CODING: Words stricken are deletions; words underlined are additions.


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Senator Brown-Waite moved the following amendment:



                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    

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11  Senator Brown-Waite moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  Section 408.7056, Florida Statutes, is

18  amended to read:

19         408.7056  Statewide Provider and Subscriber Assistance

20  Program.--

21         (1)  As used in this section, the term:

22         (a)  "Managed care entity" means a health maintenance

23  organization or a prepaid health clinic certified under

24  chapter 641, a prepaid health plan authorized under s.

25  409.912, or an exclusive provider organization certified under

26  s. 627.6472.

27         (b)  "Panel" means a statewide provider and subscriber

28  assistance panel selected as provided in subsection (11).

29         (2)(1)  The agency for Health Care Administration shall

30  adopt and implement a program to provide assistance to

31  subscribers and providers, including those whose grievances

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1  are not resolved by the managed care entity accountable health

 2  partnership, health maintenance organization, prepaid health

 3  clinic, prepaid health plan authorized pursuant to s. 409.912,

 4  or exclusive provider organization to the satisfaction of the

 5  subscriber or provider. The program shall consist of one or

 6  more panels that meet as often as necessary to timely review,

 7  consider, and hear grievances and recommend to the agency or

 8  the department any actions that should be taken concerning

 9  individual cases heard by the panel. The panel shall hear

10  every grievance filed by subscribers and providers on behalf

11  of subscribers, unless the grievance not consider grievances

12  which:

13         (a)  Relates to a managed care entity's Relate to an

14  accountable health partnership's, health maintenance

15  organization's, prepaid health clinic's, prepaid health

16  plan's, or exclusive provider organization's refusal to accept

17  a provider into its network of providers;

18         (b)  Is Are a part of a reconsideration appeal through

19  the Medicare appeals process which does not involve a quality

20  of care issue;

21         (c)  Is Are related to a health plan not regulated by

22  the state such as an administrative services organization,

23  third-party administrator, or federal employee health benefit

24  program;

25         (d)  Is Are related to appeals by in-plan suppliers and

26  providers, unless related to quality of care provided by the

27  plan; or

28         (e)  Is Are part of a Medicaid fair hearing pursued

29  under pursuant to 42 C.F.R. ss. 431.220 et seq.

30         (f)  Is the basis for an action pending in state or

31  federal court;

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1         (g)  Is related to an appeal by nonparticipating

 2  providers, unless related to the quality of care provided to a

 3  subscriber by the managed care entity and the provider is

 4  involved in the care provided to the subscriber;

 5         (h)  Was filed before the subscriber or provider

 6  completed the entire internal grievance procedure of the

 7  managed care entity, the managed care entity has complied with

 8  its timeframes for completing the internal grievance

 9  procedure, and the circumstances described in subsection (6)

10  do not apply;

11         (i)  Has been resolved to the satisfaction of the

12  subscriber or provider who filed the grievance, unless the

13  managed care entity's initial action is egregious or may be

14  indicative of a pattern of inappropriate behavior;

15         (j)  Is limited to seeking damages for pain and

16  suffering, lost wages, or other incidental expenses;

17         (k)  Is limited to issues involving conduct of a health

18  care provider or facility, staff member, or employee of a

19  managed care entity which constitute grounds for disciplinary

20  action by the appropriate professional licensing board and is

21  not indicative of a pattern of inappropriate behavior, and the

22  agency or department has reported these grievances to the

23  appropriate professional licensing board or to the health

24  facility regulation section of the agency for possible

25  investigation; or

26         (l)  Is withdrawn by the subscriber or provider.

27  Failure of the subscriber or the provider to attend the

28  hearing shall be considered a withdrawal of the grievance.

29         (3)  The agency shall review all grievances within 60

30  days after receipt and make a determination whether the

31  grievance shall be heard.  Once the agency notifies the panel,

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1  the subscriber or provider, and the managed care entity that a

 2  grievance will be heard by the panel, the panel shall hear the

 3  grievance either in the network area or by teleconference no

 4  later than 120 days after the date the grievance was filed.

 5  The agency shall notify the parties, in writing, by facsimile

 6  transmission, or by phone, of the time and place of the

 7  hearing. The panel may take testimony under oath, request

 8  certified copies of documents, and take similar actions to

 9  collect information and documentation that will assist the

10  panel in making findings of fact and a recommendation. The

11  panel shall issue a written recommendation, supported by

12  findings of fact, to the provider or subscriber, to the

13  managed care entity, and to the agency or the department no

14  later than 15 working days after hearing the grievance.  If at

15  the hearing the panel requests additional documentation or

16  additional records, the time for issuing a recommendation is

17  tolled until the information or documentation requested has

18  been provided to the panel.  The proceedings of the panel are

19  not subject to chapter 120.

