House Bill hb0181

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    Florida House of Representatives - 2002                 HB 181

        By Representative Negron






  1                      A bill to be entitled

  2         An act relating to health maintenance

  3         organization contracts with health care

  4         providers; creating s. 408.7058, F.S.;

  5         providing definitions; requiring the Agency for

  6         Health Care Administration to establish a

  7         statewide health care provider and health

  8         maintenance organization qualification dispute

  9         resolution program; providing criteria and

10         requirements; requiring the agency to contract

11         with a resolution organization for certain

12         purposes; requiring the agency to establish

13         procedures for the resolution organization's

14         consideration of qualification disputes;

15         providing for final orders by the agency;

16         providing for payment of review costs under

17         certain circumstances; providing a penalty

18         under certain circumstances; authorizing the

19         agency to adopt rules; amending s. 641.315,

20         F.S.; deleting obsolete provisions relating to

21         provider contracts; revising provisions

22         providing for termination of a provider

23         contract by a health maintenance organization;

24         providing criteria, requirements, and

25         limitations; specifying notice requirements;

26         amending s. 627.6474, F.S.; specifying

27         requirements for certain contracts; prohibiting

28         certain insurers from refusing to enter into or

29         renew contracts with certain health care

30         providers; specifying requirements and

31         limitations for terminating certain contracts;

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  1         specifying notice requirements; providing

  2         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, is

  7  created to read:

  8         408.7058  Statewide health care provider and health

  9  maintenance organization qualification dispute resolution

10  program.--

11         (1)  As used in this section:

12         (a)  "Agency" means the Agency for Health Care

13  Administration.

14         (b)  "Health care provider" or "provider" means any

15  health care practitioner as defined in s. 456.001.

16         (c)  "Health insurer" or "insurer" means an entity

17  licensed under chapter 627.

18         (d)  "Health maintenance organization" or

19  "organization" means an organization certified under part I of

20  chapter 641.

21         (e)  "Qualification dispute" means any dispute between

22  an organization and a provider as to whether the provider

23  meets the organization's written qualification requirements

24  provided to the provider pursuant to s. 641.315(10).

25         (f)  "Resolution organization" means a qualified

26  independent third-party claim dispute resolution entity

27  selected by and contracted with the agency.

28         (2)(a)  The agency shall establish a program by January

29  1, 2003, to provide assistance to contracted and noncontracted

30  providers for resolution of qualification disputes that are

31  not resolved by a provider and an organization. The agency

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  1  shall contract with a resolution organization to timely review

  2  and consider qualification disputes submitted by providers and

  3  recommend to the agency an appropriate resolution of those

  4  disputes.

  5         (b)  The resolution organization shall review

  6  qualification disputes filed by contracted and noncontracted

  7  providers unless the dispute is the basis for an action

  8  pending in state or federal court.

  9         (3)  The agency shall adopt rules to establish a

10  process to be used by the resolution organization in

11  considering qualification disputes submitted by a provider

12  which must include the issuance by the resolution organization

13  of a written recommendation, supported by findings of fact, to

14  the agency within 60 days after receipt of the dispute

15  submission. The written recommendation may include a

16  recommendation that a contract between the provider and the

17  organization not be terminated by the organization.

18         (4)  Within 30 days after receipt of the recommendation

19  of the resolution organization, the agency shall adopt the

20  recommendation as a final order.

21         (5)  The entity that does not prevail in the agency's

22  order shall pay a review cost to the review organization, as

23  determined by agency rule. If the nonprevailing party fails to

24  pay the ordered review cost within 35 days after the agency's

25  order, the nonpaying party is subject to a penalty of not more

26  than $500 per day until the penalty is paid.

27         (6)  The agency may adopt rules to administer this

28  section.

