Senate Bill sb2482

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    Florida Senate - 2004                                  SB 2482

    By Senator Alexander





    17-1760-04

  1                      A bill to be entitled

  2         An act relating to motor vehicle personal

  3         injury protection insurance benefits; amending

  4         s. 627.736, F.S.; deleting the period of time

  5         relating to adjustments in the Medical Care

  6         Item of the Consumer Price Index which applies

  7         to allowable amounts that may be charged to a

  8         personal injury protection insurance insurer

  9         and insured for magnetic resonance imaging

10         services; providing an effective date.

11  

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

13  

14         Section 1.  Paragraph (b) of subsection (5) of section

15  627.736, Florida Statutes, is amended to read:

16         627.736  Required personal injury protection benefits;

17  exclusions; priority; claims.--

18         (5)  CHARGES FOR TREATMENT OF INJURED PERSONS.--

19         (b)1.  An insurer or insured is not required to pay a

20  claim or charges:

21         a.  Made by a broker or by a person making a claim on

22  behalf of a broker;

23         b.  For any service or treatment that was not lawful at

24  the time rendered;

25         c.  To any person who knowingly submits a false or

26  misleading statement relating to the claim or charges;

27         d.  With respect to a bill or statement that does not

28  substantially meet the applicable requirements of paragraph

29  (d);

30         e.  For any treatment or service that is upcoded, or

31  that is unbundled when such treatment or services should be

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    Florida Senate - 2004                                  SB 2482
    17-1760-04




 1  bundled, in accordance with paragraph (d). To facilitate

 2  prompt payment of lawful services, an insurer may change codes

 3  that it determines to have been improperly or incorrectly

 4  upcoded or unbundled, and may make payment based on the

 5  changed codes, without affecting the right of the provider to

 6  dispute the change by the insurer, provided that before doing

 7  so, the insurer must contact the health care provider and

 8  discuss the reasons for the insurer's change and the health

 9  care provider's reason for the coding, or make a reasonable

10  good faith effort to do so, as documented in the insurer's

11  file; and

12         f.  For medical services or treatment billed by a

13  physician and not provided in a hospital unless such services

14  are rendered by the physician or are incident to his or her

15  professional services and are included on the physician's

16  bill, including documentation verifying that the physician is

17  responsible for the medical services that were rendered and

18  billed.

19         2.  Charges for medically necessary cephalic

20  thermograms, peripheral thermograms, spinal ultrasounds,

21  extremity ultrasounds, video fluoroscopy, and surface

22  electromyography shall not exceed the maximum reimbursement

23  allowance for such procedures as set forth in the applicable

24  fee schedule or other payment methodology established pursuant

25  to s. 440.13.

26         3.  Allowable amounts that may be charged to a personal

27  injury protection insurance insurer and insured for medically

28  necessary nerve conduction testing when done in conjunction

29  with a needle electromyography procedure and both are

30  performed and billed solely by a physician licensed under

31  chapter 458, chapter 459, chapter 460, or chapter 461 who is

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    Florida Senate - 2004                                  SB 2482
    17-1760-04




 1  also certified by the American Board of Electrodiagnostic

 2  Medicine or by a board recognized by the American Board of

 3  Medical Specialties or the American Osteopathic Association or

 4  who holds diplomate status with the American Chiropractic

 5  Neurology Board or its predecessors shall not exceed 200

 6  percent of the allowable amount under the participating

 7  physician fee schedule of Medicare Part B for year 2001, for

 8  the area in which the treatment was rendered, adjusted

 9  annually on August 1 to reflect the prior calendar year's

10  changes in the annual Medical Care Item of the Consumer Price

11  Index for All Urban Consumers in the South Region as

12  determined by the Bureau of Labor Statistics of the United

13  States Department of Labor.

14         4.  Allowable amounts that may be charged to a personal

15  injury protection insurance insurer and insured for medically

16  necessary nerve conduction testing that does not meet the

17  requirements of subparagraph 3. shall not exceed the

18  applicable fee schedule or other payment methodology

19  established pursuant to s. 440.13.

20         5.  Effective upon this act becoming a law and before

21  November 1, 2001, allowable amounts that may be charged to a

22  personal injury protection insurance insurer and insured for

23  magnetic resonance imaging services shall not exceed 200

24  percent of the allowable amount under Medicare Part B for year

25  2001, for the area in which the treatment was rendered.

26  Beginning November 1, 2001, allowable amounts that may be

27  charged to a personal injury protection insurance insurer and

28  insured for magnetic resonance imaging services shall not

29  exceed 175 percent of the allowable amount under the

30  participating physician fee schedule of Medicare Part B for

31  year 2001, for the area in which the treatment was rendered,

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    Florida Senate - 2004                                  SB 2482
    17-1760-04




 1  adjusted annually on August 1 to reflect the prior calendar

 2  year's changes in the annual Medical Care Item of the Consumer

 3  Price Index for All Urban Consumers in the South Region as

 4  determined by the Bureau of Labor Statistics of the United

 5  States Department of Labor for the 12-month period ending June

 6  30 of that year, except that allowable amounts that may be

 7  charged to a personal injury protection insurance insurer and

 8  insured for magnetic resonance imaging services provided in

 9  facilities accredited by the Accreditation Association for

10  Ambulatory Health Care, the American College of Radiology, or

11  the Joint Commission on Accreditation of Healthcare

12  Organizations shall not exceed 200 percent of the allowable

13  amount under the participating physician fee schedule of

14  Medicare Part B for year 2001, for the area in which the

15  treatment was rendered, adjusted annually on August 1 to

16  reflect the prior calendar year's changes in the annual

17  Medical Care Item of the Consumer Price Index for All Urban

18  Consumers in the South Region as determined by the Bureau of

19  Labor Statistics of the United States Department of Labor for

20  the 12-month period ending June 30 of that year. This

21  paragraph does not apply to charges for magnetic resonance

22  imaging services and nerve conduction testing for inpatients

23  and emergency services and care as defined in chapter 395

24  rendered by facilities licensed under chapter 395.

25         6.  The Department of Health, in consultation with the

26  appropriate professional licensing boards, shall adopt, by

27  rule, a list of diagnostic tests deemed not to be medically

28  necessary for use in the treatment of persons sustaining

29  bodily injury covered by personal injury protection benefits

30  under this section. The initial list shall be adopted by

31  January 1, 2004, and shall be revised from time to time as

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    Florida Senate - 2004                                  SB 2482
    17-1760-04




 1  determined by the Department of Health, in consultation with

 2  the respective professional licensing boards. Inclusion of a

 3  test on the list of invalid diagnostic tests shall be based on

 4  lack of demonstrated medical value and a level of general

 5  acceptance by the relevant provider community and shall not be

 6  dependent for results entirely upon subjective patient

 7  response. Notwithstanding its inclusion on a fee schedule in

 8  this subsection, an insurer or insured is not required to pay

 9  any charges or reimburse claims for any invalid diagnostic

10  test as determined by the Department of Health.

11         Section 2.  This act shall take effect July 1, 2004.

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14                          SENATE SUMMARY

15    Revises the method of calculating changes in the Consumer
      Price Index for purposes of determining the allowable
16    amount payable for magnetic resonance imaging services
      under personal injury protection coverage.
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