Chapter
214
2003 -- H 6005 SUBSTITUTE A
Enacted 07/15/03
A N A C T
RELATING TO HEALTH AND SAFETY
-- HEALTH CARE ACCESSIBILITY AND
QUALITY ASSURANCE ACT
Introduced By:
Representative Peter N. Wasylyk
Date
Introduced: February 12, 2003
It is
enacted by the General Assembly as follows:
SECTION
1. Sections 23-17.13-2 and 23-17.13-3 of the General Laws in Chapter 23-
17.13 entitled "Health Care
Accessibility and Quality Assurance Act" are hereby amended to read
as follows:
23-17.13-2.
Definitions. -- As used in this chapter:
(1)
"Adverse decision" means any decision by a review agent not to
certify an admission,
service, procedure, or extension of
stay. A decision by a reviewing agent to certify an admission,
service, or procedure in an
alternative treatment setting, or to certify a modified extension of stay,
shall not constitute an adverse
decision if the reviewing agent and the requesting provider are in
agreement regarding the decision.
(2)
"Contractor" means a person/entity that:
(i)
Establishes, operates or maintains a network of participating providers;
(ii)
Contracts with an insurance company, a hospital or medical or dental service
plan, an
employer, whether under written or
self insured, an employee organization, or any other entity
providing coverage for health care
services to administer a plan; and/or
(iii) Conducts or arranges for utilization review activities pursuant to
chapter 17.12 of
this title.
(3) "Direct
service ratio" means the amount of premium dollars expended by the plan
for
covered services provided to
enrollees on a plan's fiscal year basis.
(4)
"Director" means the director of the department of health.
(5)
"Emergency services" has the same meaning as the meaning contained in
the rules
and regulations promulgated
pursuant to chapter 12.3 of title 42, as may be amended from time to
time, and includes the sudden onset
of a medical or mental condition that the absence of
immediate medical attention could
reasonably be expected to result in placing the patient's health
in serious jeopardy, serious
impairment to bodily or mental functions, or serious dysfunction of
any bodily organ or part.
(6)
"Health care entity" means a licensed insurance company, hospital, or
dental or
medical service plan or health
maintenance organization, or a contractor as described in
subdivision (2), that operates a
health plan.
(7)
"Health care services" includes, but is not limited to, medical,
mental health,
substance abuse, and dental
services.
(8)
"Health plan" means a plan operated by a health care entity as
described in
subdivision (6) that provides for
the delivery of care services to persons enrolled in the plan
through:
(i)
Arrangements with selected providers to furnish health care services; and/or
(ii)
Financial incentives for persons enrolled in the plan to use the participating
providers
and procedures provided for by the
plan.
(9)
"Provider" means a physician, hospital, pharmacy, laboratory,
dentist, or other state
licensed or other state recognized
provider of health care services or supplies, and whose services
are recognized pursuant to 213(d)
of the Internal Revenue Code, 26 U.S.C. section 213(d), that
has entered into an agreement with
a health care entity as described in subdivision (6) or
contractor as described in
subdivision (2) to provide these services or supplies to a patient
enrolled in a plan.
(10)
"Provider incentive plan" means any compensation arrangement between
a health
care entity or plan and a provider
or provider group that may directly or indirectly have the effect
of reducing or limiting services
provided with respect to an individual enrolled in a plan.
(11)
"Qualified health plan" means a plan that the director of the
department of health
certified, upon application by the
program, as meeting the requirements of this chapter.
(12)
"Qualified utilization review program" means utilization review program
that meets
the requirements of chapter 17.12
of this title.
(13)
“Most favored rate clause” means a provision in a provider contract whereby the
rates or fees to be paid by a
health plan are fixed, established or adjusted to be equal to or lower
than the rates or fees paid to
the provider by any other health plan or third party payor.
23-17.13-3.
Certification of health plans. -- (a) Certification process.
(1)
Certification.
(i) The
director shall establish a process for certification of health plans meeting
the
requirements of certification in
subsection (b).
(ii)
The director shall act upon the health plan's completed application for
certification
within ninety (90) days of receipt
of such application for certification.
