Senate Study Bill 3140 



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


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

                                      A BILL FOR

  1 An Act relating to health care reform in Iowa including the Iowa
  2    health care coverage exchange; medical homes; prevention and
  3    chronic care management; the Iowa health information
  4    technology system; health care quality, consumer information,
  5    strategic planning, and resource development; and the
  6    certificate of need program.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  8 TLSB 6443XC 82
  9 av:pf/rj/8

PAG LIN



  1  1                           DIVISION I
  1  2               IOWA HEALTH CARE COVERAGE EXCHANGE
  1  3    Section 1.  NEW SECTION.  514M.1  SHORT TITLE.
  1  4    This chapter shall be known and may be cited as the "Iowa
  1  5 Health Care Coverage for All Act".
  1  6    Sec. 2.  NEW SECTION.  514M.2  DECLARATION OF INTENT.
  1  7    It is the intent of the general assembly in enacting this
  1  8 chapter, as funding becomes available, to progress toward
  1  9 achievement of the goal that all Iowans have health care
  1 10 coverage with the following priorities:
  1 11    1.  The goal that all children in the state have qualified
  1 12 health care coverage which meets certain standards of quality
  1 13 and affordability with the following priorities:
  1 14    a.  Covering all children who are declared eligible for
  1 15 medical assistance, the state children's health insurance
  1 16 program, and hawk=i by December 31, 2009.
  1 17    b.  Subsidizing qualified health care coverage, which meets
  1 18 certain standards of quality and affordability, for the
  1 19 remaining uninsured children up to eighteen years of age under
  1 20 a sliding scale based on family income by December 31, 2009.
  1 21    c.  Moving toward a future requirement that all parents
  1 22 must provide proof of qualified health care coverage which
  1 23 meets certain standards of quality and affordability for their
  1 24 children.
  1 25    2.  The goal that all Iowans have qualified health care
  1 26 coverage which meets certain standards of quality and
  1 27 affordability with the following priorities:
  1 28    a.  Continuing to expand options for individuals who are
  1 29 dually eligible for Medicare and medical assistance, typically
  1 30 the chronically disabled, by utilizing evidence=based medical
  1 31 treatments.
  1 32    b.  Facilitating coverage of uninsured health and long=term
  1 33 care workers and child care workers with qualified health care
  1 34 coverage which meets certain standards of quality and
  1 35 affordability.
  2  1    c.  Maximizing eligibility of low=income adults eighteen
  2  2 years of age and older for public health care coverage.
  2  3    d.  Subsidizing qualified health care coverage, which meets
  2  4 certain standards of quality and affordability, for the
  2  5 remaining low=income adults.
  2  6    e.  Moving toward a future requirement that all Iowans must
  2  7 provide proof of qualified health care coverage which meets
  2  8 certain standards of quality and affordability.
  2  9    3.  The goal of decreasing health care costs and health
  2 10 care coverage costs by:
  2 11    a.  Instituting insurance reforms that assure the
  2 12 availability of private insurance coverage for all Iowans by
  2 13 addressing issues involving guaranteed availability and
  2 14 issuance of insurance to applicants, preexisting condition
  2 15 exclusions, portability, and allowable or required pooling and
  2 16 rating classifications.
  2 17    b.  Requiring every child who has public health care
  2 18 coverage or is insured by a plan created by the Iowa health
  2 19 care coverage exchange to have a medical home.
  2 20    c.  Establishing a statewide telehealth system.
  2 21    d.  Implementing cost containment strategies such as
  2 22 disease management programs, advance medical directives,
  2 23 initiatives such as end=of=life planning, transparency in
  2 24 health care cost and quality information, and an expanded
  2 25 certificate of need process.
  2 26    Sec. 3.  NEW SECTION.  514M.3  DEFINITIONS.
  2 27    For the purposes of this chapter, unless the context
  2 28 otherwise requires:
  2 29    1.  "Board" means the board of directors of the Iowa health
  2 30 care coverage exchange.
  2 31    2.  "Carrier" means an entity subject to the insurance laws
  2 32 and regulations of this state, or subject to the jurisdiction
  2 33 of the commissioner, that contracts or offers to contract to
  2 34 provide, deliver, arrange for, pay for, or reimburse any of
  2 35 the costs of health care services, including an insurance
  3  1 company offering sickness and accident plans, a health
  3  2 maintenance organization, a nonprofit health service
  3  3 corporation, or any other entity providing a plan of health
  3  4 insurance, health benefits, or health services.
  3  5    3.  "Commissioner" means the commissioner of insurance.
  3  6    4.  "Creditable coverage" means health benefits or coverage
  3  7 provided to an individual under any of the following:
  3  8    a.  A group health plan.
  3  9    b.  Health insurance coverage.
  3 10    c.  Part A or Part B Medicare pursuant to Title XVIII of
  3 11 the federal Social Security Act.
  3 12    d.  Medicaid pursuant to Title XIX of the federal Social
  3 13 Security Act, other than coverage consisting solely of
  3 14 benefits under section 1928 of that Act.
  3 15    e.  10 U.S.C. ch. 55.
  3 16    f.  A health or medical care program provided through the
  3 17 Indian health service or a tribal organization.
  3 18    g.  A state health benefits risk pool.
  3 19    h.  A health plan offered under 5 U.S.C. ch. 89.
  3 20    i.  A public health plan as defined under federal
  3 21 regulations.
  3 22    j.  A health benefit plan under section 5(e) of the federal
  3 23 Peace Corps Act, 22 U.S.C. } 2504(e).
  3 24    k.  An organized delivery system licensed by the director
  3 25 of public health.
  3 26    l.  A short=term limited duration policy.
  3 27    5.  "Director" means the director of the department of
  3 28 revenue.
  3 29    6.  "Exchange" means the Iowa health care coverage
  3 30 exchange.
  3 31    7.  "Executive director" means the executive director of
  3 32 the Iowa health care coverage exchange.
  3 33    8.  a.  "Group health plan" means an employee welfare
  3 34 benefit plan as defined in section 3(1) of the federal
  3 35 Employee Retirement Income Security Act of 1974, to the extent
  4  1 that the plan provides medical care including items and
  4  2 services paid for as medical care to employees or their
  4  3 dependents as defined under the terms of the plan directly or
  4  4 through insurance, reimbursement, or otherwise.
  4  5    b.  For purposes of this subsection, "medical care" means
  4  6 amounts paid for any of the following:
  4  7    (1)  The diagnosis, cure, mitigation, treatment, or
  4  8 prevention of disease, or amounts paid for the purpose of
  4  9 affecting a structure or function of the body.
  4 10    (2)  Transportation primarily for and essential to medical
  4 11 care referred to in subparagraph (1).
  4 12    (3)  Insurance covering medical care referred to in
  4 13 subparagraph (1) or (2).
  4 14    c.  For purposes of this subsection, a partnership which
  4 15 establishes and maintains a plan, fund, or program to provide
  4 16 medical care to present or former partners in the partnership
  4 17 or to their dependents directly or through insurance,
  4 18 reimbursement, or other method, which would not be an employee
  4 19 benefit welfare plan but for this paragraph, shall be treated
  4 20 as an employee benefit welfare plan which is a group health
  4 21 plan.
  4 22    (1)  For purposes of a group health plan, an employer
  4 23 includes the partnership in relation to any partner.
  4 24    (2)  For purposes of a group health plan, the term
  4 25 "participant" also includes both of the following:
  4 26    (a)  An individual who is a partner in relation to a
  4 27 partnership which maintains a group health plan.
  4 28    (b)  An individual who is a self=employed individual in
  4 29 connection with a group health plan maintained by the
  4 30 self=employed individual where one or more employees are
  4 31 participants, if the individual is or may become eligible to
  4 32 receive a benefit under the plan or the individual's
  4 33 beneficiaries may be eligible to receive a benefit.
  4 34    9.  a.  "Health insurance coverage" means benefits
  4 35 consisting of health care provided directly, through
  5  1 insurance, reimbursement, or otherwise and including items and
  5  2 services paid for as health care under a hospital or health
  5  3 service policy or certificate, hospital or health service plan
  5  4 contract, or health maintenance organization contract offered
  5  5 by a carrier.
  5  6    b.  "Health insurance coverage" does not include any of the
  5  7 following:
  5  8    (1)  Coverage for accident=only or disability income
  5  9 insurance.
  5 10    (2)  Coverage issued as a supplement to liability
  5 11 insurance.
  5 12    (3)  Liability insurance, including general liability
  5 13 insurance and automobile liability insurance.
  5 14    (4)  Workers' compensation or similar insurance.
  5 15    (5)  Automobile medical=payment insurance.
  5 16    (6)  Credit=only insurance.
  5 17    (7)  Coverage for on=site medical clinic care.
  5 18    (8)  Other similar insurance coverage, specified in federal
  5 19 regulations, under which benefits for medical care are
  5 20 secondary or incidental to other insurance coverage or
  5 21 benefits.
  5 22    c.  "Health insurance coverage" does not include benefits
  5 23 provided under a separate policy as follows:
  5 24    (1)  Limited scope dental or vision benefits.
  5 25    (2)  Benefits for long=term care, nursing home care, home
  5 26 health care, or community=based care.
  5 27    (3)  Any other similar limited benefits as provided by rule
  5 28 of the commissioner.
  5 29    d.  "Health insurance coverage" does not include benefits
  5 30 offered as independent noncoordinated benefits as follows:
  5 31    (1)  Coverage only for a specified disease or illness.
  5 32    (2)  A hospital indemnity or other fixed indemnity
  5 33 insurance.
  5 34    e.  "Health insurance coverage" does not include Medicare
  5 35 supplemental health insurance as defined under } 1882(g)(1) of
  6  1 the federal Social Security Act, coverage supplemental to the
  6  2 coverage provided under 10 U.S.C. ch. 55, and similar
  6  3 supplemental coverage provided to individuals under group
  6  4 health insurance coverage.
  6  5    f.  "Group health insurance coverage" means health
  6  6 insurance coverage offered in connection with a group health
  6  7 plan.
  6  8    10.  "Qualified health care coverage" means creditable
  6  9 coverage which meets minimum standards of quality and
  6 10 affordability as defined by the board.
  6 11    11.  "Resident" means a person who is a resident of this
  6 12 state for state income tax purposes.
  6 13    12.  "Secretary" means the secretary of the board of the
  6 14 Iowa health care coverage exchange.
  6 15    Sec. 4.  NEW SECTION.  514M.4  IOWA HEALTH CARE COVERAGE
  6 16 EXCHANGE == BOARD.
  6 17    1.  CREATION == PUBLIC INSTRUMENTALITY.  The Iowa health
  6 18 care coverage exchange is created and constitutes a public
  6 19 instrumentality and agency of the state exercising public and
  6 20 essential governmental functions to undertake programs which
  6 21 assist in attainment of the goal of achieving qualified health
  6 22 care coverage for all Iowans.  The exchange shall operate
  6 23 under a plan of operation established and approved under
  6 24 section 514M.5.
  6 25    2.  BOARD OF DIRECTORS.  The powers of the exchange shall
  6 26 be vested in and exercised by the board of directors of the
  6 27 exchange.
  6 28    a.  The board of directors consists of the following
  6 29 persons who are voting members unless otherwise provided:
  6 30    (1)  The two most recent former governors, or if one or
  6 31 both of them are unable or unwilling to serve, a person or
  6 32 persons appointed by the governor.
  6 33    (2)  The commissioner of insurance, or a designee.
  6 34    (3)  The director of human services, or a designee.
  6 35    (4)  Five members appointed by the governor, subject to
  7  1 confirmation by the senate:
  7  2    (a)  An actuary who is a member in good standing of the
  7  3 American academy of actuaries.
  7  4    (b)  A health economist.
  7  5    (c)  A consumer.
  7  6    (d)  A representative of organized labor.
  7  7    (e)  A representative of an organization of employers.
  7  8    (5)  Four members of the general assembly, one appointed by
  7  9 the speaker of the house of representatives, one appointed by
  7 10 the minority leader of the house of representatives, one
  7 11 appointed by the majority leader of the senate, and one
  7 12 appointed by the minority leader of the senate who shall be ex
  7 13 officio, nonvoting members of the board.
  7 14    (6)  A person who shall serve as the secretary of the
  7 15 board, appointed by the board and who shall be an ex officio,
  7 16 nonvoting member of the board.
  7 17    b.  Each member of the board appointed by the governor
  7 18 shall be a resident of this state and not more than three
  7 19 members shall be members of the same political party.
  7 20    c.  The members of the board appointed by the governor
  7 21 shall be appointed for terms of six years beginning and ending
  7 22 as provided in section 69.19.  Such member of the board is
  7 23 eligible for reappointment.  The governor shall fill a vacancy
  7 24 for the remainder of the unexpired term.  Such member of the
  7 25 board may be removed by the governor for misfeasance,
  7 26 malfeasance, or willful neglect of duty or other cause after
  7 27 notice and a public hearing unless the notice and hearing are
  7 28 waived by the member in writing.
  7 29    d.  The members of the board shall annually elect one
  7 30 voting member as chairperson and one as vice chairperson.
  7 31    e.  A majority of the voting members of the board
  7 32 constitutes a quorum.  The affirmative vote of a majority of
  7 33 its voting members is necessary for any action taken by the
  7 34 board.  The majority shall not include a member who has a
  7 35 conflict of interest and a statement by a member of a conflict
  8  1 of interest is conclusive for this purpose.  A vacancy in the
  8  2 membership of the board does not impair the right of a quorum
  8  3 to exercise the rights and perform the duties of the board.
  8  4 An action taken by the board under this chapter may be
  8  5 authorized by resolution at a regular or special meeting and
  8  6 each resolution shall take effect immediately and need not be
  8  7 published or posted.  Meetings of the board shall be held at
  8  8 the call of the chairperson or at the request of a majority of
  8  9 the board's voting members.
  8 10    f.  The members of the board shall not receive compensation
  8 11 for the performance of their duties as members but each member
  8 12 shall be paid necessary expenses while engaged in the
  8 13 performance of duties of the exchange.
  8 14    g.  The members of the board shall give bond as required
  8 15 for public officers in chapter 64.
  8 16    h.  The members of the board are subject to and are
  8 17 officials within the meaning of chapter 68B.
  8 18    3.  EXECUTIVE DIRECTOR.  The voting members of the board
  8 19 shall appoint an executive director, subject to confirmation
  8 20 by the senate, to supervise the administrative affairs and
  8 21 general management and operations of the exchange.  The board
  8 22 may appoint an assistant executive director, and other
  8 23 officers as the members of the board determine.  The officers
  8 24 shall not be members of the board, shall serve at the pleasure
  8 25 of the voting members of the board, and shall receive
  8 26 compensation as fixed by the board.
  8 27    4.  SECRETARY.  The secretary of the board shall keep a
  8 28 record of the proceedings of the board and shall be custodian
  8 29 of all books, documents, and papers filed with the board, and
  8 30 the minute book or journal of the board.  The secretary shall
  8 31 serve at the pleasure of the board, and shall receive
  8 32 compensation as fixed by the board.
  8 33    Sec. 5.  NEW SECTION.  514M.5  BOARD POWERS == DUTIES.
  8 34    The board shall have broad authority to accomplish the
  8 35 purposes of this chapter, including but not limited to:
  9  1    1.  Developing a plan of operation for the exchange
  9  2 pursuant to rules adopted under chapter 17A that includes but
  9  3 is not limited to the following:
  9  4    a.  Establishing procedures for operations of the exchange.
  9  5    b.  Establishing procedures for communications with the
  9  6 executive director.
  9  7    c.  Establishing procedures for the selection and approval
  9  8 of qualified health care coverage to be offered through the
  9  9 exchange.
  9 10    d.  Establishing procedures for the enrollment of eligible
  9 11 individuals and groups.
  9 12    e.  Establishing procedures for appeals of eligibility
  9 13 decisions for the Iowa choice care program.
  9 14    f.  Establishing a plan for operating a health insurance
  9 15 service center to provide eligible individuals and groups with
  9 16 information on the exchange and for managing exchange
  9 17 enrollment.
  9 18    g.  Establishing and managing a system of collecting all
  9 19 premium payments made by, or on behalf of, individuals
  9 20 obtaining health insurance through the exchange, including any
  9 21 premium payments made by enrollees, employees, unions, or
  9 22 other organizations.
  9 23    h.  Establishing and managing a system of remitting premium
  9 24 assistance payments to carriers.
  9 25    i.  Establishing a plan for publicizing the existence of
  9 26 the exchange and the exchange's requirements and enrollment
  9 27 procedures.
  9 28    j.  Developing criteria for determining that certain
  9 29 qualified health care coverage shall no longer be made
  9 30 available through the exchange, and developing a plan to
  9 31 decertify and remove exchange approval from certain qualified
  9 32 health care coverage.
  9 33    k.  Developing criteria for plans eligible for premium
  9 34 assistance payments through the Iowa choice care program.
  9 35    2.  Establishing by rules adopted under chapter 17A what
 10  1 constitutes qualified health care coverage which meets certain
 10  2 standards of quality and affordability by:
 10  3    a.  Setting parameters for what is affordable by creating
 10  4 an affordability schedule that is conservative to prevent harm
 10  5 to people who are struggling financially and that utilizes a
 10  6 progressive scale of subsidization by the state that decreases
 10  7 as incomes increase and requires people with very low incomes
 10  8 to pay only small amounts for health care coverage with no
 10  9 financial penalties.
 10 10    b.  Establishing a program to subsidize health care
 10 11 coverage on a sliding scale based on income for low=income
 10 12 uninsured individuals and families with incomes below three
 10 13 hundred percent of the federal poverty level as determined by
 10 14 the most recently revised poverty income guidelines published
 10 15 by the United States department of health and human services
 10 16 using the following priorities for subsidization of the cost
 10 17 of such coverage by income level as funding becomes available:
 10 18    (1)  Less than one hundred percent of federal poverty level
 10 19 == one hundred percent of the cost subsidized.
 10 20    (2)  One hundred percent to less than one hundred fifty
 10 21 percent of the federal poverty level == eighty percent of the
 10 22 cost subsidized.
 10 23    (3)  One hundred fifty percent to less than two hundred
 10 24 percent of the federal poverty level == sixty percent of the
 10 25 cost subsidized.
 10 26    (4)  Two hundred percent to less than two hundred fifty
 10 27 percent of the federal poverty level == forty percent of the
 10 28 cost subsidized.
 10 29    (5) Two hundred fifty percent to less than three hundred
 10 30 percent of the federal poverty level == twenty percent of the
 10 31 cost subsidized.
