Text: SF02288                           Text: SF02290
Text: SF02200 - SF02299                 Text: SF Index
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Senate File 2289

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  514C.21  MANDATED COVERAGE FOR
  1  2 NEUROBIOLOGICAL DISORDERS AND UNDERLYING CO-MORBIDITY.
  1  3    1.  For purposes of this section, unless the context
  1  4 otherwise requires:
  1  5    a.  "Co-morbidity" means the coexistence of conditions or
  1  6 diagnosable disorders such as neurobiological disorders and
  1  7 substance abuse.  For purposes of this section, "substance
  1  8 abuse" means a pattern of pathological use of alcohol or a
  1  9 drug that causes impairment in social or occupational
  1 10 functioning, or that produces physiological dependency
  1 11 evidenced by physical tolerance or by physical symptoms when
  1 12 the alcohol or drug is withdrawn.
  1 13    b.  "Neurobiological disorder" means the following:
  1 14    (1)  Schizophrenia and other psychotic disorders.
  1 15    (2)  Affective disorders.
  1 16    (3)  Anxiety disorders.
  1 17    (4)  Pervasive developmental disorders.
  1 18    (5)  Attention deficit hyperactivity disorder and related
  1 19 disorders.
  1 20    (6)  Disorders identified in childhood and adolescence.
  1 21    The commissioner, by rule, shall identify the
  1 22 neurobiological disorders covered by this definition,
  1 23 consistent with the guidelines provided in the most recent
  1 24 edition of the American psychiatric association's diagnostic
  1 25 and statistical manual of mental disorders, as such
  1 26 definitions may be amended from time to time.  The
  1 27 commissioner may adopt the definitions provided in the manual
  1 28 by reference.
  1 29    c.  "Rates, terms, and conditions" means any lifetime or
  1 30 annual payment limits, deductibles, copayments, coinsurance,
  1 31 and any other cost-sharing requirements, out-of-pocket limits,
  1 32 visit limitations, and any other financial component of
  1 33 benefits coverage that affects the covered individual.
  1 34    2.  a.  Notwithstanding the uniformity of treatment
  1 35 requirements of section 514C.6, a policy, contract, or plan
  2  1 providing for third-party payment or prepayment of health or
  2  2 medical expenses shall provide coverage benefits for treatment
  2  3 for neurobiological disorders and underlying co-morbidity
  2  4 based on rates, terms, and conditions that are no more
  2  5 restrictive than the rates, terms, and conditions for coverage
  2  6 benefits provided for other health or medical conditions under
  2  7 the policy, contract, or plan.
  2  8    b.  Any restrictions or limitations with respect to rates,
  2  9 terms, and conditions involving deductibles, copayments,
  2 10 coinsurance, and any other cost-sharing requirements shall be
  2 11 cumulative for coverage of treatment for neurobiological
  2 12 disorders and underlying co-morbidity and other health or
  2 13 medical conditions under a policy, contract, or plan.  A
  2 14 policy, contract, or plan subject to this section shall not
  2 15 impose an aggregate lifetime or annual limit on treatment for
  2 16 neurobiological disorders and underlying co-morbidity coverage
  2 17 benefits unless the policy, contract, or plan imposes an
  2 18 aggregate lifetime or annual limit on substantially all health
  2 19 or medical coverage benefits.  A policy, contract, or plan
  2 20 subject to this section that imposes an aggregate lifetime or
  2 21 annual limit on substantially all medical and surgical
  2 22 coverage benefits shall not impose an aggregate lifetime or
  2 23 annual limit on treatment for neurobiological disorders and
  2 24 underlying co-morbidity coverage benefits that is less than
  2 25 the aggregate lifetime or annual limit imposed on
  2 26 substantially all health or medical coverage benefits.
  2 27    c.  Coverage required under this section shall be for the
  2 28 treatment of neurobiological disorders and underlying co-
  2 29 morbidity, for services provided by a health professional
  2 30 licensed under chapter 147A, 148, 150A, 152, 154B, 154C, or
  2 31 154D, for services provided in a hospital, clinic, office,
  2 32 community mental health center, health care facility,
  2 33 outpatient treatment facility, residential treatment facility,
  2 34 halfway house, or similar facility for the provision of health
  2 35 care services, and for services provided pursuant to the
  3  1 comprehensive program for treatment for substance abuse
  3  2 maintained by the department of public health pursuant to
  3  3 section 125.12 in a hospital licensed under chapter 135B or a
  3  4 facility licensed under chapter 125.
