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

House Bill 1843

Florida House of Representatives - 1997 HB 1843 By Representative Effman 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 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 1843 579-108-97 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, 1997. 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. 31 2