 10 32    c.  Defining what constitutes qualified health care
 10 33 coverage.  For purposes of this definition, the board may
 10 34 consider requirements for coverage and benefits that include
 10 35 but are not limited to:
 11  1    (1)  No underwriting requirements and no preexisting
 11  2 condition exclusions.
 11  3    (2)  Portability.
 11  4    (3)  Coverage of physical, behavioral, dental health and
 11  5 vision services, and prescription drugs.
 11  6    (4)  Copayments and deductibles that do not exceed
 11  7 specified amounts.  No copayments or deductibles for wellness,
 11  8 prevention, and chronic disease management services.
 11  9    (5)  No reimbursement of providers for an otherwise covered
 11 10 service if the service is required solely on account of the
 11 11 provider's avoidable medical error.
 11 12    (6)  If coverage of an insured's dependents is included,
 11 13 coverage of those unmarried dependents up to twenty=five years
 11 14 of age.
 11 15    (7)  A requirement that all insureds have a medical home.
 11 16    (8)  Coverage of wellness, prevention, and chronic disease
 11 17 management services including without limitation physical and
 11 18 psychosocial screenings for children which satisfy the early
 11 19 periodic screening, diagnosis, and treatment standards of the
 11 20 medical assistance program.
 11 21    (9)  Coverage of emergency mental health services when
 11 22 provided by a certified emergency mental health services
 11 23 provider.
 11 24    (10)  Premium discounts for nonsmokers and for insureds who
 11 25 successfully lose weight through participation in a diet and
 11 26 exercise program prescribed by a qualified health care
 11 27 professional.
 11 28    (11)  A requirement that all participating health care
 11 29 providers:
 11 30    (a)  Utilize electronic prescriptions.
 11 31    (b)  Utilize electronic medical records.
 11 32    (c)  Provide rate schedules to the board for all services
 11 33 offered.
 11 34    3.  Collaborating with carriers to do the following,
 11 35 including but not limited to:
 12  1    a.  Assuring the availability of private qualified health
 12  2 insurance coverage to all Iowans by designing solutions to
 12  3 issues related to guaranteed issuance of insurance,
 12  4 preexisting condition exclusions, portability, and allowable
 12  5 pooling and rating classifications.
 12  6    b.  Formulating principles that ensure fair and appropriate
 12  7 practices related to issues involving individual qualified
 12  8 health insurance coverage policies such as recision and
 12  9 preexisting condition clauses, and that provide for a binding
 12 10 third=party review process to resolve disputes related to such
 12 11 issues.
 12 12    c.  Designing affordable, portable qualified health
 12 13 insurance coverage plans that meet the needs of low=income
 12 14 populations.
 12 15    4.  Designing a health care coverage program called Iowa
 12 16 choice care which offers private qualified health care
 12 17 coverage through the exchange, whose purchase is publicly
 12 18 subsidized on a sliding scale based on income for low=income
 12 19 individuals and families who do not meet eligibility
 12 20 guidelines for any other public health care program, and which
 12 21 provides affordable, unsubsidized qualified health care
 12 22 coverage options for purchase by any other person who wishes
 12 23 to purchase them, including individuals, families, and
 12 24 employees of small businesses.  The subsidized portion of the
 12 25 Iowa choice care program may be implemented incrementally as
 12 26 funding becomes available.
 12 27    5.  Designing a subsidy program for payment of premiums for
 12 28 qualified health care coverage by low=income people that
 12 29 complements, not supplants, the medical assistance program.
 12 30 The subsidy program may include subsidizing an employee's
 12 31 purchase of health care insurance offered by that person's
 12 32 employer.
 12 33    6.  Implementing initiatives such as uniform health care
 12 34 insurance applications and other standardized administrative
 12 35 procedures that make the purchase of health care insurance
 13  1 easier and lower administrative costs such as determining what
 13  2 constitutes an equitable administrative formula for carriers.
 13  3    7.  Encouraging initiatives that allow portability of
 13  4 health care insurance between employers for part=time workers,
 13  5 persons who work more than one job, seasonal workers, or
 13  6 people who change jobs.
 13  7    8.  Controlling health insurance coverage premiums by
 13  8 establishing what constitutes reasonable rates, to ensure
 13  9 affordability of coverage.
 13 10    9.  Studying the ramifications of requiring each employer
 13 11 with more than ten employees in this state to adopt and
 13 12 maintain a cafeteria plan that satisfies section 125 of the
 13 13 federal Internal Revenue Code of 1986, and the rules and
 13 14 regulations promulgated by the board.
 13 15    10.  Determining each applicant's eligibility to purchase
 13 16 health care insurance offered by the exchange, including
 13 17 eligibility for premium assistance payments.
 13 18    11.  Seeking and receiving any grant funding from the
 13 19 federal government, departments, or agencies of this state,
 13 20 and private foundations.
 13 21    12.  Contracting with professional service firms as may be
 13 22 necessary, and fixing their compensation.
 13 23    13.  Contracting with companies which provide third=party
 13 24 administrative and billing services for insurance products.
 13 25    14.  Maintaining an office at such place or places in this
 13 26 state as it may designate.
 13 27    15.  Employing persons necessary to carry out the duties of
 13 28 the exchange.
 13 29    16.  Entering into agreements with the department of
 13 30 revenue, the department of human services, the division of
 13 31 insurance, and any other state agencies the board deems
 13 32 necessary to implement its duties under this chapter.
 13 33    17.  Creating, in collaboration with the department of
 13 34 revenue, a form for the department to distribute to every
 13 35 person to whom it distributes information regarding personal
 14  1 income tax liability, including every person who filed a
 14  2 personal income tax return in the most recent calendar year,
 14  3 informing the recipient of the requirements, if any, to
 14  4 establish and maintain qualified health care coverage.
 14  5    18.  Designing a premium schedule to be published by the
 14  6 exchange by December 1 of each year, which accounting for
 14  7 maximum pricing in all rating factors with an exception for
 14  8 age, includes the lowest premium on the market for which an
 14  9 individual would be eligible for qualified health care
 14 10 coverage.  The schedule shall publish premiums allowing
 14 11 variance for age and rate basis type.
 14 12    19.  Developing and implementing a plan and corresponding
 14 13 timeline detailing action steps toward implementing this
 14 14 chapter, by rules adopted pursuant to chapter 17A, as provided
 14 15 in section 514M.8.
 14 16    20.  Commissioning a study to examine and model the effect
 14 17 of merging the individual and small group health insurance
 14 18 markets in this state.
 14 19    21.  Commissioning a study to examine and model the effect
 14 20 of merging the Iowa comprehensive health insurance association
 14 21 and the Iowa health care coverage exchange fund or modifying
 14 22 the association to improve accessibility to qualified health
 14 23 care coverage at reasonably affordable rates prior to complete
 14 24 implementation of health care coverage of all Iowans.
 14 25    22.  Considering changing grouping and rating
 14 26 classifications, including age rating, to better reflect
 14 27 principles of equity, fairness, and cost=sharing, and that
 14 28 best facilitate the goal of achieving quality, affordable
 14 29 health care coverage for all Iowans.
 14 30    Sec. 6.  NEW SECTION.  514M.6  ANNUAL REPORT.
 14 31    The board shall keep an accurate account of all the
 14 32 activities of the exchange and of all its receipts and
 14 33 expenditures and shall annually make a report thereof as of
 14 34 the end of its fiscal year to the governor and the general
 14 35 assembly.
 15  1    Sec. 7.  NEW SECTION.  514M.7  HEALTH CARE COVERAGE
 15  2 EXCHANGE FUND == APPROPRIATION.
 15  3    The health care coverage exchange fund is created in the
 15  4 state treasury as a separate fund under the control of the
 15  5 exchange.  All moneys collected from premiums paid for health
 15  6 care plans offered by the exchange, and any other moneys that
 15  7 are appropriated or transferred to the fund shall be credited
 15  8 to the fund.  All moneys credited to the fund are appropriated
 15  9 and available to the exchange to be used for the purposes set
 15 10 forth in this chapter.  Notwithstanding section 8.33, any
 15 11 balance in the fund on June 30 of each fiscal year shall not
 15 12 revert to the general fund of the state, but shall be
 15 13 available for purposes set forth in this chapter in subsequent
 15 14 fiscal years.
 15 15    Sec. 8.  NEW SECTION.  514M.8  HEALTH CARE COVERAGE FOR ALL
 15 16 == TRANSITION == IMPLEMENTATION.
 15 17    1.  The board shall design and implement a program, as
 15 18 funding becomes available, including a timetable and
 15 19 procedures for implementation, to progress toward achieving
 15 20 the goal that all children in this state have qualified health
 15 21 care coverage, by maximizing the use of state and private
 15 22 financial support as follows:
 15 23    a.  As funding becomes available, all children who are
 15 24 eligible for medical assistance, Medicaid expansion, and
 15 25 hawk=i shall have coverage by December 31, 2009.  Parents of
 15 26 such children shall provide proof that each child has
 15 27 qualified health care coverage at a time and in a manner as
 15 28 specified by the board by rule.  Implementation of this
 15 29 requirement may include a reporting requirement on Iowa income
 15 30 tax returns or during school registration.
 15 31    b.  As funding becomes available, the state may provide a
 15 32 subsidy to assist with the purchase of qualified health care
 15 33 coverage for the remaining uninsured children up to eighteen
 15 34 years of age using a sliding scale based on family income by
 15 35 December 31, 2009.  Parents of such children who are eligible
 16  1 for subsidies shall provide proof that each child has
 16  2 qualified health care coverage, at a time and in a manner as
 16  3 specified by the board by rule.  Implementation of this
 16  4 requirement may include a reporting requirement on Iowa income
 16  5 tax returns or during school registration.
 16  6    c.  All parents of children up to eighteen years of age may
 16  7 be required to provide proof that each child has qualified
 16  8 health care coverage, at a time and in a manner as specified
 16  9 by the board by rule.  Implementation of this requirement may
 16 10 include a reporting requirement on Iowa income tax returns or
 16 11 during school registration.
 16 12    2.  The board shall design and implement a program,
 16 13 including a timetable and procedures for implementation after
 16 14 all children have qualified health care coverage, to work
 16 15 toward achieving the goal that all adults in the state have
 16 16 qualified health care coverage as follows:
 16 17    a.  The state may continue to expand options for
 16 18 individuals who are dually eligible for Medicare and medical
 16 19 assistance by utilizing evidence=based medical treatment.
 16 20    b.  As funding becomes available, the state may provide a
 16 21 subsidy to assist uninsured health and long=term care workers
 16 22 and child care workers with the purchase of qualified health
 16 23 care coverage.  The board shall define "health and long=term
 16 24 care workers" and "child care workers" by rule.  A health or
 16 25 long=term care worker or child care worker who is eligible for
 16 26 the subsidy shall provide proof of qualified health care
 16 27 coverage, at a time and in a manner as specified by the board
 16 28 by rule.  Implementation of this requirement may include a
 16 29 reporting requirement on Iowa income tax returns.
 16 30    c.  As funding becomes available, the state may provide a
 16 31 subsidy to assist with the purchase of qualified health care
 16 32 coverage by the remaining uninsured adults using a sliding
 16 33 scale based on income.  A person who is eligible for the
 16 34 subsidy shall provide proof of qualified health care coverage,
 16 35 at a time and in a manner as specified by the board by rule.
 17  1 Implementation of this requirement may include a reporting
 17  2 requirement on Iowa income tax returns.
 17  3    d.  All adults may be required to provide proof of
 17  4 qualified health care coverage, at a time and in a manner as
 17  5 specified by the board by rule.  Implementation of this
 17  6 requirement may include a reporting requirement on Iowa income
 17  7 tax returns.
 17  8    3.  An adult or parent of a child who is required to
 17  9 provide proof of qualified health care coverage of the adult
 17 10 or child and does not do so, may automatically be assigned and
 17 11 enrolled in the appropriate coverage offered by the exchange
 17 12 at a cost and in a time and manner determined by the board by
 17 13 rule.
 17 14    4.  The board shall collaborate with carriers to institute
 17 15 health insurance reforms that may become effective before
 17 16 qualified health care coverage for all Iowans has been
 17 17 achieved.  Such reforms may include:
 17 18    a.  Carriers may enroll any applicant rated up to two
 17 19 hundred percent of standard premium rates at a maximum premium
 17 20 rate of one hundred fifty percent of the standard premium
 17 21 rate.
 17 22    b.  Any applicant rated at over two hundred percent of
 17 23 standard premium rates may be enrolled in a plan offered by
 17 24 the state, such as the Iowa comprehensive health insurance
 17 25 association or the Iowa health care coverage exchange fund or
 17 26 a combination thereof at one hundred fifty percent of standard
 17 27 premium rates with the state subsidizing any cost over that
 17 28 amount.
 17 29    c.  Carriers may offer open enrollment periods where any
 17 30 applicant may enroll with no preexisting conditions
 17 31 exclusions.
 17 32    d.  Carriers may guarantee issuance of insurance with no
 17 33 preexisting condition exclusions if the applicant was covered
 17 34 by creditable coverage that was continuous to a date not more
 17 35 than sixty=three days prior to the effective date of the new
 18  1 coverage.
 18  2                           DIVISION II
 18  3                          MEDICAL HOME
 18  4                          DIVISION XXI
 18  5                          MEDICAL HOME
 18  6    Sec. 9.  NEW SECTION.  135.154  DEFINITIONS.
 18  7    As used in this chapter, unless the context otherwise
 18  8 requires:
 18  9    1.  "Department" means the department of public health.
 18 10    2.  "Health care professional" means a person who is
 18 11 licensed, certified, or otherwise authorized or permitted by
 18 12 the law of this state to administer health care in the
 18 13 ordinary course of business or in the practice of a
 18 14 profession.
 18 15    3.  "Medical home" means a team approach to providing
 18 16 health care that originates in a primary care setting; fosters
 18 17 a partnership among the patient, the primary care physician
 18 18 and other health care professionals, and where appropriate,
 18 19 the patient's family; utilizes the partnership to access all
 18 20 medical and nonmedical health=related services needed by the
 18 21 patient and the patient's family to achieve maximum health
 18 22 potential; maintains a centralized, comprehensive record of
 18 23 all health=related services to promote continuity of care; and
 18 24 has all of the characteristics specified in section 135.155.
 18 25    4.  "Medical home commission" or "commission" means the
 18 26 medical home commission created in section 135.156.
 18 27    5.  "National committee for quality assurance" means the
 18 28 nationally recognized, independent nonprofit organization that
 18 29 measures the quality and performance of health care and health
 18 30 care plans in the United States; provides accreditation,
 18 31 certification, and recognition programs for health care plans
 18 32 and programs; and is recognized in Iowa as an accrediting
 18 33 organization for commercial and Medicaid=managed care
 18 34 organizations.
 18 35    6.  "Nonphysician primary care professionals" means
 19  1 providers of health care other than physicians who render some
 19  2 primary care services including nurse practitioners, physician
 19  3 assistants, and other health care professionals.
 19  4    7.  "Personal provider" means the patient's first point of
 19  5 contact in the health care system with a primary care provider
 19  6 who identifies the patient's health needs, and, working with a
 19  7 team of health care professionals, provides for and
 19  8 coordinates appropriate care to address the health needs
 19  9 identified.
 19 10    8.  "Primary care" means health care which emphasizes
 19 11 providing for a patient's general health needs and utilizes
 19 12 collaboration with other health care professionals and
 19 13 consultation or referral as appropriate to meet the needs
 19 14 identified.  "Primary care" is usually provided by general and
 19 15 family practitioners, internists, obstetricians,
 19 16 pediatricians, and certain nonprimary care professionals who
 19 17 are specifically trained for and skilled in comprehensive
 19 18 first contact and continuing care for persons with any
 19 19 undiagnosed sign, symptom, or health concern not limited by
 19 20 problem origin, organ system, or diagnosis.  "Primary care"
 19 21 includes health promotion, disease prevention, health
 19 22 maintenance, counseling, patient education, and diagnosis and
 19 23 treatment of acute and chronic illnesses.  "Primary care" also
 19 24 provides patient advocacy in the health care system to
 19 25 accomplish cost=effective care through coordination of health
 19 26 care services, promotion of effective communication with
 19 27 patients, and encouragement of the role of the patient as a
 19 28 partner in health care.
 19 29    9.  "Primary care physician" means a generalist physician
 19 30 who is specifically trained to provide primary care at the
 19 31 point of first contact, and takes continuing responsibility
 19 32 for providing the patient's care.
 19 33    Sec. 10.  NEW SECTION.  135.155  MEDICAL HOME PURPOSES ==
 19 34 CHARACTERISTICS.
 19 35    1.  The purposes of a medical home are the following:
 20  1    a.  To reduce disparities in health care access, delivery,
 20  2 and health care outcomes.
 20  3    b.  To improve quality of health care and lower health care
 20  4 costs, thereby creating savings to allow more Iowans to have
 20  5 health care coverage and to provide for the sustainability of
 20  6 the health care system.
 20  7    c.  To provide a tangible method to document if each Iowan
 20  8 has access to health care.
 20  9    2.  A medical home has all of the following
 20 10 characteristics:
 20 11    a.  A personal provider.  Each patient has an ongoing
 20 12 relationship with a personal provider trained to provide first
 20 13 contact and continuous and comprehensive care.
 20 14    b.  A provider=directed medical practice.  The personal
 20 15 provider leads a team of individuals at the practice level who
 20 16 collectively take responsibility for the ongoing health care
 20 17 of patients.
 20 18    c.  Whole person orientation.  The personal provider is
 20 19 responsible for providing for all of a patient's health care
 20 20 needs or taking responsibility for appropriately arranging
 20 21 health care by other qualified health care professionals.
 20 22 This responsibility includes health care at all stages of life
 20 23 including provision of acute care, chronic care, preventive
 20 24 services, and end=of=life care.
 20 25    d.  Coordination and integration of care.  Care is
 20 26 coordinated and integrated across all elements of the complex
 20 27 health care system and the patient's community.  Care is
 20 28 facilitated by registries, information technology, health
 20 29 information exchanges, and other means to assure that patients
 20 30 get the indicated care when and where they need and want the
 20 31 care in a culturally and linguistically appropriate manner.
 20 32    e.  Quality and safety.  The following are quality and
 20 33 safety components of the medical home:
 20 34    (1)  Provider=directed medical practices advocate for their
 20 35 patients to support the attainment of optimal,
 21  1 patient=centered outcomes that are defined by a care planning
 21  2 process driven by a compassionate, robust partnership between
 21  3 providers, the patient, and the patient's family.
 21  4    (2)  Evidence=based medicine and clinical decision=support
 21  5 tools guide decision making.
