HB 0701CS

CHAMBER ACTION




1The Committee on Insurance recommends the following:
2
3     Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to health care; amending s. 381.026, F.S.;
7requiring certain licensed facilities to provide certain
8financial information on its website; amending s. 395.301,
9F.S.; requiring certain licensed facilities to provide
10prospective patients with certain estimates of charges for
11services; requiring such facilities to provide patients
12with certain bill verification information; providing for
13a fine for failure to provide such information; providing
14charge limitations; requiring such facilities to establish
15a patient question review and response methodology;
16providing requirements; requiring certain licensed
17facilities to provide to certain financial information on
18its website; providing an exception for specified rural
19hospitals; requiring a report; amending s. 408.061, F.S.;
20requiring the Agency for Health Care Administration to
21require health care facilities, health care providers, and
22health insurers to submit certain information; providing
23requirements; requiring the agency to adopt certain risk
24adjustment methodologies or software; requiring the agency
25to adopt certain rules; requiring certain information to
26be certified; amending s. 408.062, F.S.; requiring the
27agency to conduct certain health care costs and access
28research, analyses, and studies; expanding the scope of
29such studies to include collection of pharmacy retail
30price data, use of emergency departments, physician
31information, and Internet patient charge information
32availability; requiring publication of information
33collected on the Internet; requiring a report; requiring
34the agency to conduct additional data-based studies and
35make recommendations to the Legislature; requiring the
36agency to develop and implement a strategy to adopt and
37use electronic health records; authorizing the agency to
38develop rules to protect electronic records
39confidentiality; requiring a report to the Governor and
40Legislature; amending s. 408.05, F.S.; requiring the
41agency to develop a plan to make performance outcome and
42financial data available to consumers for health care
43services comparison purposes; requiring submittal of the
44plan to the Governor and Legislature; requiring the agency
45to update the plan; requiring the agency to make the plan
46available electronically; providing plan requirements;
47amending s. 409.9066, F.S.; requiring the agency to
48provide certain information relating to the Medicare
49prescription discount program; creating s. 465.0244, F.S.;
50requiring each pharmacy to make available on its Internet
51website a link to certain performance outcome and
52financial data of the Agency for Health Care
53Administration and a notice of the availability of such
54information; amending s. 627.6499, F.S.; requiring each
55health insurer to make available on its Internet website a
56link to certain performance outcome and financial data of
57the Agency for Health Care Administration and a notice in
58policies of the availability of such information; amending
59s. 641.54, F.S.; requiring health maintenance
60organizations to make certain insurance financial
61information available to subscribers; requiring health
62maintenance organizations to make available on its
63Internet website a link to certain performance outcome and
64financial data of the Agency for Health Care
65Administration and a notice in policies of the
66availability of such information; authorizing rule
67adoption; providing an effective date.
68
69Be It Enacted by the Legislature of the State of Florida:
70
71     Section 1.  Paragraph (c) of subsection (4) of section
72381.026, Florida Statutes, is amended to read:
73     381.026  Florida Patient's Bill of Rights and
74Responsibilities.--
75     (4)  RIGHTS OF PATIENTS.--Each health care facility or
76provider shall observe the following standards:
77     (c)  Financial information and disclosure.--
78     1.  A patient has the right to be given, upon request, by
79the responsible provider, his or her designee, or a
80representative of the health care facility full information and
81necessary counseling on the availability of known financial
82resources for the patient's health care.
83     2.  A health care provider or a health care facility shall,
84upon request, disclose to each patient who is eligible for
85Medicare, in advance of treatment, whether the health care
86provider or the health care facility in which the patient is
87receiving medical services accepts assignment under Medicare
88reimbursement as payment in full for medical services and
89treatment rendered in the health care provider's office or
90health care facility.
91     3.  A health care provider or a health care facility shall,
92upon request, furnish a patient, prior to provision of medical
93services, a reasonable estimate of charges for such services.
94Such reasonable estimate shall not preclude the health care
95provider or health care facility from exceeding the estimate or
96making additional charges based on changes in the patient's
97condition or treatment needs.
