Senate Bill 0232c1

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    Florida Senate - 1999                            CS for SB 232

    By the Committee on Banking and Insurance; and Senators
    Latvala, Campbell, Gutman, Silver, Meek and Mitchell




    311-1797-99

  1                      A bill to be entitled

  2         An act relating to health care; amending s.

  3         641.3903, F.S.; providing that certain actions

  4         by a health maintenance organization against a

  5         provider based on the provider's communication

  6         of certain information to a patient are unfair

  7         or deceptive practices; amending s. 641.315,

  8         F.S.; requiring certain written notice in order

  9         to terminate certain provider contracts;

10         providing limitations on the use of such

11         notice; amending s. 641.51, F.S.; providing for

12         continued care of subscribers when certain

13         provider contracts are terminated; providing

14         for applicability of the act; providing an

15         effective date.

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17  Be It Enacted by the Legislature of the State of Florida:

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19         Section 1.  Subsection (14) is added to section

20  641.3903, Florida Statutes, to read:

21         641.3903  Unfair methods of competition and unfair or

22  deceptive acts or practices defined.--The following are

23  defined as unfair methods of competition and unfair or

24  deceptive acts or practices:

25         (14)  ADVERSE ACTION AGAINST A PROVIDER.--Any

26  retaliatory action by a health maintenance organization

27  against a contracted provider, including, but not limited to,

28  termination of a contract with the provider, on the basis that

29  the provider communicated information to the provider's

30  patient regarding medical care or treatment options for the

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    Florida Senate - 1999                            CS for SB 232
    311-1797-99




  1  patient when the provider deems knowledge of such information

  2  by the patient to be in the best interest of the patient.

  3         Section 2.  Subsection (9) is added to section 641.315,

  4  Florida Statutes, to read:

  5         641.315  Provider contracts.--

  6         (9)  A health maintenance organization or health care

  7  provider may not terminate a contract with a health care

  8  provider or health maintenance organization unless the party

  9  terminating the contract provides the terminated party with a

10  written reason for the contract termination, which may include

11  termination for business reasons of the terminating party. The

12  reason provided in the notice required in this section or any

13  other information relating to the reason for termination does

14  not create any new administrative or civil action and may not

15  be used as substantive evidence in any such action, but may be

16  used for impeachment purposes. As used in this subsection, the

17  term "health care provider" means any physicians licensed

18  under ch. 458, ch. 459, ch. 460, ch. 461, or ch. 466.

19         Section 3.  Subsection (7) of section 641.51, Florida

20  Statutes, is amended to read:

21         641.51  Quality assurance program; second medical

22  opinion requirement.--

23         (7)  When a contract between an organization and a

24  treating provider is terminated for any reason other than for

25  cause, each party Each organization shall allow subscribers

26  for whom treatment was active to continue coverage and care

27  when medically necessary, through completion of treatment of a

28  condition for which the subscriber was receiving care at the

29  time of the termination, until the subscriber selects another

30  treating provider, or during the next open enrollment period

31  offered by the organization, whichever is longer, but not

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    Florida Senate - 1999                            CS for SB 232
    311-1797-99




  1  longer than 6 months after termination of the contract. for 60

  2  days with a terminated treating provider when medically

  3  necessary, provided the subscriber has a life-threatening

  4  condition or a disabling and degenerative condition.  Each

  5  party to the terminated contract organization shall allow a

  6  subscriber who has initiated a course of prenatal care,

  7  regardless of is in the third trimester in which care was

  8  initiated, of pregnancy to continue care and coverage with a

  9  terminated treating provider until completion of postpartum

10  care.  This does not prevent a provider from refusing to

11  continue to provide care to a subscriber who is abusive,

12  noncompliant, or in arrears in payments for services provided.

13  For care continued under this subsection, the organization and

14  the provider shall continue to be bound by the terms of the

15  terminated contract for such continued care. This subsection

16  shall not apply to treating providers who have been terminated

17  by the organization for cause. Changes made within 30 days

18  after termination of a contract are effective only if agreed

19  to by both parties.

20         Section 4.  This act shall take effect upon becoming a

21  law and shall apply only to contracts entered into after the

22  effective date.

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    Florida Senate - 1999                            CS for SB 232
    311-1797-99




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                         Senate Bill 232

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  4  Deletes provisions that would have required managed care
    organizations to provide an opportunity for a hearing to a
  5  health care provider prior to termination of the health care
    provider's contract.
  6
    Amends s. 641.315, F.S., to prohibit a health maintenance
  7  organization (HMO) or health care provider from terminating a
    contract with a health care provider or HMO without providing
  8  the terminated party with a written reason for the contract
    termination. Such notice may not be used as substantive
  9  evidence in a subsequent action relating to the termination.

10  Amends s. 641.51, F.S., to require that HMOs and treating
    health care providers continue care for subscribers when a
11  contract between a HMO and a treating provider is terminated
    by either party for any reason other than for cause, for a
12  certain time period, and subject to certain exceptions.

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