 21  6    (3)  Providers in the medical practice accept
 21  7 accountability for continuous quality improvement through
 21  8 voluntary engagement in performance measurement and
 21  9 improvement.
 21 10    (4)  Patients actively participate in decision making and
 21 11 feedback is sought to ensure that the patients' expectations
 21 12 are being met.
 21 13    (5)  Information technology is utilized appropriately to
 21 14 support optimal patient care, performance measurement, patient
 21 15 education, and enhanced communication.
 21 16    (6)  Practices participate in a voluntary recognition
 21 17 process conducted by an appropriate nongovernmental entity to
 21 18 demonstrate that the practice has the capabilities to provide
 21 19 patient=centered services consistent with the medical home
 21 20 model.
 21 21    (7)  Patients and families participate in quality
 21 22 improvement activities at the practice level.
 21 23    f.  Enhanced access to health care.  Enhanced access to
 21 24 health care is available through systems such as open
 21 25 scheduling, expanded hours, and new options for communication
 21 26 between the patient, the patient's personal provider, and
 21 27 practice staff.
 21 28    g.  Payment.  The payment system appropriately recognizes
 21 29 the added value provided to patients who have a
 21 30 patient=centered medical home.  The payment structure
 21 31 framework of the medical home provides all of the following:
 21 32    (1)  Reflects the value of provider and nonprovider staff
 21 33 and patient=centered care management work that is in addition
 21 34 to the face=to=face visit.
 21 35    (2)  Pays for services associated with coordination of
 22  1 health care both within a given practice and between
 22  2 consultants, ancillary providers, and community resources.
 22  3    (3)  Supports adoption and use of health information
 22  4 technology for quality improvement.
 22  5    (4)  Supports provision of enhanced communication access
 22  6 such as secure electronic mail and telephone consultation.
 22  7    (5)  Recognizes the value of physician work associated with
 22  8 remote monitoring of clinical data using technology.
 22  9    (6)  Allows for separate fee=for=service payments for
 22 10 face=to=face visits.  Payments for health care management
 22 11 services that are in addition to the face=to=face visit do not
 22 12 result in a reduction in the payments for face=to=face visits.
 22 13    (7)  Recognizes case mix differences in the patient
 22 14 population being treated within the practice.
 22 15    (8)  Allows providers to share in savings from reduced
 22 16 hospitalizations associated with provider=guided health care
 22 17 management in the office setting.
 22 18    (9)  Allows for additional payments for achieving
 22 19 measurable and continuous quality improvements.
 22 20    Sec. 11.  NEW SECTION.  135.156  MEDICAL HOME COMMISSION.
 22 21    1.  A medical home commission is created consisting of the
 22 22 following members:
 22 23    a.  The director of public health, or the director's
 22 24 designee, who shall act as chairperson of the commission.
 22 25    b.  The director of human services, or the director's
 22 26 designee.
 22 27    c.  The commissioner of insurance, or the commissioner's
 22 28 designee.
 22 29    d.  A representative of health insurers.
 22 30    e.  A representative of the Iowa dental association.
 22 31    f.  A representative of the Iowa nurses association.
 22 32    g.  A family physician who is a member of the Iowa academy
 22 33 of family physicians.
 22 34    h.  A health care consumer.
 22 35    i.  A representative of the Iowa collaborative safety net
 23  1 provider network established pursuant to section 135.153.
 23  2    2.  a.  Members of the commission from the organizations
 23  3 specified in subsection 1 shall be selected by the respective
 23  4 organization.  Terms of public members of the commission shall
 23  5 begin and end as provided by section 69.19.  Any vacancy shall
 23  6 be filled in the same manner as regular appointments are made
 23  7 for the unexpired portion of the regular term.  Public members
 23  8 shall serve terms of three years.  A member is eligible for
 23  9 reappointment for two successive terms.
 23 10    b.  Public members of the commission shall receive their
 23 11 actual and necessary expenses incurred in the performance of
 23 12 their duties and may be eligible to receive compensation as
 23 13 provided in section 7E.6.
 23 14    c.  The commission shall meet at least quarterly and in
 23 15 accordance with rules adopted by the commission.
 23 16    d.  A majority of the members of the commission constitutes
 23 17 a quorum.  Any action taken by the commission must be adopted
 23 18 by the affirmative vote of a majority of its voting
 23 19 membership.
 23 20    e.  The commission is located for administrative purposes
 23 21 within the division of health promotion and chronic disease
 23 22 management within the department.  The commission shall
 23 23 coordinate efforts with other divisions, bureaus, and offices
 23 24 within the department including but not limited to the office
 23 25 of multicultural health established in section 135.12 and oral
 23 26 health bureau established in section 135.15, in order to avoid
 23 27 duplication of efforts.  The department shall provide office
 23 28 space, staff assistance, administrative support, and necessary
 23 29 supplies and equipment to the commission.
 23 30    3.  The commission may adopt rules pursuant to chapter 17A
 23 31 to administer the programs of the commission.
 23 32    Sec. 12.  NEW SECTION.  135.157  MEDICAL HOME SYSTEM ==
 23 33 DEVELOPMENT AND IMPLEMENTATION.
 23 34    1.  The commission shall develop a plan for implementation
 23 35 of a statewide medical home system.  The initial phase shall
 24  1 focus on providing a medical home for children, beginning with
 24  2 those children who are recipients of medical assistance or the
 24  3 hawk=i program, and expanding to children covered through the
 24  4 exchange created pursuant to section 514M.4.  The second phase
 24  5 shall focus on providing a medical home to the expansion
 24  6 population under the IowaCare program and to adult recipients
 24  7 of medical assistance.  The third phase shall focus on
 24  8 providing a medical home to adults covered through the
 24  9 exchange created pursuant to section 514M.4.  The commission,
 24 10 in collaboration with parents, schools, communities, health
 24 11 plans, and providers, shall endeavor to increase healthy
 24 12 outcomes for children and adults by linking the children and
 24 13 adults with a medical home, identifying health improvement
 24 14 goals for children and adults, and linking reimbursement
 24 15 strategies to increasing healthy outcomes for children and
 24 16 adults.  The plan shall provide that the medical home system
 24 17 shall do all of the following:
 24 18    a.  Coordinate and provide access to evidence=based health
 24 19 care services, emphasizing convenient, comprehensive primary
 24 20 care and including preventive, screening, and well=child
 24 21 health services.
 24 22    b.  Provide access to appropriate specialty care and
 24 23 in=patient services.
 24 24    c.  Provide quality=driven and cost=effective health care.
 24 25    d.  Promote strong and effective medical management
 24 26 including but not limited to planning treatment strategies,
 24 27 monitoring health outcomes and resource use, sharing
 24 28 information, and organizing care to avoid duplication of
 24 29 service.
 24 30    e.  Emphasize patient and provider accountability.
 24 31    f.  Prioritize local access to the continuum of health care
 24 32 services in the most appropriate setting.
 24 33    g.  Establish a baseline for medical home goals and
 24 34 establish performance measures that indicate a child or adult
 24 35 has an established and effective medical home.  For children,
 25  1 these goals and performance measures may include but are not
 25  2 limited to childhood immunizations rates, well=child care
 25  3 utilization rates, care management for children with chronic
 25  4 illnesses, emergency room utilization, and preventive oral
 25  5 health service utilization.
 25  6    h.  For children, coordinate with and integrate guidelines,
 25  7 data, and information from existing newborn and child health
 25  8 programs and entities, including but not limited to the
 25  9 healthy opportunities to experience, success=healthy families
 25 10 Iowa program, the community empowerment program, the center
 25 11 for congenital and inherited disorders screening and health
 25 12 care programs, standards of care for pediatric health
 25 13 guidelines, the office of multicultural health established in
 25 14 section 135.12, the oral health bureau established in section
 25 15 135.15, and other similar programs and services.
 25 16    2.  The commission shall develop an organizational
 25 17 structure for the medical home system in this state.  The
 25 18 organizational structure plan shall integrate existing
 25 19 resources, provide a strategy to coordinate health care
 25 20 services, provide for monitoring and data collection on
 25 21 medical homes, provide for training and education to health
 25 22 care professionals and families, and provide for transition of
 25 23 children to the adult medical care system.  The organizational
 25 24 structure may be based on collaborative teams of stakeholders
 25 25 throughout the state such as local public health agencies, the
 25 26 collaborative safety net provider network established in
 25 27 section 135.153, or a combination of statewide organizations.
 25 28 Care coordination may be provided through regional offices or
 25 29 through individual provider practices.  The organizational
 25 30 structure may also include the use of telemedicine resources,
 25 31 and may provide for partnering with pediatric and family
 25 32 practice residency programs to improve access to preventive
 25 33 care for children.  The organizational structure shall also
 25 34 address the need to organize and provide health care to
 25 35 increase accessibility for patients including using venues
 26  1 more accessible to patients and having hours of operation that
 26  2 are conducive to the population served.
 26  3    3.  The commission shall adopt standards and a process to
 26  4 certify medical homes based on the national committee for
 26  5 quality assurance standards.  The certification process and
 26  6 standards shall provide mechanisms to monitor performance and
 26  7 to evaluate, promote, and improve the quality of health of and
 26  8 health care delivered to patients through a medical home.  The
 26  9 mechanism shall require participating providers to monitor
 26 10 clinical progress and performance in meeting applicable
 26 11 standards and to provide information in a form and manner
 26 12 specified by the commission.  The evaluation mechanism shall
 26 13 be developed with input from consumers, providers, and payers.
 26 14 At a minimum the evaluation shall determine any increased
 26 15 quality in health care provided and any decrease in cost
 26 16 resulting from the medical home system compared with other
 26 17 health care delivery systems.  The standards and process shall
 26 18 also include a mechanism for other ancillary service providers
 26 19 to become affiliated with a certified medical home.
 26 20    4.  The commission shall adopt education and training
 26 21 standards for health care professionals participating in the
 26 22 medical home system.
 26 23    5.  The commission shall provide for system simplification
 26 24 through the use of universal referral forms, internet=based
 26 25 tools for providers, and a central medical home internet site
 26 26 for providers.
 26 27    6.  The commission shall determine a rate of reimbursement
 26 28 and recommend incentives for participation in the medical home
 26 29 system to ensure that providers enter and remain participating
 26 30 in the system.  In adopting the incentives, the commission
 26 31 shall consider, at a minimum, providing incentives to promote
 26 32 wellness, prevention, chronic care management, immunizations,
 26 33 health care management, and the use of electronic health
 26 34 records.  In developing the reimbursement system and
 26 35 incentives, the commission shall analyze, at a minimum, the
 27  1 feasibility of all of the following:
 27  2    a.  Reimbursement under the medical assistance program to
 27  3 promote wellness and prevention, provide care coordination,
 27  4 and provide chronic care management.
 27  5    b.  Increasing reimbursement to Medicare levels for certain
 27  6 wellness and prevention services, chronic care management, and
 27  7 immunizations.
 27  8    c.  Providing reimbursement for primary care services by
 27  9 addressing the disparities between reimbursement for specialty
 27 10 services and primary care services.
 27 11    d.  Increased funding for efforts to transform medical
 27 12 practices into certified medical homes, including emphasizing
 27 13 the implementation of the use of electronic health records.
 27 14    e.  Targeted reimbursement to providers linked to health
 27 15 care quality improvement measures established by the
 27 16 commission.
 27 17    f.  Reimbursement for specified ancillary support services
 27 18 such as transportation for medical appointments and other such
 27 19 services.
 27 20    7.  The commission shall coordinate the requirements and
 27 21 activities of the medical home system with the requirements
 27 22 and activities of the dental home for children as described in
 27 23 section 249J.14, subsection 7, and shall recommend financial
 27 24 incentives for dentists and nondental providers to promote
 27 25 oral health care coordination through preventive dental
 27 26 intervention, early identification of oral disease risk,
 27 27 health care coordination and data tracking, treatment, chronic
 27 28 care management, education and training, parental guidance,
 27 29 and oral health promotions for children.
 27 30    8.  The commission shall integrate the recommendations and
 27 31 policies developed by the prevention and chronic care
 27 32 management advisory council into the medical home system.
 27 33    9.  Implementation phases.
 27 34    a.  Initial implementation shall require participation in
 27 35 the medical home system of children who are recipients of the
 28  1 medical assistance or the hawk=i programs and children who
 28  2 have health insurance coverage through the exchange created in
 28  3 section 514M.4.  The commission shall develop an enhanced
 28  4 reimbursement methodology for recipients of medical assistance
 28  5 and hawk=i to compensate providers who participate in the
 28  6 medical home system.  The department of human services shall
 28  7 submit any state plan amendments or request any waivers
 28  8 necessary from the centers for Medicare and Medicaid services
 28  9 of the United States department of health and human services
 28 10 for approval of the reimbursement methodology.  The commission
 28 11 shall work with the exchange to develop an enhanced
 28 12 reimbursement methodology for children covered through the
 28 13 exchange to compensate providers who participate in the
 28 14 medical home system.
 28 15    b.  The commission shall work with the department of human
 28 16 services and with the exchange to expand the medical home
 28 17 system to adult recipients of medical assistance, the
 28 18 expansion population under the IowaCare program, and adults
 28 19 covered through the exchange.  The commission shall work with
 28 20 the centers for Medicare and Medicaid services of the United
 28 21 States department of health and human services to allow
 28 22 Medicare recipients to utilize the medical home system.
 28 23    c.  The commission shall work with the department of
 28 24 administrative services to allow state employees to utilize
 28 25 the medical home system.
 28 26    d.  The commission shall work with insurers and
 28 27 self=insured companies, if requested, to make the medical home
 28 28 system available to individuals with private health care
 28 29 coverage.
 28 30    10.  The commission shall provide oversight for all
 28 31 certified medical homes.  The commission shall review the
 28 32 progress of the medical home system at each meeting and
 28 33 recommend improvements to the system, as necessary.
 28 34    11.  The commission shall annually evaluate the medical
 28 35 home system and make recommendations to the governor and the
 29  1 general assembly regarding improvements to and continuation of
 29  2 the system.
 29  3    Sec. 13.  Section 249J.14, subsection 7, Code 2007, is
 29  4 amended to read as follows:
 29  5    7.  DENTAL HOME FOR CHILDREN.  By July 1, 2008, every Every
 29  6 recipient of medical assistance who is a child twelve years of
 29  7 age or younger shall have a designated dental home and shall
 29  8 be provided with the dental screenings and preventive care
 29  9 identified in the oral health standards services as defined
 29 10 under the early and periodic screening, diagnostic, and
 29 11 treatment program.
 29 12                          DIVISION III
 29 13             PREVENTION AND CHRONIC CARE MANAGEMENT
 29 14                          DIVISION XXII
 29 15             PREVENTION AND CHRONIC CARE MANAGEMENT
 29 16    Sec. 14.  NEW SECTION.  135.158  DEFINITIONS.
 29 17    For the purpose of this division, unless the context
 29 18 otherwise requires:
 29 19    1.  "Chronic care" means health care services provided by a
 29 20 health care professional for an established clinical condition
 29 21 that is expected to last a year or more and that requires
 29 22 ongoing clinical management attempting to restore the
 29 23 individual to highest function, minimize the negative effects
 29 24 of the chronic condition, and prevent complications related to
 29 25 the chronic condition.
 29 26    2.  "Chronic care information system" means approved
 29 27 information technology to enhance the development and
 29 28 communication of information to be used in providing chronic
 29 29 care, including clinical, social, and economic outcomes of
 29 30 chronic care.
 29 31    3.  "Chronic care management" means a system of coordinated
 29 32 health care interventions and communications for individuals
 29 33 with chronic conditions, including significant patient
 29 34 self=care efforts, systemic supports for the health care
 29 35 professional and patient relationship, and a chronic care plan
 30  1 emphasizing prevention of complications utilizing
 30  2 evidence=based practice guidelines, patient empowerment
 30  3 strategies, and evaluation of clinical, humanistic, and
 30  4 economic outcomes on an ongoing basis with the goal of
 30  5 improving overall health.
 30  6    4.  "Chronic care plan" means a plan of care between an
 30  7 individual and the individual's principal health care
 30  8 professional that emphasizes prevention of complications
 30  9 through patient empowerment including but not limited to
 30 10 providing incentives to engage the patient in the patient's
 30 11 own care and in clinical, social, or other interventions
 30 12 designed to minimize the negative effects of the chronic
 30 13 condition.
 30 14    5.  "Chronic care resources" means health care
 30 15 professionals, advocacy groups, health departments, schools of
 30 16 public health and medicine, health plans, and others with
 30 17 expertise in public health, health care delivery, health care
 30 18 financing, and health care research.
 30 19    6.  "Chronic condition" means an established clinical
 30 20 condition that is expected to last a year or more and that
 30 21 requires ongoing clinical management.
 30 22    7.  "Department" means the department of public health.
 30 23    8.  "Director" means the director of public health.
 30 24    9.  "Eligible individual" means a resident of this state
 30 25 who has been diagnosed with a chronic condition or is at an
 30 26 elevated risk for a chronic condition and who is a recipient
 30 27 of medical assistance or hawk=i, is a member of the expansion
 30 28 population pursuant to chapter 249J, is an inmate of a
 30 29 correctional institution in this state, or is an individual
 30 30 who has qualified health care coverage through the exchange
 30 31 created in section 514M.4.
 30 32    10.  "Health care professional" means health care
 30 33 professional as defined in section 135.154.
 30 34    11.  "Health risk assessment" means screening by a health
 30 35 care professional for the purpose of assessing an individual's
 31  1 health, including tests or physical examinations and a survey
 31  2 or other tool used to gather information about an individual's
 31  3 health, medical history, and health risk factors during a
 31  4 health screening.
 31  5    12.  "State initiative for prevention and chronic care
 31  6 management" or "state initiative" means the state's plan for
 31  7 developing a chronic care organizational structure for
 31  8 prevention and chronic care management, including coordinating
 31  9 the efforts of health care professionals and chronic care
 31 10 resources to promote the health of residents and the
 31 11 prevention and management of chronic conditions, developing
 31 12 and implementing arrangements for delivering prevention
 31 13 services and chronic care management, developing significant
 31 14 patient self=care efforts, providing systemic support for the
 31 15 health care professional=patient relationship and options for
 31 16 channeling chronic care resources and support to health care
 31 17 professionals, providing for community development and
 31 18 outreach and education efforts, and coordinating information
 31 19 technology initiatives with the chronic care information
 31 20 system.
 31 21    Sec. 15.  NEW SECTION.  135.159  PREVENTION AND CHRONIC
 31 22 CARE MANAGEMENT INITIATIVE == ADVISORY COUNCIL.