98     4.  Each licensed facility not operated by the state shall
99make available to the public on its Internet website or by other
100electronic means a description of, and a link to, the
101performance outcome and financial data that is published by the
102agency pursuant to s. 408.05. The facility shall place a notice
103in reception areas that such information is available
104electronically and provide the Internet address. The licensed
105facility may indicate that the pricing information is based on a
106compilation of charges for the average patient and that each
107patient's bill may vary from the average, depending upon the
108severity of illness and individual resources consumed. The
109licensed facility may also indicate that the price of service is
110negotiable for eligible patients based upon the patient's
111ability to pay.
112     5.4.  A patient has the right to receive a copy of an
113itemized bill upon request. A patient has a right to be given an
114explanation of charges upon request.
115     Section 2.  Subsections (1), (2), and (3) of section
116395.301, Florida Statutes, are amended, and subsections (7),
117(8), (9), (10), and (11) are added to said section, to read:
118     395.301  Itemized patient bill; form and content prescribed
119by the agency.--
120     (1)  A licensed facility not operated by the state shall
121notify each patient during admission and at discharge of his or
122her right to receive an itemized bill upon request. Within 7
123days following the patient's discharge or release from a
124licensed facility not operated by the state, or within 7 days
125after the earliest date at which the loss or expense from the
126service may be determined, the licensed facility providing the
127service shall, upon request, submit to the patient, or to the
128patient's survivor or legal guardian as may be appropriate, an
129itemized statement detailing in language comprehensible to an
130ordinary layperson the specific nature of charges or expenses
131incurred by the patient, which in the initial billing shall
132contain a statement of specific services received and expenses
133incurred for such items of service, enumerating in detail the
134constituent components of the services received within each
135department of the licensed facility and including unit price
136data on rates charged by the licensed facility, as prescribed by
137the agency.
138     (2)(a)  Each such statement submitted pursuant to this
139section:
140     1.(a)  May not include charges of hospital-based physicians
141if billed separately.
142     2.(b)  May not include any generalized category of expenses
143such as "other" or "miscellaneous" or similar categories.
144     3.(c)  Shall list drugs by brand or generic name and not
145refer to drug code numbers when referring to drugs of any sort.
146     4.(d)  Shall specifically identify therapy treatment as to
147the date, type, and length of treatment when therapy treatment
148is a part of the statement.
149     (b)  Any person receiving a statement pursuant to this
150section shall be fully and accurately informed as to each charge
151and service provided by the institution preparing the statement.
152     (3)  On each such itemized statement submitted pursuant to
153subsection (1), there shall appear the words "A FOR-PROFIT (or
154NOT-FOR-PROFIT or PUBLIC) HOSPITAL (or AMBULATORY SURGICAL
155CENTER) LICENSED BY THE STATE OF FLORIDA" or substantially
156similar words sufficient to identify clearly and plainly the
157ownership status of the licensed facility. Each itemized
158statement must prominently display the phone number of the
159medical facility's patient liaison who is responsible for
160expediting the resolution of any billing dispute between the
161patient, or his or her representative, and the billing
162department.
163     (7)  Each licensed facility not operated by the state shall
164provide, prior to provision of any nonemergency medical
165services, a written good faith estimate of reasonably
166anticipated charges for the facility to treat the patient's
167condition upon written request of a prospective patient. The
168estimate shall be provided to the prospective patient within 7
169business days of the receipt of the request. The estimate may be
170the average charges for that diagnosis related group or the
171average charges for that procedure. Upon request, the facility
172shall notify the patient of any revision to the good faith
173estimate. Such estimate shall not preclude the actual charges
174from exceeding the estimate. The facility shall place a notice
175in reception areas that such information is available. Failure
176to provide the estimate within the provisions established
177pursuant to this section shall result in a fine of $500 for each
178instance of the facility's failure to provide the requested
179information.
180     (8)  A licensed facility shall make available to a patient
181all records necessary for verification of the accuracy of the
182patient's bill within 30 business days after the request for
183such records. The verification information must be made
184available in the facility's offices. Such records shall be
185available to the patient prior to and after payment of the bill
186or claim. The facility may not charge the patient for making
187such verification records available; however, the facility may
188charge its usual fee for providing copies of records as
189specified in s. 395.3025.
