Senate Study Bill 3190 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 requiring health benefit coverage for certain cancer 2 treatment delivered pursuant to approved cancer clinical 3 trials, establishing a cancer clinical trial review board, and 4 providing an applicability date. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5684SC 82 7 av/nh/8 PAG LIN 1 1 Section 1. NEW SECTION. 514C.23 APPROVED CANCER CLINICAL 1 2 TRIALS COVERAGE. 1 3 1. DEFINITIONS. For purposes of this section, unless the 1 4 context otherwise requires: 1 5 a. "Approved cancer clinical trial" means a scientific 1 6 study of a new therapy for the treatment of cancer in human 1 7 beings that meets the requirements set forth in subsection 3 1 8 and consists of a scientific plan of treatment that includes 1 9 specified goals, a rationale and background for the plan, 1 10 criteria for patient selection, specific directions for 1 11 administering therapy and monitoring patients, a definition of 1 12 quantitative measures for determining treatment response, and 1 13 methods for documenting and treating adverse reactions. 1 14 b. "Board" means the cancer clinical trial review board 1 15 established in subsection 4. 1 16 c. "Institutional review board" means a board, committee, 1 17 or other group formally designated by an institution and 1 18 approved by the national institutes of health, office for 1 19 protection from research risks, to review, approve the 1 20 initiation of, and conduct periodic review of biomedical 1 21 research involving human subjects. "Institutional review 1 22 board" means the same as "institutional review committee" as 1 23 used in section 520(g) of the federal Food, Drug, and Cosmetic 1 24 Act, as codified in 21 U.S.C. } 301 et seq. 1 25 d. "Routine patient care costs" means physician fees, 1 26 laboratory expenses, and expenses associated with the 1 27 hospitalization, administration of treatment, and evaluation 1 28 of a patient during the course of treatment which are 1 29 consistent with usual and customary patterns and standards of 1 30 care incurred whenever an enrollee, subscriber, or insured 1 31 receives medical care associated with an approved cancer 1 32 clinical trial, and which would be covered if such items and 1 33 services were provided other than in connection with an 1 34 approved cancer clinical trial. 1 35 e. "Therapeutic intent" means that a treatment is aimed at 2 1 improving a patient's health outcome relative to either 2 2 survival or quality of life. 2 3 2. COVERAGE REQUIRED. Notwithstanding the uniformity of 2 4 treatment requirements of section 514C.6, a policy or contract 2 5 providing for third=party payment or prepayment of health or 2 6 medical expenses shall provide coverage benefits for routine 2 7 patient care costs incurred for cancer treatment in an 2 8 approved cancer clinical trial to the same extent that such 2 9 policy or contract provides coverage for treating any other 2 10 sickness, injury, disease, or condition covered under the 2 11 policy or contract, if the insured has been referred for such 2 12 cancer treatment by two physicians who specialize in oncology 2 13 and the cancer treatment is given pursuant to an approved 2 14 cancer clinical trial that meets the criteria set forth in 2 15 subsection 3. Services that are furnished without charge to a 2 16 participant in the approved cancer clinical trial are not 2 17 required to be covered as routine patient care costs pursuant 2 18 to this section. 2 19 3. CRITERIA. Routine patient care costs for cancer 2 20 treatment given pursuant to an approved cancer clinical trial 2 21 shall be covered pursuant to this section if all of the 2 22 following requirements are met: 2 23 a. The treatment is provided with therapeutic intent and 2 24 is provided pursuant to an approved cancer clinical trial that 2 25 has been authorized or approved by one of the following: 2 26 (1) The national institutes of health. 2 27 (2) The United States food and drug administration. 2 28 (3) The United States department of defense. 2 29 (4) The United States department of veterans affairs. 2 30 b. The proposed treatment has been reviewed and approved 2 31 by the applicable qualified institutional review board. 2 32 c. The available clinical or preclinical data indicate 2 33 that the treatment that will be provided pursuant to the 2 34 approved cancer clinical trial will be at least as effective 2 35 as the standard therapy and is anticipated to constitute an 3 1 improvement in therapeutic effectiveness for the treatment of 3 2 the disease in question. 3 3 4. CANCER CLINICAL TRIAL REVIEW BOARD. 3 4 a. A cancer clinical trial review board is established in 3 5 the department of public health. 3 6 b. The board shall consist of the director of public 3 7 health or the director's designee, and the following 3 8 additional members appointed by the governor and subject to 3 9 confirmation by the senate: 3 10 (1) One member who is a physician licensed to practice 3 11 medicine and surgery in this state and who specializes in 3 12 oncology, is a member of a community medical oncology 3 13 practice, and is not on the staff of a comprehensive or 3 14 clinical cancer center designated by the national cancer 3 15 institute. 3 16 (2) One member who is a physician licensed to practice 3 17 medicine and surgery in this state who specializes in oncology 3 18 and is on the staff of a comprehensive or clinical cancer 3 19 center designated by the national cancer institute. 3 20 (3) One member who is a medical ethicist recognized for 3 21 expertise in evaluating ethical implications of health care 3 22 practices and procedures. 3 23 (4) One member who is a medical economist recognized for 3 24 expertise in evaluating economic implications of health care 3 25 practices and procedures. 