 31 23    1.  The director, in collaboration with the prevention and
 31 24 chronic care management advisory council, shall develop a
 31 25 state initiative for prevention and chronic care management.
 31 26    2.  The director may accept grants and donations and shall
 31 27 apply for any federal, state, or private grants available to
 31 28 fund the initiative.  Any grants or donations received shall
 31 29 be placed in a separate fund in the state treasury and used
 31 30 exclusively for the initiative.
 31 31    3.  The director shall establish and convene an advisory
 31 32 council to provide technical assistance to the director in
 31 33 developing a state initiative that integrates evidence=based
 31 34 prevention and chronic care management strategies into the
 31 35 public and private health care systems, including the medical
 32  1 home system.  The advisory council, at a minimum, shall
 32  2 include all of the following members:
 32  3    a.  The director of human services, or the director's
 32  4 designee.
 32  5    b.  The director of the department of elder affairs, or the
 32  6 director's designee.
 32  7    c.  The commissioner of insurance, or the commissioner's
 32  8 designee.
 32  9    d.  A representative of the Iowa medical society.
 32 10    e.  A representative of the Iowa hospital association.
 32 11    f.  A representative of health insurers.
 32 12    g.  A medical social worker or home care professional.
 32 13    h.  A patient advocate.
 32 14    i.  A primary care physician.
 32 15    j.  A pharmacist.
 32 16    k.  A specialist in public health and epidemiology.
 32 17    l.  An expert in health outcomes research.
 32 18    m.  A representative of an entity that is taking a leading
 32 19 role in health information technology.
 32 20    n.  A representative of the Iowa college of public health
 32 21 at the university of Iowa.
 32 22    o.  A representative of Des Moines university ==
 32 23 osteopathic medical center.
 32 24    4.  a.  Members of the advisory council from the
 32 25 organizations specified in subsection 3 shall be selected by
 32 26 the respective organization.  Terms of the public members
 32 27 shall begin and end as provided by section 69.19.  Any vacancy
 32 28 shall be filled in the same manner as regular appointments are
 32 29 made for the unexpired portion of the regular term.  Public
 32 30 members shall serve terms of three years.  A public member is
 32 31 eligible for reappointment for two successive terms.
 32 32    b.  Public members shall receive their actual and necessary
 32 33 expenses incurred in the performance of their duties and may
 32 34 be eligible to receive compensation as provided in section
 32 35 7E.6.
 33  1    c.  The advisory council shall meet at least quarterly and
 33  2 in accordance with the rules adopted by the advisory council.
 33  3    d.  A majority of the voting members of the advisory
 33  4 council constitutes a quorum.  Any action taken by the
 33  5 advisory council must be adopted by the affirmative vote of a
 33  6 majority of its membership.
 33  7    e.  The advisory council is located for administrative
 33  8 purposes within the division of health promotion and chronic
 33  9 disease management within the department.  The department
 33 10 shall provide administrative support to the advisory council.
 33 11    5.  The advisory council shall elicit input from a variety
 33 12 of health care professionals, health care professional
 33 13 organizations, community and nonprofit groups, insurers,
 33 14 consumers, businesses, school districts, and state and local
 33 15 governments in developing the advisory council's
 33 16 recommendations.
 33 17    6.  The advisory council shall submit initial
 33 18 recommendations to the director for the state initiative for
 33 19 prevention and chronic care management no later than July 1,
 33 20 2009.  The recommendations shall address all of the following:
 33 21    a.  The recommended organizational structure for
 33 22 integrating prevention and chronic care management into the
 33 23 private and public health care systems.  The organizational
 33 24 structure recommended shall align with the organizational
 33 25 structure established for the medical home system developed
 33 26 pursuant to division XXI.  The advisory council shall also
 33 27 review existing prevention and chronic care management
 33 28 strategies used in the health insurance market and in private
 33 29 and public programs and recommend ways to expand the use of
 33 30 such strategies throughout the health insurance market and in
 33 31 the private and public health care systems.
 33 32    b.  A process for identifying leading health care
 33 33 professionals and existing prevention and chronic care
 33 34 management programs in the state, and coordinating care among
 33 35 these health care professionals and programs.
 34  1    c.  A prioritization of the chronic conditions for which
 34  2 prevention and chronic care management services should be
 34  3 provided, taking into consideration the prevalence of specific
 34  4 chronic conditions and the factors that may lead to the
 34  5 development of chronic conditions; the fiscal impact to state
 34  6 health care programs of providing care for the chronic
 34  7 conditions of eligible individuals; the availability of
 34  8 workable, evidence=based approaches to chronic care for the
 34  9 chronic condition; and public input into the selection
 34 10 process.  The advisory council shall initially develop
 34 11 consensus guidelines to address the two chronic conditions
 34 12 identified as having the highest priority and shall also
 34 13 specify a timeline for inclusion of additional specific
 34 14 chronic conditions in the initiative.
 34 15    d.  A method to involve health care professionals in
 34 16 identifying eligible patients for prevention and chronic care
 34 17 management services, which includes but is not limited to the
 34 18 use of a uniform health risk assessment.
 34 19    e.  The methods for increasing communication between health
 34 20 care professionals and patients, including patient education,
 34 21 patient self=management, and patient follow=up plans.
 34 22    f.  The educational, wellness, and clinical management
 34 23 protocols and tools to be used by health care professionals,
 34 24 including management guideline materials for health care
 34 25 delivery.
 34 26    g.  The use and development of process and outcome measures
 34 27 and benchmarks, aligned to the greatest extent possible with
 34 28 existing measures and benchmarks such as the best in class
 34 29 estimates utilized in the national healthcare quality report
 34 30 of the agency for health care research and quality of the
 34 31 United States department of health and human services, to
 34 32 provide performance feedback for health care professionals and
 34 33 information on the quality of health care, including patient
 34 34 satisfaction and health status outcomes.
 34 35    h.  Payment methodologies to align reimbursements and
 35  1 create financial incentives and rewards for health care
 35  2 professionals to utilize prevention services, establish
 35  3 management systems for chronic conditions, improve health
 35  4 outcomes, and improve the quality of health care, including
 35  5 case management fees, payment for technical support and data
 35  6 entry associated with patient registries, and the cost of
 35  7 staff coordination within a medical practice.
 35  8    i.  Methods to involve public and private groups, health
 35  9 care professionals, insurers, third=party administrators,
 35 10 associations, community and consumer groups, and other
 35 11 entities to facilitate and sustain the initiative.
 35 12    j.  Alignment of any chronic care information system or
 35 13 other information technology needs with other health care
 35 14 information technology initiatives.
 35 15    k.  Involvement of appropriate health resources and public
 35 16 health and outcomes researchers to develop and implement a
 35 17 sound basis for collecting data and evaluating the clinical,
 35 18 social, and economic impact of the initiative, including a
 35 19 determination of the impact on expenditures and prevalence and
 35 20 control of chronic conditions.
 35 21    l.  Elements of a marketing campaign that provides for
 35 22 public outreach and consumer education in promoting prevention
 35 23 and chronic care management strategies among health care
 35 24 professionals, health insurers, and the public.
 35 25    m.  A method to periodically determine the percentage of
 35 26 health care professionals who are participating, the success
 35 27 of the empowerment=of=patients approach, and any results of
 35 28 health outcomes of the patients participating.
 35 29    n.  A means of collaborating with the bureau of
 35 30 professional licensure within the department to review
 35 31 prevention and chronic care management education provided to
 35 32 licensees, as appropriate, and recommendations regarding
 35 33 education resources and curricula for integration into
 35 34 existing and new education and training programs.
 35 35    6.  The director of human services shall obtain any federal
 36  1 waivers or state plan amendments necessary to implement the
 36  2 prevention and chronic care management initiative within the
 36  3 medical assistance, hawk=i, and IowaCare populations.
 36  4    7.  Following submission of the initial recommendations by
 36  5 January 1, 2009, and initial implementation among the
 36  6 population of eligible individuals, the director shall work
 36  7 with the department of human services, insurers, health care
 36  8 professional organizations, and consumers in implementing the
 36  9 initiative beyond the population of eligible individuals as an
 36 10 integral part of the health care delivery system in this
 36 11 state.  The advisory council shall continue to review and make
 36 12 recommendations to the director regarding improvements in the
 36 13 initiative.
 36 14    Sec. 16.  NEW SECTION.  8A.440  PREVENTION AND CHRONIC CARE
 36 15 MANAGEMENT == HEALTH BENEFIT PLAN.
 36 16    The department shall include in any request for proposals
 36 17 for the administration of the health benefit plans for state
 36 18 employees a request for a description of any prevention and
 36 19 chronic care management program provided by the entity
 36 20 offering the health benefit plan.  The department shall also
 36 21 work with the department of public health regarding how and
 36 22 when to align the state employees' health benefit plan with
 36 23 the provisions developed for the prevention and chronic care
 36 24 management initiative created in chapter 135, division XXII.
 36 25                           DIVISION IV
 36 26            IOWA HEALTH INFORMATION TECHNOLOGY SYSTEM
 36 27    Sec. 17.  NEW SECTION.  8.70  DEFINITIONS.
 36 28    As used in this division, unless the context otherwise
 36 29 requires:
 36 30    1.  "Health care professional" means health care
 36 31 professional as defined in section 135.154.
 36 32    2.  "Health information technology" means the application
 36 33 of information processing, involving both computer hardware
 36 34 and software, that deals with the storage, retrieval, sharing,
 36 35 and use of health care information, data, and knowledge for
 37  1 communication, decision making, quality, safety, and
 37  2 efficiency of clinical practice, and may include but is not
 37  3 limited to:
 37  4    a.  An electronic health record that electronically
 37  5 compiles and maintains health information that may be derived
 37  6 from multiple sources about the health status of an individual
 37  7 and may include a core subset of each care delivery
 37  8 organization's electronic medical record such as a continuity
 37  9 of care record or a continuity of care document, computerized
 37 10 physician order entry, electronic prescribing, or clinical
 37 11 decision support.
 37 12    b.  A personal health record through which an individual
 37 13 and any other person authorized by the individual can maintain
 37 14 and manage the individual's health information.
 37 15    c.  An electronic medical record that is used by health
 37 16 care professionals to electronically document, monitor, and
 37 17 manage health care delivery within a care delivery
 37 18 organization, is the legal record of the patient's encounter
 37 19 with the care delivery organization, and is owned by the care
 37 20 delivery organization.
 37 21    d.  A computerized provider order entry function that
 37 22 permits the electronic ordering of diagnostic and treatment
 37 23 services, including prescription drugs.
 37 24    e.  A decision support function to assist physicians and
 37 25 other health care providers in making clinical decisions by
 37 26 providing electronic alerts and reminders to improve
 37 27 compliance with best practices, promote regular screenings and
 37 28 other preventive practices, and facilitate diagnoses and
 37 29 treatments.
 37 30    f.  An error notification function that generates a warning
 37 31 when an order is entered that is likely to lead to a
 37 32 significant adverse outcome for individuals.
 37 33    g.  Tools to allow for the collection, analysis, and
 37 34 reporting of information or data on adverse events, the
 37 35 quality and efficiency of care, patient satisfaction, and
 38  1 other health care=related performance measures.
 38  2    3.  "Interoperability" means the ability of two or more
 38  3 systems or components to exchange information or data in an
 38  4 accurate, effective, secure, and consistent manner and to use
 38  5 the information or data that has been exchanged and includes
 38  6 but is not limited to:
 38  7    a.  The capacity to connect to a network for the purpose of
 38  8 exchanging information or data with other users.
 38  9    b.  The ability of a connected, authenticated user to
 38 10 demonstrate appropriate permissions to participate in the
 38 11 instant transaction over the network.
 38 12    c.  The capacity of a connected, authenticated user to
 38 13 access, transmit, receive, and exchange usable information
 38 14 with other users.
 38 15    4.  "Recognized interoperability standard" means
 38 16 interoperability standards recognized by the office of the
 38 17 national coordinator for health information technology of the
 38 18 United States department of health and human services.
 38 19    Sec. 18.  NEW SECTION.  8.71  IOWA ELECTRONIC HEALTH ==
 38 20 PRINCIPLES == GOALS.
 38 21    1.  Health information technology is rapidly evolving so
 38 22 that it can contribute to the goal of improving access to and
 38 23 quality of health care, enhancing efficiency, and reducing
 38 24 costs.
 38 25    2.  To be effective, the health information technology
 38 26 system shall comply with all of the following principles:
 38 27    a.  Be patient=centered and market=driven.
 38 28    b.  Be based on approved standards developed with input
 38 29 from all stakeholders.
 38 30    c.  Protect the privacy of consumers and the security and
 38 31 confidentiality of all health information.
 38 32    d.  Promote interoperability.
 38 33    e.  Ensure the accuracy, completeness, and uniformity of
 38 34 data.
 38 35    3.  Widespread adoption of health information technology is
 39  1 critical to a successful health information technology system
 39  2 and is best achieved when all of the following occur:
 39  3    a.  The market provides a variety of certified products
 39  4 from which to choose in order to best fit the needs of the
 39  5 user.
 39  6    b.  The system provides incentives for health care
 39  7 professionals to utilize the health information technology and
 39  8 provides rewards for any improvement in quality and efficiency
 39  9 resulting from such utilization.
 39 10    c.  The system provides protocols to address critical
 39 11 problems.
 39 12    d.  The system is financed by all who benefit from the
 39 13 improved quality, efficiency, savings, and other benefits that
 39 14 result from use of health information technology.
 39 15    Sec. 19.  NEW SECTION.  8.72  IOWA ELECTRONIC HEALTH
 39 16 INFORMATION COMMISSION.
 39 17    1.  a.  An electronic health information commission is
 39 18 created as a public and private collaborative effort to
 39 19 promote the adoption and use of health information technology
 39 20 in this state in order to improve health care quality,
 39 21 increase patient safety, reduce health care costs, enhance
 39 22 public health, and empower individuals and health care
 39 23 professionals with comprehensive, real=time medical
 39 24 information to provide continuity of care and make the best
 39 25 health care decisions.  The commission shall provide oversight
 39 26 for the development, implementation, and coordination of an
 39 27 interoperable electronic health records system, telehealth
 39 28 expansion efforts, the health information technology
 39 29 infrastructure, and other health information technology
 39 30 initiatives in this state.
 39 31    b.  All health information technology efforts shall
 39 32 endeavor to represent the interests and meet the needs of
 39 33 consumers and the health care sector, protect the privacy of
 39 34 individuals and the confidentiality of individuals'
 39 35 information, promote physician best practices, and make
 40  1 information easily accessible to the appropriate parties.  The
 40  2 system developed shall be consumer=driven, flexible, and
 40  3 expandable.
 40  4    2.  The commission shall consist of the following voting
 40  5 members:
 40  6    a.  Individuals with broad experience and vision in health
 40  7 care and health technology and one member representing the
 40  8 health care consumer.  The voting members shall be appointed
 40  9 by the governor, subject to confirmation by the senate.  The
 40 10 voting members shall include all of the following:
 40 11    (1)  The director of the Iowa communications network.
 40 12    (2)  Two members who are the chief information officers of
 40 13 the two largest private health care systems.
 40 14    (3)  One member who is the chief information officer of a
 40 15 public health care system.
 40 16    (4)  A representative of the private telecommunications
 40 17 industry.
 40 18    (5)  A representative of a rural hospital that is a member
 40 19 of the Iowa hospital association.
 40 20    (6)  A consumer advocate.
 40 21    (7)  A representative of the Iowa safety net provider
 40 22 network created in section 135.153.
 40 23    3.  a.  The members shall select a chairperson, annually,
 40 24 from among the membership, and shall serve terms of three
 40 25 years beginning and ending as provided in section 69.19.
 40 26 Voting member appointments shall comply with sections 69.16
 40 27 and 69.16A.  Vacancies shall be filled by the original
 40 28 appointing authority and in the manner of the original
 40 29 appointments.  Members shall receive reimbursement for actual
 40 30 expenses incurred while serving in their official capacity and
 40 31 voting members may also be eligible to receive compensation as
 40 32 provided in section 7E.6.  A person appointed to fill a
 40 33 vacancy for a member shall serve only for the unexpired
 40 34 portion of the term.  A member is eligible for reappointment
 40 35 for two successive terms.
 41  1    b.  The commission shall meet at the call of the
 41  2 chairperson.  A majority of the voting members of the
 41  3 commission constitutes a quorum.  Any action taken by the
 41  4 commission must be adopted by the affirmative vote of a
 41  5 majority of its voting membership.
 41  6    c.  The commission is located for administrative purposes
 41  7 within the department of management.  The department shall
 41  8 provide office space, staff assistance, administrative
 41  9 support, and necessary supplies and equipment for the
 41 10 commission.
 41 11    4.  The commission shall do all of the following:
 41 12    a.  Establish an advisory council which shall consist of
 41 13 the representatives of entities involved in the electronic
 41 14 health records system task force established pursuant to
 41 15 section 217.41A, Code 2007, and any other members the
 41 16 commission determines necessary to assist in the commission's
 41 17 duties including but not limited to consumers and consumer
 41 18 advocacy organizations; physicians and health care
 41 19 professionals; leadership of community hospitals and major
 41 20 integrated health care delivery networks; state agencies
 41 21 including the department of public health, the department of
 41 22 human services, the department of elder affairs, the division
 41 23 of insurance of the department of commerce, and the office of
 41 24 the attorney general; health plans and health insurers; legal
 41 25 experts; academics and ethicists; business leaders; and
 41 26 professional associations.
 41 27    b.  Adopt a statewide health information technology plan by
 41 28 January 1, 2009.  In developing the plan, the commission shall
 41 29 seek the input of providers, payers, and consumers.  Standards
 41 30 and policies developed for the plan shall promote and be
 41 31 consistent with national standards developed by the office of
 41 32 the national coordinator for health information technology of
 41 33 the United States department of health and human services and
 41 34 shall address or provide for all of the following:
 41 35    (1)  The effective, efficient, statewide use of electronic
 42  1 health information in patient care, health care policymaking,
 42  2 clinical research, health care financing, and continuous
 42  3 quality improvement.  The commission shall adopt requirements
 42  4 for interoperable electronic health records in this state
 42  5 including a recognized interoperability standard.
 42  6    (2)  Education of the public and health care sector about
 42  7 the value of health information technology in improving
 42  8 patient care, and methods to promote increased support and
 42  9 collaboration of state and local public health agencies,
 42 10 health care professionals, and consumers in health information
 42 11 technology initiatives.
 42 12    (3)  Uniform standards for the exchange of health care
 42 13 information and interoperable electronic health records.
 42 14    (4)  Policies relating to the protection of privacy of
 42 15 patients and the security and confidentiality of patient
 42 16 information.