190     (9)  Each facility shall establish a method for reviewing
191and responding to questions from patients concerning the
192patient's itemized bill. Such response shall be provided within
19330 days after the date a question is received. If the patient is
194not satisfied with the response, the facility must provide the
195patient with the address of the agency to which the issue may be
196sent for review.
197     (10)  Each licensed facility shall make available on its
198Internet website a link to the performance outcome and financial
199data that is published by the Agency for Health Care
200Administration pursuant to s. 408.05. The facility shall place a
201notice in the reception area that the information is available
202electronically and the Internet address.
203     (11)  Each rural hospital, as defined in s. 395.602, which
204has fewer than 50 beds is exempt from subsection (10). The
205agency shall evaluate the most cost-efficient method for
206collecting and reporting data for these qualifying rural
207hospitals and shall, by December 1, 2005, submit a report to the
208Governor, the President of the Senate, and the Speaker of the
209House of Representatives.
210     Section 3.  Subsection (1) of section 408.061, Florida
211Statutes, is amended to read:
212     408.061  Data collection; uniform systems of financial
213reporting; information relating to physician charges;
214confidential information; immunity.--
215     (1)  The agency shall may require the submission by health
216care facilities, health care providers, and health insurers of
217data necessary to carry out the agency's duties. Specifications
218for data to be collected under this section shall be developed
219by the agency with the assistance of technical advisory panels
220including representatives of affected entities, consumers,
221purchasers, and such other interested parties as may be
222determined by the agency.
223     (a)  Data to be submitted by health care facilities,
224including the facilities as defined in chapter 395, shall may
225include, but are not limited to: case-mix data, patient
226admission and or discharge data, data on hospital-acquired
227infections as specified by rule, data on complications as
228specified by rule, data on readmissions as specified by rule,
229with patient and provider-specific identifiers included, actual
230charge data by diagnostic groups, financial data, accounting
231data, operating expenses, expenses incurred for rendering
232services to patients who cannot or do not pay, interest charges,
233depreciation expenses based on the expected useful life of the
234property and equipment involved, and demographic data. Hospital
235emergency data shall include the number of the patients treated
236in the emergency department of a licensed hospital reported by
237patient acuity level. The agency shall adopt nationally
238recognized risk adjustment methodologies or software consistent
239with the standards of the Agency for Healthcare Research and
240Quality for all data submitted as required by this section. Data
241may be obtained from documents such as, but not limited to:
242leases, contracts, debt instruments, itemized patient bills,
243medical record abstracts, and related diagnostic information.
244Reported data elements shall be reported electronically in
245accordance with applicable department rules. Data submitted
246shall be certified by the chief executive officer or an
247appropriate and duly authorized representative or employee of
248the licensed facility that the information is accurate.
249     (b)  Data to be submitted by health care providers may
250include, but are not limited to: Medicare and Medicaid
251participation, types of services offered to patients, amount of
252revenue and expenses of the health care provider, and such other
253data which are reasonably necessary to study utilization
254patterns. Data submitted shall be certified as true and accurate
255by the health care provider or by an appropriate and duly
256authorized representative or employee of the health care
257provider.
258     (c)  Data to be submitted by health insurers may include,
259but are not limited to: claims, premium, administration, and
260financial information. Data submitted shall be certified as by
261the appropriate and duly authorized representative or employee
262of the insurer that the information submitted is true and
263accurate.
264     (d)  Data required to be submitted by health care
265facilities, health care providers, or health insurers shall not
266include specific provider contract reimbursement information.
267However, such specific provider reimbursement data shall be
268reasonably available for onsite inspection by the agency as is
269necessary to carry out the agency's regulatory duties. Any such
270data obtained by the agency as a result of onsite inspections
271may not be used by the state for purposes of direct provider
272contracting and are confidential and exempt from the provisions
273of s. 119.07(1) and s. 24(a), Art. I of the State Constitution.
274     (e)  A requirement to submit data shall be adopted by rule
275if the submission of data is being required of all members of
276any type of health care facility, health care provider, or
277health insurer. Rules are not required, however, for the
278submission of data for a special study mandated by the
279Legislature or when information is being requested for a single
280health care facility, health care provider, or health insurer.