(2)
Review and recertification. - To ensure compliance with subsection (b), the
director
shall establish procedures for the
periodic review and recertification of qualified health plans not
less than every five (5) years;
provided, however, that the director may review the certification of
a qualified health plan at any time
if there exists evidence that a qualified health plan may be in
violation of subsection (b).
(3)
Cost of certification. - The total cost of obtaining and maintaining
certification under
this title and compliance with the
requirements of the applicable rules and regulations are borne
by the entities so certified and
shall be one hundred and fifty percent (150%) of the total salaries
paid to the certifying personnel of
the department engaged in those certifications less any salary
reimbursements and shall be paid to
the director to and for the use of the department. That
assessment shall be in addition to
any taxes and fees otherwise payable to the state.
(4)
Standard definitions. - To help ensure a patient's ability to make informed
decisions
regarding their health care, the
director shall promulgate regulation(s) to provide for standardized
definitions (unless defined in
existing statute) of the following terms in this subdivision,
provided, however, that no
definition shall be construed to require a health care entity to add any
benefit, to increase the scope of
any benefit, or to increase any benefit under any contract:
(i)
Allowable charge;
(ii)
Capitation;
(iii) Co-payments;
(iv)
Co-insurance;
(v)
Credentialing;
(vi)
Formulary;
(vii) Grace period;
(viii) Indemnity insurance;
(ix)
In-patient care;
(x)
Maximum lifetime cap;
(xi)
Medical necessity;
(xii) Out-of-network;
(xiii) Out-patient;
(xiv) Pre-existing conditions;
(xv)
Point of service;
(xvi) Risk sharing;
(xvii) Second opinion;
(xviii) Provider network;
(xix) Urgent care.
(b)
Requirements for certification. - The director shall establish standards and
procedures
for the certification of qualified
health plans that conduct business in this state and who have
demonstrated the ability to ensure
that health care services will be provided in a manner to assure
availability and accessibility,
adequate personnel and facilities, and continuity of service, and has
demonstrated arrangements for
ongoing quality assurance programs regarding care processes and
outcomes; other standards shall
consist of, but are not limited to, the following:
(1)
Prospective and current enrollees in health plans must be provided information
as to
the terms and conditions of the
plan consistent with the rules and regulations promulgated under
chapter 12.3 of title 42 so that
they can make informed decisions about accepting and utilizing the
health care services of the health
plan. This must be standardized so that customers can compare
the attributes of the plans, and
all information required by this paragraph shall be updated at
intervals determined by the
director. Of those items required under this section, the director shall
also determine which items shall be
routinely distributed to prospective and current enrollees as
listed in this subsection and which
items may be made available upon request. The items to be
disclosed are:
(i)
Coverage provisions, benefits, and any restriction or limitations on health
care
services, including but not limited
to, any exclusions as follows: by category of service, and if
applicable, by specific service, by
technology, procedure, medication, provider or treatment
modality, diagnosis and condition,
the latter three (3) of which shall be listed by name.
(ii)
Experimental treatment modalities that are subject to change with the advent of
new
technology, may be listed solely by
the broad category "Experimental Treatments". The
information provided to consumers
shall include the plan's telephone number and address where
enrollees may call or write for
more information or to register a complaint regarding the plan or
coverage provision.
(2)
Written statement of the enrollee's right to seek a second opinion, and
reimbursement
if applicable.
(3)
Written disclosure regarding the appeals process described in section
23-17.12-1 et
seq. and in the rules and
regulations for the utilization review of care services, promulgated by the
department of health, the telephone
numbers and addresses for the plan's office which handles
complaints as well as for the
office which handles the appeals process under section 23-17.12-1 et
seq. and the rules and regulations
for the utilization of health.
(4)
Written statement of prospective and current enrollees' right to
confidentiality of all
health care record and information
in the possession and/or control of the plan, its employees, its
agents and parties with whom a
contractual agreement exists to provide utilization review or who
in any way have access to care
information. A summary statement of the measures taken by the
plan to ensure confidentiality of
an individual's health care records shall be disclosed.