 42 17    (5)  Policies relating to information ownership.
 42 18    (6)  Policies relating to governance of the various facets
 42 19 of the health information technology system.
 42 20    (7)  A single patient identifier to share secure patient
 42 21 information.  All health care professionals shall utilize the
 42 22 single patient identifier by January 1, 2010.
 42 23    (8)  A standard continuity of care record and other issues
 42 24 related to the content of electronic transmissions.  All
 42 25 health care professionals shall utilize the standard
 42 26 continuity of care record by January 1, 2010.
 42 27    (9)  Requirements for electronic prescribing.
 42 28    (10)  Economic incentives and support to facilitate
 42 29 participation in an interoperable system by health care
 42 30 professionals.
 42 31    c.  Identify existing and potential health information
 42 32 technology efforts in this state, regionally, and nationally,
 42 33 and integrate existing efforts to avoid incompatibility
 42 34 between efforts and avoid duplication.
 42 35    d.  Coordinate public and private efforts to provide the
 43  1 network backbone infrastructure for the health information
 43  2 technology system.  In coordinating these efforts, the
 43  3 commission shall do all of the following:
 43  4    (1)  Adopt policies to effectuate the logical cost
 43  5 effective usage of and access to the state=owned network, and
 43  6 support of telecommunication carrier products, where
 43  7 applicable.
 43  8    (2)  Complete a memorandum of understanding by January 1,
 43  9 2009, with the Iowa communications network for governmental
 43 10 access usage, with private fiber optic networks for core
 43 11 backbone usage of private fiber optic networks, and with any
 43 12 other communications entity for state=subsidized usage of the
 43 13 communications entity's products to access any backbone
 43 14 network.
 43 15    (3)  Establish protocols to ensure compliance with any
 43 16 applicable federal standards.
 43 17    (4)  Determine costs for accessing the network at a level
 43 18 that provides sufficient funding for the network.
 43 19    e.  Promote the use of telemedicine.
 43 20    (1)  Examine existing barriers to the use of telemedicine
 43 21 and make recommendations for eliminating these barriers.
 43 22    (2)  Examine the most efficient and effective systems of
 43 23 technology for use and make recommendations based on the
 43 24 findings.
 43 25    f.  Address the workforce needs generated by increased use
 43 26 of health information technology.
 43 27    g.  Adopt rules in accordance with chapter 17A to implement
 43 28 all aspects of the statewide plan and the network.
 43 29    h.  Coordinate, monitor, and evaluate the adoption, use,
 43 30 interoperability, and efficiencies of the various facets of
 43 31 health information technology in this state.
 43 32    i.  Seek and apply for any federal or private funding to
 43 33 assist in the implementation and support of the health
 43 34 information technology system and make recommendations for
 43 35 funding mechanisms for the ongoing development and maintenance
 44  1 costs of the health information technology system.
 44  2    j.  Identify state laws and rules that present barriers to
 44  3 the development of the health information technology system
 44  4 and recommend any changes to the governor and the general
 44  5 assembly.
 44  6    Sec. 20.  Section 217.41A, Code 2007, is repealed.
 44  7                           DIVISION V
 44  8     LONG=TERM CARE PLANNING AND ADVANCE MEDICAL DIRECTIVES
 44  9    Sec. 21.  Section 144A.11, Code 2007, is amended by adding
 44 10 the following new subsections:
 44 11    NEW SUBSECTION.  7.  A hospital or health care provider
 44 12 shall establish a nonjudicial means of resolving disputes
 44 13 arising out of a disagreement over compliance with a
 44 14 declaration or out=of=hospital do=not=resuscitate order.
 44 15    NEW SUBSECTION.  8.  A hospital or health care provider
 44 16 shall utilize the physician orders for life=sustaining
 44 17 treatment form reflecting the declaration of a patient and
 44 18 shall ensure that the form accompanies any patient who is
 44 19 comatose, incompetent, or otherwise physically or mentally
 44 20 incapable of communication if the patient is transferred to
 44 21 another facility.  The department shall create a standardized
 44 22 physician orders for life=sustaining treatment form to be used
 44 23 by hospitals and other health care providers in this state and
 44 24 shall adopt rules for the use of the form.
 44 25    Sec. 22.  Section 144B.12, Code 2007, is amended by adding
 44 26 the following new subsection:
 44 27    NEW SUBSECTION.  5.  A health care provider shall establish
 44 28 a nonjudicial means of resolving disputes arising out of a
 44 29 disagreement over compliance with a durable power of attorney
 44 30 for health care.
 44 31    Sec. 23.  NEW SECTION.  147.28B  PALLIATIVE CARE ==
 44 32 PROMOTION.
 44 33    1.  For the purposes of this section, "palliative care"
 44 34 means the active total care of patients whose prognosis is
 44 35 limited due to progressive, advanced disease.  The purpose of
 45  1 such care is to alleviate pain and other distressing symptoms,
 45  2 and to enhance the quality of life, not to hasten or postpone
 45  3 death.
 45  4    2.  The board of medicine, the board of nursing, and other
 45  5 boards for whom palliative care is within the profession's
 45  6 scope of practice shall do all of the following:
 45  7    a.  Develop and advance scientific understanding of
 45  8 palliative care.
 45  9    b.  Collect and disseminate protocols and evidence=based
 45 10 practices regarding palliative care, with priority given to
 45 11 pain management for terminally ill patients, and make such
 45 12 information available to public and private health care
 45 13 programs and providers, medical or other health professional
 45 14 schools, hospice organizations, and the general public.
 45 15    3.  The board of medicine, the board of nursing, and other
 45 16 boards for whom palliative care is within the profession's
 45 17 scope of practice shall work with medical or other health
 45 18 professional schools, residency training programs and other
 45 19 graduate programs in the health professions, entities
 45 20 providing continuing medical education, hospices, and other
 45 21 appropriate programs and entities to include in the curriculum
 45 22 information and education on the use of palliative care.
 45 23    Sec. 24.  NEW SECTION.  514C.23  HOSPICE CARE COVERAGE.
 45 24    1.  Notwithstanding the uniformity of treatment
 45 25 requirements of section 514C.6, a policy or contract providing
 45 26 for third=party payment or prepayment of health or medical
 45 27 expenses shall provide coverage benefits for the costs
 45 28 associated with the provision of core services, as defined in
 45 29 section 135J.1, provided by a licensed hospice program.
 45 30    2.  a.  This section applies to the following classes of
 45 31 third=party payment provider contracts or policies delivered,
 45 32 issued for delivery, continued, or renewed in this state on or
 45 33 after July 1, 2008:
 45 34    (1)  Individual or group accident and sickness insurance
 45 35 providing coverage on an expense=incurred basis.
 46  1    (2)  An individual or group hospital or medical service
 46  2 contract issued pursuant to chapter 509, 514, or 514A.
 46  3    (3)  An individual or group health maintenance organization
 46  4 contract regulated under chapter 514B.
 46  5    (4)  Any other entity engaged in the business of insurance,
 46  6 risk transfer, or risk retention, which is subject to the
 46  7 jurisdiction of the commissioner.
 46  8    (5)  A plan established pursuant to chapter 509A for public
 46  9 employees.
 46 10    (6)  An organized delivery system licensed by the director
 46 11 of public health.
 46 12    b.  This section shall not apply to accident=only,
 46 13 specified disease, short=term hospital or medical, hospital
 46 14 confinement indemnity, credit, dental, vision, Medicare
 46 15 supplement, long=term care, basic hospital and
 46 16 medical=surgical expense coverage as defined by the
 46 17 commissioner, disability income insurance coverage, coverage
 46 18 issued as a supplement to liability insurance, workers'
 46 19 compensation or similar insurance, or automobile medical=
 46 20 payment insurance.
 46 21    Sec. 25.  LONG=TERM LIVING PLANNING TOOLS == PUBLIC
 46 22 EDUCATION CAMPAIGN.  The legal services development and
 46 23 substitute decision maker programs of the department of elder
 46 24 affairs, in collaboration with other appropriate agencies and
 46 25 interested parties, shall research existing long=term living
 46 26 planning tools that are designed to increase quality of life
 46 27 and contain health care costs and recommend a public education
 46 28 campaign strategy on long=term living to the general assembly
 46 29 by January 1, 2009.
 46 30    Sec. 26.  LONG=TERM CARE OPTIONS PUBLIC EDUCATION CAMPAIGN.
 46 31 The department of elder affairs, in collaboration with the
 46 32 insurance division of the department of commerce, shall
 46 33 implement a long=term care options public education campaign.
 46 34 The campaign may utilize such tools as the "Own Your Future
 46 35 Planning Kit" administered by the centers for Medicare and
 47  1 Medicaid services, the administration on aging, and the office
 47  2 of the assistant secretary for planning and evaluation of the
 47  3 United States department of health and human services, and
 47  4 other tools developed through the aging and disability
 47  5 resource center program of the administration on aging and the
 47  6 centers for Medicare and Medicaid services designed to promote
 47  7 health and independence as Iowans age, assist older Iowans in
 47  8 making informed choices about the availability of long=term
 47  9 care options, including alternatives to facility=based care,
 47 10 and to streamline access to long=term care.
 47 11    Sec. 27.  HOME AND COMMUNITY=BASED SERVICES PUBLIC
 47 12 EDUCATION CAMPAIGN.  The department of elder affairs shall
 47 13 work with other public and private agencies to identify
 47 14 resources that may be used to continue the work of the aging
 47 15 and disability resource center established by the department
 47 16 through the aging and disability resource center grant program
 47 17 efforts of the administration on aging and the centers for
 47 18 Medicare and Medicaid services of the United States department
 47 19 of health and human services, beyond the federal grant period
 47 20 ending September 30, 2008.
 47 21                           DIVISION VI
 47 22     DIVISION OF HEALTH CARE QUALITY, CONSUMER INFORMATION,
 47 23          STRATEGIC PLANNING, AND RESOURCE DEVELOPMENT
 47 24                           DIVISION V
 47 25     DIVISION OF HEALTH CARE QUALITY, CONSUMER INFORMATION,
 47 26          STRATEGIC PLANNING, AND RESOURCE DEVELOPMENT
 47 27    Sec. 28.  NEW SECTION.  135.45  DIVISION OF HEALTH CARE
 47 28 QUALITY, CONSUMER INFORMATION, STRATEGIC PLANNING, AND
 47 29 RESOURCE DEVELOPMENT.
 47 30    A division of health care quality, consumer information,
 47 31 strategic planning, and resource development is created in the
 47 32 department of public health.  The division shall include, at a
 47 33 minimum, the following bureaus:
 47 34    1.  The bureau of health care quality and consumer
 47 35 information.
 48  1    2.  The bureau of health care strategic planning and
 48  2 resource development.
 48  3     BUREAU OF HEALTH CARE QUALITY AND CONSUMER INFORMATION
 48  4    Sec. 29.  NEW SECTION.  135.46  BUREAU OF HEALTH CARE
 48  5 QUALITY AND CONSUMER INFORMATION == DUTIES.
 48  6    A bureau of health care quality and consumer information is
 48  7 created to provide better coordination of health care delivery
 48  8 information to improve the public health, inform policy
 48  9 analysis, and provide transparency of consumer health
 48 10 information.  The bureau, at a minimum, shall do all of the
 48 11 following:
 48 12    1.  Develop data collection requirements, collect data, and
 48 13 administer an internet=based consumer guide to health care
 48 14 relating to price, quality, safety, and other aspects of the
 48 15 health care delivery system to promote quality care that is
 48 16 safe, effective, patient=centered, timely, efficient, and
 48 17 equitable, and to empower individuals to make economically
 48 18 sound and medically appropriate decisions regarding their
 48 19 personal health.
 48 20    2.  Develop and implement cost=containment measures that
 48 21 help to contain costs while improving quality in the health
 48 22 care system.
 48 23    3.  Provide for coordination of public and private
 48 24 cost=containment, quality, and safety efforts in this state.
 48 25    4.  Carry out other health care price, quality, and
 48 26 safety=related research as directed by the governor and the
 48 27 general assembly.
 48 28    Sec. 30.  NEW SECTION.  135.47  IOWA HEALTH QUALITY AND
 48 29 COST=CONTAINMENT COLLABORATIVE.
 48 30    1.  The bureau shall convene an Iowa health quality and
 48 31 cost=containment collaborative to develop a process and the
 48 32 infrastructure to provide price, quality, safety, and other
 48 33 appropriate information to consumers.  The collaborative shall
 48 34 include but is not limited to all of the following members:
 48 35    a.  The director of public health, or the director's
 49  1 designee, who shall serve as chairperson of the collaborative.
 49  2    b.  A representative of the university of Iowa college of
 49  3 public health.
 49  4    c.  A representative of Des Moines university=osteopathic
 49  5 medical center.
 49  6    d.  A representative of health care consumers.
 49  7    e.  The president of the Iowa healthcare collaborative.
 49  8    f.  A representative of the Iowa health buyers' alliance.
 49  9    g.  A representative of the long=term care industry.
 49 10    2.  The department of public health shall provide
 49 11 administrative support to the collaborative.  Public members
 49 12 shall receive reimbursement for actual expenses incurred while
 49 13 engaged in the performance of official duties.
 49 14    3.  The collaborative shall review efforts of other states,
 49 15 the federal government, and private entities to identify
 49 16 meaningful tools to measure prices, safety, and the delivery
 49 17 of quality care, determine specific information and a format
 49 18 for publishing the information that is most useful to the
 49 19 consumer including contextual information and explanations
 49 20 that the public can easily understand, and to identify
 49 21 cost=containment strategies that also result in improved
 49 22 health care quality.  Following the collaborative's review,
 49 23 the collaborative shall do all of the following:
 49 24    a.  Facilitate the disclosure of price, quality, and safety
 49 25 information by supporting and expanding existing public and
 49 26 private efforts and by identifying and recommending ways to
 49 27 eliminate barriers to such disclosure.
 49 28    b.  Develop for implementation by July 1, 2009, a method
 49 29 for hospitals, health care providers, long=term care
 49 30 providers, insurers, and health care plans to collaborate in
 49 31 providing consumers with the usual and customary charges for a
 49 32 specified health service and specifically what the charges
 49 33 include and the factors that may cause the charges to vary, a
 49 34 good faith estimate of the actual billed charge and the amount
 49 35 for which the consumer may be personally liable for a
 50  1 specified health care service based on a consumer's specific
 50  2 health care coverage, and, if the consumer does not have
 50  3 health care coverage, providing a good faith estimate of the
 50  4 average allowable reimbursement the provider accepts as
 50  5 payment from such private third=party payers for the service
 50  6 specified and the estimated amount for which the noncovered
 50  7 consumer would be personally liable to pay.
 50  8    c.  Develop for implementation by July 1, 2010,
 50  9 requirements for the identification, collection,
 50 10 standardization, sharing, and public disclosure of pricing,
 50 11 quality, and patient safety data from hospitals and health
 50 12 care providers in this state.
 50 13    d.  Develop for implementation by July 1, 2009, uniform
 50 14 billing practices including uniform claim forms, billing
 50 15 codes, and compatible electronic or other data interchange
 50 16 standards for use by health care providers and payers in their
 50 17 health care claims, health care encounters, and electronic or
 50 18 other data interchange activities.
 50 19    e.  Develop and direct the department of human services to
 50 20 utilize quality and safety standards as a basis for increased
 50 21 provider reimbursement under the medical assistance, hawk=i,
 50 22 and IowaCare programs.
 50 23    f.  Develop cost=containment strategies.  Cost containment
 50 24 strategies may include but are not limited to modification of
 50 25 health care reimbursement methodologies to reward quality,
 50 26 incorporate evidence=based standards and promote best
 50 27 practices, to direct individuals into quality health care
 50 28 delivery, to encourage primary care, and to utilize
 50 29 telemedicine and health information technology.
 50 30    g.  Establish a health and wellness strategies consortium
 50 31 to act as a catalyst in advancing voluntarily adopted
 50 32 strategies to improve quality of care, increase access to
 50 33 services, reduce disparities in health care delivery and
 50 34 contain costs while emphasizing population health and
 50 35 wellness.  The core membership of the consortium shall include
 51  1 representatives of health care purchasers, payers, and
 51  2 providers.  The consortium shall direct strategies for health
 51  3 care payers and providers to adopt which may include but are
 51  4 not limited to:
 51  5    (1)  Strategies to promote wellness which may include:
 51  6    (a)  Providing smoking cessation programs as a standard
 51  7 health care benefit including reimbursement for treatment and
 51  8 support services.
 51  9    (b)  Providing obesity prevention services as a standard
 51 10 health care benefit.
 51 11    (c)  Increasing immunization rates for pneumococcal and
 51 12 influenza which may include approving an administration fee
 51 13 for all qualified providers of influenza and pneumococcal
 51 14 vaccinations.
 51 15    (d)  Providing health care benefit incentives for consumers
 51 16 who participate in wellness programs.
 51 17    (e)  Assuring that health care coverage for children
 51 18 includes primary, preventive, and developmental health
 51 19 services.
 51 20    (2)  Strategies to contain health care costs which may
 51 21 include:
 51 22    (a)  Promoting adoption of health information technology
 51 23 through provider incentives.
 51 24    (b)  Considering a four=tier prescription drug copayment
 51 25 system within a prescription drug benefit that includes a zero
 51 26 copayment tier for select medications to improve patient
 51 27 compliance.
 51 28    (c)  Providing a standard medication therapy management
 51 29 program as a prescription drug benefit to optimize high=risk
 51 30 patient's medication outcomes.
 51 31    (d)  Investigating whether pooled purchasing for
 51 32 prescription drug benefits, such as a common statewide
 51 33 preferred drug list, would decrease costs.
 51 34    (3)  Strategies to increase the public's role and
 51 35 responsibility in personal health care choices and decisions
 52  1 which may include:
 52  2    (a)  Creating a public awareness campaign to educate
 52  3 consumers on smart health care choices and promoting value=
 52  4 based purchasing.
 52  5    (b)  Promoting public reporting of quality and performance
 52  6 measures that support a value=based purchasing system.
 52  7    (4)  Implementation strategies which may include piloting
 52  8 the various wellness, cost=containment, and public involvement
 52  9 strategies utilizing publicly funded health care coverage
 52 10 groups such as the medical assistance program, state of Iowa
 52 11 employee group health plans, and regents institutions health
 52 12 care plans, consistent with collective bargaining agreements
 52 13 in effect.
 52 14    h.  Identify the process and time frames for implementation
 52 15 of any initiatives, identify any barriers to implementation of
 52 16 initiatives, and recommend any changes in law or rules
 52 17 necessary to eliminate the barriers and implement the
 52 18 initiatives.