3 26 (5) One member who is a physician licensed to practice 3 27 medicine and surgery in this state who is employed by or 3 28 represents an insurer. 3 29 (6) One member who is a physician licensed to practice 3 30 medicine and surgery in this state who is employed by or 3 31 represents a nonprofit health care service plan. 3 32 (7) One member who is a physician licensed to practice 3 33 medicine and surgery in this state who is employed by or 3 34 represents a health maintenance organization. 3 35 (8) One member who is a resident of this state who 4 1 represents residents with health insurance who are consumers 4 2 of oncology services. 4 3 c. The members of the board shall annually elect one 4 4 member as chairperson and one as vice chairperson. 4 5 d. The board shall meet not less than four times per year 4 6 at the call of the chairperson or at the request of a majority 4 7 of the board's members. 4 8 e. The appointed members of the board shall be appointed 4 9 for terms of four years beginning and ending as provided in 4 10 section 69.19. A member of the board is eligible for 4 11 reappointment. The governor shall fill a vacancy for the 4 12 remainder of the unexpired term. An appointed member of the 4 13 board may be removed by the governor for misfeasance, 4 14 malfeasance, or willful neglect of duty or other cause after 4 15 notice and a public hearing unless the notice and hearing are 4 16 waived by the member in writing. 4 17 f. A majority of the members of the board constitutes a 4 18 quorum. The affirmative vote of a majority of the members is 4 19 necessary for any action taken by the board. The majority 4 20 shall not include a member who has a conflict of interest and 4 21 a statement by a member of a conflict of interest is 4 22 conclusive for this purpose. A vacancy in the membership of 4 23 the board does not impair the right of a quorum to exercise 4 24 the rights and perform the duties of the board. 4 25 g. The board has the power and duty to hold hearings and 4 26 issue adjudications of disputes referred to the board by the 4 27 commissioner of insurance involving third=party reimbursement 4 28 for routine patient care costs incurred in association with 4 29 approved cancer clinical trials, subject to review and appeal, 4 30 pursuant to chapter 17A. 4 31 h. Members of the board shall not receive compensation for 4 32 the performance of their duties as members but each member 4 33 shall be paid necessary expenses incurred while engaged in the 4 34 performance of the duties of the board. 4 35 5. APPLICABILITY. 5 1 a. This section applies to the following classes of 5 2 third=party payment provider contracts or policies delivered, 5 3 issued for delivery, continued, or renewed in this state on or 5 4 after July 1, 2008: 5 5 (1) Individual or group accident and sickness insurance 5 6 providing coverage on an expense=incurred basis. 5 7 (2) An individual or group hospital or medical service 5 8 contract issued pursuant to chapter 509, 514, or 514A. 5 9 (3) An individual or group health maintenance organization 5 10 contract regulated under chapter 514B. 5 11 (4) Any other entity engaged in the business of insurance, 5 12 risk transfer, or risk retention, which is subject to the 5 13 jurisdiction of the commissioner. 5 14 (5) A plan established pursuant to chapter 509A for public 5 15 employees. 5 16 (6) An organized delivery system licensed by the director 5 17 of public health. 5 18 b. This section shall not apply to accident=only, 5 19 specified disease, short=term hospital or medical, hospital 5 20 confinement indemnity, credit, dental, vision, Medicare 5 21 supplement, long=term care, basic hospital and 5 22 medical=surgical expense coverage as defined by the 5 23 commissioner, disability income insurance coverage, coverage 5 24 issued as a supplement to liability insurance, workers' 5 25 compensation or similar insurance, or automobile medical 5 26 payment insurance. 5 27 EXPLANATION 5 28 This bill requires health benefit coverage for cancer 5 29 treatment delivered pursuant to an approved cancer clinical 5 30 trial. The bill defines "approved cancer clinical trial" as a 5 31 scientific study of a new therapy for the treatment of cancer 5 32 in human beings that meets requirements specified in the bill 5 33 and consists of a scientific plan of treatment. 5 34 The bill requires that a policy or contract provide health 5 35 benefit coverage for routine patient care costs incurred for 6 1 cancer treatment in an approved cancer clinical trial to the 6 2 same extent that the policy or contract provides coverage for 6 3 treating any other sickness, injury, disease, or condition 6 4 covered under the policy or contract, if the insured has been 6 5 referred for such cancer treatment by two physicians who 6 6 specialize in oncology, and the cancer treatment is given 6 7 pursuant to an approved cancer clinical trial as set forth in 6 8 the bill. 6 9 The bill also establishes the cancer clinical trial review 6 10 board in the department of public health, consisting of the 6 11 director of public health and eight additional members with 6 12 specified expertise, appointed by the governor and subject to 6 13 confirmation by the senate. The purpose of the board is to 6 14 hold hearings and issue adjudications of disputes referred to 6 15 the board by the commissioner of insurance involving 6 16 third=party reimbursement for routine patient care costs for 6 17 cancer treatment incurred in association with approved cancer 6 18 clinical trials, subject to review and appeal, pursuant to 6 19 Code chapter 17A. 6 20 The bill applies to specified classes of third=party 6 21 payment provider contracts or policies delivered, issued for 6 22 delivery, continued, or renewed in this state on or after July 6 23 1, 2008. 6 24 LSB 5684SC 82 6 25 av/nh/8