  3  5    3.  This section applies to the following classes of third-
  3  6 party payment provider policies, contracts, or plans
  3  7 delivered, issued for delivery, continued, or renewed in this
  3  8 state on or after January 1, 2003:
  3  9    a.  Individual or group accident and sickness insurance
  3 10 providing coverage on an expense-incurred basis.
  3 11    b.  An individual or group hospital or medical service
  3 12 contract issued pursuant to chapter 509, 514, or 514A.
  3 13    c.  A plan established pursuant to chapter 509A for public
  3 14 employees.
  3 15    d.  An individual or group health maintenance organization
  3 16 contract regulated under chapter 514B.
  3 17    e.  An individual or group Medicare supplemental policy,
  3 18 unless coverage pursuant to such policy is preempted by
  3 19 federal law.
  3 20    f.  Any other entity engaged in the business of insurance,
  3 21 risk transfer, or risk retention, which is subject to the
  3 22 jurisdiction of the commissioner.
  3 23    g.  An organized delivery system licensed by the director
  3 24 of public health.
  3 25    4.  The commissioner shall adopt rules pursuant to chapter
  3 26 17A to administer this section.
  3 27    Sec. 2.  INSURANCE DIVISION STUDY IN CONJUNCTION WITH STATE
  3 28 AUDITOR.
  3 29    1.  The insurance division of the department of commerce,
  3 30 in conjunction with the state auditor, shall conduct a study
  3 31 of the cost of providing neurobiological disorder coverage
  3 32 benefits in Iowa.
  3 33    2.  The study shall assess at least all of the following:
  3 34    a.  Identification of the costs attributed to treatment of
  3 35 neurobiological disorders, and to underlying co-morbidity.
  4  1    b.  An estimate of the impact of mandated coverage on
  4  2 health care coverage benefit costs and availability.
  4  3    c.  Actions taken by the division to ensure that third-
  4  4 party payors subject to this Act are in compliance.
  4  5    d.  Identification of any segments of the population of
  4  6 this state that may be excluded from, or have limited access
  4  7 to, treatment, including the number of citizens that may be
  4  8 excluded from, or have limited access to, treatment under
  4  9 third-party payor policies or contracts provided by employers
  4 10 who receive substantial revenue from public sources.
  4 11    3.  The insurance division shall submit a written report to
  4 12 the general assembly on or before January 30, 2005.
  4 13    Sec. 3.  DEPARTMENT OF PUBLIC HEALTH STUDY.
  4 14    1.  The department of public health shall conduct a two-
  4 15 year study of the mental health delivery system in Iowa,
  4 16 beginning July 1, 2002.
  4 17    2.  The study shall include participation by at least all
  4 18 of the following:
  4 19    a.  Representatives of professional health care groups
  4 20 licensed under chapters 147A, 148, 150A, 152, 154B, 154C, and
  4 21 154D.
  4 22    b.  Representatives of associations or other groups
  4 23 representing hospitals, clinics, community mental health
  4 24 centers, community corrections and prison corrections, health
  4 25 care facilities, outpatient treatment facilities, and any
  4 26 other facility offering mental health services.
  4 27    c.  County supervisors, representatives from the department
  4 28 of human services, judges, mental health advocates, and other
  4 29 state or county officials involved in the provision of mental
  4 30 health services.
  4 31    d.  Consumers, family members, and patients.
  4 32    3.  The participants in the study shall assess the relevant
  4 33 issues facing the mental health delivery system in Iowa, and
  4 34 shall prepare a report with recommendations for presentation
  4 35 to the general assembly no later than November 1, 2004.  
  5  1                           EXPLANATION
  5  2    This bill creates new Code section 514C.21 and provides
  5  3 that a policy, contract, or plan providing for third-party
  5  4 payment or prepayment of health or medical expenses must
  5  5 provide coverage benefits for neurobiological disorders and
  5  6 underlying co-morbidity based on rates, terms, and conditions
  5  7 that are no more restrictive than the rates, terms, and
  5  8 conditions associated with coverage benefits provided for
  5  9 other conditions under the policy, contract, or plan.
  5 10    The bill requires a joint study by the insurance division
  5 11 and state auditor regarding the costs of providing
  5 12 neurobiological disorder coverage benefits to be submitted to
  5 13 the general assembly by January 30, 2005.  The bill also
  5 14 requires a two-year study of the mental health delivery system
  5 15 coordinated by the department of public health, for
  5 16 presentation to the general assembly by November 1, 2004.  
  5 17 LSB 6583SV 79
  5 18 jj/sh/8 
     

Text: SF02288                           Text: SF02290
Text: SF02200 - SF02299                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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