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Senate File 2234

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  514C.19  BIOLOGICALLY BASED
  1  2 MENTAL ILLNESS.
  1  3    1.  Notwithstanding the uniformity of treatment
  1  4 requirements of section 514C.6, a group policy or contract
  1  5 providing for third-party payment or prepayment of health or
  1  6 medical expenses issued by a carrier, as defined in section
  1  7 513B.2, or by an organized delivery system authorized under
  1  8 1993 Iowa Acts, chapter 158, shall provide coverage benefits
  1  9 for treatment of a biologically based mental illness if either
  1 10 of the following is satisfied:
  1 11    a.  The policy or contract is issued to an employer who
  1 12 during at least fifty percent of the employer's working days
  1 13 during the preceding calendar year, employed more than fifty
  1 14 full-time equivalent employees.  In determining the number of
  1 15 full-time equivalent employees of an employer, employers who
  1 16 are affiliated or who are able to file a consolidated tax
  1 17 return for purposes of state taxation shall be considered one
  1 18 employer.
  1 19    b.  The policy or contract is issued to a small employer as
  1 20 defined in section 513B.2, and such policy or contract
  1 21 provides coverage benefits for the treatment of mental
  1 22 illness.
  1 23    2.  Notwithstanding the uniformity of treatment
  1 24 requirements of section 514C.6, a plan established pursuant to
  1 25 chapter 509A for public employees shall provide coverage
  1 26 benefits for treatment of a biologically based mental illness.
  1 27    3.  For purposes of this section, "biologically based
  1 28 mental illness" means the following psychiatric illnesses:
  1 29    a.  Schizophrenia.
  1 30    b.  Bipolar disorders.
  1 31    c.  Major depressive disorders.
  1 32    d.  Schizo-affective disorders.
  1 33    e.  Obsessive-compulsive disorders.
  1 34    f.  Pervasive developmental disorders.
  1 35    g.  Autistic disorders.
  2  1    4.  This section shall not apply to accident only,
  2  2 specified disease, short-term hospital or medical, hospital
  2  3 confinement indemnity, credit, dental, vision, Medicare
  2  4 supplement, long-term care, basic hospital and medical-
  2  5 surgical expense coverage as defined by the commissioner,
  2  6 disability income insurance coverage, coverage issued as a
  2  7 supplement to liability insurance, workers' compensation or
  2  8 similar insurance, or automobile medical payment insurance, or
  2  9 individual accident and sickness policies issued to
  2 10 individuals or to individual members of a member association.
  2 11    5.  A carrier, organized delivery system, or plan
  2 12 established pursuant to chapter 509A may manage the benefits
  2 13 provided through common methods including, but not limited to,
  2 14 providing payment of benefits or providing care and treatment
  2 15 under a capitated payment system, prospective reimbursement
  2 16 rate system, utilization control system, incentive system for
  2 17 the use of least restrictive and least costly levels of care,
  2 18 a preferred provider contract limiting choice of specific
  2 19 providers, or any other system, method, or organization
  2 20 designed to assure services are medically necessary and
  2 21 clinically appropriate.
  2 22    6.  A group policy or contract or plan covered under this
  2 23 section shall at a minimum allow for thirty inpatient days and
  2 24 fifty-two outpatient visits annually.  The policy or contract
  2 25 or plan may also include deductibles, coinsurance, or
  2 26 copayments if such deductibles, coinsurance, or copayments are
  2 27 applicable to other medical or surgical services coverage
  2 28 under the policy or contract or plan.
  2 29    7.  This section applies to third-party payment provider
  2 30 policies or contracts and plans established pursuant to
  2 31 chapter 509A delivered, issued for delivery, continued, or
  2 32 renewed in this state on or after July 1, 2001.
  2 33    Sec. 2.  MENTAL HEALTH BENEFITS.  The insurance
  2 34 commissioner, pursuant to the commissioner's authority under
  2 35 section 513B.14, shall increase the lifetime maximum benefit
  3  1 for mental health services under a standard health benefit
  3  2 plan provided under 191 IAC 71.14 from fifty thousand dollars
  3  3 to one hundred thousand dollars.  The increase shall be made
  3  4 effective for a standard health benefit plan delivered, issued
  3  5 for delivery, continued, or renewed in this state on or after
  3  6 July 1, 2000.  
  3  7                           EXPLANATION 
  3  8    This bill creates a new Code section 514C.19 and provides
  3  9 that a group policy or contract providing for third-party
  3 10 payment or prepayment of health or medical expenses issued by
  3 11 a carrier, as defined in Code section 513B.2, or by an
  3 12 organized delivery system authorized under 1993 Iowa Acts,
  3 13 chapter 158, shall provide coverage benefits for treatment of
  3 14 a biologically based mental illness if the policy or contract
  3 15 is issued to an employer who, during at least 50 percent of
  3 16 the employer's working days during the preceding calendar
  3 17 year, employed more than 50 full-time equivalent employees; if
  3 18 the policy or contract is issued to a small employer as
  3 19 defined in Code section 513B.2, and such policy or contract
  3 20 provides coverage benefits for the treatment of mental
  3 21 illness; or if the plan is established pursuant to Code
  3 22 chapter 509A for public employees.
  3 23    The bill defines "biologically based mental illness" as
  3 24 psychiatric illnesses including schizophrenia, bipolar
  3 25 disorders, major depressive disorders, schizo-affective
  3 26 disorders, obsessive-compulsive disorders, pervasive
  3 27 developmental disorders, and autistic disorders.
  3 28    The bill provides that a carrier, organized delivery
  3 29 system, or plan established pursuant to Code chapter 509A may
  3 30 manage the benefits provided through common methods including,
  3 31 but not limited to, providing payment of benefits or providing
  3 32 care and treatment under a capitated payment system,
  3 33 prospective reimbursement rate system, utilization control
  3 34 system, incentive system for the use of least restrictive and
  3 35 least costly levels of care, a preferred provider contract
  4  1 limiting choice of specific providers, or any other system,
  4  2 method, or organization designed to assure services are
  4  3 medically necessary and clinically appropriate.
  4  4    The bill provides that the new Code section created applies
  4  5 to third-party payment provider contracts or policies and
  4  6 public employer plans delivered, issued for delivery,
  4  7 continued, or renewed in this state on or after July 1, 2001.
  4  8    The bill directs the insurance commissioner to increase the
  4  9 lifetime maximum benefit for mental health services under a
  4 10 standard health benefit plan from $50,000 to $100,000.  
  4 11 LSB 6283XS 78
  4 12 mj/cf/24.1
     

Text: SF02233                           Text: SF02235
Text: SF02200 - SF02299                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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