29         Section 2.  Section 641.315, Florida Statutes, is

30  amended to read:

31         641.315  Provider contracts.--

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  1         (1)  Each contract between a health maintenance

  2  organization and a provider of health care services must be in

  3  writing and must contain a provision that the subscriber is

  4  not liable to the provider for any services for which the

  5  health maintenance organization is liable as specified in s.

  6  641.3154.

  7         (2)(a)  For All provider contracts executed after

  8  October 1, 1991, and within 180 days after October 1, 1991,

  9  for contracts in existence as of October 1, 1991:

10         1.  The contracts must require the provider to give 60

11  days' advance written notice to the health maintenance

12  organization and the department before canceling the contract

13  with the health maintenance organization for any reason; and

14         2.  The contract must also provide that nonpayment for

15  goods or services rendered by the provider to the health

16  maintenance organization is not a valid reason for avoiding

17  the 60-day advance notice of cancellation.

18         (b)  All provider contracts must provide that the

19  health maintenance organization will provide 60 days' advance

20  written notice to the provider and the department before

21  canceling, without cause, the contract with the provider,

22  except in a case in which a patient's health is subject to

23  imminent danger or a physician's ability to practice medicine

24  is effectively impaired by an action by the Board of Medicine

25  or other governmental agency.

26         (3)  Upon receipt by the health maintenance

27  organization of a 60-day cancellation notice, the health

28  maintenance organization may, if requested by the provider,

29  terminate the contract in less than 60 days if the health

30  maintenance organization is not financially impaired or

31  insolvent.

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  1         (3)(4)  Whenever a contract exists between a health

  2  maintenance organization and a provider, the health

  3  maintenance organization shall disclose to the provider:

  4         (a)  The mailing address or electronic address where

  5  claims should be sent for processing;

  6         (b)  The telephone number that a provider may call to

  7  have questions and concerns regarding claims addressed; and

  8         (c)  The address of any separate claims-processing

  9  centers for specific types of services.

10

11  A health maintenance organization shall provide to its

12  contracted providers no less than 30 calendar days' prior

13  written notice of any changes in the information required in

14  this subsection.

15         (4)(5)  A contract between a health maintenance

16  organization and a provider of health care services shall not

17  contain any provision restricting the provider's ability to

18  communicate information to the provider's patient regarding

19  medical care or treatment options for the patient when the

20  provider deems knowledge of such information by the patient to

21  be in the best interest of the health of the patient.

22         (5)(6)  A contract between a health maintenance

23  organization and a provider of health care services may not

24  contain any provision that in any way prohibits or restricts:

25         (a)  The health care provider from entering into a

26  commercial contract with any other health maintenance

27  organization; or

28         (b)  The health maintenance organization from entering

29  into a commercial contract with any other health care

30  provider.

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  1         (6)(a)(7)  A health maintenance organization or health

  2  care provider may not terminate a contract with a health care

  3  provider or health maintenance organization unless the party

  4  terminating the contract provides the terminated party with a

  5  written reason for the proposed contract termination, which

  6  may include termination for business reasons of the

  7  terminating party. The reason provided in the notice required

  8  in this section or any other information relating to the

  9  reason for termination does not create any new administrative

10  or civil action and may not be used as substantive evidence in

11  any such action, but may be used for impeachment purposes. As

12  used in this subsection, the term "health care provider" means

13  a physician licensed under chapter 458, chapter 459, chapter

14  460, or chapter 461, or a dentist licensed under chapter 466.

15         (b)  A health maintenance organization may terminate a

16  contract with a health care provider only if the provider

17  fails to comply with the organization's written terms and

18  conditions provided to the provider pursuant to subsection

19  (10). If an organization proposes to terminate a contract with

20  a provider, the organization shall provide the provider with

21  60 days' advance written notice of its intent to terminate the

22  provider's contract.  This paragraph does not apply in cases

23  involving imminent harm to patient health or a final

24  disciplinary action by the provider's licensing board or other

25  governmental agency which impairs the provider's ability to

26  practice within the jurisdiction.