20         (4)  If, upon receiving a proper patient authorization

21  along with a properly filed grievance, the agency requests

22  medical records from a health care provider or managed care

23  entity, the health care provider or managed care entity that

24  has custody of the records has 10 days to provide the records

25  to the agency.  Failure to provide requested medical records

26  may result in the imposition of a fine of up to $500.  Each

27  day that records are not produced is considered a separate

28  violation.

29         (5)  Grievances that the agency determines pose an

30  immediate and serious threat to a subscriber's health must be

31  given priority over other grievances.  The panel may meet at

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1  the call of the chair to hear the grievances as quickly as

 2  possible but no later than 45 days after the date the

 3  grievance is filed, unless the panel receives a waiver of the

 4  time requirement from the subscriber.  The panel shall issue a

 5  written recommendation, supported by findings of fact, to the

 6  department or the agency within 10 days after hearing the

 7  expedited grievance.

 8         (6)  When the agency determines that the life of a

 9  subscriber is in imminent and emergent jeopardy, the chair of

10  the panel may convene an emergency hearing, within 24 hours

11  after notification to the managed care entity and to the

12  subscriber, to hear the grievance.  The grievance must be

13  heard notwithstanding that the subscriber has not completed

14  the internal grievance procedure of the managed care entity.

15  The panel shall, upon hearing the grievance, issue a written

16  emergency recommendation, supported by findings of fact, to

17  the managed care entity, to the subscriber, and to the agency

18  or the department for the purpose of deferring the imminent

19  and emergent jeopardy to the subscriber's life.  Within 24

20  hours after receipt of the panel's emergency recommendation,

21  the agency or department may issue an emergency order to the

22  managed care entity. An emergency order remains in force

23  until:

24         (a)  The grievance has been resolved by the managed

25  care entity;

26         (b)  Medical intervention is no longer necessary; or

27         (c)  The panel has conducted a full hearing under

28  subsection (3) and issued a recommendation to the agency or

29  the department, and the agency or department has issued a

30  final order.

31         (7)  After hearing a grievance, the panel shall make a

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1  recommendation to the agency or the department which may

 2  include specific actions the managed care entity must take to

 3  comply with state laws or rules regulating managed care

 4  entities.

 5         (8)  A managed care entity, subscriber, or provider

 6  that is affected by a panel recommendation may within 10 days

 7  after receipt of the panel's recommendation, or 72 hours after

 8  receipt of a recommendation in an expedited grievance, furnish

 9  to the agency or department written evidence in opposition to

10  the recommendation or findings of fact of the panel.

11         (9)  No later than 30 days after the issuance of the

12  panel's recommendation and, for an expedited grievance, no

13  later than 10 days after the issuance of the panel's

14  recommendation, the agency or the department may adopt the

15  panel's recommendation or findings of fact in a proposed order

16  or an emergency order, as provided in chapter 120, which it

17  shall issue to the managed care entity.  The agency or

18  department may issue a proposed order or an emergency order,

19  as provided in chapter 120, imposing fines or sanctions,

20  including those contained in ss. 641.25 and 641.52.  The

21  agency or the department may reject all or part of the panel's

22  recommendation. All fines collected under this subsection must

23  be deposited into the Health Care Trust Fund.

24         (10)  In determining any fine or sanction to be

25  imposed, the agency and the department may consider the

26  following factors:

27         (a)  The severity of the noncompliance, including the

28  probability that death or serious harm to the health or safety

29  of the subscriber will result or has resulted, the severity of

30  the actual or potential harm, and the extent to which

31  provisions of chapter 641 were violated.

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1         (b)  Actions taken by the managed care entity to

 2  resolve or remedy any quality-of-care grievance.

 3         (c)  Any previous incidents of noncompliance by the

 4  managed care entity.

 5         (d)  Any other relevant factors the agency or

 6  department considers appropriate in a particular grievance.

 7         (2)  The program shall include the following:

 8         (a)  A review panel which may periodically review,

 9  consider, and recommend to the agency any actions the agency

10  or the Department of Insurance should take concerning

11  individual cases heard by the panel, as well as the types of

12  grievances which have not been satisfactorily resolved after

13  subscribers or providers have followed the full grievance

14  procedures of the accountable health partnership, health

15  maintenance organization, prepaid health clinic, prepaid

16  health plan, or exclusive provider organization.  The

17  proceedings of the grievance panel shall not be subject to the

18  provisions of chapter 120.

19         (11)  The review panel shall consist of members

20  employed by the agency and members employed by the department

21  of Insurance, chosen by their respective agencies. The agency

22  may contract with a medical director and a primary care

23  physician who shall provide additional technical expertise to

24  the review panel.  The medical director shall be selected from

25  a health maintenance organization with a current certificate

26  of authority to operate in Florida.

27         (b)  A plan to disseminate information concerning the

28  program to the general public as widely as possible.

