Senate Bill 2554e1

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    CS for SB 2554                                 First Engrossed



  1                      A bill to be entitled

  2         An act relating to insurance contracts;

  3         amending s. 626.022, F.S.; providing an

  4         exception from certain insurance licensing

  5         requirements for certified public accountants

  6         acting within the scope of their profession;

  7         amending s. 626.883, F.S.; requiring that

  8         certain information be included with the

  9         payments made by a fiscal intermediary to a

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

11         relating to health maintenance contracts;

12         requiring a health maintenance organization to

13         provide notice prior to increasing the

14         copayments or limiting any benefits under a

15         group contract; requiring certain health

16         maintenance contracts to cover persons licensed

17         to practice massage under certain

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

19         providing that a contract between a health

20         maintenance organization and a health care

21         provider may not restrict the provider from

22         entering into a contract with any other health

23         maintenance organizations and may not restrict

24         the health maintenance organization from

25         entering into a contract with any other

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

27         that certain information be included with the

28         payments made by a fiscal intermediary to a

29         health care provider; providing for

30         applicability; amending s. 641.315, F.S.;

31         prohibiting a health maintenance organization's


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    CS for SB 2554                                 First Engrossed



  1         contract from preventing a subscriber from

  2         receiving certain services; amending s. 641.31,

  3         F.S.; prohibiting a health maintenance

  4         organization's contract from preventing a

  5         subscriber from receiving certain services;

  6         amending s. 641.3155, F.S.; prohibiting a

  7         health maintenance organization from denying

  8         payment to certain physicians for inpatient

  9         hospital services; providing an effective date.

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

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13         Section 1.  Paragraph (d) is added to subsection (1) of

14  section 626.022, Florida Statutes, 1998 Supplement, to read:

15         626.022  Scope of part.--

16         (1)  This part applies as to insurance agents,

17  solicitors, service representatives, adjusters, and insurance

18  agencies; as to any and all kinds of insurance; and as to

19  stock insurers, mutual insurers, reciprocal insurers, and all

20  other types of insurers, except that:

21         (d)  This part does not apply to a certified public

22  accountant licensed under chapter 473 who is acting within the

23  scope of the practice of public accounting, as defined in s.

24  473.302, provided that the activities of the certified public

25  accountant are limited to advising a client of the necessity

26  of obtaining insurance, the amount of insurance needed, or the

27  line of coverage needed, and provided that the certified

28  public accountant does not directly or indirectly receive or

29  share in any commission, referral fee, or solicitor's fee.

30         Section 2.  Subsection (6) is added to section 626.883,

31  Florida Statutes, to read:


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    CS for SB 2554                                 First Engrossed



  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 3.  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. The 45-day notice requirement shall not apply if


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    CS for SB 2554                                 First Engrossed



  1  benefits are amended, deleted, or limited at the request of

  2  the contract holder.

  3         (37)  All health maintenance contracts that provide

  4  coverage for massage must also cover the services of persons

  5  licensed to practice massage pursuant to chapter 480 if the

  6  massage is prescribed by a contracted physician licensed under

  7  chapter 458, chapter 459, chapter 460, or chapter 461 as

  8  medically necessary and the prescription specifies the number

  9  of treatments. Such massage services are subject to the same

10  terms, conditions, and limitations as those of other covered

11  services.

12         Section 4.  Subsection (9) is added to section 641.315,

13  Florida Statutes, to read:

14         641.315  Provider contracts.--

15         (9)  A contract between a health maintenance

16  organization and a provider of health care services may not

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

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

19  contract with any other health maintenance organization; or

20         (b)  The health maintenance organization from entering

21  into a contract with any other health care provider.

22         Section 5.  Paragraph (a) of subsection (2) of section

23  641.316, Florida Statutes, 1998 Supplement, is amended to

24  read:

25         641.316  Fiscal intermediary services.--

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

27  services" means reimbursements received or collected on behalf

28  of health care professionals for services rendered, patient

29  and provider accounting, financial reporting and auditing,

30  receipts and collections management, compensation and

31  reimbursement disbursement services, or other related


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    CS for SB 2554                                 First Engrossed



  1  fiduciary services pursuant to health care professional

  2  contracts with health maintenance organizations. All payments

  3  to a health care provider by a fiscal intermediary for

  4  noncapitated providers must include an explanation of services

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

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

  7  reimbursement, and the identification of the plan on whose

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

  9  statement of services must include the number of patients

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

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

12  whose behalf the payment is being made.

13         (b)  The term "fiscal intermediary services

14  organization" means a person or entity which performs

15  fiduciary or fiscal intermediary services to health care

16  professionals who contract with health maintenance

17  organizations other than a fiscal intermediary services

18  organization owned, operated, or controlled by a hospital

19  licensed under chapter 395, an insurer licensed under chapter

20  624, a third-party administrator licensed under chapter 626, a

21  prepaid limited health service organization licensed under

22  chapter 636, a health maintenance organization licensed under

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

24  455.654(3)(f).

25         Section 6.  Subsection (9) is added to section 641.315,

26  Florida Statutes, to read:

27         641.315  Provider contracts.--

28         (9)  No health maintenance organization's contract

29  shall prevent a subscriber from continuing to receive services

30  from the subscriber's contracted primary care physician or

31  contracted admitting physician during an inpatient stay.


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    CS for SB 2554                                 First Engrossed



  1         Section 7.  Subsection (38) is added to section 641.31,

  2  Florida Statutes, 1998 Supplement, to read:

  3         641.31  Health maintenance contracts.--

  4         (38)  No health maintenance organization's contract

  5  shall prevent a subscriber from continuing to receive services

  6  from the subscriber's contracted primary care physician or

  7  contracted admitting physician during an inpatient stay.

  8         Section 8.  Subsection (4) is added to section

  9  641.3155, Florida Statutes, 1998 Supplement, to read:

10         641.3155  Provider contracts; payment of claims.--

11         (4)  A health maintenance organization shall not deny

12  payment to a contract primary care physician or contract

13  admitting physician for inpatient hospital services provided

14  by the contracted physician to the subscriber.

15         Section 9.  This act shall take effect July 1, 1999,

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

17  after that date.

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