27         (c)  If a health maintenance organization proposes to

28  terminate a contract of a health care provider pursuant to

29  this subsection, the organization shall not notify the

30  provider's patients of the proposed termination until the

31  effective date of the termination or the conclusion of the

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  1  review or hearing provided in this section, whichever occurs

  2  later. If a provider's contract is terminated for reasons

  3  related to imminent harm to patient health, or a final

  4  disciplinary action by the provider's licensing board or other

  5  governmental agency, which impairs the provider's ability to

  6  practice within the jurisdiction, the organization may notify

  7  the provider's patients immediately.

  8         (d)  The notice of the proposed contract termination

  9  provided by the health maintenance organization to the health

10  care provider shall include:

11         1.  The specific term and condition established by the

12  organization that the organization alleges has been breached

13  by the provider which serves as the reason for the proposed

14  termination.

15         2.  Notice that the provider has the right to request a

16  review before the statewide provider and health maintenance

17  organization qualification dispute resolution program created

18  under s. 408.7058.

19         3.  A time limit of not less than 30 days within which

20  a provider may request a review.

21         (e)  If a health care provider requests a review as

22  provided in paragraph (d), the health maintenance organization

23  shall provide to the provider a written notice that states the

24  names of the witnesses, if any, expected to testify at the

25  hearing on behalf of the organization.

26         (7)(8)  The health maintenance organization must

27  establish written procedures for a contract provider to

28  request and the health maintenance organization to grant

29  authorization for utilization of health care services. The

30  health maintenance organization must give written notice to

31  the contract provider prior to any change in these procedures.

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  1         (8)(9)  A contract between a health maintenance

  2  organization and a contracted primary care or admitting

  3  physician may not contain any provision that prohibits such

  4  physician from providing inpatient services in a contracted

  5  hospital to a subscriber if such services are determined by

  6  the organization to be medically necessary and covered

  7  services under the organization's contract with the contract

  8  holder.

  9         (9)(10)  A health maintenance organization shall not

10  require a contracted health care practitioner as defined in s.

11  456.001(4) to accept the terms of other health care

12  practitioner contracts with the health maintenance

13  organization or any insurer, or other health maintenance

14  organization, under common management and control with the

15  health maintenance organization, including Medicare and

16  Medicaid practitioner contracts and those authorized by s.

17  627.6471, s. 627.6472, or s. 641.315, except for a

18  practitioner in a group practice as defined in s. 456.053 who

19  must accept the terms of a contract negotiated for the

20  practitioner by the group, as a condition of continuation or

21  renewal of the contract. Any contract provision that violates

22  this section is void. A violation of this section is not

23  subject to the criminal penalty specified in s. 624.15.

24         (10)  Each contract between a health maintenance

25  organization and a health care provider shall contain the

26  organization's terms and conditions that must be met by

27  providers contracting with the organization. The

28  organization's terms and conditions for contracting with the

29  organization may not be modified or amended, in any way, by

30  the organization during the term of the contract between the

31  organization and the provider. The provisions of this

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  1  subsection may not be waived, voided, or nullified by

  2  contract.

  3         (11)  A health maintenance organization which has a

  4  market share of over 25 percent in a county in any of its

  5  health maintenance organization plans shall not refuse to

  6  enter into or renew a contract under such plan with any

  7  licensed health care provider who is willing to meet the terms

  8  and conditions established by the organization pursuant to

  9  subsection (10), who practices within the geographic area

10  served by the organization, and whose credentials are verified

11  and examined by the organization pursuant to s. 641.495(6).

