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