281     Section 4.  Subsections (1) and (4) of section 408.062,
282Florida Statutes, are amended, and subsection (5) is added to
283said section, to read:
284     408.062  Research, analyses, studies, and reports.--
285     (1)  The agency shall have the authority to conduct
286research, analyses, and studies relating to health care costs
287and access to and quality of health care services as access and
288quality are affected by changes in health care costs. Such
289research, analyses, and studies shall include, but not be
290limited to, research and analysis relating to:
291     (a)  The financial status of any health care facility or
292facilities subject to the provisions of this chapter.
293     (b)  The impact of uncompensated charity care on health
294care facilities and health care providers.
295     (c)  The state's role in assisting to fund indigent care.
296     (d)  In conjunction with the Office of Insurance
297Regulation, the availability and affordability of health
298insurance for small businesses.
299     (e)  Total health care expenditures in the state according
300to the sources of payment and the type of expenditure.
301     (f)  The quality of health services, using techniques such
302as small area analysis, severity adjustments, and risk-adjusted
303mortality rates.
304     (g)  The development of physician information payment
305systems which are capable of providing data for health care
306consumers, taking into account the amount of resources consumed,
307including licensed facilities as defined in chapter 395, and the
308outcomes produced in the delivery of care.
309     (h)  The collection of a statistically valid sample of data
310on the retail prices charged by pharmacies for the 50 most
311frequently prescribed medicines from any pharmacy licensed by
312this state as a special study authorized by the Legislature to
313be performed by the agency quarterly. If a drug is available
314generically, price data shall be reported for the generic drug
315and price data of a brand name drug for which the generic drug
316is the equivalent shall be reported. The agency shall make
317available on its Internet website for each pharmacy, no later
318than October 1, 2005, drug prices for a 30-day supply at a
319standard dose. The data collected shall be reported for each
320drug by pharmacy and by metropolitan statistical area or region
321and updated quarterly The impact of subacute admissions on
322hospital revenues and expenses for purposes of calculating
323adjusted admissions as defined in s. 408.07.
324     (i)  The use of emergency department services by patient
325acuity level and the implication of increasing hospital cost by
326providing nonurgent care in emergency departments. The agency
327shall submit an annual report based on this monitoring and
328assessment to the Governor, the President of the Senate, the
329Speaker of the House of Representatives, and the substantive
330legislative committees with the first report due January 1,
3312006.
332     (j)  The making available on its Internet website no later
333than October 1, 2004, and in a hard copy format upon request, of
334patient charge, volumes, length of stay, and performance outcome
335indicators collected from health care facilities pursuant to s.
336408.061 for specific medical conditions, surgeries, and
337procedures provided in inpatient and outpatient facilities as
338determined by the agency. In making the determination of
339specific medical conditions, surgeries, and procedures to
340include, the agency shall consider such factors as volume,
341severity of the illness, urgency of admission, individual and
342societal costs, and whether the condition is acute or chronic.
343Performance outcome indicators shall be risk adjusted or
344severity adjusted, as applicable, using nationally recognized
345risk adjustment methodologies or software consistent with the
346standards of the Agency for Healthcare Research and Quality and
347as selected by the agency. The Internet website shall also
348provide an interactive search that allows consumers to view and
349compare the information for specific facilities, a map that
350allows consumers to select a county or region, definitions of
351all of the data, descriptions of each procedure, and an
352explanation about why the data may differ from facility to
353facility. Such public data shall be updated quarterly. The
354agency shall submit an annual status report on the collection of
355data and publication of performance outcome indicators to the
356Governor, the President of the Senate, the Speaker of the House
357of Representatives, and the substantive legislative committees
358with the first status report due January 1, 2005.
359     (4)(a)  The agency shall may conduct data-based studies and
360evaluations and make recommendations to the Legislature and the
361Governor concerning exemptions, the effectiveness of limitations
362of referrals, restrictions on investment interests and
363compensation arrangements, and the effectiveness of public
364disclosure. Such analysis shall may include, but need not be
365limited to, utilization of services, cost of care, quality of
366care, and access to care. The agency may require the submission
367of data necessary to carry out this duty, which may include, but
368need not be limited to, data concerning ownership, Medicare and
369Medicaid, charity care, types of services offered to patients,
370revenues and expenses, patient-encounter data, and other data
371reasonably necessary to study utilization patterns and the
372impact of health care provider ownership interests in health-
373care-related entities on the cost, quality, and accessibility of
374health care.
