House Bill 0337c1

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    Florida House of Representatives - 1999              CS/HB 337

        By the Committee on Health Care Services and
    Representatives Goode, Melvin, Peaden, Hart, Barreiro, Brown,
    Farkas, Fiorentino, Valdes, Casey, Greenstein, Villalobos,
    Sanderson, Ritter, Fasano, J. Miller and Cosgrove



  1                      A bill to be entitled

  2         An act relating to health care service

  3         programs; amending s. 641.3903, F.S.; providing

  4         that described adverse actions by a health

  5         maintenance organization against a health care

  6         provider constitute an unfair method of

  7         competition and an unfair or deceptive act or

  8         practice; amending s. 641.315, F.S.;

  9         prohibiting the termination of a contract

10         between a health maintenance organization and a

11         health care provider unless the party

12         terminating the contract provides a written

13         explanation of the contract termination;

14         providing restrictions on the use of specified

15         information; providing a definition; amending

16         s. 641.51, F.S.; providing for continued

17         coverage and care of subscribers when a

18         contractual agreement between a health

19         maintenance organization or a prepaid health

20         clinic and a treating provider is terminated

21         for any reason other than for cause; providing

22         limitations and conditions of such continued

23         coverage and care; providing an exception;

24         providing applicability; providing an effective

25         date.

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

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29         Section 1.  Subsection (14) is added to section

30  641.3903, Florida Statutes, to read:

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  1         641.3903  Unfair methods of competition and unfair or

  2  deceptive acts or practices defined.--The following are

  3  defined as unfair methods of competition and unfair or

  4  deceptive acts or practices:

  5         (14)  ADVERSE ACTION AGAINST A PROVIDER.--Any of the

  6  following actions by a health maintenance organization against

  7  a provider when such actions are taken on the basis that the

  8  provider communicated information to the provider's patient

  9  regarding medical care or treatment options for the patient

10  when the provider deems knowledge of such information by the

11  patient to be in the best interest of the patient:

12         (a)  Termination of a contract with a provider;

13         (b)  Refusal to compensate the provider for health care

14  services provided to subscribers; or

15         (c)  Any other retaliatory action against the provider.

16         Section 2.  Subsection (9) is added to section 641.315,

17  Florida Statutes, to read:

18         641.315  Provider contracts.--

19         (9)  A health maintenance organization may not

20  terminate a contract with a health care provider, and a health

21  care provider may not terminate a contract with a health

22  maintenance organization, unless the party terminating the

23  contract provides the terminated party with a written

24  explanation of the reasons for the contract termination, which

25  may include termination for business reasons of the

26  terminating party. The reasons provided in the notice required

27  in this section or any other information relating to the

28  reason for termination may not be used as substantive

29  evidence, but may be used for impeachment purposes in any

30  administrative or civil action initiated by the terminated

31  party against the terminating party. For the purposes of this

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  1  subsection, the term "health care provider" shall mean any

  2  physician or group of physicians licensed under chapter 458,

  3  chapter 459, chapter 460, chapter 461, or chapter 466.

  4         Section 3.  Subsection (7) of section 641.51, Florida

  5  Statutes, is amended to read:

  6         641.51  Quality assurance program; second medical

  7  opinion requirement.--

  8         (7)  When a contractual agreement between an

  9  organization and a treating provider is terminated for any

10  reason other than for cause, each party organization shall

11  allow subscribers for whom treatment was active to continue

12  coverage and care when medically necessary through completion

13  of treatment of a condition for which the subscriber was

14  receiving care at the time of the termination, until the

15  subscriber selects another treating provider, or during the

16  next open enrollment period offered by the organization,

17  whichever is longer, but no longer than 6 months after

18  termination of the contract for 60 days with a terminated

19  treating provider when medically necessary, provided the

20  subscriber has a life-threatening condition or a disabling and

21  degenerative condition. Each party to the terminated contract

22  organization shall allow a subscriber who has initiated a

23  course of prenatal care, irrespective of the trimester in

24  which the care is initiated, is in the third trimester of

25  pregnancy to continue care and coverage with a terminated

26  treating provider until completion of postpartum care.

27  However, the provisions of this subsection shall not preclude

28  a provider from refusing to continue to provide care to a

29  particular subscriber for reasons unrelated to the termination

30  of the provider's contract with the health maintenance

31  organization. For care continued under this subsection, the

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    Florida House of Representatives - 1999              CS/HB 337

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  1  organization and the provider shall continue to be bound by

  2  the terms of the last contract mutually agreed to for such

  3  continued care. This subsection shall not apply to treating

  4  providers who have been terminated by the organization for

  5  cause.

  6         Section 4.  This act shall take effect upon becoming a

  7  law, and shall apply only to contracts entered into on or

  8  after the effective date of this act.

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