House File 424 - Introduced HOUSE FILE BY QUIRK Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the assignment of health care coverage 2 benefits. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1726HH 82 5 av/je/5 PAG LIN 1 1 Section 1. NEW SECTION. 514C.23 ASSIGNMENT OF HEALTH 1 2 CARE COVERAGE BENEFITS. 1 3 1. A carrier as defined in section 513B.2; an organized 1 4 delivery system authorized under 1993 Iowa Acts, ch. 158, and 1 5 licensed by the director of public health; or a plan 1 6 established pursuant to chapter 509A for public employees, 1 7 shall not do either of the following: 1 8 a. Prohibit the assignment of health care coverage 1 9 benefits to a health care provider by a covered individual. 1 10 b. Refuse to directly reimburse a health care provider 1 11 pursuant to a valid assignment of health care coverage 1 12 benefits after receipt of written notice of the assignment. 1 13 2. An assignment of benefits as described in this section 1 14 shall not affect or limit the payment of benefits otherwise 1 15 payable under a health care benefit contract, policy, or plan 1 16 and a covered individual shall not be otherwise penalized for 1 17 making such an assignment of benefits. 1 18 3. A payment of benefits made under a health care benefit 1 19 contract, policy, or plan prior to receipt of written notice 1 20 of assignment of the benefits shall be without prejudice to 1 21 the payor. This section shall not be construed to prevent the 1 22 reconciliation of erroneous or duplicate payments made. 1 23 4. For the purposes of this section, unless the context 1 24 otherwise requires: 1 25 a. "Assignment of benefits" means the transfer of health 1 26 care coverage reimbursement benefits or other rights under an 1 27 insurance contract, policy, or plan by a covered individual to 1 28 a health care provider. 1 29 b. "Health care provider" means a hospital licensed 1 30 pursuant to chapter 135B, a person licensed under chapter 148, 1 31 148A, 148C, 149, 150, 150A, 151, or 154, or a person licensed 1 32 as an advanced registered nurse practitioner under chapter 1 33 152. 1 34 EXPLANATION 1 35 This bill prohibits a health insurance carrier, organized 2 1 delivery system, or health insurance plan for public employees 2 2 from refusing to allow a covered individual to assign payment 2 3 of health care coverage benefits to a health care provider or 2 4 from refusing to directly reimburse a health care provider 2 5 pursuant to a valid assignment of such benefits upon receipt 2 6 of written notice of the assignment. 2 7 LSB 1726HH 82 2 8 av:nh/je/5