Senate Bill 2472

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    Florida Senate - 1999                                  SB 2472

    By Senator Clary





    7-1546-99

  1                      A bill to be entitled

  2         An act relating to managed health care;

  3         amending s. 408.7056, F.S.; excluding certain

  4         additional grievances from consideration by a

  5         statewide provider and subscriber assistance

  6         panel; revising the membership of the panel;

  7         providing for the Agency for Health Care

  8         Administration or the Department of Insurance

  9         to adopt the panel's recommendation in a final

10         order rather than in a proposed order;

11         providing that a final order is subject to

12         judicial review; amending s. 641.51, F.S.;

13         requiring that health maintenance organizations

14         provide additional information to the Agency

15         for Health Care Administration indicating

16         quality of care; removing a requirement that

17         organizations conduct customer satisfaction

18         surveys; revising requirements for preventive

19         pediatric health care provided by health

20         maintenance organizations; amending s. 641.58,

21         F.S.; providing for moneys in the Health Care

22         Trust Fund to be used for additional purposes;

23         creating the Health Care Information Council

24         within the Agency for Health Care

25         Administration; providing for the appointment

26         of members to the council; providing terms of

27         office; providing that the council members are

28         entitled for reimbursement for per diem and

29         travel expenses; authorizing the council to

30         employ an executive director and staff members;

31         requiring that the council advise the Governor

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  1         and Legislature on matters of health care

  2         accountability and consumer information;

  3         requiring that the council administer a

  4         member-satisfaction survey of health

  5         maintenance organizations; requiring that the

  6         survey results be made public; providing an

  7         effective date.

  8

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

10

11         Section 1.  Subsections (2), (9), (11), and (14) of

12  section 408.7056, Florida Statutes, 1998 Supplement, are

13  amended to read:

14         408.7056  Statewide Provider and Subscriber Assistance

15  Program.--

16         (2)  The agency shall adopt and implement a program to

17  provide assistance to subscribers and providers, including

18  those whose grievances are not resolved by the managed care

19  entity to the satisfaction of the subscriber or provider. The

20  program shall consist of one or more panels that meet as often

21  as necessary to timely review, consider, and hear grievances

22  and recommend to the agency or the department any actions that

23  should be taken concerning individual cases heard by the

24  panel. The panel shall hear every grievance filed by

25  subscribers and providers on behalf of subscribers, unless the

26  grievance:

27         (a)  Relates to a managed care entity's refusal to

28  accept a provider into its network of providers;

29         (b)  Is part of an internal grievance in a managed care

30  entity or a reconsideration appeal through the Medicare

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    Florida Senate - 1999                                  SB 2472
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  1  appeals process which does not involve a quality of care

  2  issue;

  3         (c)  Is related to a health plan not regulated by the

  4  state such as an administrative services organization,

  5  third-party administrator, or federal employee health benefit

  6  program;

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

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

  9  plan;

10         (e)  Is part of a Medicaid fair hearing pursued under

11  42 C.F.R. ss. 431.220 et seq.;

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

13  federal court;

14         (g)  Is related to an appeal by nonparticipating

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

16  subscriber by the managed care entity and the provider is

17  involved in the care provided to the subscriber;

18         (h)  Was filed before the subscriber or provider

19  completed the entire internal grievance procedure of the

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

21  its timeframes for completing the internal grievance

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

23  do not apply;

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

25  subscriber or provider who filed the grievance, unless the

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

27  indicative of a pattern of inappropriate behavior;

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

29  suffering, lost wages, or other incidental expenses, including

30  accrued interest on unpaid balances, court costs, and

31  transportation costs associated with a grievance procedure;

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

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

  3  managed care entity which constitute grounds for disciplinary

  4  action by the appropriate professional licensing board and is

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

  6  agency or department has reported these grievances to the

  7  appropriate professional licensing board or to the health

  8  facility regulation section of the agency for possible

  9  investigation; or

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

11  Failure of the subscriber or the provider to attend the

12  hearing shall be considered a withdrawal of the grievance.

