibility for the care, treatment, and services rendered to a patient.

     (d) Except for those contracts where the health insurer or plan has the right to unilaterally

amend the terms of the contract, the parties shall be able to negotiate contract terms which allow

for different time frames than is prescribed herein.

     SECTION 4. Section 27-41-69 of the General Laws in Chapter 27-41 entitled "Health

Maintenance Organizations" is hereby amended to read as follows:

     27-41-69. Post-payment audits.

     (a) Except as otherwise provided herein, any review, audit, or investigation by a health

maintenance organization of a healthcare provider's claims that results in the recoupment or set-off

of funds previously paid to the healthcare provider in respect to such claims shall be completed no

later than eighteen (18) twelve (12) months after the completed claims were initially paid. This

section shall not restrict any review, audit, or investigation regarding claims that are submitted

fraudulently; are known, or should have been known, by the healthcare provider to be a pattern of

inappropriate billing according to the standards for provider billing of their respective medical or

dental specialties; are related to coordination of benefits; are duplicate claims; or are subject to any

federal law or regulation that permits claims review beyond the period provided herein.

     (b) No healthcare provider shall seek reimbursement from a payer for underpayment of a

claim later than eighteen (18) twelve (12) months from the date the first payment on the claim was

made, except if the claim is the subject of an appeal properly submitted pursuant to the payer's

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claims appeal policies or the claim is subject to continual claims submission.

     (c) For the purposes of this section, "healthcare provider" means an individual clinician,

either in practice independently or in a group, who provides healthcare services, and any healthcare

facility, as defined in § 27-41-2, including any mental health and/or substance abuse treatment

facility, physician, or other licensed practitioner identified to the review agent as having primary

responsibility for the care, treatment, and services rendered to a patient.

     (d) Except for those contracts where the health insurer or plan has the right to unilaterally

amend the terms of the contract, the parties shall be able to negotiate contract terms which allow

for different time frames than is prescribed herein.

     SECTION 5. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES

***

     This act would require insurance providers to seek recoupment or set off of insurance

payments made to health care providers within twelve (12) months and require health care

providers to seek reimbursement for underpayment within twelve (12) months.

     This act would take effect upon passage.

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