Florida House of Representatives - 2002 HB 181 By Representative Negron1 A bill to be entitled2 An act relating to health maintenance3 organization contracts with health care4 providers; creating s. 408.7058, F.S.;5 providing definitions; requiring the Agency for6 Health Care Administration to establish a7 statewide health care provider and health8 maintenance organization qualification dispute9 resolution program; providing criteria and10 requirements; requiring the agency to contract11 with a resolution organization for certain12 purposes; requiring the agency to establish13 procedures for the resolution organization's14 consideration of qualification disputes;15 providing for final orders by the agency;16 providing for payment of review costs under17 certain circumstances; providing a penalty18 under certain circumstances; authorizing the19 agency to adopt rules; amending s. 641.315,20 F.S.; deleting obsolete provisions relating to21 provider contracts; revising provisions22 providing for termination of a provider23 contract by a health maintenance organization;24 providing criteria, requirements, and25 limitations; specifying notice requirements;26 amending s. 627.6474, F.S.; specifying27 requirements for certain contracts; prohibiting28 certain insurers from refusing to enter into or29 renew contracts with certain health care30 providers; specifying requirements and31 limitations for terminating certain contracts; 1 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 specifying notice requirements; providing2 application; providing an effective date.3 4 Be It Enacted by the Legislature of the State of Florida:5 6 Section 1. Section 408.7058, Florida Statutes, is7 created to read:8 408.7058 Statewide health care provider and health9 maintenance organization qualification dispute resolution10 program.--11 (1) As used in this section:12 (a) "Agency" means the Agency for Health Care13 Administration.14 (b) "Health care provider" or "provider" means any15 health care practitioner as defined in s. 456.001.16 (c) "Health insurer" or "insurer" means an entity17 licensed under chapter 627.18 (d) "Health maintenance organization" or19 "organization" means an organization certified under part I of20 chapter 641.21 (e) "Qualification dispute" means any dispute between22 an organization and a provider as to whether the provider23 meets the organization's written qualification requirements24 provided to the provider pursuant to s. 641.315(10).25 (f) "Resolution organization" means a qualified26 independent third-party claim dispute resolution entity27 selected by and contracted with the agency.28 (2)(a) The agency shall establish a program by January29 1, 2003, to provide assistance to contracted and noncontracted30 providers for resolution of qualification disputes that are31 not resolved by a provider and an organization. The agency 2 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 shall contract with a resolution organization to timely review2 and consider qualification disputes submitted by providers and3 recommend to the agency an appropriate resolution of those4 disputes.5 (b) The resolution organization shall review6 qualification disputes filed by contracted and noncontracted7 providers unless the dispute is the basis for an action8 pending in state or federal court.9 (3) The agency shall adopt rules to establish a10 process to be used by the resolution organization in11 considering qualification disputes submitted by a provider12 which must include the issuance by the resolution organization13 of a written recommendation, supported by findings of fact, to14 the agency within 60 days after receipt of the dispute15 submission. The written recommendation may include a16 recommendation that a contract between the provider and the17 organization not be terminated by the organization.18 (4) Within 30 days after receipt of the recommendation19 of the resolution organization, the agency shall adopt the20 recommendation as a final order.21 (5) The entity that does not prevail in the agency's22 order shall pay a review cost to the review organization, as23 determined by agency rule. If the nonprevailing party fails to24 pay the ordered review cost within 35 days after the agency's25 order, the nonpaying party is subject to a penalty of not more26 than $500 per day until the penalty is paid.27 (6) The agency may adopt rules to administer this28 section.29 Section 2. Section 641.315, Florida Statutes, is30 amended to read:31 641.315 Provider contracts.-- 3 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 (1) Each contract between a health maintenance2 organization and a provider of health care services must be in3 writing and must contain a provision that the subscriber is4 not liable to the provider for any services for which the5 health maintenance organization is liable as specified in s.6 641.3154.7 (2)(a) ForAll provider contractsexecuted after8 October 1, 1991, and within 180 days after October 1, 1991,9 for contracts in existence as of October 1, 1991:10 1. The contractsmust require the provider to give 6011 days' advance written notice to the health maintenance12 organization and the department before canceling the contract13 with the health maintenance organization for any reason;and14 2. The contractmust also provide that nonpayment for15 goods or services rendered by the provider to the health16 maintenance organization is not a valid reason for avoiding17 the 60-day advance notice of cancellation.18 (b) All provider contracts must provide that the19 health maintenance organization will provide 60 days' advance20 written notice to the provider and the department before21 canceling, without cause, the contract with the provider,22 except in a case in which a patient's health is subject to23 imminent danger or a physician's ability to practice medicine24 is effectively impaired by an action by the Board of Medicine25 or other governmental agency.26 (3) Upon receipt by the health maintenance27 organization of a 60-day cancellation notice, the health28 maintenance organization may, if requested by the provider,29 terminate the contract in less than 60 days if the health30 maintenance organization is not financially impaired or31 insolvent.4 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 (3)(4)Whenever a contract exists between a health2 maintenance organization and a provider, the health3 maintenance