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

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

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

16  recommendation, the agency or the department may adopt the

17  panel's recommendation or findings of fact in a final proposed

18  order or an emergency order, as provided in chapter 120, which

19  it shall issue to the managed care entity.  The agency or

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

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

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

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

24  recommendation. All fines collected under this subsection must

25  be deposited into the Health Care Trust Fund.

26         (11)  The panel shall consist of members employed by

27  the agency and members employed by the department, chosen by

28  their respective agencies; a consumer; a physician, as a

29  standing member; and physicians who have expertise relevant to

30  the case to be heard, on a rotating basis. The agency may

31  contract with a medical director and a primary care physician

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  1  who shall provide additional technical expertise to the panel.

  2  The medical director shall be selected from a health

  3  maintenance organization with a current certificate of

  4  authority to operate in Florida.

  5         (14)  A final proposed order issued by the agency or

  6  department which only requires the managed care entity to take

  7  a specific action under subsection (7) is subject to judicial

  8  review under s. 120.68 a summary hearing in accordance with s.

  9  120.574, unless all of the parties agree otherwise. If the

10  managed care entity does not prevail at a judicial review the

11  hearing, the managed care entity must pay reasonable costs and

12  attorney's fees of the agency or the department incurred in

13  that proceeding.

14         Section 2.  Subsections (8), (9), and (10) of section

15  641.51, Florida Statutes, are amended to read:

16         641.51  Quality assurance program; second medical

17  opinion requirement.--

18         (8)  Each organization shall release to the agency data

19  that which are indicators of access and quality of care.  The

20  agency shall develop rules specifying data-reporting

21  requirements for these indicators.  The indicators shall

22  include the following characteristics:

23         (a)  They must relate to access and quality of care

24  measures.

25         (b)  They must be consistent with data collected

26  pursuant to accreditation activities and standards.

27         (c)  They must be consistent with frequency

28  requirements under the accreditation process.

29         (d)  They must include measures of the management of

30  chronic diseases.

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  1         (e)  They must include preventative health care for

  2  adults and children.

  3         (f)  They must include measures of prenatal care.

  4         (g)  They must include measures of health checkups for

  5  children.

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  7  The agency shall develop by rule a uniform format for

  8  publication of the data for the public which shall contain

  9  explanations of the data collected and the relevance of such

10  data. The agency shall publish such data no less frequently

11  than every 2 years.

12         (9)  Each organization shall conduct a standardized

13  customer satisfaction survey, as developed by the agency by

14  rule, of its membership at intervals specified by the agency.

15  The survey shall be consistent with surveys required by

16  accrediting organizations and may contain up to 10 additional

17  questions based on concerns specific to Florida.  Survey data

18  shall be submitted to the agency, which shall make comparative

19  findings available to the public.

20         (9)(10)  Each organization shall adopt recommendations

21  for preventive pediatric health care which are consistent with

22  the early periodic screening, diagnosis, and treatment

23  requirements for health checkups for children developed for

24  the Medicaid program.  Each organization shall establish goals

25  to achieve 80-percent compliance by July 1, 1998, and

26  90-percent compliance by July 1, 1999, for their enrolled

27  pediatric population.

28         Section 3.  Subsection (4) of section 641.58, Florida

29  Statutes, is amended to read:

30         641.58  Regulatory assessment; levy and amount; use of

31  funds; tax returns; penalty for failure to pay.--

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    Florida Senate - 1999                                  SB 2472
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  1         (4)  The moneys so received and deposited into the

  2  Health Care Trust Fund shall be used to defray the expenses of

  3  the agency in the discharge of its administrative and

  4  regulatory powers and duties under this part, including

  5  administering the Health Care Information Council; conducting

  6  an annual survey of the satisfaction of members of health

  7  maintenance organizations; contracting with physician

  8  consultants for the Statewide Provider and Subscriber

  9  Assistance Panel; the maintaining of offices and necessary

10  supplies, essential equipment, and other materials, salaries

11  and expenses of required personnel;, and discharging all other

12  legitimate expenses relating to the discharge of the

13  administrative and regulatory powers and duties imposed under

14  this such part.

