Florida Senate - 2008 (Reformatted) SB 1012

By Senator Gaetz

4-02808-08 20081012__

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A bill to be entitled

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An act relating to health insurance claims payments;

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amending ss. 627.6131 and 641.31, F.S.; prohibiting health

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insurance contracts and health maintenance contracts from

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prohibiting or restricting insureds from assigning plan

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benefits to certain noncontract providers for certain

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covered services; requiring payment by an insurer of plan

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benefits under assignment and acceptance by noncontract

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providers; requiring noncontract providers accepting such

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assignments to accept any payments from plan benefit

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insurers and prohibiting such providers from collecting

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any balances from insureds; amending s. 627.6471, F.S.;

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prohibiting insurers and plan administrators from

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reimbursing preferred providers at alternative or reduced

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rates for covered services under certain circumstances;

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providing exceptions; prohibiting preferred provider

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contract parties from selling, leasing, or transferring

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contract payment or reimbursement terms information under

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

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prohibiting health maintenance organizations from selling,

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leasing, or transferring contract payment or reimbursement

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terms information under certain circumstances; amending s.

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641.3155, F.S.; decreasing the period of time authorized

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for overpayment claims of health maintenance organizations

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against providers; providing an effective date.

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

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     Section 1.  Subsection (18) is added to section 627.6131,

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Florida Statutes, to read:

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     627.6131  Payment of claims.--

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     (18)(a) A contract with a health insurer may not prohibit

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or restrict an insured from assigning plan benefits to providers

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not under contract with the insurer for covered health care

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services rendered by the provider to the insured.

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     (b) Any assignment by an insured of plan benefits which

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designates that the assignment has been accepted by a provider

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not under contract with the health insurer must be paid to the

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provider pursuant to this section.

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     (c) Except for providers who are providing services

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pursuant to ss. 395.1041 and 401.45, any provider who accepts an

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assignment pursuant to this subsection agrees, by submitting the

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claim to the health insurer, to accept the amount paid by the

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health insurer as payment in full for the health care services

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provided and to not collect any balance from the insured.

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     Section 2.  Subsection (7) is added to section 627.6471,

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Florida Statutes, to read:

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     627.6471  Contracts for reduced rates of payment;

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limitations; coinsurance and deductibles.--

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     (7)(a) An insurer or an administrator may not reimburse a

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preferred provider at an alternative or a reduced rate of payment

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for covered services that are provided to an insured unless:

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     1. The insurer or administrator has contracted with the

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preferred provider and has agreed to provide coverage for those

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health care services under the health insurance policy.

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     2. The preferred provider has agreed to the contract and to

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provide health care services under the terms of the contract.

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     (b) A party to a preferred provider contract may not sell,

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lease, or otherwise transfer information regarding the payment or

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reimbursement terms of the contract without the express authority

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of and prior adequate notification to the other contracting

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parties.

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     Section 3.  Subsection (41) is added to section 641.31,

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Florida Statutes, to read:

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     641.31  Health maintenance contracts.--

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     (41)(a) A health maintenance organization contract may not

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prohibit or restrict a subscriber from assigning plan benefits to

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providers not under contract with the organization for covered

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health care services rendered by the provider to the subscriber.

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     (b) Any assignment by a subscriber of plan benefits which

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designates that the assignment has been accepted by a provider

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not under contract with the organization must be paid to the

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provider pursuant to s. 641.3155.

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     (c) Except for providers providing service pursuant to s.

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641.513, any provider who accepts an assignment pursuant to this

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subsection agrees, by submitting the claim to the health

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maintenance organization, to accept the amount paid by the health

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maintenance organization as payment in full for the health care

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services provided and to not collect any balance from the

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subscriber.

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     Section 4.  Subsection (11) is added to section 641.315,

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Florida Statutes, to read:

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     641.315  Provider contracts.--

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     (11) A health maintenance organization may not sell, lease,

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or otherwise transfer information regarding the payment of

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reimbursement terms of a contract with a health care practitioner

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without the express authority of and prior adequate notification

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to the contracting parties.

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     Section 5.  Subsection (5) of section 641.3155, Florida

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Statutes, is amended to read:

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     641.3155  Prompt payment of claims.--

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     (5)  If a health maintenance organization determines that it

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has made an overpayment to a provider for services rendered to a

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subscriber, the health maintenance organization must make a claim

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for such overpayment to the provider's designated location. A

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health maintenance organization that makes a claim for

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overpayment to a provider under this section shall give the

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provider a written or electronic statement specifying the basis

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for the retroactive denial or payment adjustment. The health

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maintenance organization must identify the claim or claims, or

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overpayment claim portion thereof, for which a claim for

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overpayment is submitted.

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     (a)  If an overpayment determination is the result of

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retroactive review or audit of coverage decisions or payment

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levels not related to fraud, a health maintenance organization

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shall adhere to the following procedures:

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     1.  All claims for overpayment must be submitted to a

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provider within 6 30 months after the health maintenance

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organization's payment of the claim. A provider must pay, deny,

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or contest the health maintenance organization's claim for

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overpayment within 40 days after the receipt of the claim. All

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contested claims for overpayment must be paid or denied within

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120 days after receipt of the claim. Failure to pay or deny

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overpayment and claim within 140 days after receipt creates an

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uncontestable obligation to pay the claim.

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     2.  A provider that denies or contests a health maintenance

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organization's claim for overpayment or any portion of a claim

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shall notify the organization, in writing, within 35 days after

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the provider receives the claim that the claim for overpayment is

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contested or denied. The notice that the claim for overpayment is

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denied or contested must identify the contested portion of the

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claim and the specific reason for contesting or denying the claim

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and, if contested, must include a request for additional

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information. If the organization submits additional information,

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the organization must, within 35 days after receipt of the

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request, mail or electronically transfer the information to the

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provider. The provider shall pay or deny the claim for

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overpayment within 45 days after receipt of the information. The

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notice is considered made on the date the notice is mailed or

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electronically transferred by the provider.

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     3.  The health maintenance organization may not reduce

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payment to the provider for other services unless the provider

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agrees to the reduction in writing or fails to respond to the

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health maintenance organization's overpayment claim as required

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by this paragraph.

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     4.  Payment of an overpayment claim is considered made on

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the date the payment was mailed or electronically transferred. An

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overdue payment of a claim bears simple interest at the rate of

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12 percent per year. Interest on an overdue payment for a claim

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for an overpayment payment begins to accrue when the claim should

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have been paid, denied, or contested.

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     (b) A claim for overpayment shall not be permitted beyond 6

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30 months after the health maintenance organization's payment of

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a claim, except that claims for overpayment may be sought beyond

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that time from providers convicted of fraud pursuant to s.

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817.234.

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     Section 6.  This act shall take effect July 1, 2008.

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