Text: SF00231                           Text: SF00233
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Senate File 232

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.
  1  8    b.  "Neurobiological disorder" means the following:
  1  9    (1)  Schizophrenia and other psychotic disorders.
  1 10    (2)  Affective disorders.
  1 11    (3)  Anxiety disorders.
  1 12    (4)  Pervasive developmental disorders.
  1 13    (5)  Attention deficit hyperactivity disorder and related
  1 14 disorders.
  1 15    (6)  Disorders identified in childhood and adolescence.
  1 16    The commissioner, by rule, shall identify the
  1 17 neurobiological disorders covered by this definition,
  1 18 consistent with the guidelines provided in the most recent
  1 19 edition of the American psychiatric association's diagnostic
  1 20 and statistical manual of mental disorders, as such
  1 21 definitions may be amended from time to time.  The
  1 22 commissioner may adopt the definitions provided in the manual
  1 23 by reference.
  1 24    c.  "Rates, terms, and conditions" means any lifetime or
  1 25 annual payment limits, deductibles, copayments, coinsurance,
  1 26 and any other cost-sharing requirements, out-of-pocket limits,
  1 27 visit limitations, and any other financial component of
  1 28 benefits coverage that affects the covered individual.
  1 29    d.  "Substance abuse" means a pattern of pathological use
  1 30 of alcohol or a drug that causes impairment in social or
  1 31 occupational functioning, or that produces physiological
  1 32 dependency evidenced by physical tolerance or by physical
  1 33 symptoms when the alcohol or drug is withdrawn.
  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,
  2  2 medical, and surgical expenses shall provide coverage benefits
  2  3 for treatment for neurobiological disorders and underlying co-
  2  4 morbidity based on rates, terms, and conditions that are no
  2  5 more restrictive than the rates, terms, and conditions for
  2  6 coverage benefits provided for other health or medical
  2  7 conditions under 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 or 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
  2 19 health, medical, or surgical coverage benefits.  A policy,
  2 20 contract, or plan subject to this section that imposes an
  2 21 aggregate lifetime or annual limit on substantially all
  2 22 health, medical, or surgical coverage benefits shall not
  2 23 impose an aggregate lifetime or annual limit on treatment for
  2 24 neurobiological disorders or underlying co-morbidity coverage
  2 25 benefits that is less than the aggregate lifetime or annual
  2 26 limit imposed on substantially all health or medical coverage
  2 27 benefits.
  2 28    c.  Coverage required under this section shall be for the
  2 29 treatment of neurobiological disorders and underlying co-
  2 30 morbidity, for services provided by a health professional
  2 31 licensed under chapter 147A, 148, 150A, 152, 154B, 154C, or
  2 32 154D, for services provided in a hospital, clinic, office,
  2 33 community mental health center, health care facility,
  2 34 outpatient treatment facility, residential treatment facility,
  2 35 halfway house, or similar facility for the provision of health
  3  1 care services, and for services provided pursuant to the
  3  2 comprehensive program for treatment for substance abuse
  3  3 maintained by the department of public health pursuant to
  3  4 section 125.12 in a hospital licensed under chapter 135B or a
  3  5 facility licensed under chapter 125.
  3  6    3.  This section applies to the following classes of third-
  3  7 party payment provider policies, contracts, or plans
  3  8 delivered, issued for delivery, continued, or renewed in this
  3  9 state on or after January 1, 2004:
  3 10    a.  Individual or group accident and sickness insurance
  3 11 providing coverage on an expense-incurred basis.
  3 12    b.  An individual or group hospital or medical service
  3 13 contract issued pursuant to chapter 509, 514, or 514A.
  3 14    c.  A plan established pursuant to chapter 509A for public
  3 15 employees.
  3 16    d.  An individual or group health maintenance organization
  3 17 contract regulated under chapter 514B.
  3 18    e.  An individual or group Medicare supplemental policy,
  3 19 unless coverage pursuant to such policy is preempted by
  3 20 federal law.
  3 21    f.  Any other entity engaged in the business of insurance,
  3 22 risk transfer, or risk retention, which is subject to the
  3 23 jurisdiction of the commissioner.
  3 24    g.  An organized delivery system licensed by the director
  3 25 of public health.
  3 26    4.  The commissioner shall adopt rules pursuant to chapter
  3 27 17A to administer this section.
  3 28    Sec. 2.  INSURANCE DIVISION STUDY IN CONJUNCTION WITH STATE
  3 29 AUDITOR.
  3 30    1.  The insurance division of the department of commerce,
  3 31 in conjunction with the auditor of state, shall conduct a
  3 32 study of the cost of providing neurobiological disorder
  3 33 coverage benefits in Iowa.