 52 19    Sec. 31.  NEW SECTION.  135.48  ESTIMATE OF CHARGES.
 52 20    A health care provider, including a hospital, prior to
 52 21 provision of medical services, shall provide a patient, upon
 52 22 request, a reasonable estimate of charges for such services.
 52 23 The information provided shall explain the methodology in
 52 24 determining the estimate and shall state that the estimate
 52 25 does not preclude the health care provider from exceeding the
 52 26 estimate or making additional charges based on changes in the
 52 27 patient's condition, treatment needs, or third=party payer
 52 28 requirements.  The department shall develop a form to be used
 52 29 by a health care provider, including a hospital, in providing
 52 30 the information required by this section.  For the purposes of
 52 31 this section, "health care provider" means "health care
 52 32 professional" as defined in section 135.154.
 52 33      BUREAU OF HEALTH CARE STRATEGIC PLANNING AND RESOURCE
 52 34                           DEVELOPMENT
 52 35    Sec. 32.  NEW SECTION.  135.49  BUREAU OF HEALTH CARE
 53  1 STRATEGIC PLANNING AND RESOURCE DEVELOPMENT.
 53  2    A bureau of health care strategic planning and resource
 53  3 development is created to coordinate public and private
 53  4 efforts to develop and maintain an appropriate health care
 53  5 delivery infrastructure and a stable, well=qualified, diverse,
 53  6 and sustainable health care workforce in this state.  The
 53  7 bureau shall, at a minimum, do all of the following:
 53  8    1.  Develop a strategic plan for health care delivery
 53  9 infrastructure and health care workforce resources in this
 53 10 state.
 53 11    2.  Provide for the continuous collection of data to
 53 12 provide a basis for health care strategic planning and health
 53 13 care policymaking.
 53 14    3.  Make recommendations regarding the health care delivery
 53 15 infrastructure and the workforce that assist in monitoring
 53 16 current needs, predicting future trends, and informing
 53 17 policymaking.
 53 18    4.  Administer the certificate of need program and provide
 53 19 support to the health care strategic planning council
 53 20 established in section 135.62.
 53 21    Sec. 33.  NEW SECTION.  135.50  STRATEGIC PLAN.
 53 22    1.  The strategic plan for health care delivery
 53 23 infrastructure and health care workforce resources shall
 53 24 describe the existing health care system, describe and provide
 53 25 a rationale for the desired health care system, provide an
 53 26 action plan for implementation, and provide methods to
 53 27 evaluate the system.  The plan shall incorporate expenditure
 53 28 control methods and integrate criteria for evidence=based
 53 29 health care.  The bureau of health care strategic planning and
 53 30 resource development shall do all of the following in
 53 31 developing the strategic plan for health care delivery
 53 32 infrastructure and health care workforce resources:
 53 33    a.  Conduct strategic health planning activities related to
 53 34 preparation of the strategic plan.
 53 35    b.  Develop a computerized system for accessing, analyzing,
 54  1 and disseminating data relevant to strategic health planning.
 54  2 The bureau may enter into data sharing agreements and
 54  3 contractual arrangements necessary to obtain or disseminate
 54  4 relevant data.
 54  5    c.  Conduct research and analysis or arrange for research
 54  6 and analysis projects to be conducted by public or private
 54  7 organizations to further the development of the strategic
 54  8 plan.
 54  9    d.  Establish a technical advisory committee to assist in
 54 10 the development of the strategic plan.  The members of the
 54 11 committee may include but are not limited to health
 54 12 economists, health planners, representatives of health care
 54 13 purchasers, representatives of state and local agencies that
 54 14 regulate entities involved in health care, representatives of
 54 15 health care providers and health care facilities, and
 54 16 consumers.
 54 17    2.  The strategic plan shall include statewide health
 54 18 planning policies and goals related to the availability of
 54 19 health care facilities and services, the quality of care, and
 54 20 the cost of care.  The policies and goals shall be based on
 54 21 the following principles:
 54 22    a.  That a strategic health planning process, responsive to
 54 23 changing health and social needs and conditions, is essential
 54 24 to the health, safety, and welfare of Iowans.  The process
 54 25 shall be reviewed and updated as necessary to ensure that the
 54 26 strategic plan addresses all of the following:
 54 27    (1)  Promoting and maintaining the health of all Iowans.
 54 28    (2)  Providing accessible health care services through the
 54 29 maintenance of an adequate supply of health facilities and an
 54 30 adequate workforce.
 54 31    (3)  Controlling excessive increases in costs.
 54 32    (4)  Applying specific quality criteria and population
 54 33 health indicators.
 54 34    (5)  Recognizing prevention and wellness as priorities in
 54 35 health care programs to improve quality and reduce costs.
 55  1    (6)  Addressing periodic priority issues including disaster
 55  2 planning, public health threats, and public safety dilemmas.
 55  3    (7)  Coordinating health care delivery and resource
 55  4 development efforts among state agencies including those
 55  5 tasked with facility, services, and professional provider
 55  6 licensure; state and federal reimbursement; health service
 55  7 utilization data systems; and others.
 55  8    b.  That both consumers and providers throughout the state
 55  9 must be involved in the health planning process, outcomes of
 55 10 which shall be clearly articulated and available for public
 55 11 review and use.
 55 12    c.  That the supply of a health care service has a
 55 13 substantial impact on utilization of the service, independent
 55 14 of the effectiveness, medical necessity, or appropriateness of
 55 15 the particular health care service for a particular
 55 16 individual.
 55 17    d.  That given that health care resources are not
 55 18 unlimited, the impact of any new health care service or
 55 19 facility on overall health expenditures in this state must be
 55 20 considered.
 55 21    e.  That excess capacity of health care services and
 55 22 facilities places an increased economic burden on the public.
 55 23    f.  That the likelihood that a requested new health care
 55 24 facility, service, or equipment will improve health care
 55 25 quality and outcomes must be considered.
 55 26    g.  That development and ongoing maintenance of current and
 55 27 accurate health care information and statistics related to
 55 28 cost and quality of health care and projections of the need
 55 29 for health care facilities and services are necessary to
 55 30 developing an effective health care planning strategy.
 55 31    h.  That the certificate of need program as a component of
 55 32 the health care planning regulatory process must balance
 55 33 considerations of access to quality care at a reasonable cost
 55 34 for all Iowans, optimal use of existing health care resources,
 55 35 fostering of expenditure control, and elimination of
 56  1 unnecessary duplication of health care facilities and
 56  2 services, while supporting improved health care outcomes.
 56  3    i.  That strategic health care planning must be concerned
 56  4 with the stability of the health care system, encompassing
 56  5 health care financing, quality, and the availability of
 56  6 information and services for all residents.
 56  7    3.  The health care delivery infrastructure and resources
 56  8 strategic plan developed by the bureau shall include all of
 56  9 the following:
 56 10    a.  A health care system assessment and objectives
 56 11 component that does all of the following:
 56 12    (1)  Describes state and regional population demographics,
 56 13 health status indicators, and trends in health status and
 56 14 health care needs.
 56 15    (2)  Identifies key policy objectives for the state health
 56 16 care system related to access to care, health care outcomes,
 56 17 quality, and cost=effectiveness.
 56 18    b.  A health care facilities and services plan that
 56 19 assesses the demand for health care facilities and services to
 56 20 inform state health care planning efforts and direct
 56 21 certificate of need determinations, for those facilities and
 56 22 services subject to certificate of need.  The plan shall
 56 23 include all of the following:
 56 24    (1)  An inventory of each geographic region's existing
 56 25 health care facilities and services.
 56 26    (2)  Projections of the need for each category of health
 56 27 care facility and service, including those subject to
 56 28 certificate of need.
 56 29    (3)  Policies to guide the addition of new or expanded
 56 30 health care facilities and services to promote the use of
 56 31 quality, evidence=based, cost=effective health care delivery
 56 32 options, including any recommendations for criteria,
 56 33 standards, and methods relevant to the certificate of need
 56 34 review process.
 56 35    (4)  An assessment of the availability of health care
 57  1 providers, public health resources, transportation
 57  2 infrastructure, and other considerations necessary to support
 57  3 the needed health care facilities and services in each region.
 57  4    c.  (1)  A health care data resources plan that identifies
 57  5 data elements necessary to properly conduct planning
 57  6 activities and to review certificate of need applications,
 57  7 including data related to inpatient and outpatient utilization
 57  8 and outcomes information, and financial and utilization
 57  9 information related to charity care, quality, and cost.
 57 10    (2)  The plan shall inventory existing data resources, both
 57 11 public and private, that store and disclose information
 57 12 relevant to the health care planning process, including
 57 13 information necessary to conduct certificate of need
 57 14 activities.  The plan shall identify any deficiencies in the
 57 15 inventory of existing data resources and the data necessary to
 57 16 conduct comprehensive health care planning activities.  The
 57 17 plan may recommend that the bureau be authorized to access
 57 18 existing data sources and conduct appropriate analyses of such
 57 19 data or that other agencies expand their data collection
 57 20 activities as statutory authority permits.  The plan may
 57 21 identify any computing infrastructure deficiencies that impede
 57 22 the proper storage, transmission, and analysis of health care
 57 23 planning data.
 57 24    (3)  The plan shall provide recommendations for increasing
 57 25 the availability of data related to health care planning to
 57 26 provide greater community involvement in the health care
 57 27 planning process and consistency in data used for certificate
 57 28 of need applications and determinations.  The plan shall also
 57 29 integrate the requirements for annual reports by hospitals and
 57 30 health care facilities pursuant to section 135.75, the
 57 31 provisions relating to analyses and studies by the department
 57 32 pursuant to section 135.76, the data compilation provisions of
 57 33 section 135.78, and the provisions for contracts for
 57 34 assistance with analyses, studies, and data pursuant to
 57 35 section 135.83.
 58  1    d.  An assessment of emerging trends in health care
 58  2 delivery and technology as they relate to access to health
 58  3 care facilities and services, quality of care, and costs of
 58  4 care.  The assessment shall recommend any changes to the scope
 58  5 of health care facilities and services covered by the
 58  6 certificate of need program that may be warranted by these
 58  7 emerging trends.  In addition, the assessment may recommend
 58  8 any changes to criteria used by the department to review
 58  9 certificate of need applications, as necessary.
 58 10    e.  A rural health resources plan to assess the
 58 11 availability of health resources in rural areas of the state,
 58 12 assess the unmet needs of these communities, and evaluate how
 58 13 federal and state reimbursement policies can be modified, if
 58 14 necessary, to more efficiently and effectively meet the health
 58 15 care needs of rural communities.  The plan shall consider the
 58 16 unique health care needs of rural communities, the adequacy of
 58 17 the rural health workforce, and transportation needs for
 58 18 accessing appropriate care.
 58 19    f.  A health care workforce resources plan to assure a
 58 20 competent, diverse, and sustainable health care workforce in
 58 21 Iowa and to improve access to health care in underserved areas
 58 22 and among underserved populations.  The plan shall include the
 58 23 establishment of an advisory council to inform and advise the
 58 24 bureau, the department, and policymakers regarding issues
 58 25 relevant to the health care workforce in Iowa.
 58 26    4.  The bureau shall submit the initial statewide health
 58 27 care delivery infrastructure and resources strategic plan to
 58 28 the governor and the general assembly by January 1, 2010, and
 58 29 shall submit an updated strategic plan to the governor and the
 58 30 general assembly every two years thereafter.
 58 31                          DIVISION VII
 58 32                   CERTIFICATE OF NEED PROGRAM
 58 33    Sec. 34.  Section 68B.35, subsection 2, paragraph e, Code
 58 34 2007, is amended to read as follows:
 58 35    e.  Members of the state banking council, the ethics and
 59  1 campaign disclosure board, the credit union review board, the
 59  2 economic development board, the employment appeal board, the
 59  3 environmental protection commission, the health facilities
 59  4 care strategic planning council, the Iowa finance authority,
 59  5 the Iowa public employees' retirement system investment board,
 59  6 the board of the Iowa lottery authority, the natural resource
 59  7 commission, the board of parole, the petroleum underground
 59  8 storage tank fund board, the public employment relations
 59  9 board, the state racing and gaming commission, the state board
 59 10 of regents, the tax review board, the transportation
 59 11 commission, the office of consumer advocate, the utilities
 59 12 board, the Iowa telecommunications and technology commission,
 59 13 and any full=time members of other boards and commissions as
 59 14 defined under section 7E.4 who receive an annual salary for
 59 15 their service on the board or commission.  The Iowa ethics and
 59 16 campaign disclosure board shall conduct an annual review to
 59 17 determine if members of any other board, commission, or
 59 18 authority should file a statement and shall require the filing
 59 19 of a statement pursuant to rules adopted pursuant to chapter
 59 20 17A.
 59 21    Sec. 35.  Section 97B.1A, subsection 8, paragraph a,
 59 22 subparagraph (8), Code 2007, is amended to read as follows:
 59 23    (8)  Members of the state transportation commission, the
 59 24 board of parole, and the state health facilities care
 59 25 strategic planning council.
 59 26    Sec. 36.  Section 135.61, subsection 1, paragraph d, code
 59 27 2007, is amended to read as follows:
 59 28    d.  Each institutional health facility or health
 59 29 maintenance organization which, prior to receipt of the
 59 30 application by the department bureau, has formally indicated
 59 31 to the department bureau pursuant to this division an intent
 59 32 to furnish in the future institutional health services similar
 59 33 to the new institutional health service proposed in the
 59 34 application.
 59 35    Sec. 37.  Section 135.61, Code 2007, is amended by adding
 60  1 the following new subsection:
 60  2    NEW SUBSECTION.  2A.  "Bureau" means the bureau of health
 60  3 care strategic planning and resource development created
 60  4 pursuant to section 135.49.
 60  5    Sec. 38.  Section 135.61, subsection 4, Code 2007, is
 60  6 amended to read as follows:
 60  7    4.  "Council" means the state health facilities care
 60  8 strategic planning council established by this division.
 60  9    Sec. 39.  Section 135.61, subsection 18, paragraph d, Code
 60 10 2007, is amended to read as follows:
 60 11    d.  A permanent change in the bed capacity, as determined
 60 12 by the department bureau, of an institutional health facility.
 60 13 For purposes of this paragraph, a change is permanent if it is
 60 14 intended to be effective for one year or more.
 60 15    Sec. 40.  NEW SECTION.  135.61A  PURPOSES OF CERTIFICATE OF
 60 16 NEED PROGRAM.
 60 17    The purposes of the certificate of need program are to
 60 18 facilitate access to quality care at a reasonable cost for all
 60 19 Iowans, to encourage optimal use of existing health care
 60 20 resources, to foster expenditure control, to support quality
 60 21 improvement efforts, and to prevent unnecessary duplication of
 60 22 institutional health facilities, health services, and health
 60 23 care equipment.  In order to determine if the program is
 60 24 complying with the purposes established, regular evaluation of
 60 25 the impact of the certificate of need program on health care
 60 26 expenditures, access, quality, and innovation must exist.
 60 27    Sec. 41.  Section 135.62, Code 2007, is amended to read as
 60 28 follows:
 60 29    135.62  DEPARTMENT BUREAU TO ADMINISTER DIVISION == HEALTH
 60 30 FACILITIES CARE STRATEGIC PLANNING COUNCIL ESTABLISHED ==
 60 31 APPOINTMENTS == POWERS AND DUTIES.
 60 32    1.  This division shall be administered by the department
 60 33 bureau.  The director shall employ or cause to be employed the
 60 34 necessary persons to discharge the duties imposed on the
 60 35 department bureau by this division.
 61  1    2.  There is established a state health facilities care
 61  2 strategic planning council consisting of five seven persons
 61  3 appointed by the governor, one of whom shall be a health
 61  4 economist, one of whom shall be an actuary, and at least one
 61  5 of whom shall be a health care consumer.  The council shall be
 61  6 within the department bureau for administrative and budgetary
 61  7 purposes.
 61  8    a.  QUALIFICATIONS.  The members of the council shall be
 61  9 chosen so that the council as a whole is broadly
 61 10 representative of various geographical areas of the state, and
 61 11 no more than three four of its members are affiliated with the
 61 12 same political party.  Each council member shall be a person
 61 13 who has demonstrated by prior activities an informed concern
 61 14 for the planning and delivery of health services.  No member
 61 15 of the council, nor any spouse of a member, shall during the
 61 16 time that member is serving on the council meet either of the
 61 17 following prohibitions:
 61 18    (1)  Be a health care provider, nor be otherwise directly
 61 19 or indirectly engaged in the delivery of health care services
 61 20 nor, or have a material financial interest in the providing or
 61 21 delivery of health services; nor.
 61 22    (2)  Serve as a member of any board or other policymaking
 61 23 or advisory body of an institutional health facility, a health
 61 24 maintenance organization, or any health or hospital insurer.
 61 25    b.  APPOINTMENTS.  Terms of council members shall be six
 61 26 years, beginning and ending as provided in section 69.19.  A
 61 27 member shall be appointed in each odd=numbered year to succeed
 61 28 each member whose term expires in that year.  Vacancies shall
 61 29 be filled by the governor for the balance of the unexpired
 61 30 term.  Each appointment to the council is subject to
 61 31 confirmation by the senate.  A council member is ineligible
 61 32 for appointment to a second consecutive term, unless first
 61 33 appointed to an unexpired term of three years or less.
 61 34    The governor shall designate one of the council members as
 61 35 chairperson.  That designation may be changed not later than
 62  1 July 1 of any odd=numbered year, effective on the date of the
 62  2 organizational meeting held in that year under paragraph "c"
 62  3 of this subsection.
 62  4    c.  MEETINGS.  The council shall hold an organizational
 62  5 meeting in July of each odd=numbered year, or as soon
 62  6 thereafter as the new appointee or appointees are confirmed
 62  7 and have qualified.  Other meetings shall be held as necessary
 62  8 to enable the council to expeditiously discharge its duties.
 62  9 Meeting dates shall be set upon adjournment or by call of the
 62 10 chairperson upon five days' notice to the other members.  Each
 62 11 member of the council shall receive a per diem as specified in
 62 12 section 7E.6 and reimbursement for actual expenses while
 62 13 engaged in official duties.
 62 14    d.  DUTIES.  The council shall:
 62 15    (1)  Make the final decision, as required by section
 62 16 135.69, with respect to each application for a certificate of
 62 17 need accepted by the department bureau.
 62 18    (2)  Determine and adopt such policies as are authorized by
 62 19 law and are deemed necessary to the efficient discharge of its
 62 20 duties under this division.
 62 21    (3)  Have authority to direct staff personnel of the
 62 22 department or bureau assigned to conduct formal or summary
 62 23 reviews of applications for certificates of need.