organization shall disclose to the provider:4 (a) The mailing address or electronic address where5 claims should be sent for processing;6 (b) The telephone number that a provider may call to7 have questions and concerns regarding claims addressed; and8 (c) The address of any separate claims-processing9 centers for specific types of services.10 11 A health maintenance organization shall provide to its12 contracted providers no less than 30 calendar days' prior13 written notice of any changes in the information required in14 this subsection.15 (4)(5)A contract between a health maintenance16 organization and a provider of health care services shall not17 contain any provision restricting the provider's ability to18 communicate information to the provider's patient regarding19 medical care or treatment options for the patient when the20 provider deems knowledge of such information by the patient to21 be in the best interest of the health of the patient.22 (5)(6)A contract between a health maintenance23 organization and a provider of health care services may not24 contain any provision that in any way prohibits or restricts:25 (a) The health care provider from entering into a26 commercial contract with any other health maintenance27 organization; or28 (b) The health maintenance organization from entering29 into a commercial contract with any other health care30 provider.31 5 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 (6)(a)(7)A health maintenance organization or health2 care provider may not terminate a contract with a health care3 provider or health maintenance organization unless the party4 terminating the contract provides the terminated party with a5 written reason for the proposed contract termination, which6 may include termination for business reasons of the7 terminating party. The reason provided in the notice required8 in this section or any other information relating to the9 reason for termination does not create any new administrative10 or civil action and may not be used as substantive evidence in11 any such action, but may be used for impeachment purposes. As12 used in this subsection, the term "health care provider" means13 a physician licensed under chapter 458, chapter 459, chapter14 460, or chapter 461, or a dentist licensed under chapter 466.15 (b) A health maintenance organization may terminate a16 contract with a health care provider only if the provider17 fails to comply with the organization's written terms and18 conditions provided to the provider pursuant to subsection19 (10). If an organization proposes to terminate a contract with20 a provider, the organization shall provide the provider with21 60 days' advance written notice of its intent to terminate the22 provider's contract. This paragraph does not apply in cases23 involving imminent harm to patient health or a final24 disciplinary action by the provider's licensing board or other25 governmental agency which impairs the provider's ability to26 practice within the jurisdiction.27 (c) If a health maintenance organization proposes to28 terminate a contract of a health care provider pursuant to29 this subsection, the organization shall not notify the30 provider's patients of the proposed termination until the31 effective date of the termination or the conclusion of the 6 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 review or hearing provided in this section, whichever occurs2 later. If a provider's contract is terminated for reasons3 related to imminent harm to patient health, or a final4 disciplinary action by the provider's licensing board or other5 governmental agency, which impairs the provider's ability to6 practice within the jurisdiction, the organization may notify7 the provider's patients immediately.8 (d) The notice of the proposed contract termination9 provided by the health maintenance organization to the health10 care provider shall include:11 1. The specific term and condition established by the12 organization that the organization alleges has been breached13 by the provider which serves as the reason for the proposed14 termination.15 2. Notice that the provider has the right to request a16 review before the statewide provider and health maintenance17 organization qualification dispute resolution program created18 under s. 408.7058.19 3. A time limit of not less than 30 days within which20 a provider may request a review.21 (e) If a health care provider requests a review as22 provided in paragraph (d), the health maintenance organization23 shall provide to the provider a written notice that states the24 names of the witnesses, if any, expected to testify at the25 hearing on behalf of the organization.26 (7)(8)The health maintenance organization must27 establish written procedures for a contract provider to28 request and the health maintenance organization to grant29 authorization for utilization of health care services. The30 health maintenance organization must give written notice to31 the contract provider prior to any change in these procedures. 7 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 (8)(9)A contract between a health maintenance2 organization and a contracted primary care or admitting3 physician may not contain any provision that prohibits such4 physician from providing inpatient services in a contracted5 hospital to a subscriber if such services are determined by6 the organization to be medically necessary and covered7 services under the organization's contract with the contract8 holder.9 (9)(10)A health maintenance organization shall not10 require a contracted health care practitioner as defined in s.11 456.001(4) to accept the terms of other health care12 practitioner contracts with the health maintenance13 organization or any insurer, or other health maintenance14 organization, under common management and control with the15 health maintenance organization, including Medicare and16 Medicaid practitioner contracts and those authorized by s.17 627.6471, s. 627.6472, or s. 641.315, except for a18 practitioner in a group practice as defined in s. 456.053 who19 must accept the terms of a contract negotiated for the20 practitioner by the group, as a condition of continuation or21 renewal of the contract. Any contract provision that violates22 this section is void. A violation of this section is not23 subject to the criminal penalty specified in s. 624.15.24 (10) Each contract between a health