(5)
Written disclosure of the enrollee's right to be free from discrimination by
the health
plan and the right to refuse
treatment without jeopardizing future treatment.
(6)
Written disclosure of a plan's policy to direct enrollees to particular
providers. Any
limitations on reimbursement should
the enrollee refuse the referral must be disclosed.
(7)
A summary of prior authorization or other review requirements including
preauthorization review, concurrent
review, post-service review, post-payment review and any
procedure that may lead the patient
to be denied coverage for or not be provided a particular
service.
(8)
Any health plan that operates a provider incentive plan shall not enter into
any
compensation agreement with any
provider of covered services or pharmaceutical manufacturer
pursuant to which specific payment
is made directly or indirectly to the provider as an
inducement or incentive to reduce
or limit services, to reduce the length of stay or the use of
alternative treatment settings or
the use of a particular medication with respect to an individual
patient, provided however, that
capitation agreements and similar risk sharing arrangements are
not prohibited.
(9)
Health plans must disclose to prospective and current enrollees the existence
of
financial arrangements for
capitated or other risk sharing arrangements that exist with providers
in a manner described in paragraphs
(i), (ii), and (iii):
(i)
"This health plan utilizes capitated arrangements, with its participating
providers, or
contains other similar risk sharing
arrangements;
(ii)
This health plan may include a capitated reimbursement arrangement or other
similar
risk sharing arrangement, and other
financial arrangements with your provider;
(iii) This health plan is not capitated and does not contain other risk sharing
arrangements."
(10)
Written disclosure of criteria for accessing emergency health care services as
well
as a statement of the plan's
policies regarding payment for examinations to determine if
emergency health care services are
necessary, the emergency care itself, and the necessary
services following emergency
treatment or stabilization. The health plan must respond to the
request of the treating provider
for post-stabilization treatment by approving or denying it as soon
as possible.
(11)
Explanation of how health plan limitations impact enrollees, including
information
on enrollee financial
responsibility for payment for co-insurance, co-payment, or other non-
covered, out-of-pocket, or
out-of-plan services. This shall include information on deductibles and
benefits limitations including, but
not limited to, annual limits and maximum lifetime benefits.
(12)
The terms under which the health plan may be renewed by the plan enrollee,
including any reservation by the
plan of any right to increase premiums.
(13)
Summary of criteria used to authorize treatment.
(14)
A schedule of revenues and expenses, including direct service ratios and other
statistical information which meets
the requirements set forth below on a form prescribed by the
director.
(15)
Plan costs of health care services, including but not limited to all of the
following:
(i)
Physician services;
(ii)
Hospital services, including both inpatients and outpatient services;
(iii)
Other professional services;
(iv)
Pharmacy services, excluding pharmaceutical products dispensed in a physician's
office;
(v)
Health education;
(vi)
Substance abuse services and mental health services.
(16)
Plan complaint, adverse decision, and prior authorization statistics. This
statistical
data shall be updated annually:
(i)
The ratio of the number of complaints received to the total number of covered
persons, reported by category,
listed in paragraphs (b)(15)(i) -- (vi);
(ii)
The ratio of the number of adverse decisions issued to the number of complaints
received, reported by category;
(iii) The ratio of the number of prior authorizations denied to the number of
prior
authorizations requested, reported
by category;
(iv)
The ratio of the number of successful enrollee appeals to the total number of
appeals
filed.
(17)
Plans must demonstrate that:
(i)
They have reasonable access to providers, so that all covered health care
services will
be provided. This requirement
cannot be waived and must be met in all areas where the health
plan has enrollees;
(ii)
Urgent health care services, if covered, shall be available within a time frame
that
meets standards set by the
director.
(18)
A comprehensive list of participating providers listed by office location,
specialty if
applicable, and other information
as determined by the director, updated annually.
(19)
Plans must provide to the director, at intervals determined by the director,
enrollee
satisfaction measures. The director
is authorized to specify reasonable requirements for these
measures consistent with industry
standards to assure an acceptable degree of statistical validity
and comparability of satisfaction measures
over time and among plans. The director shall publish
periodic reports for the public
providing information on health plan enrollee satisfaction.
