Senate Bill sb0436

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    Florida Senate - 2003                                   SB 436

    By Senator Campbell





    32-4A-03

  1                      A bill to be entitled

  2         An act relating to the provision of health care

  3         services; specifying conditions under which a

  4         health care provider must be permitted to

  5         participate as a service provider under a

  6         health plan offered by a managed care

  7         organization; defining the term "managed care

  8         organization"; providing for civil penalties;

  9         amending s. 627.419, F.S.; providing for

10         construction of policies; providing for

11         application; providing an effective date.

12  

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

14  

15         Section 1.  Health care provider as an authorized

16  service provider; penalties.--

17         (1)  A managed care organization must allow any health

18  care provider to participate as a service provider under a

19  health plan offered by the managed care organization if the

20  health care provider agrees to:

21         (a)  Accept the reimbursement rates negotiated by the

22  managed care organization with other health care providers

23  that provide the same service under the health plan; and

24         (b)  Comply with all guidelines relating to quality of

25  care and utilization criteria which must be met by other

26  employee or nonemployee providers.

27         (2)  As used in this section, the term "managed care

28  organization" means a health maintenance organization or

29  prepaid health clinic certified under chapter 641, Florida

30  Statutes, a health insurer that issues an exclusive provider

31  organization policy under section 627.6472 or section

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    Florida Senate - 2003                                   SB 436
    32-4A-03




 1  627.662(9), Florida Statutes, or a health insurer that issues

 2  a preferred provider organization policy under section

 3  627.6472 or section 627.662(8), Florida Statutes.

 4         (3)  A managed care organization that violates

 5  subsection (1) is subject to a civil fine in the amount of:

 6         (a)  Up to $25,000 for each violation; or

 7         (b)  If the Director of Health Care Administration

 8  determines that the entity has engaged in a pattern of

 9  violations of subsection (1), up to $100,000 for each

10  violation.

11         Section 2.  Subsection (10) is added to section

12  627.419, Florida Statutes, to read:

13         627.419  Construction of policies.--

14         (10)(a)  Any health insurance policy, health care

15  services plan, or other contract that provides for payment for

16  medical expense benefits or procedures must allow any health

17  care provider to participate as a service provider under a

18  health plan offered by the health insurance policy, health

19  care services plan, or other contract that provides for

20  payment for medical expense benefits or procedures if the

21  health care provider agrees to:

22         1.  Accept the reimbursement rates negotiated by the

23  health insurance policy, health care services plan, or other

24  contract that provides for payment for medical expense

25  benefits or procedures with other health care providers that

26  provide the same service under the health plan; and

27         2.  Comply with all guidelines relating to quality of

28  care and utilization criteria which must be met by other

29  providers with whom the health insurance policy, health care

30  services plan, or other contract that provides for payment for

31  

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    Florida Senate - 2003                                   SB 436
    32-4A-03




 1  medical expense benefits or procedures has contractual

 2  arrangements for those services.

 3         (b)  The provider of any health insurance policy,

 4  health care services plan, or other contract that violates

 5  paragraph (a) is subject to a civil fine in the amount of:

 6         1.  Up to $25,000 for each violation; or

 7         2.  If the Insurance Commissioner determines that the

 8  provider has engaged in a pattern of violations of paragraph

 9  (a), up to $100,000 for each violation.

10         Section 3.  Sections 1 and 2 of this act do not apply

11  to any health insurance policy that is in force before the

12  effective date of this act but do apply to such policies at

13  the next renewal period immediately following October 1, 2003.

14         Section 4.  This act shall take effect October 1, 2003.

15  

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17                          SENATE SUMMARY

18    Requires that a health care provider be permitted to
      participate as a service provider if the provider agrees
19    to accept the reimbursement rates for the health plan and
      comply with certain guidelines. Provides civil penalties
20    for failure to comply with the act.

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