maintenance25 organization and a health care provider shall contain the26 organization's terms and conditions that must be met by27 providers contracting with the organization. The28 organization's terms and conditions for contracting with the29 organization may not be modified or amended, in any way, by30 the organization during the term of the contract between the31 organization and the provider. The provisions of this 8 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 subsection may not be waived, voided, or nullified by2 contract.3 (11) A health maintenance organization which has a4 market share of over 25 percent in a county in any of its5 health maintenance organization plans shall not refuse to6 enter into or renew a contract under such plan with any7 licensed health care provider who is willing to meet the terms8 and conditions established by the organization pursuant to9 subsection (10), who practices within the geographic area10 served by the organization, and whose credentials are verified11 and examined by the organization pursuant to s. 641.495(6).12 Section 3. Section 627.6474, Florida Statutes, is13 amended to read:14 627.6474 Provider contracts.--15 (1) A health insurer shall not require a contracted16 health care practitioner as defined in s. 456.001(4) to accept17 the terms of other health care practitioner contracts with the18 insurer or any other insurer, or health maintenance19 organization, under common management and control with the20 insurer, including Medicare and Medicaid practitioner21 contracts and those authorized by s. 627.6471, s. 627.6472, or22 s. 641.315, except for a practitioner in a group practice as23 defined in s. 456.053 who must accept the terms of a contract24 negotiated for the practitioner by the group, as a condition25 of continuation or renewal of the contract. Any contract26 provision that violates this subsectionsectionis void. A27 violation of this subsectionsectionis not subject to the28 criminal penalty specified in s. 624.15.29 (2) Each contract between a health insurer and a30 health care provider shall contain the insurer's terms and31 conditions that must be met by providers contracting with the 9 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 insurer. The insurer's terms and conditions for contracting2 with a provider may not be modified or amended, in any way, by3 the insurer during the term of the contract between the4 insurer and the provider.5 (3) A health insurer which has a market share of over6 25 percent in a county in any of its plans shall not refuse to7 enter into or renew a contract under such plan with any8 licensed health care provider who is willing to meet the terms9 and conditions established by the insurer pursuant to10 subsection (2), who practices within the geographic area11 served by the insurer, and whose credentials are verified and12 examined by the insurer's system for verification and13 examination of the credentials of each of its providers.14 (4)(a) A health insurer or health care provider may15 not terminate a contract with a health care provider or health16 insurer unless the party terminating the contract provides the17 terminated party with a written reason for the proposed18 termination.19 (b) A health insurer may terminate a contract with a20 health care provider only if the provider fails to comply with21 the insurer's written terms and conditions that have been22 provided to the provider pursuant to subsection (2). If an23 insurer proposes to terminate a contract with a provider, the24 insurer shall provide the provider with 60 days' advance25 written notice of the insurer's intent to terminate the26 provider's contract. This paragraph does not apply in cases27 involving imminent harm to patient health or a final28 disciplinary action by the provider's licensing board or other29 governmental agency which impairs the provider's ability to30 practice within the jurisdiction.31 10 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 (c) If a health insurer proposes to terminate a2 contract of a health care provider, the insurer shall not3 notify the provider's patients of the proposed termination4 until the effective date of the termination or the conclusion5 of the review or hearing provided in this section, whichever6 occurs later. If a provider's contract is terminated for7 reasons related to imminent harm to patient health or a final8 disciplinary action by the provider's licensing board or other9 governmental agency which impairs the provider's ability to10 practice within the jurisdiction, the insurer may notify the11 provider's patients immediately.12 (d) The notice of the proposed contract termination13 provided by the health insurer to the health care provider14 shall include:15 1. The specific term and condition established by the16 insurer that the insurer alleges has been breached by the17 provider which serves as the reason for the proposed18 termination.19 2. Notice that the provider has the right to request a20 review before the statewide provider and insurer qualification21 dispute resolution program created pursuant to s. 408.7058.22 3. A time limit of not less than 30 days within which23 a provider may request a review.24 (e) If the health care provider requests a review, the25 provider shall be provided a written notice that states the26 names of the witnesses, if any, expected to testify at the27 hearing on behalf of the insurer.28 (5) The provisions of this section shall apply to29 contracts entered into pursuant to s. 627.6471 or s. 627.6472.30 The provisions of this section may not be waived, voided, or31 nullified by contract. 11 CODING: Wordsstrickenare deletions; words underlined are additions.Florida House of Representatives - 2002 HB 181 786-108-02 1 Section 4. This act shall take effect July 1, 2002.2 3 *****************************************4 HOUSE SUMMARY5 Requires the Agency for Health Care Administration to6 establish a statewide health care provider and health maintenance organization qualification dispute resolution7 program to resolve contract disputes between health care providers and health maintenance organizations. Revises8 provisions for termination by a health maintenance organization of a contract with a health care provider.9 See bill for details.10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 12 CODING: Wordsstrickenare deletions; words underlined are additions.