 62 24    (4)  Advise and counsel with the director or administrator
 62 25 concerning the provisions of this division, and the policies
 62 26 and procedures adopted by the department or bureau pursuant to
 62 27 this division.
 62 28    (5)  Review and approve, prior to promulgation, all rules
 62 29 adopted by the department under this division.
 62 30    Sec. 42.  Section 135.63, subsection 1, Code 2007, is
 62 31 amended to read as follows:
 62 32    1.  A new institutional health service or changed
 62 33 institutional health service shall not be offered or developed
 62 34 in this state without prior application to the department
 62 35 bureau for and receipt of a certificate of need, pursuant to
 63  1 this division.  The application shall be made upon forms
 63  2 furnished or prescribed by the department or bureau and shall
 63  3 contain such information as the department or bureau may
 63  4 require under this division.  The application shall be
 63  5 accompanied by a fee equivalent to three=tenths of one percent
 63  6 of the anticipated cost of the project with a minimum fee of
 63  7 six hundred dollars and a maximum fee of twenty=one thousand
 63  8 dollars.  The fee shall be remitted by the department or
 63  9 bureau to the treasurer of state, who shall place it in the
 63 10 general fund of the state.  If an application is voluntarily
 63 11 withdrawn within thirty calendar days after submission,
 63 12 seventy=five percent of the application fee shall be refunded;
 63 13 if the application is voluntarily withdrawn more than thirty
 63 14 but within sixty days after submission, fifty percent of the
 63 15 application fee shall be refunded; if the application is
 63 16 withdrawn voluntarily more than sixty days after submission,
 63 17 twenty=five percent of the application fee shall be refunded.
 63 18 Notwithstanding the required payment of an application fee
 63 19 under this subsection, an applicant for a new institutional
 63 20 health service or a changed institutional health service
 63 21 offered or developed by an intermediate care facility for
 63 22 persons with mental retardation or an intermediate care
 63 23 facility for persons with mental illness as defined pursuant
 63 24 to section 135C.1 is exempt from payment of the application
 63 25 fee.
 63 26    Sec. 43.  Section 135.63, subsection 2, paragraphs g, h, k,
 63 27 1, and p, Code 2007, are amended to read as follows:
 63 28    g.  A reduction in bed capacity of an institutional health
 63 29 facility, notwithstanding any provision in this division to
 63 30 the contrary, if all of the following conditions exist:
 63 31    (1)  The institutional health facility reports to the
 63 32 department bureau the number and type of beds reduced on a
 63 33 form prescribed by the department or bureau at least thirty
 63 34 days before the reduction.  In the case of a health care
 63 35 facility, the new bed total must be consistent with the number
 64  1 of licensed beds at the facility.  In the case of a hospital,
 64  2 the number of beds must be consistent with bed totals reported
 64  3 to the department of inspections and appeals for purposes of
 64  4 licensure and certification.
 64  5    (2)  The institutional health facility reports the new bed
 64  6 total on its next annual report to the department bureau.
 64  7    If these conditions are not met, the institutional health
 64  8 facility is subject to review as a "new institutional health
 64  9 service" or "changed institutional health service" under
 64 10 section 135.61, subsection 18, paragraph "d", and subject to
 64 11 sanctions under section 135.73.  If the institutional health
 64 12 facility reestablishes the deleted beds at a later time,
 64 13 review as a "new institutional health service" or "changed
 64 14 institutional health service" is required pursuant to section
 64 15 135.61, subsection 18, paragraph "d".
 64 16    h.  The deletion of one or more health services, previously
 64 17 offered on a regular basis by an institutional health facility
 64 18 or health maintenance organization, notwithstanding any
 64 19 provision of this division to the contrary, if all of the
 64 20 following conditions exist:
 64 21    (1)  The institutional health facility or health
 64 22 maintenance organization reports to the department bureau the
 64 23 deletion of the service or services at least thirty days
 64 24 before the deletion on a form prescribed by the department or
 64 25 bureau.
 64 26    (2)  The institutional health facility or health
 64 27 maintenance organization reports the deletion of the service
 64 28 or services on its next annual report to the department
 64 29 bureau.
 64 30    If these conditions are not met, the institutional health
 64 31 facility or health maintenance organization is subject to
 64 32 review as a "new institutional health service" or "changed
 64 33 institutional health service" under section 135.61, subsection
 64 34 18, paragraph "f", and subject to sanctions under section
 64 35 135.73.
 65  1    If the institutional health facility or health maintenance
 65  2 organization reestablishes the deleted service or services at
 65  3 a later time, review as a "new institutional health service"
 65  4 or "changed institutional health service" may be required
 65  5 pursuant to section 135.61, subsection 18.
 65  6    k.  The redistribution of beds by a hospital within the
 65  7 acute care category of bed usage, notwithstanding any
 65  8 provision in this division to the contrary, if all of the
 65  9 following conditions exist:
 65 10    (1)  The hospital reports to the department bureau the
 65 11 number and type of beds to be redistributed on a form
 65 12 prescribed by the department or bureau at least thirty days
 65 13 before the redistribution.
 65 14    (2)  The hospital reports the new distribution of beds on
 65 15 its next annual report to the department bureau.
 65 16    If these conditions are not met, the redistribution of beds
 65 17 by the hospital is subject to review as a new institutional
 65 18 health service or changed institutional health service
 65 19 pursuant to section 135.61, subsection 18, paragraph "d", and
 65 20 is subject to sanctions under section 135.73.
 65 21    l.  The replacement or modernization of any institutional
 65 22 health facility if the replacement or modernization does not
 65 23 add new health services or additional bed capacity for
 65 24 existing health services, and does not relocate the
 65 25 institutional health facility to any other site,
 65 26 notwithstanding any provision in this division to the
 65 27 contrary.
 65 28    p.  The conversion of an existing number of beds by an
 65 29 intermediate care facility for persons with mental retardation
 65 30 to a smaller facility environment, including but not limited
 65 31 to a community=based environment which does not result in an
 65 32 increased number of beds, notwithstanding any provision in
 65 33 this division to the contrary, including subsection 4, if all
 65 34 of the following conditions exist:
 65 35    (1)  The intermediate care facility for persons with mental
 66  1 retardation reports the number and type of beds to be
 66  2 converted on a form prescribed by the department or bureau at
 66  3 least thirty days before the conversion.
 66  4    (2)  The intermediate care facility for persons with mental
 66  5 retardation reports the conversion of beds on its next annual
 66  6 report to the department bureau.
 66  7    Sec. 44.  Section 135.63, subsection 4, unnumbered
 66  8 paragraph 1, Code 2007, is amended to read as follows:
 66  9    A copy of the application shall be sent to the department
 66 10 of human services at the time the application is submitted to
 66 11 the Iowa department of public health bureau.  The department
 66 12 bureau shall not process applications for and the council
 66 13 shall not consider a new or changed institutional health
 66 14 service for an intermediate care facility for persons with
 66 15 mental retardation unless both of the following conditions are
 66 16 met:
 66 17    Sec. 45.  Section 135.64, subsection 1, unnumbered
 66 18 paragraph 1, Code 2007, is amended to read as follows:
 66 19    In determining whether a certificate of need shall be
 66 20 issued, the department bureau and council shall consider the
 66 21 following:
 66 22    Sec. 46.  Section 135.64, subsection 1, Code 2007, is
 66 23 amended by adding the following new paragraphs before
 66 24 paragraph a:
 66 25    NEW PARAGRAPH.  0a.  The relationship of the proposed
 66 26 institutional health service to the statewide health care
 66 27 delivery infrastructure and resources strategic plan developed
 66 28 by the bureau pursuant to section 135.50.
 66 29    NEW PARAGRAPH.  1a.  Whether the proposed institutional
 66 30 health service promotes wellness and prevention, will improve
 66 31 quality, and will reduce health care costs.
 66 32    Sec. 47.  Section 135.64, subsection 1, paragraphs c, g, h,
 66 33 i, and r, Code 2007, are amended to read as follows:
 66 34    c.  The need specific health care needs of the population
 66 35 served or to be served by the proposed institutional health
 67  1 services for those services, the extent to which the proposed
 67  2 institutional health services will substantially address these
 67  3 specific health care needs, and the projected positive impact
 67  4 that the proposed institutional health services will have on
 67  5 the health status indicators of the population to be served.
 67  6    g.  The relationship of the proposed institutional health
 67  7 services to the state health care delivery infrastructure and
 67  8 health care workforce resources strategic plan and to the
 67  9 existing health care system of the area in which those
 67 10 services are proposed to be provided.
 67 11    h.  The appropriate and efficient use or prospective use of
 67 12 the proposed institutional health service, and of any existing
 67 13 similar services, including but not limited to a consideration
 67 14 of the capacity of the sponsor's facility to provide the
 67 15 proposed service, and possible sharing or cooperative
 67 16 arrangements among existing facilities and providers; and
 67 17 whether there is a substantial risk that the proposed
 67 18 institutional health services will result in inappropriate
 67 19 increases in service utilization or the cost of health care
 67 20 services.
 67 21    i.  The availability of resources, including, but not
 67 22 limited to, health care providers, management personnel, and
 67 23 funds for capital and operating needs, to provide the proposed
 67 24 institutional health services and the possible alternative
 67 25 uses of those resources to provide other health services; the
 67 26 impact of the proposed institutional health services on total
 67 27 health care expenditures and total health care workforce
 67 28 resources taking into consideration both the costs and
 67 29 benefits of the proposed institutional health services and the
 67 30 competing demands in the local service area statewide for
 67 31 available financial and human resources for health care; and
 67 32 the impact on existing and proposed institutional and other
 67 33 educational training programs for health care providers at the
 67 34 student, internship, and residency training levels.
 67 35    r.  The recommendations of staff personnel of the
 68  1 department or bureau assigned to the area of certificate of
 68  2 need, concerning the application, if requested by the council.
 68  3    Sec. 48.  Section 135.64, subsection 1, Code 2007, is
 68  4 amended by adding the following new paragraph:
 68  5    NEW PARAGRAPH.  ee.  Whether the proposed institutional
 68  6 health services will provide demonstrable improvements in
 68  7 quality and outcome measures applicable to the institutional
 68  8 health services proposed.
 68  9    Sec. 49.  Section 135.64, subsection 2, unnumbered
 68 10 paragraph 1, Code 2007, is amended to read as follows:
 68 11    In addition to the findings required with respect to any of
 68 12 the criteria listed in subsection 1 of this section, the
 68 13 council shall grant a certificate of need for a new
 68 14 institutional health service or changed institutional health
 68 15 service only if it finds in writing, on the basis of data
 68 16 submitted to it by the department or bureau, that:
 68 17    Sec. 50.  Section 135.65, Code 2007, is amended to read as
 68 18 follows:
 68 19    135.65  LETTER OF INTENT TO PRECEDE APPLICATION == REVIEW
 68 20 AND COMMENT.
 68 21    1.  Before applying for a certificate of need, the sponsor
 68 22 of a proposed new institutional health service or changed
 68 23 institutional health service shall submit to the department
 68 24 bureau a letter of intent to offer or develop a service
 68 25 requiring a certificate of need.  The letter shall be
 68 26 submitted as soon as possible after initiation of the
 68 27 applicant's planning process, and in any case not less than
 68 28 thirty days before applying for a certificate of need and
 68 29 before substantial expenditures to offer or develop the
 68 30 service are made.  The letter shall include a brief
 68 31 description of the proposed new or changed service, its
 68 32 location, and its estimated cost.
 68 33    2.  Upon request of the sponsor of the proposed new or
 68 34 changed service, the department bureau shall make a
 68 35 preliminary review of the letter for the purpose of informing
 69  1 the sponsor of the project of any factors which may appear
 69  2 likely to result in denial of a certificate of need, based on
 69  3 the criteria for evaluation of applications in section 135.64.
 69  4 A comment by the department bureau under this section shall
 69  5 not constitute a final decision.
 69  6    Sec. 51.  Section 135.66, Code 2007, is amended to read as
 69  7 follows:
 69  8    135.66  PROCEDURE UPON RECEIPT OF APPLICATION == PUBLIC
 69  9 NOTIFICATION.
 69 10    1.  Within fifteen business days after receipt of an
 69 11 application for a certificate of need, the department bureau
 69 12 shall examine the application for form and completeness and
 69 13 accept or reject it.  An application shall be rejected only if
 69 14 it fails to provide all information required by the department
 69 15 bureau pursuant to section 135.63, subsection 1.  The
 69 16 department bureau shall promptly return to the applicant any
 69 17 rejected application, with an explanation of the reasons for
 69 18 its rejection.
 69 19    2.  Upon acceptance of an application for a certificate of
 69 20 need, the department bureau shall promptly undertake to notify
 69 21 all affected persons in writing that formal review of the
 69 22 application has been initiated.  Notification to those
 69 23 affected persons who are consumers or third=party payers or
 69 24 other payers for health services may be provided by
 69 25 distribution of the pertinent information to the news media.
 69 26    3.  Each application accepted by the department bureau
 69 27 shall be formally reviewed for the purpose of furnishing to
 69 28 the council the information necessary to enable it to
 69 29 determine whether or not to grant the certificate of need.  A
 69 30 formal review shall consist at a minimum of the following
 69 31 steps:
 69 32    a.  Evaluation of the application against the criteria
 69 33 specified in section 135.64.
 69 34    b.  A public hearing on the application, to be held prior
 69 35 to completion of the evaluation required by paragraph "a",
 70  1 shall be conducted by the council.
 70  2    4.  When a hearing is to be held pursuant to subsection 3,
 70  3 paragraph "b", the department bureau shall give at least ten
 70  4 days' notice of the time and place of the hearing.  At the
 70  5 hearing, any affected person or that person's designated
 70  6 representative shall have the opportunity to present
 70  7 testimony.
 70  8    Sec. 52.  Section 135.67, unnumbered paragraph 1, Code
 70  9 2007, is amended to read as follows:
 70 10    The department bureau may waive the letter of intent
 70 11 procedures prescribed by section 135.65 and substitute a
 70 12 summary review procedure, which shall be established by rules
 70 13 of the department, when it accepts an application for a
 70 14 certificate of need for a project which meets any of the
 70 15 criteria in subsections 1 through 5:
 70 16    Sec. 53.  Section 135.67, subsections 3 and 5, Code 2007,
 70 17 are amended to read as follows:
 70 18    3.  A project which will not change the existing bed
 70 19 capacity of the applicant's facility or service, as determined
 70 20 by the department bureau, by more than ten percent or ten
 70 21 beds, whichever is less, over a two=year period.
 70 22    5.  Any other project for which the applicant proposes and
 70 23 the department bureau agrees to summary review.
 70 24    Sec. 54.  Section 135.67, unnumbered paragraph 2, Code
 70 25 2007, is amended to read as follows:
 70 26    The department's bureau's decision to disallow a summary
 70 27 review shall be binding upon the applicant.
 70 28    Sec. 55.  Section 135.68, Code 2007, is amended to read as
 70 29 follows:
 70 30    135.68  STATUS REPORTS ON REVIEW IN PROGRESS.
 70 31    While formal review of an application for a certificate of
 70 32 need is in progress, the department bureau shall upon request
 70 33 inform any affected person of the status of the review, any
 70 34 findings which have been made in the course of the review, and
 70 35 any other appropriate information concerning the review.
 71  1    Sec. 56.  Section 135.69, unnumbered paragraph 1, Code
 71  2 2007, is amended to read as follows:
 71  3    The department bureau shall complete its formal review of
 71  4 the application within ninety days after acceptance of the
 71  5 application, except as otherwise provided by section 135.72,
 71  6 subsection 4.  Upon completion of the formal review, the
 71  7 council shall approve or deny the application.  The council
 71  8 shall issue written findings stating the basis for its
 71  9 decision on the application, and the department bureau shall
 71 10 send copies of the council's decision and the written findings
 71 11 supporting the decision to the applicant and to any other
 71 12 person who so requests.
 71 13    Sec. 57.  Section 135.71, Code 2007, is amended to read as
 71 14 follows:
 71 15    135.71  PERIOD FOR WHICH CERTIFICATE IS VALID == EXTENSION
 71 16 OR REVOCATION.
 71 17    A certificate of need shall be valid for a maximum of one
 71 18 year from the date of issuance.  Upon the expiration of the
 71 19 certificate, or at any earlier time while the certificate is
 71 20 valid the holder thereof shall provide the department bureau
 71 21 such information on the development of the project covered by
 71 22 the certificate as the department bureau may request.  The
 71 23 council shall determine at the end of the certification period
 71 24 whether sufficient progress is being made on the development
 71 25 of the project.  The certificate of need may be extended by
 71 26 the council for additional periods of time as are reasonably
 71 27 necessary to expeditiously complete the project, but may be
 71 28 revoked by the council at the end of the first or any
 71 29 subsequent certification period for insufficient progress in
 71 30 developing the project.
 71 31    Upon expiration of certificate of need, and prior to
 71 32 extension thereof, any affected person shall have the right to
 71 33 submit to the department bureau information which may be
 71 34 relevant to the question of granting an extension.  The
 71 35 department bureau may call a public hearing for this purpose.
 72  1    Sec. 58.  Section 135.72, subsection 4, Code 2007, is
 72  2 amended to read as follows:
 72  3    4.  Criteria for determining when it is not feasible to
 72  4 complete formal review of an application for a certificate of
 72  5 need within the time limits specified in section 135.69.  The
 72  6 rules adopted under this subsection shall include criteria for
 72  7 determining whether an application proposes introduction of
 72  8 technologically innovative equipment, and if so, procedures to
 72  9 be followed in reviewing the application.  However, a rule
 72 10 adopted under this subsection shall not permit a deferral of
 72 11 more than sixty days beyond the time when a decision is
 72 12 required under section 135.69, unless both the applicant and
 72 13 the department bureau agree to a longer deferment.
 72 14    Sec. 59.  Section 135.74, subsections 1 and 2, Code 2007,
 72 15 are amended to read as follows:
 72 16    1.  The department, after study and in consultation with
 72 17 the bureau of health care quality and consumer information and
 72 18 any advisory committees which may be established pursuant to
 72 19 law, shall promulgate by rule pursuant to chapter 17A uniform
 72 20 methods of financial reporting, including such allocation
 72 21 methods as may be prescribed, by which hospitals and health
 72 22 care facilities shall respectively record their revenues,
 72 23 expenses, other income, other outlays, assets and liabilities,
 72 24 and units of service, according to functional activity center.
