Senate Study Bill 3007

                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            HUMAN RESOURCES BILL BY
                                            CHAIRPERSON VEENSTRA)


    Passed Senate, Date                Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to provisions of an accident or health policy
  2    regarding equal compensation of certain providers of
  3    equivalent services and accessibility to certain providers.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5932XC 80
  6 pf/sh/8

PAG LIN

  1  1    Section 1.  Section 509.3, Code 2003, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  8.  a.  A provision that any services
  1  4 provided by a participating health care provider licensed
  1  5 pursuant to chapter 149, 151, or 154, which services are
  1  6 provided within the scope of practice of the health care
  1  7 provider as that scope of practice is defined pursuant to
  1  8 chapter 149, 151, or 154, shall be compensated at the same
  1  9 level as equivalent services provided by a participating
  1 10 provider licensed in the practice of medicine and surgery
  1 11 pursuant to chapter 148 or 150A.
  1 12    b.  Services shall be deemed equivalent if the services are
  1 13 described using the same current procedural terminology codes
  1 14 as published by the American medical association, or any
  1 15 successor coding system.
  1 16    c.  For the purposes of the current procedural terminology
  1 17 code, or any successor code, which is restricted to use only
  1 18 by specific health care providers with the exception of
  1 19 providers licensed under chapter 148 or 150A, the same level
  1 20 of compensation means the compensation level that has the same
  1 21 ratio to the then=current payment levels in the federal
  1 22 Medicare resource=based relative value system for those
  1 23 restrictive codes as the compensation level for evaluation and
  1 24 management services codes, any equivalent code utilitized
  1 25 under the Medicare resource=based relative value system, or
  1 26 any successor coding system has to the current payment levels
  1 27 in the federal Medicare resource=based relative value system
  1 28 for evaluation and management services codes.
  1 29    d.  This subsection shall not be interpreted to prohibit a
  1 30 policy from reimbursing health care providers licensed
  1 31 pursuant to chapter 149, 151, or 154, using a flat fee per
  1 32 visit or per case if the fee bears a reasonable relationship
  1 33 to the number and types of services provided and if the per
  1 34 visit or per case fees are determined in a manner that is
  1 35 consistent with the compensation parameters established in
  2  1 paragraph "c".
  2  2    NEW SUBSECTION.  9.  A provision that if the policy accepts
  2  3 a person engaged in the practice of medicine or surgery
  2  4 licensed under chapter 148 or 150A as a participating provider
  2  5 to provide covered services, the person issuing the policy
  2  6 shall accept as a participating provider any health care
  2  7 provider licensed pursuant to chapter 149, 151, or 154 who
  2  8 agrees to comply with the terms, conditions, reimbursement
  2  9 rates, and standards of quality of the health benefit plan.
  2 10    NEW SUBSECTION.  10.  A provision that a covered person
  2 11 shall have direct access to any participating provider
  2 12 licensed pursuant to section 149, 151, or 154, selected by the
  2 13 covered person, without prior referral.
  2 14    NEW SUBSECTION.  11.  A provision that the person issuing
  2 15 the policy shall ensure an adequate number of participating
  2 16 providers to provide reasonable accessibility, timeliness of
  2 17 care, convenience, and continuity of care to the covered
  2 18 person.
  2 19    Sec. 2.  Section 509.3, unnumbered paragraph 2, Code 2003,
  2 20 is amended to read as follows:
  2 21    In addition to the provisions required in subsections 1
  2 22 through 7 11, the commissioner shall require provisions
  2 23 through the adoption of rules implementing the federal Health
  2 24 Insurance Portability and Accountability Act, Pub. L. No. 104=
  2 25 191.
  2 26                           EXPLANATION
  2 27    This bill provides that a policy of group accident or
  2 28 health insurance or a combination of these that covers such
  2 29 services is to include a provision that if the services are
  2 30 provided by a health care provider licensed to be engaged in
  2 31 the practice of podiatry, chiropractic, or optometry, and the
  2 32 services provided are within the scope of practice of the
  2 33 health care provider, the services are to be compensated at
  2 34 the same level as equivalent services provided by a provider
  2 35 licensed to practice medicine and surgery or osteopathic
  3  1 medicine and surgery.  The bill provides for deeming of
  3  2 services as equivalent based on codes published by the
  3  3 American medical association, and for determination of the
  3  4 same level of compensation based on the federal Medicare
  3  5 resource=based relative value system or an equivalent
  3  6 successor coding system.  The bill does not prohibit the use
  3  7 of a flat fee reimbursement system if the compensation is
  3  8 consistent with the compensation parameters established in the
  3  9 bill.
  3 10    The bill also provides that if a policy accepts a
  3 11 participating provider licensed under Code chapter 148 or
  3 12 150A, the person issuing the policy is to also accept any
  3 13 health care provider licensed to be engaged in the practice of
  3 14 podiatry, chiropractic, or optometry who agrees to comply with
  3 15 the terms of the health benefit plan.
  3 16    Under the bill, a covered person is to have direct access
  3 17 to a participating provider licensed to be engaged in the
  3 18 practice of podiatry, chiropractic, or optometry rather than
  3 19 being subject to prior referral.  Additionally, the person
  3 20 issuing the policy is to ensure adequate accessibility to
  3 21 participating providers.
  3 22 LSB 5932XC 80
  3 23 pf/sh/8