  3 34    2.  The study shall assess at least all of the following:
  3 35    a.  Identification of the costs attributed to treatment of
  4  1 neurobiological disorders, and to underlying co-morbidity.
  4  2    b.  An estimate of the impact of mandated coverage on
  4  3 health care coverage benefit costs and availability.
  4  4    c.  Actions taken by the division to ensure that third-
  4  5 party payors subject to this Act are in compliance.
  4  6    d.  Identification of any segments of the population of
  4  7 this state that may be excluded from or have limited access to
  4  8 treatment, including the number of citizens that may be
  4  9 excluded from or have limited access to treatment under third-
  4 10 party payor policies or contracts provided by employers who
  4 11 receive substantial revenue from public sources.
  4 12    3.  The insurance division shall submit a written report to
  4 13 the general assembly on or before January 30, 2005.
  4 14    Sec. 3.  DEPARTMENT OF PUBLIC HEALTH STUDY.
  4 15    1.  The department of public health shall conduct a two-
  4 16 year study of the mental health delivery system in Iowa,
  4 17 beginning July 1, 2003.
  4 18    2.  The study shall include participation by at least all
  4 19 of the following:
  4 20    a.  Representatives of professional health care groups
  4 21 licensed under chapters 147A, 148, 150A, 152, 154B, 154C, and
  4 22 154D.
  4 23    b.  Representatives of associations or other groups
  4 24 representing hospitals, clinics, community mental health
  4 25 centers, community corrections and prison corrections, health
  4 26 care facilities, outpatient treatment facilities, and any
  4 27 other facility offering mental health services.
  4 28    c.  County supervisors, representatives from the department
  4 29 of human services, judges, mental health advocates, and other
  4 30 state or county officials involved in the provision of mental
  4 31 health services.
  4 32    d.  Consumers, family members, and patients.
  4 33    3.  The participants in the study shall assess the relevant
  4 34 issues facing the mental health delivery system in Iowa, and
  4 35 shall prepare a report with recommendations for presentation
  5  1 to the general assembly no later than November 1, 2005.  
  5  2                           EXPLANATION
  5  3    This bill creates new Code section 514C.21 and provides
  5  4 that coverage under a policy, contract, or plan for the
  5  5 treatment of a neurobiological disorder and underlying co-
  5  6 morbidity shall be based on rates, terms, and conditions that
  5  7 are no less restrictive than for other health or medical
  5  8 conditions under the policy, contract, or plan.
  5  9    The bill defines "neurobiological disorder" as
  5 10 schizophrenia and other psychotic disorders, affective
  5 11 disorders, anxiety disorders, pervasive developmental
  5 12 disorders, and attention deficit hyperactivity disorder and
  5 13 related disorders, and disorders identified in childhood and
  5 14 adolescence.  The commissioner is directed to establish by
  5 15 rule the definition of the neurobiological disorders
  5 16 identified.  The definitions established by the commissioner
  5 17 are to be consistent with definitions provided in the most
  5 18 recent edition of the American psychiatric association's
  5 19 diagnostic and statistical manual of mental disorders, as such
  5 20 definitions may be amended from time to time.  The
  5 21 commissioner may adopt the definitions provided in such manual
  5 22 by reference.
  5 23    "Co-morbidity" is defined as a coexisting condition or
  5 24 disorder.  "Substance abuse" is defined as a pattern of
  5 25 pathological use of alcohol or a drug that causes impairment
  5 26 in social or occupational functioning, or that produces
  5 27 physiological dependency evidenced by physical tolerance or by
  5 28 physical symptoms when the alcohol or drug is withdrawn.
  5 29    The bill provides that the new Code section created applies
  5 30 to third-party payment provider contracts or policies and
  5 31 public employer plans delivered, issued for delivery,
  5 32 continued, or renewed in this state on or after January 1,
  5 33 2004.
  5 34    The bill also provides that the insurance division of the
  5 35 department of commerce, in conjunction with the state auditor,
  6  1 is to conduct a study to determine the cost of providing
  6  2 neurobiological disorder coverage benefits in Iowa.  The
  6  3 report is due to the general assembly on or before January 30,
  6  4 2005.  The division is directed to focus on certain specific
  6  5 issues in analyzing the cost.
  6  6    The department of public health shall also conduct a two-
  6  7 year study of the mental health delivery system in Iowa.  The
  6  8 study begins July 1, 2003, and the report, with
  6  9 recommendations, is due to the general assembly no later than
  6 10 November 2005.  Participation shall include specified
  6 11 representatives from certain groups.  
  6 12 LSB 1243SS 80
  6 13 jj/sh/8
     

Text: SF00231                           Text: SF00233
Text: SF00200 - SF00299                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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