29         (12)(3)  Every managed care entity accountable health

30  partnership, health maintenance organization, prepaid health

31  clinic, prepaid health plan authorized pursuant to s. 409.912,

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1  or exclusive provider organization shall submit a quarterly

 2  report to the agency and the department of Insurance listing

 3  the number and the nature of all subscribers' and providers'

 4  grievances which have not been resolved to the satisfaction of

 5  the subscriber or provider after the subscriber or provider

 6  follows the entire internal full grievance procedure of the

 7  managed care entity organization.  The agency shall notify all

 8  subscribers and providers included in the quarterly reports of

 9  their right to file an unresolved grievance with the panel.

10         (4)(a)  The Agency for Health Care Administration may

11  impose an administrative fine, after a formal investigation

12  has been conducted on the accountable health partnership's,

13  health maintenance organization's, prepaid health clinic's,

14  prepaid health plan's, or exclusive provider organization's

15  failure to comply with quality of health services standards

16  set forth in statute or rule. The Agency for Health Care

17  Administration may initiate such an investigation based on the

18  recommendations related to the quality of health services

19  received from the Statewide Provider and Subscriber Assistance

20  Panel pursuant to paragraph (2)(a).  The fine shall not exceed

21  $2,500 per violation and in no event shall such fine exceed an

22  aggregate amount of $10,000 for noncompliance arising out of

23  the same action.

24         (b)  In determining the amount to be levied for

25  noncompliance under paragraph (a), the following factors shall

26  be considered:

27         1.  The severity of the noncompliance, including the

28  probability that death or serious harm to the health or safety

29  of the subscriber will result or has resulted, the severity of

30  actual or potential harm and the extent to which provisions of

31  this part were violated.

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1         2.  Actions taken by the accountable health

 2  partnership, health maintenance organization, prepaid health

 3  clinic, prepaid health plan, or exclusive provider

 4  organization to resolve or remedy any quality of care

 5  grievance.

 6         3.  Any previous incidences of noncompliance by the

 7  accountable health partnership, health maintenance

 8  organization, prepaid health clinic, prepaid health plan, or

 9  exclusive provider organization.

10         (c)  All amounts collected pursuant to this subsection

11  shall be deposited into the Health Care Trust Fund.

12         (13)(5)  Any information which would identify a

13  subscriber or the spouse, relative, or guardian of a

14  subscriber and which is contained in a report obtained by the

15  Department of Insurance pursuant to this section is

16  confidential and exempt from the provisions of s. 119.07(1)

17  and s. 24(a), Art. I of the State Constitution.

18         (14)  A proposed order issued by the agency or

19  department which only requires the managed care entity to take

20  a specific action under subsection (7), is subject to a

21  summary hearing in accordance with s. 120.574, unless all of

22  the parties agree otherwise. If the managed care entity does

23  not prevail at the hearing, the managed care entity must pay

24  reasonable costs and attorney's fees of the agency or the

25  department incurred in that proceeding.

26         Section 2.  Subsection (7) of section 641.511, Florida

27  Statutes, is amended to read:

28         641.511  Subscriber grievance reporting and resolution

29  requirements.--

30         (7)  Each organization shall send to the agency a copy

31  of its annual and quarterly grievance reports submitted to the

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1  Department of Insurance pursuant to s. 408.7056(12)(2).

 2         Section 3.  There is appropriated to the Agency for

 3  Health Care Administration for fiscal year 1998-1999 a total

 4  of 6 full-time-equivalent positions and $308,830 from the

 5  Health Care Trust Fund for 9 months' funding for the purpose

 6  of implementing this act.

 7         Section 4.  This act shall take effect December 1,

 8  1998.

 9

10

11  ================ T I T L E   A M E N D M E N T ===============

12  And the title is amended as follows:

13         Delete everything before the enacting clause

14

15  and insert:

16                      A bill to be entitled

17         An act relating to the Statewide Provider and

18         Subscriber Assistance Program; amending s.

19         408.7056, F.S.; providing definitions; revising

20         criteria and procedures for review of

21         grievances against a managed care entity by the

22         statewide provider and subscriber assistance

23         panel; providing for initial review by the

24         Agency for Health Care Administration;

25         providing time requirements for panel hearings

26         and recommendations, and final orders of the

27         agency or the Department of Insurance;

28         providing for notice; providing requirements

29         for expedited or emergency hearings; providing

30         an exemption from the Administrative Procedures

31         Act; providing for requests for patient

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1005, 1st Eng.

    Amendment No.    





 1         records; authorizing an administrative fine for

 2         failure to timely provide records; providing

 3         for furnishing of evidence in opposition to

 4         panel recommendations; providing for adoption

 5         of panel recommendations in final orders of the

 6         agency or department; authorizing imposition of

 7         fines and sanctions; requiring certain notice

 8         to subscribers and providers of their right to

 9         file grievances; providing for summary

10         hearings; providing for administrative

11         procedures; providing for attorney's fees and

12         costs; amending s. 641.511, F.S.; eliminating

13         annual grievance report filing; correcting a

14         cross-reference; providing an appropriation;

15         providing an effective date.

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