Senate Bill sb2486

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    Florida Senate - 2002                                  SB 2486

    By Senator Dyer





    14-7A-02

  1                      A bill to be entitled

  2         An act relating to mental health; amending s.

  3         627.688, F.S.; creating the "Chris G. Mental

  4         Health Parity Act"; providing definitions;

  5         providing requirements for insurance coverage

  6         for mental health services; providing for the

  7         construction of the act; providing an exemption

  8         for small employers and for certain plans that

  9         provide both in-network and out-of-network

10         benefits; requiring the Chief Financial Officer

11         to study the effects of the requirements

12         established under the act and to report to the

13         Legislature; providing an effective date.

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

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17         Section 1.  Section 627.668, Florida Statutes, is

18  amended to read:

19         (Substantial rewording of section. See

20         s. 627.668, F.S., for present text.)

21         627.668  Mental health parity; short title; coverage

22  requirements; construction; exemption.--

23         (1)  This section may be cited as the "Chris G. Mental

24  Health Parity Act."

25         (2)  DEFINITIONS.--As used in this section, the term:

26         (a)  "Financial requirements" includes deductibles,

27  coinsurance, copayments, other cost-sharing, and limitations

28  on the total amount that may be paid by a participant or

29  beneficiary with respect to benefits under a group health

30  insurance plan or prepaid health care plan and includes the

31  application of annual and lifetime limits.

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    Florida Senate - 2002                                  SB 2486
    14-7A-02




  1         (b)  "Medical or surgical benefits" means benefits with

  2  respect to medical or surgical services, as defined under the

  3  terms of the group health insurance plan or prepaid health

  4  care plan, but does not include mental health benefits.

  5         (c)  "Mental health benefits" means benefits with

  6  respect to services, as defined under the terms and conditions

  7  of the group health insurance plan or prepaid health care

  8  plan, for all categories of mental health conditions listed in

  9  the Diagnostic and Statistical Manual of Mental Disorders, 4th

10  edition (DSM IV-TR) or the most recent edition, if such

11  services are included as part of an authorized treatment plan

12  that is in accordance with standard protocols and if such

13  services meet the plan's or the issuer's medical-necessity

14  criteria. The term "mental health benefits" does not include

15  benefits applicable to the treatment of substance abuse or of

16  chemical dependency.

17         (d)  "Treatment limitations" means limitations on the

18  frequency of treatment, number of visits or days of coverage,

19  or other similar limits on the duration or scope of treatment

20  under the group health insurance plan or prepaid health care

21  plan.

22         (3)  REQUIREMENTS.--If an insurer, health maintenance

23  organization, or nonprofit hospital and medical service plan

24  corporation that transacts group health insurance or provides

25  prepaid health care in this state provides both medical and

26  surgical benefits and mental health benefits, the provider may

27  not impose any treatment limitations or financial requirements

28  upon the coverage of benefits for mental illness unless

29  comparable treatment limitations or financial requirements are

30  imposed on medical and surgical benefits.

31         (4)  CONSTRUCTION.--

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    Florida Senate - 2002                                  SB 2486
    14-7A-02




  1         (a)  This section does not require a provider of group

  2  health insurance or of prepaid health care to provide any

  3  mental health benefits.

  4         (b)  Consistent with subsection (3), this section does

  5  not prohibit the medical management of mental health benefits

  6  by means including, but not limited to, concurrent and

  7  retrospective utilization review and utilization-management

  8  practices, preauthorization, and the application of

  9  medical-necessity and appropriateness criteria applicable to

10  behavioral health, nor does this section prohibit the

11  contracting with and use of a network of participating

12  providers.

13         (c)  This section does not require a provider of group

14  health insurance or of prepaid health care to provide coverage

15  for specific mental health services, except to the extent that

16  the failure to cover such services would result in a disparity

17  between the coverage of mental health benefits and of medical

18  and surgical benefits.

19         (5)  EXEMPTIONS.--

20         (a)  This section is inapplicable to any group health

21  insurance plan or prepaid health care plan that is offered by

22  a small employer. As used in this subsection, the term "small

23  employer" means an employer whose average number of employees

24  on business days during the preceding calendar year was no

25  more than 50 employees.

26         (b)  In determining an employer's average number of

27  employees for the purpose of exempting the employer under

28  paragraph (a):

29         1.  The term "single employer" has the meaning set

30  forth in subsections (b), (c), (m), and (o) of section 414 of

31  the Internal Revenue Code of 1986, as amended.

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    Florida Senate - 2002                                  SB 2486
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  1         2.  With respect to an employer that was not in

  2  existence throughout the preceding calendar year, the

  3  determination of whether the employer is a small employer must

  4  be based on the average number of employees which the employer

  5  is reasonably expected to employ on business days in the

  6  current calendar year.

  7         3.  The term "employer" includes any predecessor of an

  8  employer.

  9         4.  If a group health insurance plan or prepaid health

10  care plan offers to a participant or beneficiary two or more

11  benefit-package options under the plan, the requirements of

12  this section apply separately to each such option.

13         5.  If a group health insurance plan or prepaid health

14  care plan provides in-network mental health benefits, it may

15  provide out-of-network mental health benefits having treatment

16  limitations or financial requirements that are not comparable

17  to the limitations and requirements applicable to medical and

18  surgical benefits if the plan or coverage provides the

19  in-network mental health benefits in accordance with

20  subsection (3) and provides reasonable access to in-network

21  providers and facilities.

22         Section 2.  Study of effects of mental health parity.--

23         (1)  The Chief Financial Officer of this state shall

24  conduct a study to evaluate the effect of the implementation

25  of section 1 of this act, the "Chris G. Mental Health Parity

26  Act," on the cost of health-insurance coverage; access to

27  health-insurance coverage, including the availability of

28  in-network providers; the quality of health care; and such

29  other issues as the Chief Financial Officer considers

30  appropriate.

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    Florida Senate - 2002                                  SB 2486
    14-7A-02




  1         (2)  By July 1, 2004, the Chief Financial Officer shall

  2  prepare and submit to the appropriate committees of the

  3  Legislature a report of the results of the study conducted

  4  under subsection (1).

  5         Section 3.  This act shall take effect July 1, 2002.

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  8                          SENATE SUMMARY

  9    Creates the "Chris G. Mental Health Parity Act." Provides
      that a provider of group health insurance or of prepaid
10    health care which provides both medical and surgical
      benefits and mental health benefits may not impose any
11    treatment limitations or financial requirements upon the
      coverage of benefits for mental illness unless it imposes
12    comparable limitations or requirements on medical and
      surgical benefits. Provides for construction of the act
13    and for exemptions to the act. Requires the Chief
      Financial Officer to study the effects of the act and
14    report to the Legislature.

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