 72 25 These uniform methods of financial reporting shall not
 72 26 preclude a hospital or health care facility from using any
 72 27 accounting methods for its own purposes provided these
 72 28 accounting methods can be reconciled to the uniform methods of
 72 29 financial reporting prescribed by the department and can be
 72 30 audited for validity and completeness.  Each hospital and each
 72 31 health care facility shall adopt the appropriate system for
 72 32 its fiscal year, effective upon such date as the department
 72 33 shall direct.  In determining the effective date for reporting
 72 34 requirements, the department shall consider both the immediate
 72 35 need for uniform reporting of information to effectuate the
 73  1 purposes of this division and the administrative and economic
 73  2 difficulties which hospitals and health care facilities may
 73  3 encounter in complying with the uniform financial reporting
 73  4 requirement, but the effective date shall not be later than
 73  5 January 1, 1980.
 73  6    2.  In establishing uniform methods of financial reporting,
 73  7 the department shall consider all of the following:
 73  8    a.  The existing systems of accounting and reporting
 73  9 currently utilized by hospitals and health care facilities;.
 73 10    b.  Differences among hospitals and health care facilities,
 73 11 respectively, according to size, financial structure, methods
 73 12 of payment for services, and scope, type and method of
 73 13 providing services; and.
 73 14    c.  Other pertinent distinguishing factors.
 73 15    Sec. 60.  Section 135.75, subsection 1, Code 2007, is
 73 16 amended to read as follows:
 73 17    1.  Each hospital and each health care facility shall
 73 18 annually, after the close of its fiscal year, file with the
 73 19 department all of the following:
 73 20    a.  A balance sheet detailing the assets, liabilities and
 73 21 net worth of the hospital or health care facility;.
 73 22    b.  A statement of its the hospital's or health care
 73 23 facility's income and expenses; and including but not limited
 73 24 to expenses for salaries and other compensation for management
 73 25 positions including the salary and compensation for the chief
 73 26 executive officer and five other most highly compensated
 73 27 positions, profit or excess revenues, and cash reserves.
 73 28    c.  Such other reports of the costs incurred in rendering
 73 29 services as the department may prescribe.
 73 30    Sec. 61.  Section 135.76, Code 2007, is amended to read as
 73 31 follows:
 73 32    135.76  ANALYSES AND STUDIES BY DEPARTMENT BUREAU.
 73 33    1.  The department bureau of health care strategic planning
 73 34 and resource development, in cooperation with the bureau of
 73 35 health care quality and consumer information, shall from time
 74  1 to time undertake analyses and studies relating to hospital
 74  2 and health care facility costs and to the financial status of
 74  3 hospitals or health care facilities, or both, which are
 74  4 subject to the provisions of this division.  It The bureau of
 74  5 health care strategic planning and resource development shall
 74  6 further also require the filing of information concerning the
 74  7 total financial needs of each individual hospital or health
 74  8 care facility and the resources currently or prospectively
 74  9 available to meet these needs, including the effect of
 74 10 proposals made by health systems agencies.  The department
 74 11 bureau shall also prepare and file such summaries and
 74 12 compilations or other supplementary reports based on the
 74 13 information filed with it the bureau as will, in its the
 74 14 bureau's judgment, advance the purposes of this division and
 74 15 the purposes of the bureau of health care quality and consumer
 74 16 information.
 74 17    2.  The analyses and studies required by this section shall
 74 18 be conducted with the objective of providing a basis for
 74 19 determining whether or not regulation of hospital and health
 74 20 care facility rates and charges by the state of Iowa is
 74 21 necessary to protect the health or welfare of the people of
 74 22 the state.
 74 23    3.  In conducting its the analyses and studies, the
 74 24 department should bureau shall determine whether:
 74 25    a.  The rates charged and costs incurred by hospitals and
 74 26 health care facilities are reasonably related to the services
 74 27 offered by those respective groups of institutions.
 74 28    b.  Aggregate rates of hospitals and of health care
 74 29 facilities are reasonably related to the aggregate costs
 74 30 incurred by those respective groups of institutions.
 74 31    c.  Rates are set equitably among all purchasers or classes
 74 32 of purchasers of hospital and of health care facility
 74 33 services.
 74 34    d.  The rates for particular services, supplies or
 74 35 materials established by hospitals and by health care
 75  1 facilities are reasonable. Determination of reasonableness of
 75  2 rates shall include consideration of a fair rate of return to
 75  3 proprietary hospitals and health care facilities.
 75  4    4.  All data gathered and compiled and all reports prepared
 75  5 under this section, except privileged medical information,
 75  6 shall be open to public inspection.
 75  7    Sec. 62.  Section 135.78, Code 2007, is amended to read as
 75  8 follows:
 75  9    135.78  DATA TO BE COMPILED.
 75 10    The department bureau of health care strategic planning and
 75 11 resource development shall compile all relevant financial and
 75 12 utilization data in order to have available the statistical
 75 13 information necessary to properly monitor hospital and health
 75 14 care facility charges and costs and to assist the bureau of
 75 15 health care quality and consumer information.  Such data shall
 75 16 include necessary operating expenses, appropriate expenses
 75 17 incurred for rendering services to patients who cannot or do
 75 18 not pay, all properly incurred interest charges, and
 75 19 reasonable depreciation expenses based on the expected useful
 75 20 life of the property and equipment involved.  The department
 75 21 bureau of health care strategic planning and resource
 75 22 development shall also obtain from each hospital and health
 75 23 care facility a current rate schedule as well as any
 75 24 subsequent amendments or modifications of that schedule as it
 75 25 may require.  In collection of the data required by this
 75 26 section and sections 135.74 through 135.76, the department
 75 27 bureau of health care strategic planning and resource
 75 28 development, the bureau of health care quality and consumer
 75 29 information, and other state agencies shall coordinate their
 75 30 reporting requirements.
 75 31                           EXPLANATION
 75 32    IOWA HEALTH CARE COVERAGE EXCHANGE.  Division I of this
 75 33 bill relates to the creation of the Iowa health care coverage
 75 34 exchange in new Code chapter 514M with the intent to progress
 75 35 toward achievement of the goal that all Iowans have health
 76  1 care coverage, as funding becomes available.
 76  2    Specified priorities for achievement of the goal are as
 76  3 follows:
 76  4    1.  All Iowa children have qualified health care coverage
 76  5 which meets certain standards of quality and affordability
 76  6 beginning with covering all children who are eligible for
 76  7 public coverage by December 31, 2009, subsidizing private
 76  8 coverage for the remaining uninsured children up to 18 years
 76  9 of age under a sliding scale based on family income by
 76 10 December 31, 2009, and moving toward a future requirement that
 76 11 all parents provide proof of qualified health care coverage
 76 12 for their children.
 76 13    2.  All Iowans have qualified health care coverage which
 76 14 meets certain standards of quality and affordability beginning
 76 15 with continued expansion of options for individuals who are
 76 16 dually eligible for Medicare and medical assistance,
 76 17 facilitating coverage of uninsured health and long=term care
 76 18 workers and child care workers, maximizing eligibility of
 76 19 low=income adults 18 years of age and older for public health
 76 20 care coverage, subsidizing coverage for the remaining
 76 21 low=income adults, and moving toward a future requirement that
 76 22 all Iowans must provide proof of qualified health care
 76 23 coverage.
 76 24    3.  Health care costs and health care coverage costs are
 76 25 decreased by instituting insurance reforms, requiring Iowa
 76 26 children with public coverage to have a medical home,
 76 27 establishing a statewide telehealth system, and implementing
 76 28 cost=containment strategies.
 76 29    The Iowa health care coverage exchange is created as a
 76 30 state agency governed by a board of directors including the
 76 31 following nine voting members: the two most recent former
 76 32 governors (or if one or both of them are unable or unwilling
 76 33 to serve, a person or persons appointed by the governor); the
 76 34 commissioner of insurance; the director of human services; and
 76 35 five members appointed by the governor subject to confirmation
 77  1 by the senate; who represent specified groups; and including
 77  2 the following five ex officio, nonvoting members: four members
 77  3 of the general assembly and a secretary of the board.  The
 77  4 voting members of the board are also required to appoint an
 77  5 executive director, subject to confirmation by the senate, to
 77  6 supervise the administrative affairs and general management
 77  7 and operations of the exchange.
 77  8    The bill provides that the board has broad authority to
 77  9 accomplish the purposes of the Code chapter including but not
 77 10 limited to many specified powers and duties.  The board is
 77 11 required to make an annual report of its activities and
 77 12 receipts and expenditures to the governor and general
 77 13 assembly.  A separate health care coverage exchange fund is
 77 14 created in the state treasury under the control of the
 77 15 exchange.  Moneys collected from premiums paid for health care
 77 16 plans offered by the exchange as well as any other moneys that
 77 17 are appropriated or transferred to the fund are appropriated
 77 18 to the fund and available to the exchange to carry out the
 77 19 purposes of new Code chapter 514M.
 77 20    The bill provides for transition provisions during
 77 21 implementation of health care coverage for all Iowans.  The
 77 22 board is directed to design and implement a program, as
 77 23 funding becomes available, including a timetable and
 77 24 procedures for implementation, to progress toward achieving
 77 25 the goal that all Iowans have qualified health care coverage.
 77 26 The board is charged to define what constitutes such coverage,
 77 27 including parameters of quality and affordability.
 77 28    MEDICAL HOME.  Division II of the bill relates to medical
 77 29 homes.  The bill provides definitions, including the
 77 30 definition of a medical home which is a team approach to
 77 31 providing health care that originates in a primary care
 77 32 setting, and provides for continuity in and coordination of
 77 33 care.  The bill specifies the characteristics of a medical
 77 34 home, and creates a medical home commission.  The commission
 77 35 is directed to develop a plan for implementation of a
 78  1 statewide medical home system.  Implementation is to take
 78  2 place in phases, beginning with children who are recipients of
 78  3 medical assistance (Medicaid) or the hawk=i program and
 78  4 expanding to children covered through the exchange created in
 78  5 the bill.  The second phase would provide a medical home to
 78  6 adults under the IowaCare program and adult recipients of
 78  7 Medicaid.  The third phase would provide for a medical home
 78  8 for adults covered through the exchange.
 78  9    The bill specifies the duties of the medical home
 78 10 commission and the organizational structure for the medical
 78 11 home system.  The bill directs the commission to adopt
 78 12 standards and a process to certify medical homes based on
 78 13 national standards, to adopt education and training standards
 78 14 for health care professionals participating in the medical
 78 15 home system, to provide for system simplification, to
 78 16 determine a rate of reimbursement and recommend incentives for
 78 17 participation in the medical home system, and to coordinate
 78 18 efforts with the dental home for children, and integrate the
 78 19 recommendations of the prevention and chronic care management
 78 20 advisory council into the medical home system.
 78 21    In addition to the phased=in implementation, the bill also
 78 22 directs the commission to work with the department of
 78 23 administrative services to allow state employees to utilize
 78 24 the medical home system, to work with the centers for Medicare
 78 25 and Medicaid services of the United States department of
 78 26 health and human services to allow Medicare recipients to
 78 27 utilize the medical home system and to work with insurers and
 78 28 self=insured companies to allow those with private insurance
 78 29 to access the medical home system.  The commission is directed
 78 30 to provide oversight for the medical home system and to
 78 31 evaluate and make recommendations regarding improvements to
 78 32 and continuation of the medical home system.
 78 33    PREVENTION AND CHRONIC CARE MANAGEMENT.  Division III
 78 34 relates to prevention and chronic care management.  The bill
 78 35 provides definitions relating to chronic conditions and
 79  1 chronic care and for the state initiative for prevention and
 79  2 chronic care management.
 79  3    The bill creates an advisory council to assist the director
 79  4 of public health in developing the state initiative.  The
 79  5 advisory council is directed to elicit input from a variety of
 79  6 health care professionals, organizations, insurers,
 79  7 businesses, and consumers and is to submit initial
 79  8 recommendations to the director by July 1, 2009.  The
 79  9 recommendations are to address the organizational structure
 79 10 for integrating chronic care management into the public and
 79 11 private health care systems, a process for identifying leading
 79 12 health care professionals and existing programs to coordinate
 79 13 efforts, prioritization of chronic conditions, a method to
 79 14 involve health care professionals in identifying individuals
 79 15 with chronic conditions, methods to increase communication
 79 16 between health care professionals and patients with chronic
 79 17 conditions, protocols and tools for health care providers to
 79 18 utilize, outcomes measures and benchmarks, payment
 79 19 methodologies and incentives, ways to involve public and
 79 20 private entities in facilitating and sustaining the
 79 21 initiative, alignment of information technology, involvement
 79 22 of health resources and researchers to collect data and
 79 23 evaluate the initiative, a marketing campaign, a means of
 79 24 determining participation in the initiative, and a means to
 79 25 integrate chronic care management into education resources and
 79 26 curricula for existing and new education and training
 79 27 programs.
 79 28    The bill provides that following initial recommendations
 79 29 and implementation among the eligible population of
 79 30 individuals (residents of the state who have been diagnosed
 79 31 with a chronic condition or who are at elevated risk for a
 79 32 chronic condition and who are recipients of medical
 79 33 assistance, the hawk=i program, or IowaCare; an inmate of a
 79 34 correctional institution; or an individual who has qualified
 79 35 health care coverage through the exchange), the director is
 80  1 required to work with various entities to implement the
 80  2 initiative as an integral part of the health care delivery
 80  3 system in the state.
 80  4    The bill also directs the department of administrative
 80  5 services to include in any request for proposals for the
 80  6 administration of health benefit plans for state employees a
 80  7 request for a description of any prevention and chronic care
 80  8 management program provided by the entity offering the health
 80  9 benefit plan.
 80 10    IOWA HEALTH INFORMATION TECHNOLOGY SYSTEM.  Division IV
 80 11 relates to the Iowa health information technology system.  The
 80 12 bill provides definitions, principles, and goals for the
 80 13 system.  The bill creates an electronic health information
 80 14 commission as a public and private collaborative effort and
 80 15 directs the commission to establish an advisory council to
 80 16 assist the commission in its duties; to adopt a statewide
 80 17 health information technology plan by January 1, 2009; to
 80 18 identify existing efforts and integrate these efforts to avoid
 80 19 incompatibility and duplication; to coordinate public and
 80 20 private efforts to provide the network backbone; to promote
 80 21 the use of telemedicine; to address the workforce needs
 80 22 generated by increased use of health information technology;
 80 23 to adopt necessary rules; to coordinate, monitor, and evaluate
 80 24 the adoption, use, interoperability, and efficiencies of the
 80 25 various facets of health information technology in the state;
 80 26 to seek and apply for federal or private funding to assist in
 80 27 implementing the system; and to identify state laws and rules
 80 28 that present barriers to the development of the health
 80 29 information technology system in the state.
 80 30    The bill requires that by January 1, 2010, all health care
 80 31 professionals utilize the patient identifier and continuity of
 80 32 care record specified by the commission.
 80 33    LONG=TERM CARE PLANNING AND ADVANCE MEDICAL DIRECTIVES.
 80 34 Division V relates to long=term care planning and advance
 80 35 medical directives.  The bill provides that under the
 81  1 life=sustaining procedures Act, the hospital or health care
 81  2 provider is required to use a physician orders for
 81  3 life=sustaining=treatment form reflecting the declaration of a
 81  4 patient and to ensure that the form accompanies a patient who
 81  5 is comatose, incompetent, or otherwise physically or mentally
 81  6 incapable of communication if the patient is transferred to
 81  7 another facility.
 81  8    The bill also requires that under the life=sustaining
 81  9 procedures Act and the durable power of attorney for health
 81 10 care chapter hospitals and health care providers establish a
 81 11 nonjudicial means of resolving disputes that arise out of a
 81 12 disagreement over compliance with a declaration or
 81 13 out=of=hospital do=not=resuscitate order or a durable power of
 81 14 attorney for health care.
 81 15    The bill includes provisions to promote the use of
 81 16 palliative care and to mandate coverage benefits for the cost
 81 17 of core services by a licensed hospice program in a policy or
 81 18 contract providing third=party payment or prepayment of health
 81 19 or medical expenses.
 81 20    The bill directs programs within the department of elder
 81 21 affairs and other appropriate agencies and interested parties
 81 22 to collaborate in recommending a public education strategy on
 81 23 long=term living.  The bill also directs the department of
 81 24 elder affairs in collaboration with the insurance division to
 81 25 implement a long=term care options public education campaign.
 81 26 The bill directs the department of elder affairs to work with
 81 27 other public and private agencies to identify resources to use
 81 28 to continue the work of the aging and disability resource
 81 29 center.
 81 30    DIVISION OF HEALTH CARE QUALITY, CONSUMER INFORMATION,
 81 31 STRATEGIC PLANNING, AND RESOURCE DEVELOPMENT.  Division VI
 81 32 creates the division of health care quality, consumer
 81 33 information, strategic planning, and resource development
 81 34 within the department of public health and specifies two
 81 35 bureaus within the division:  the bureau of health care
 82  1 quality and consumer information and the bureau of health care
 82  2 strategic planning and resource development.
 82  3    The bill requires the bureau of health care quality and
 82  4 consumer information to provide better coordination of health
 82  5 care delivery information to improve the public health, inform
 82  6 policy analysis, and provide transparency of consumer health
 82  7 information.  The bill creates a health quality and
 82  8 cost=containment collaborative to develop a process and the
 82  9 infrastructure to provide price, quality, safety, and other
 82 10 appropriate information to consumers.  The bill designates the
 82 11 members of the collaborative and specifies its duties.
 82 12    The bill directs the bureau of health care strategic
 82 13 planning and resource development to coordinate public and
 82 14 private efforts to develop and maintain an appropriate health
 82 15 care delivery infrastructure and a stable, well=qualified,
 82 16 diverse, and sustainable health care workforce in the state.
 82 17 One duty of the bureau is to develop a strategic plan for
 82 18 health care delivery infrastructure and health care workforce
 82 19 resources.  The bureau is directed to establish a technical
 82 20 advisory committee to assist in the development of the
 82 21 strategic plan.  The strategic plan is to include policies and
 82 22 goals based on specified principles, a health care system
 82 23 assessment and objectives component, a health care facilities
 82 24 and services plan to assess the demand for health care
 82 25 facilities and services, a health care data resources plan, an
 82 26 assessment of emerging trends in health care delivery and
 82 27 technology, a rural health resources plan, and a health care
 82 28 workforce resources plan.
 82 29    CERTIFICATE OF NEED PROGRAM.  Division VII of the bill
 82 30 amends the certificate of need program to reflect the change
 82 31 of the health facilities council to the health care strategic
 82 32 planning council as the oversight body for the certificate of
 82 33 need program and to require the submission of additional
 82 34 information by those entities subject to the certificate of
 82 35 need program.
 83  1 LSB 6443XC 82
 83  2 av:pf/rj/8