15         Section 4.  Health Care Information Council.--

16         (1)  There is created a Health Care Information

17  Council. The council shall be located within the Agency for

18  Health Care Administration for administrative purposes, but

19  shall independently exercise the powers and duties specified

20  in this section.

21         (a)  The council shall be composed of 11 members,

22  including the Director of the Agency for Health Care

23  Administration, or his or her designee; the Insurance

24  Commissioner, or his or her designee; three members appointed

25  by the Governor; three members appointed by the President of

26  the Senate; and three members appointed by the Speaker of the

27  House of Representatives. The appointments shall be made in

28  such a manner as to achieve a balance between managed care

29  organizations, health care providers, and consumers.

30         (b)  Members shall be appointed for staggered terms of

31  not more than 2 years. An appointment to fill a vacancy shall

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  1  be for the remainder of the term. The Governor may remove any

  2  member who, without cause, fails to attend two consecutive

  3  meetings.

  4         (c)  The council shall annually select a chairperson

  5  and vice chairperson from among its members. The council shall

  6  meet at least quarterly, but shall also meet at the call of

  7  its chairperson or at the request of a majority of its

  8  members. A majority of the members of the council constitutes

  9  a quorum.

10         (d)  Membership on the council does not disqualify a

11  member from holding any other public office or from being

12  employed by a public entity, except that a member of the

13  Legislature may not serve on the council.

14         (e)  Members of the council shall serve without

15  compensation, but are entitled to reimbursement for per diem

16  and travel expenses as provided in section 112.061, Florida

17  Statutes.

18         (2)  The council shall employ an executive director and

19  necessary staff members, as provided by legislative

20  appropriation. The council may retain consultants as necessary

21  to accomplish its purposes. The executive director and any

22  consultant retained by the council may not be a current or

23  former contract vendor of the Department of Insurance or the

24  Agency for Health Care Administration.

25         (3)  The Health Care Information Council shall act in

26  an advisory capacity to the Governor, the Legislature, the

27  Department of Insurance, and the Agency for Health Care

28  Administration on matters of health care accountability and

29  consumer information. The duties of the council include, but

30  are not limited to:

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  1         (a)  Contracting with an independent contractor to

  2  administer an annual member-satisfaction survey for all health

  3  maintenance organizations, including the Medicare and Medicaid

  4  programs.

  5         (b)  Selecting the instrument and the sampling design

  6  to meet the requirements for member-satisfaction surveys for

  7  accreditation organizations of health maintenance

  8  organizations.

  9         (c)  Producing a report card for health maintenance

10  organizations.

11         (d)  Making comparative survey results available to

12  health maintenance organizations and the public.

13         (4)  In addition to the results of the

14  member-satisfaction survey, the report card for health

15  maintenance organizations must include benefit availability,

16  physician qualifications, payment arrangements, copayment

17  requirements, and the quality indicators provided under

18  section 641.51(8)(d), (e), (f), and (g), Florida Statutes.

19         Section 5.  This act shall take effect upon becoming a

20  law.

21

22            *****************************************

23                          SENATE SUMMARY

24    Revises certain provisions of the grievance procedures
      for subscribers of health maintenance organizations.
25    Provides for the provider and subscriber assistance panel
      to include a consumer, a physician, and physicians who
26    have specific expertise. Requires that the Agency for
      Health Care Administration or the Department of Insurance
27    adopt the panel's recommendation as a final order rather
      than a proposed order. Provides that the final order is
28    subject to judicial review. Provides additional
      requirements for health maintenance organizations in
29    providing pediatric health care. Creates the Health Care
      Information Council to administer member-satisfaction
30    surveys of health maintenance organizations and advise
      the Governor and Legislature on matters of health care
31    accountability and consumer information. (See bill for
      details.)
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