Senate Bill 2554c1

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    Florida Senate - 1999                           CS for SB 2554

    By the Committee on Banking and Insurance; and Senator King





    311-2187-99

  1                      A bill to be entitled

  2         An act relating to  health maintenance

  3         contracts; amending s. 626.883, F.S.; requiring

  4         that certain information be included with the

  5         payments made by a fiscal intermediary to a

  6         health care provider; amending s. 641.31, F.S.,

  7         relating to health maintenance contracts;

  8         requiring a health maintenance organization to

  9         provide notice prior to increasing the

10         copayments or limiting any benefits under a

11         group contract; requiring certain health

12         maintenance contracts to cover persons licensed

13         to practice massage under certain

14         circumstances; amending s. 641.315, F.S.;

15         providing that a contract between a health

16         maintenance organization and a health care

17         provider may not restrict the provider from

18         entering into a contract with any other health

19         maintenance organizations and may not restrict

20         the health maintenance organization from

21         entering into a contract with any other

22         provider; amending s. 641.316, F.S.; requiring

23         that certain information be included with the

24         payments made by a fiscal intermediary to a

25         health care provider; providing for

26         applicability; providing an effective date.

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

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30         Section 1.  Subsection (6) is added to section 626.883,

31  Florida Statutes, to read:

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    Florida Senate - 1999                           CS for SB 2554
    311-2187-99




  1         626.883  Administrator as intermediary; collections

  2  held in fiduciary capacity; establishment of account;

  3  disbursement; payments on behalf of insurer.--

  4         (6)  All payments to a health care provider by a fiscal

  5  intermediary for noncapitated providers must include an

  6  explanation of services being reimbursed which includes, at a

  7  minimum, the patient's name, the date of service, the

  8  procedure code, the amount of reimbursement, and the

  9  identification of the plan on whose behalf the payment is

10  being made. For capitated providers, the statement of services

11  must include the number of patients covered by the contract,

12  the rate per patient, the total amount of the payment, and the

13  identification of the plan on whose behalf the payment is

14  being made.

15         Section 2.  Subsections (36) and (37) are added to

16  section 641.31, Florida Statutes, 1998 Supplement, to read:

17         641.31  Health maintenance contracts.--

18         (36)  A health maintenance organization may increase

19  the copayment for any benefit, or delete, amend, or limit any

20  of the benefits to which a subscriber is entitled under the

21  group contract, upon written notice to the contract holder at

22  least 45 days in advance of the time of coverage renewal. The

23  health maintenance organization may amend the contract with

24  the contract holder, with such amendment to be effective

25  immediately at the time of coverage renewal. The written

26  notice to the contract holder shall specifically identify any

27  deletions, amendments, or limitations to any of the benefits

28  provided in the group contract during the current contract

29  period which will be included in the group contract upon

30  renewal. This subsection does not apply to any increases in

31  benefits.

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    Florida Senate - 1999                           CS for SB 2554
    311-2187-99




  1         (37)  All health maintenance contracts that provide

  2  coverage for massage must also cover the services of persons

  3  licensed to practice massage pursuant to chapter 480 if the

  4  massage is prescribed by a physician licensed under chapter

  5  458, chapter 459, chapter 460, or chapter 461 as medically

  6  necessary and the prescription specifies the number of

  7  treatments. Such massage services are subject to the same

  8  terms, conditions, and limitations as those of other

  9  providers.

10         Section 3.  Subsection (9) is added to section 641.315,

11  Florida Statutes, to read:

12         641.315  Provider contracts.--

13         (9)  A contract between a health maintenance

14  organization and a provider of health care services may not

15  contain any provision that in any way prohibits or restricts:

16         (a)  The health care provider from entering into a

17  contract with any other health maintenance organization; or

18         (b)  The health maintenance organization from entering

19  into a contract with any other health care provider.

20         Section 4.  Paragraph (a) of subsection (2) of section

21  641.316, Florida Statutes, 1998 Supplement, is amended to

22  read:

23         641.316  Fiscal intermediary services.--

24         (2)(a)  The term "fiduciary" or "fiscal intermediary

25  services" means reimbursements received or collected on behalf

26  of health care professionals for services rendered, patient

27  and provider accounting, financial reporting and auditing,

28  receipts and collections management, compensation and

29  reimbursement disbursement services, or other related

30  fiduciary services pursuant to health care professional

31  contracts with health maintenance organizations. All payments

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    Florida Senate - 1999                           CS for SB 2554
    311-2187-99




  1  to a health care provider by a fiscal intermediary for

  2  noncapitated providers must include an explanation of services

  3  being reimbursed which includes, at a minimum, the patient's

  4  name, the date of service, the procedure code, the amount of

  5  reimbursement, and the identification of the plan on whose

  6  behalf the payment is being made. For capitated providers, the

  7  statement of services must include the number of patients

  8  covered by the contract, the rate per patient, the total

  9  amount of the payment, and the identification of the plan on

10  whose behalf the payment is being made.

11         (b)  The term "fiscal intermediary services

12  organization" means a person or entity which performs

13  fiduciary or fiscal intermediary services to health care

14  professionals who contract with health maintenance

15  organizations other than a fiscal intermediary services

16  organization owned, operated, or controlled by a hospital

17  licensed under chapter 395, an insurer licensed under chapter

18  624, a third-party administrator licensed under chapter 626, a

19  prepaid limited health service organization licensed under

20  chapter 636, a health maintenance organization licensed under

21  this chapter, or physician group practices as defined in s.

22  455.654(3)(f).

23         Section 5.  This act shall take effect July 1, 1999,

24  and shall apply to all contracts renewed or entered into on or

25  after that date.

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    Florida Senate - 1999                           CS for SB 2554
    311-2187-99




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                         Senate Bill 2554

  3

  4  1.    Removes the requirement that insurance administrators
          and fiscal intermediaries provide prompt payment to
  5        health care providers and inserts provisions that
          mandate payments by fiscal intermediaries to capitated
  6        and noncapitated health care providers to include
          certain specified information.
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    2.    Removes the provision allowing subscribers to terminate
  8        their health maintenance organization (HMO) contracts
          under certain circumstances. Allows benefits to which a
  9        subscriber is entitled under a group contract, subject
          to written notice to the contract holder at least 45
10        days in advance of the time of coverage renewal. This
          provision does not apply to increases in benefits by the
11        HMO.

12  3.    Provides that HMO contracts providing for massage must
          also cover the services of persons licensed to practice
13        massage under certain circumstances.

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