12         Section 3.  Section 627.6474, Florida Statutes, is

13  amended to read:

14         627.6474  Provider contracts.--

15         (1)  A health insurer shall not require a contracted

16  health care practitioner as defined in s. 456.001(4) to accept

17  the terms of other health care practitioner contracts with the

18  insurer or any other insurer, or health maintenance

19  organization, under common management and control with the

20  insurer, including Medicare and Medicaid practitioner

21  contracts and those authorized by s. 627.6471, s. 627.6472, or

22  s. 641.315, except for a practitioner in a group practice as

23  defined in s. 456.053 who must accept the terms of a contract

24  negotiated for the practitioner by the group, as a condition

25  of continuation or renewal of the contract. Any contract

26  provision that violates this subsection section is void. A

27  violation of this subsection section is not subject to the

28  criminal penalty specified in s. 624.15.

29         (2)  Each contract between a health insurer and a

30  health care provider shall contain the insurer's terms and

31  conditions that must be met by providers contracting with the

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  1  insurer. The insurer's terms and conditions for contracting

  2  with a provider may not be modified or amended, in any way, by

  3  the insurer during the term of the contract between the

  4  insurer and the provider.

  5         (3)  A health insurer which has a market share of over

  6  25 percent in a county in any of its plans shall not refuse to

  7  enter into or renew a contract under such plan with any

  8  licensed health care provider who is willing to meet the terms

  9  and conditions established by the insurer pursuant to

10  subsection (2), who practices within the geographic area

11  served by the insurer, and whose credentials are verified and

12  examined by the insurer's system for verification and

13  examination of the credentials of each of its providers.

14         (4)(a)  A health insurer or health care provider may

15  not terminate a contract with a health care provider or health

16  insurer unless the party terminating the contract provides the

17  terminated party with a written reason for the proposed

18  termination.

19         (b)  A health insurer may terminate a contract with a

20  health care provider only if the provider fails to comply with

21  the insurer's written terms and conditions that have been

22  provided to the provider pursuant to subsection (2). If an

23  insurer proposes to terminate a contract with a provider, the

24  insurer shall provide the provider with 60 days' advance

25  written notice of the insurer's intent to terminate the

26  provider's contract.  This paragraph does not apply in cases

27  involving imminent harm to patient health or a final

28  disciplinary action by the provider's licensing board or other

29  governmental agency which impairs the provider's ability to

30  practice within the jurisdiction.

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  1         (c)  If a health insurer proposes to terminate a

  2  contract of a health care provider, the insurer shall not

  3  notify the provider's patients of the proposed termination

  4  until the effective date of the termination or the conclusion

  5  of the review or hearing provided in this section, whichever

  6  occurs later. If a provider's contract is terminated for

  7  reasons related to imminent harm to patient health or a final

  8  disciplinary action by the provider's licensing board or other

  9  governmental agency which impairs the provider's ability to

10  practice within the jurisdiction, the insurer may notify the

11  provider's patients immediately.

12         (d)  The notice of the proposed contract termination

13  provided by the health insurer to the health care provider

14  shall include:

15         1.  The specific term and condition established by the

16  insurer that the insurer alleges has been breached by the

17  provider which serves as the reason for the proposed

18  termination.

19         2.  Notice that the provider has the right to request a

20  review before the statewide provider and insurer qualification

21  dispute resolution program created pursuant to s. 408.7058.

22         3.  A time limit of not less than 30 days within which

23  a provider may request a review.

24         (e)  If the health care provider requests a review, the

25  provider shall be provided a written notice that states the

26  names of the witnesses, if any, expected to testify at the

27  hearing on behalf of the insurer.

28         (5)  The provisions of this section shall apply to

29  contracts entered into pursuant to s. 627.6471 or s. 627.6472.

30  The provisions of this section may not be waived, voided, or

31  nullified by contract.

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  1         Section 4.  This act shall take effect July 1, 2002.

  2

  3            *****************************************

  4                          HOUSE SUMMARY

  5
      Requires the Agency for Health Care Administration to
  6    establish a statewide health care provider and health
      maintenance organization qualification dispute resolution
  7    program to resolve contract disputes between health care
      providers and health maintenance organizations. Revises
  8    provisions for termination by a health maintenance
      organization of a contract with a health care provider.
  9    See bill for details.

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