375     (b)  The agency may collect such data from any health
376facility or licensed health care provider as a special study.
377     (5)  The agency shall develop and implement a strategy for
378the adoption and use of electronic health records. The agency
379may develop rules to facilitate the functionality and protect
380the confidentiality of electronic health records. The agency
381shall report to the Governor, the President of the Senate, and
382the Speaker of the House of Representatives on legislative
383recommendations to protect the confidentiality of electronic
384health records.
385     Section 5.  Paragraph (l) is added to subsection (3) of
386section 408.05, Florida Statutes, and paragraph (a) of
387subsection (8) of said section is amended, to read:
388     408.05  State Center for Health Statistics.--
389     (3)  COMPREHENSIVE HEALTH INFORMATION SYSTEM.--In order to
390produce comparable and uniform health information and
391statistics, the agency shall perform the following functions:
392     (l)  Develop, in conjunction with the State Comprehensive
393Health Information System Advisory Council, and implement a
394long-range plan for making available performance outcome and
395financial data that will allow consumers to compare health care
396services. The performance outcomes and financial data the agency
397must make available shall include, but are not limited to,
398pharmaceuticals, physicians, health care facilities, and health
399plans and managed care entities. The agency shall submit the
400initial plan to the Governor, the President of the Senate, and
401the Speaker of the House of Representatives by March 1, 2005,
402and shall update the plan and report on the status of its
403implementation annually thereafter. The agency shall also make
404the plan and status report available to the public on its
405Internet website. As part of the plan, the agency shall identify
406the process and timeframes for implementation, any barriers to
407implementation, and recommendations of changes in the law that
408may be enacted by the Legislature to eliminate the barriers. As
409preliminary elements of the plan, the agency shall:
410     1.  Make available performance outcome and patient charge
411data collected from health care facilities pursuant to s.
412408.061. The agency shall determine which conditions and
413procedures, performance outcomes, and patient charge data to
414disclose based upon input from the council. When determining
415which conditions and procedures are to be disclosed, the council
416and the agency shall consider variation in costs, variation in
417outcomes, and magnitude of variations and other relevant
418information. When determining which performance outcomes to
419disclose, the agency:
420     a.  Shall consider such factors as volume of cases, average
421patient charges, average length of stay, complication rates,
422mortality rates, and infection rates, among other factors, which
423shall be adjusted for case mix and severity, if applicable.
424     b.  May consider such additional measures that are adopted
425by the Centers for Medicare and Medicaid Studies, National
426Quality Forum, the Joint Commission on Accreditation of
427Healthcare Organizations, and the Agency for Healthcare Research
428and Quality, or a similar national entity that establishes
429standards to measure the performance of health care providers,
430or by other states.
431
432When determining which patient charge data to disclose, the
433agency shall consider such measures as average charge, average
434net revenue per adjusted patient day, average cost per adjusted
435patient day, and average cost per admission, among other
436measures.
437     2.  Make available performance measures, benefit design,
438and premium cost data from health plans licensed pursuant to
439chapter 627 or chapter 641. The agency shall determine which
440performance outcome and member and subscriber cost data to
441disclose, based upon input from the council. When determining
442which data to disclose, the agency shall consider information
443that may be required by either individual or group purchasers to
444assess the value of the product, which may include membership
445satisfaction, quality of care, current enrollment or membership,
446coverage areas, accreditation status, premium costs, plan costs,
447premium increases, range of benefits, copayments and
448deductibles, accuracy and speed of claims payment, credentials
449of physicians, number of providers, names of network providers,
450and hospitals in the network. Health plans shall make available
451to the agency any such data or information that is not currently
452reported to the agency or the office.
