House Bill 0783e1

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                                           HB 783, First Engrossed



  1                      A bill to be entitled

  2         An act relating to provider contracts; amending

  3         s. 626.883, F.S.; providing for a detailed

  4         explanation of benefits to be included in all

  5         payments to a health care provider by a fiscal

  6         intermediary; amending s. 641.31, F.S.;

  7         providing specifications under which health

  8         maintenance organizations may modify existing

  9         contract benefits; requiring certain health

10         maintenance contracts to cover persons licensed

11         to practice massage under certain

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

13         prohibiting certain provisions in contracts

14         between health care providers and health

15         maintenance organizations; amending s. 641.316,

16         F.S.; providing for a detailed explanation of

17         benefits to be included in all payments to a

18         health care provider by a fiscal intermediary;

19         providing an effective date.

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

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

24  Florida Statutes, to read:

25         626.883  Administrator as intermediary; collections

26  held in fiduciary capacity; establishment of account;

27  disbursement; payments on behalf of insurer.--

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

29  intermediary for noncapitated providers must include an

30  explanation of services being reimbursed which includes, at a

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


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                                           HB 783, First Engrossed



  1  procedure code, the amount of reimbursement, and the

  2  identification of the plan on whose behalf the payment is

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

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

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

  6  identification of the plan on whose behalf the payment is

  7  being made.

  8         Section 2.  Subsections (36) and (37) of section

  9  641.31, Florida Statutes, 1998 Supplement, are created to

10  read:

11         641.31  Health maintenance contracts.--

12         (36)  A health maintenance organization may increase

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

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

15  group contract, only upon written notice to the contract

16  holder at least 45 days in advance of the time of coverage

17  renewal. The health maintenance organization may amend the

18  contract with the contract holder with such amendment to be

19  effective immediately at the time of coverage renewal. The

20  written notice to the contract holder shall specifically

21  identify any deletions, amendments, or limitations to any of

22  the benefits provided in the group contract during the current

23  contract period that will be included in the group contract

24  upon renewal. The 45-day notice requirement shall not apply if

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

26  the contract holder.

27         (37)  All health maintenance contracts that provide

28  coverage for massage shall also cover the services of persons

29  licensed to practice massage pursuant to chapter 480 if the

30  massage is prescribed by a contracted physician licensed under

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


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                                           HB 783, First Engrossed



  1  medically necessary and the prescription specifies the number

  2  of treatments. Such massage services shall be subject to the

  3  same terms, conditions, and limitations as other covered

  4  services.

  5         Section 3.  (1)  Subsection (9) is added to section

  6  641.315, Florida Statutes, to read:

  7         641.315  Provider contracts.--

  8         (9)  A contract between a health maintenance

  9  organization and a provider of health care services shall not

10  contain any provision which prohibits or restricts:

11         (a)  The health care provider from entering into

12  contract with any other health maintenance organization to

13  provide services for the health maintenance organization's

14  commercial subscribers; or

15         (b)  The health maintenance organization from entering

16  into contract with any other health care provider to provide

17  services for the health maintenance organization's commercial

18  subscribers.

19         (2)  The amendment to s. 641.315, Florida Statutes, by

20  this act shall apply to contracts renewed or entered into on

21  or after July 1, 1999.

22         Section 4.  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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                                           HB 783, 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         Section 5.  This act shall take effect July 1, 1999.

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