Text: SF02305                           Text: SF02307
Text: SF02300 - SF02399                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index



Senate File 2306

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  514L.1  LIABILITY OF A MANAGED
  1  2 CARE HEALTH PLAN OR HEALTH MAINTENANCE ORGANIZATION.
  1  3    1.  For purposes of this section, unless the context
  1  4 otherwise requires:
  1  5    a.  "Managed care health plan" means a health benefit plan
  1  6 that selects and contracts with health care providers; manages
  1  7 and coordinates health care delivery; monitors necessity,
  1  8 appropriateness, and quality of health care delivered by
  1  9 health care providers; and performs utilization review and
  1 10 cost control.
  1 11    b.  "Health maintenance organization" means a health
  1 12 maintenance organization as defined in section 514B.1,
  1 13 subsection 6.
  1 14    2.  a.  A managed care health plan or health maintenance
  1 15 organization shall exercise ordinary care when making health
  1 16 care treatment decisions and is liable for damages for harm to
  1 17 an insured or enrollee proximately caused by its failure to
  1 18 exercise ordinary care.  An insured or enrollee may bring an
  1 19 action against a managed care health plan or health
  1 20 maintenance organization for a breach of the duty to exercise
  1 21 ordinary care.
  1 22    For purposes of this section, a managed care health plan or
  1 23 health maintenance organization includes an employee, agent,
  1 24 or other person acting on behalf of the managed care health
  1 25 plan or health maintenance organization.
  1 26    b.  In any action brought under this section against a
  1 27 managed care health plan or health maintenance organization,
  1 28 the managed care health plan or health maintenance
  1 29 organization may assert as a defense either of the following:
  1 30    (1)  The managed care health plan or health maintenance
  1 31 organization did not control, influence, or participate in the
  1 32 health care treatment decision.
  1 33    (2)  The managed care health plan or health maintenance
  1 34 organization did not deny or delay payment for any treatment
  1 35 prescribed or recommended by a health care provider.
  2  1    c.  This section does not create a duty on the part of the
  2  2 managed care health plan or health maintenance organization to
  2  3 provide treatment which is not covered by the health care plan
  2  4 of the managed care health plan or health maintenance
  2  5 organization.
  2  6    d.  In an action against a managed care health plan or
  2  7 health maintenance organization, a finding that a physician or
  2  8 other health care provider is an employee, agent, or
  2  9 representative of such managed care health plan or health
  2 10 maintenance organization shall not be based solely on proof
  2 11 that such person's name appears in a listing of approved
  2 12 health care providers made available to insureds or enrollees.  
  2 13                           EXPLANATION
  2 14    This bill creates new Code section 514L.1 which provides
  2 15 that a managed care health plan or health maintenance
  2 16 organization shall exercise ordinary care when making health
  2 17 care treatment decisions and is liable for damages for harm to
  2 18 an insured or enrollee proximately caused by its failure to
  2 19 exercise such ordinary care.  The bill provides that an
  2 20 insured or enrollee may bring an action against a managed care
  2 21 health plan or health maintenance organization for a breach of
  2 22 the duty to exercise ordinary care.  The bill provides that it
  2 23 is a defense in any action brought against a managed care
  2 24 health plan or health maintenance organization, that the
  2 25 managed care health plan or health maintenance organization
  2 26 did not control, influence, or participate in the health care
  2 27 treatment decision, or did not deny or delay payment for any
  2 28 treatment prescribed or recommended by a health care provider.
  2 29 The bill provides that the new Code section does not create a
  2 30 duty on the part of the managed care health plan or health
  2 31 maintenance organization to provide treatment which is not
  2 32 covered by the health care plan of the managed care health
  2 33 plan or health maintenance organization.  
  2 34 LSB 5933XS 78
  2 35 mj/as/5
     

Text: SF02305                           Text: SF02307
Text: SF02300 - SF02399                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

Return To Home index


© 2000 Cornell College and League of Women Voters of Iowa


Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Wed Mar 8 03:35:00 CST 2000
URL: /DOCS/GA/78GA/Legislation/SF/02300/SF02306/000223.html
jhf