HOUSE AMENDMENT
Bill No. HB 1837 CS
   
1 CHAMBER ACTION
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Senate House
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12          Representative Ross offered the following:
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14          Amendment
15          Remove line(s) 2466-2528, and insert:
16          (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
17    REIMBURSEMENT ALLOWANCES.--
18          (a) A three-member panel is created, consisting of the
19    Insurance Commissioner, or the Insurance Commissioner's
20    designee, and two members to be appointed by the Governor,
21    subject to confirmation by the Senate, one member who, on
22    account of present or previous vocation, employment, or
23    affiliation, shall be classified as a representative of
24    employers, the other member who, on account of previous
25    vocation, employment, or affiliation, shall be classified as a
26    representative of employees. The panel shall determine statewide
27    schedules of maximum reimbursement allowances for medically
28    necessary treatment, care, and attendance provided by
29    physicians, hospitals, ambulatory surgical centers, work-
30    hardening programs, pain programs, and durable medical
31    equipment. The maximum reimbursement allowances for inpatient
32    hospital care shall be based on a schedule of per diem rates, to
33    be approved by the three-member panel no later than March 1,
34    1994, to be used in conjunction with a precertification manual
35    as determined by the department, including maximum hours in
36    which an outpatient may remain in observation status, which
37    shall not exceed 23 hoursagency. All compensable charges for
38    hospital outpatient care shall be reimbursed at 75 percent of
39    usual and customary charges, except as otherwise provided by
40    this subsection. Until the three-member panel approves a
41    schedule of per diem rates for inpatient hospital care and it
42    becomes effective, all compensable charges for hospital
43    inpatient care must be reimbursed at 75 percent of their usual
44    and customary charges.Annually, the three-member panel shall
45    adopt schedules of maximum reimbursement allowances for
46    physicians, hospital inpatient care, hospital outpatient care,
47    ambulatory surgical centers, work-hardening programs, and pain
48    programs. However, the maximum percentage of increase in the
49    individual reimbursement allowance may not exceed the percentage
50    of increase in the Consumer Price Index for the previous year.
51    An individual physician, hospital, ambulatory surgical center,
52    pain program, or work-hardening program shall be reimbursed
53    either the usual and customary charge for treatment, care, and
54    attendance, the agreed-upon contract price,or the maximum
55    reimbursement allowance in the appropriate schedule, whichever
56    is less.
57          (b) It is the intent of the Legislature to increase the
58    schedule of maximum reimbursement allowances for selected
59    physicians effective January 1, 2004, and to pay for the
60    increases through reductions in payments to hospitals. Revisions
61    developed pursuant to this subsection are limited to the
62    following:
63          1. Payments for outpatient physical, occupational, and
64    speech therapy provided by hospitals shall be reduced to the
65    schedule of maximum reimbursement allowances for these services
66    which applies to nonhospital providers.
67          2. Payments for scheduled outpatient nonemergency
68    radiological and clinical laboratory services that are not
69    provided in conjunction with a surgical procedure shall be
70    reduced to the schedule of maximum reimbursement allowances for
71    these services which applies to nonhospital providers.
72          3. Outpatient reimbursement for scheduled surgeries shall
73    be reduced from 75 percent of charges to 60 percent of charges.
74          4. Maximum reimbursement for a physician licensed under
75    chapter 458 or chapter 459 shall be increased to 110 percent of
76    the reimbursement allowed by Medicare, using appropriate codes
77    and modifiers or the medical reimbursement level adopted by the
78    three-member panel as of January 1, 2003, whichever is greater.
79    Effective January 1, 2005, the maximum reimbursement for
80    professional services rendered by a physician licensed under
81    chapter 458 or chapter 459 shall be increased by 5 percent per
82    year for 5 consecutive years, unless the three-member panel
83    determines that the 5 percent annual increase would result in a
84    rate increase for carriers.
85          5. Maximum reimbursement for surgical procedures shall be
86    increased to 140 percent of the reimbursement allowed by
87    Medicare or the medical reimbursement level adopted by the
88    three-member panel as of January 1, 2003, whichever is greater.
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