Senate Bill 1584

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



    Florida Senate - 1998                                  SB 1584

    By Senator Campbell





    33-337-98

  1                      A bill to be entitled

  2         An act relating to medicaid health maintenance

  3         organizations; creating s. 409.91221, F.S.;

  4         prescribing time for paying claims for services

  5         or goods by a provider; providing procedures

  6         for denying or contesting a claim; providing

  7         time limitations; providing notice; providing

  8         method for making payments, denying or

  9         contesting a claim, providing notice; providing

10         interest on overdue payment of claim; providing

11         for a waiver of a medicaid health maintenance

12         organization's rights under a provider contract

13         and consequences for failure of an organization

14         to comply with the provisions of the act;

15         providing an effective date.

16

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

18

19         Section 1.  Section 409.91221, Florida Statutes, is

20  created to read:

21         409.91221  Provider contracts; payment of claims.--

22         (1)(a)  A medicaid health maintenance organization

23  shall pay any claim or any portion of a claim made by a

24  contract provider for services or goods provided under a

25  contract with the health maintenance organization which the

26  organization does not contest or deny within 35 days after the

27  provider mails or electronically transfers the claim to the

28  medicaid health maintenance organization.

29         (b)  A medicaid health maintenance organization that

30  denies or contests a provider claim shall notify the contract

31  provider, in writing, within 35 days after the claim was

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






    Florida Senate - 1998                                  SB 1584
    33-337-98




  1  mailed or electronically transferred that the claim is

  2  contested or denied. The notice that the claim is denied or

  3  contested must identify the contested portion of the claim and

  4  the specific reason for contesting or denying the claim, and

  5  may include a request for additional information. If the

  6  medicaid health maintenance organization requests additional

  7  information, the provider shall, within 35 days after receipt

  8  of such request, mail or electronically transfer the

  9  information to the medicaid health maintenance organization.

10  The medicaid health maintenance organization shall pay or deny

11  the claim or portion of the claim within 45 days after the

12  information was mailed or electronically transferred.

13         (2)  Payment of a claim is considered made on the date

14  the payment was mailed or electronically transferred or

15  otherwise delivered. An overdue payment of a claim bears

16  simple interest at the rate of 10 percent per year.

17         (3)  A medicaid health maintenance organization that

18  violates this section is considered to have waived its rights

19  under the contract and shall pay the entire amount of the

20  claim presented by the provider.

21         Section 2.  This act shall take effect July 1, 1998.

22

23            *****************************************

24                          SENATE SUMMARY

25    Prescribes time for a medicaid health maintenance
      organization to pay claims for services or goods by a
26    health care provider. Provides procedures for denying or
      contesting a claim. Provides time limitations. Provides
27    notice. Provides method for making payments, denying or
      contesting a claim, and providing notice. Provides 10
28    percent per year interest on overdue payment of claim.
      Provides for a waiver of a medicaid health maintenance
29    organization's rights under a provider contract and
      consequences for failure of an organization to comply
30    with the provisions of the act.

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