453     3.  Determine the method and format for public disclosure
454of data reported pursuant to this paragraph. The agency shall
455make its determination based upon input from the Comprehensive
456Health Information System Advisory Council. At a minimum, the
457data shall be made available on the agency's Internet website in
458a manner that allows consumers to conduct an interactive search
459that allows them to view and compare the information for
460specific providers. The Internet website must include such
461additional information as is determined necessary to ensure that
462the website enhances informed decisionmaking among consumers and
463health care purchasers, which shall include, at a minimum,
464appropriate guidance on how to use the data and an explanation
465of why the data may vary from provider to provider. The data
466specified in subparagraph 1. shall be released no later than
467March 1, 2005. The data specified in subparagraph 2. shall be
468released no later than March 1, 2006.
469     (8)  STATE COMPREHENSIVE HEALTH INFORMATION SYSTEM ADVISORY
470COUNCIL.--
471     (a)  There is established in the agency the State
472Comprehensive Health Information System Advisory Council to
473assist the center in reviewing the comprehensive health
474information system and to recommend improvements for such
475system. The council shall consist of the following members:
476     1.  An employee of the Executive Office of the Governor, to
477be appointed by the Governor.
478     2.  An employee of the Office of Insurance Regulation
479Department of Financial Services, to be appointed by the Chief
480Financial Officer.
481     3.  An employee of the Department of Education, to be
482appointed by the Commissioner of Education.
483     4.  Ten persons, to be appointed by the Secretary of Health
484Care Administration, representing other state and local
485agencies, state universities, the Florida Association of
486Business/Health Coalitions, local health councils, professional
487health-care-related associations, consumers, and purchasers.
488     Section 6.  Subsection (3) of section 409.9066, Florida
489Statutes, is amended to read:
490     409.9066  Medicare prescription discount program.--
491     (3)  The Agency for Health Care Administration shall
492publish, on a free website available to the public, the most
493recent average wholesale prices for the 200 drugs most
494frequently dispensed to the elderly and, to the extent possible,
495shall provide a mechanism that consumers may use to calculate
496the retail price and the price that should be paid after the
497discount required in subsection (1) is applied. The agency shall
498provide retail information by geographic area and retail
499information by provider within geographical areas.
500     Section 7.  Section 465.0244, Florida Statutes, is created
501to read:
502     465.0244  Information disclosure.--Every pharmacy shall
503make available on its Internet website a link to the financial
504data that is published by the Agency for Health Care
505Administration pursuant to ss. 408.06 and 409.9066 and shall
506place in the area where customers receive filled prescriptions
507notice that such information is available electronically and the
508Internet address.
509     Section 8.  Section 627.6499, Florida Statutes, is amended
510to read:
511     627.6499  Reporting by insurers and third-party
512administrators.--
513     (1)  The office may require any insurer, third-party
514administrator, or service company to report any information
515reasonably required to assist the board in assessing insurers as
516required by this act.
517     (2)  Each health insurance issuer shall make available on
518its Internet website a link to the performance outcome and
519financial data that is published by the Agency for Health Care
520Administration pursuant to s. 408.05, and shall include in every
521policy delivered or issued for delivery to any person in the
522state or any materials provided as required by s. 627.64725,
523notice that such information is available electronically and the
524Internet address.
525     Section 9.  Subsections (6) and (7) are added to section
526641.54, Florida Statutes, to read:
527     641.54  Information disclosure.--
528     (6)  Each health maintenance organization shall make
529available to its subscribers the estimated copay, coinsurance
530percentage, or deductible, whichever is applicable, for any
531covered services, the status of the subscriber's maximum annual
532out-of-pocket payments for a covered individual or family, and
533the status of the subscriber's maximum lifetime benefit. Such
534estimate shall not preclude the actual copay, coinsurance
535percentage, or deductible, whichever is applicable, from
536exceeding the estimate.
537     (7)  Each health maintenance organization shall make
538available on its Internet website a link to the performance
539outcome and financial data that is published by the Agency for
540Health Care Administration pursuant to s. 408.05, and shall
541include in every policy delivered or issued for delivery to any
542person in the state or any materials provided as required by s.
543627.64725, notice that such information is available
544electronically and the Internet address.
545     Section 10.  The Agency for Health Care Administration
546shall adopt all rules necessary to implement this act no later
547than January 1, 2005.
548     Section 11.  This act shall take effect upon becoming a
549law.


CODING: Words stricken are deletions; words underlined are additions.