(c)
Issuance of certification.
(1)
Upon receipt of an application for certification, the director shall notify and
afford
the public an opportunity to
comment upon the application.
(2)
A health care plan will meet the requirements of certification, subsection (b)
by
providing information required in
subsection (b) to any state or federal agency in conformance
with any other applicable state or
federal law, or in conformity with standards adopted by an
accrediting organization provided
that the director determines that the information is substantially
similar to the previously mentioned
requirements and is presented in a format that provides a
meaningful comparison between
health plans.
(3)
All health plans shall be required to establish a mechanism, under which
providers,
including local providers
participating in the plan, provide input into the plan's health care policy,
including technology, medications
and procedures, utilization review criteria and procedures,
quality and credentialing criteria,
and medical management procedures.
(4)
All health plans shall be required to establish a mechanism under which local
individual subscribers to the plan
provide input into the plan's procedures and processes regarding
the delivery of health care
services.
(5)
A health plan shall not refuse to contract with or compensate for covered
services an
otherwise eligible provider or
non-participating provider solely because that provider has in good
faith communicated with one or more
of his or her patients regarding the provisions, terms or
requirements of the insurer's products
as they relate to the needs of that provider's patients.
(6)
(i) All health plans shall be required to publicly notify providers within the
health
plans' geographic service area of
the opportunity to apply for credentials. This notification
process shall be required only when
the plan contemplates adding additional providers and may
be specific as to geographic area
and provider specialty. Any provider not selected by the health
plan may be placed on a waiting
list.
(ii)
This credentialing process shall begin upon acceptance of an application from a
provider to the plan for inclusion.
(iii) Each application shall be reviewed by the plan's credentialing body.
(iv)
All health plans shall develop and maintain credentialing criteria to be
utilized in
adding providers from the plans'
network. Credentialing criteria shall be based on input from
providers credentialed in the plan
and these standards shall be available to applicants. When
economic considerations are part of
the decisions, the criteria must be available to applicants.
Any economic profiling must factor
the specialty utilization and practice patterns and general
information comparing the applicant
to his or her peers in the same speciality will be made
available. Any economic profiling
of providers must be adjusted to recognize case mix, severity
of illness, age of patients and
other features of a provider's practice that may account for higher
than or lower than expected costs.
Profiles must be made available to those so profiled.
(7)
A health plan shall not exclude a provider of covered services from
participation in
its provider network based solely
on:
(i)
The provider's degree or license as applicable under state law; or
(ii)
The provider of covered services lack of affiliation with, or admitting
privileges at a
hospital, if that lack of
affiliation is due solely to the provider's type of license.
(8)
Health plans shall not discriminate against providers solely because the
provider
treats a substantial number of
patients who require expensive or uncompensated medical care.
(9)
The applicant shall be provided with all reasons used if the application is
denied.
(10)
Plans shall not be allowed to include clauses in physician or other provider
contracts
that allow for the plan to
terminate the contract "without cause"; provided, however, cause
shall
include lack of need due to
economic considerations.
(11)
(i) There shall be due process for non-institutional providers for all adverse
decisions resulting in a change of
privileges of a credentialed non-institutional provider. The
details of the health plan's due
process shall be included in the plan's provider contracts.
(ii)
A health plan is deemed to have met the adequate notice and hearing requirement
of
this section with respect to a
non-institutional provider if the following conditions are met (or are
waived voluntarily by the
non-institutional provider):
(A)
The provider shall be notified of the proposed actions and the reasons for the
proposed action.
(B)
The provider shall be given the opportunity to contest the proposed action.
(C) The
health plan has developed an internal appeals process that has reasonable time
limits for the resolution of an
internal appeal.
(12)
If the plan places a provider or provider group at financial risk for services
not
provided by the provider or provider
group, the plan must require that a provider or group has met
all appropriate standards of the
department of business regulation.
(13)
A health plan shall not include a most favored rate clause in a provider
contract.
SECTION
2. This act shall take effect January 1, 2004.
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LC02088/SUB A
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