191—40.5(514B) Quality of care. Each HMO shall:
	40.5(1) Provide primary care physicians’ services commensurate with the need of the enrollees, but at a level of not less than that established in the community.
	40.5(2) Advise the insurance division annually pursuant to Iowa Code section 514B.12 of the ratio of full-time equivalent physicians, paramedical and ancillary health personnel to enrollees and fee-for-service patients. Changes in the physician ratios shall be immediately reported together with action taken to correct any deficiencies in the ratios.
	40.5(3) Provide assurance that all physicians, paramedical and ancillary health personnel engaged in the provisions of health services to enrollees and fee-for-service patients are currently licensed or certified by the appropriate state agency where they are located to practice their respective profession. These personnel shall be no less qualified in their respective profession than the current level of qualification, which is maintained in their community.
	40.5(4) When health care facilities are utilized by the health maintenance organization, these facilities shall be licensed by the appropriate state agency where they are located. These facilities shall be either accredited by the Joint Commission on Accreditation of Hospitals or the American Osteopathic Association; or they shall be certified as a provider for Medicare or Medicaid.
	40.5(5) Have a qualified administrator designated by the governing body who shall be responsible for the management of the HMO.
	40.5(6) Have a formally organized medical staff.
	40.5(7) Have a chief of the medical staff designated by the governing body who shall be responsible for the development of medical staff bylaws, rules which shall include assurance to enrollees that a continuum of health care services will be provided without unreasonable periods of delay.
	40.5(8) Provide for an ongoing internal peer review program.
	40.5(9) Each HMO shall provide a continuous program of general health education for disease prevention and identification without additional cost to the enrollee. Such a program may include publications, media presentations, and classroom instruction. Programs of wellness education including stress management, smoking cessation, nutritional education, physical fitness programs, and other such programs as approved by the division of insurance shall be open to all enrollees on a voluntary basis and may be subject to a copayment requirement. These programs shall be conducted by qualified personnel.
The HMO must periodically remind and encourage the enrollees of an HMO to utilize benefits including physical examinations which are available and designed to prevent illness. The HMO must also offer periodic screening programs which in the opinion of the medical staff would effectively identify conditions indicative of a health problem. These periodic screening programs shall not carry a copayment. Each HMO shall keep a record of all activities it has conducted to satisfy this requirement and the cost thereof.
	40.5(10) Maintain a medical records system which includes at a minimum the following information:
	a. 	Documentation of utilization rates for every enrollee.
	b. 	Patient’s name, identification number, age, sex, and place of residence and employment.
	c. 	Services provided, when provided, where provided, and by whom.
	d. 	Medical diagnosis, treatment prescribed, therapy prescribed and drugs administered.
	e. 	Statement in regard to the status of the patient’s health.
	40.5(11) Provide by contract or other arrangement for peer reviews. The plans for internal and external peer review shall be submitted to the commissioner of insurance for approval.
	a. 	Internal peer review shall be conducted by the HMO staff on a continuing basis using Joint Commission on Accreditation of Hospitals, American Osteopathic Association, or American Dental Association, if appropriate, standards as a general guide and shall be structured to review the total episode of illness that the HMO is responsible for. The HMO staff may use parts of the total episode of illness peer review done by other internal review committees to avoid duplication of work. This review shall include but not be limited to the following:
	(1)	Utilization review and evaluation of the quality of care provided enrollees.
	(2)	The process or method by which care is given.
	(3)	The outcome of care including the morbidity and mortality rates that result.
	b. 	External review—criteria and methodology for the selection of an external review group (ERG):
	(1)	Application to be the ERG may be made in the form of a letter to the commissioner of insurance, describing the qualifications of the ERG and how the ERG meets the criteria set forth in this rule.
	(2)	Deleted per agency memo, 9/29/93 IAC.
	(3)	The commissioner shall invite an application from any ERG upon the request of any HMO.
	(4)	The commissioner may also invite applications from any group which might have the capability of carrying out a review.
	(5)	The commissioner will consider all applications and appoint one, based on the following criteria:
	1.	The group’s experience in evaluating the quality of medical care.
	2.	The degree to which the group is representative of the licensed physician community in Iowa.
	3.	The degree to which the group is knowledgeable about the health delivery system in Iowa.
	4.	The degree to which selection of the group will avoid duplication with other review activities in Iowa.
	5.	The group’s ability to coordinate its activities with other review groups, and with practitioners and providers of health care in Iowa.
	6.	The group’s knowledge of current and accepted medical opinion, and its ability to make qualitative evaluations of clinical practice.
	7.	The degree to which at least 50 percent of the physician members of the group (or that part of the group responsible for HMO inspections) are members of an HMO medical staff.
	(6)	No physician shall review an HMO of which the physician is a member.
	(7)	Appointment of an ERG will be for a four-year period, and only one ERG will be appointed at a time. Applications for appointment or reappointment will be accepted between 180 days and 90 days before the expiration of the acting ERG’s four-year term.
	c. 	External review—criteria and methodology by which an ERG will evaluate the effectiveness of an HMO’s peer review program:
	(1)	The ERG will conduct an on-site inspection of each Iowa-certified HMO every two years, or on a schedule requested by the health department.
	(2)	The inspection will consist of interviewing HMO staff and physicians, and a review of such records (including clinical records of HMO patients) the ERG determines are necessary to conduct its inspection. The records may include any records or parts thereof maintained by the HMO or any of its physician members which pertain to HMO quality assurance operations or HMO patients, excluding financial records.
	(3)	The function of the ERG will be to make a qualitative evaluation of the effectiveness of an HMO’s internal peer review program, and to report its findings to the health department.
	(4)	The following items will be considered by the ERG in making its determination:
	1.	The extent and acuity of the HMO’s peer review program in evaluating the clinical management of enrollees provided by HMO physicians.
	2.	The ability of the HMO’s program to identify aberrant practices in clinical management, and to take appropriate disciplinary action
	3.	The method within the HMO by which the peer review program reports its findings to the medical staff and the governing body.
	4.	The authority with the HMO to correct practices which the peer review program has found to be detrimental.
	5.	The system developed within the HMO to facilitate the work of the peer review program.
	6.	The commitment on the part of the HMO governing body and medical staff toward an active peer review program with a goal of quality assurance.
	d. 	External review—procedures to be followed upon completion of an ERG’s inspection:
	(1)	Within 30 days of the completion of its inspection, the ERG will submit a written report of its findings to the HMO.
	(2)	The HMO will have 45 days to respond to the ERG.
	(3)	The ERG must file its final report with the insurance division within 90 days of the completion of its inspection. The final report must include any comments received from the HMO.
	(4)	The insurance division may extend the time periods referred to in this paragraph “d,” subparagraphs (1) to (3).
	(5)	After considering the report of the ERG, the insurance commissioner shall determine if the HMO’s certificate of authority is to be either continued, suspended or revoked.
This rule is intended to implement Iowa Code section 514B.4.