House File 393 - Introduced HOUSE FILE 393 BY COMMITTEE ON HUMAN RESOURCES (SUCCESSOR TO HSB 25) A BILL FOR An Act relating to programs and activities under the purview 1 of the department of public health, and including effective 2 date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1675HV (3) 87 pf/nh
H.F. 393 DIVISION I 1 PROGRAM FLEXIBILITY AND EFFICIENCIES 2 Section 1. Section 125.59, subsection 1, paragraph b, Code 3 2017, is amended to read as follows: 4 b. If the transferred amount for this subsection exceeds 5 grant requests funded to the ten thousand dollar maximum, the 6 Iowa department of public health may use the remainder for 7 activities and public information resources that align with 8 best practices for substance-related disorder prevention or to 9 increase grants pursuant to subsection 2 . 10 Sec. 2. Section 135.11, subsection 31, Code 2017, is amended 11 by striking the subsection. 12 Sec. 3. Section 135.150, subsection 2, Code 2017, is amended 13 to read as follows: 14 2. The department shall report semiannually annually to the 15 general assembly’s standing committees on government oversight 16 regarding the operation of the gambling treatment program. 17 The report shall include but is not limited to information on 18 the moneys expended and grants awarded for operation of the 19 gambling treatment program. 20 DIVISION II 21 MEDICAL HOME AND PATIENT-CENTERED HEALTH ADVISORY COUNCIL 22 Sec. 4. Section 135.15, Code 2017, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 6. For the purposes of this section, 25 “dental home” means a network of individualized care based on 26 risk assessment, which includes oral health education, dental 27 screenings, preventive services, diagnostic services, treatment 28 services, and emergency services. 29 Sec. 5. Section 135.159, Code 2017, is amended by striking 30 the section and inserting in lieu thereof the following: 31 135.159 Patient-centered health advisory council. 32 1. The department shall establish a patient-centered health 33 advisory council which shall include but is not limited to 34 all of the following members, selected by their respective 35 -1- LSB 1675HV (3) 87 pf/nh 1/ 57
H.F. 393 organizations, and any other members the department determines 1 necessary: 2 a. The director of human services, or the director’s 3 designee. 4 b. The commissioner of insurance, or the commissioner’s 5 designee. 6 c. A representative of the federation of Iowa insurers. 7 d. A representative of the Iowa dental association. 8 e. A representative of the Iowa nurses association. 9 f. A physician and an osteopathic physician licensed 10 pursuant to chapter 148 who are family physicians and members 11 of the Iowa academy of family physicians. 12 g. A health care consumer. 13 h. A representative of the Iowa collaborative safety net 14 provider network established pursuant to section 135.153. 15 i. A representative of the Iowa developmental disabilities 16 council. 17 j. A representative of the Iowa chapter of the American 18 academy of pediatrics. 19 k. A representative of the child and family policy center. 20 l. A representative of the Iowa pharmacy association. 21 m. A representative of the Iowa chiropractic society. 22 n. A representative of the university of Iowa college of 23 public health. 24 o. A certified palliative care physician. 25 2. The patient-centered health advisory council may utilize 26 the assistance of other relevant public health and health care 27 expertise when necessary to carry out the council’s purposes 28 and responsibilities. 29 3. A public member of the patient-centered health advisory 30 council shall receive reimbursement for actual expenses 31 incurred while serving in the member’s official capacity 32 only if the member is not eligible for reimbursement by the 33 organization the member represents. 34 4. The purposes of the patient-centered health advisory 35 -2- LSB 1675HV (3) 87 pf/nh 2/ 57
H.F. 393 council shall include all of the following: 1 a. To serve as a resource on emerging health care 2 transformation initiatives in Iowa. 3 b. To convene stakeholders in Iowa to streamline efforts 4 that support state-level and community-level integration and 5 focus on reducing fragmentation of the health care system. 6 c. To encourage partnerships and synergy between community 7 health care partners in the state who are working on new 8 system-level models to provide better health care at lower 9 costs by focusing on shifting from volume-based to value-based 10 health care. 11 d. To lead discussions on the transformation of the 12 health care system to a patient-centered infrastructure that 13 integrates and coordinates services and supports to address 14 social determinants of health and to meet population health 15 goals. 16 e. To provide a venue for education and information 17 gathering for stakeholders and interested parties to learn 18 about emerging health care initiatives across the state. 19 f. To develop recommendations for submission to the 20 department related to health care transformation issues. 21 Sec. 6. Section 249N.2, subsections 15 and 19, Code 2017, 22 are amended to read as follows: 23 15. “Medical home” means medical home as defined in 24 section 135.157 . a team approach to providing health care that 25 originates in a primary care setting; fosters a partnership 26 among the patient, the personal provider, and other health care 27 professionals, and where appropriate, the patient’s family; 28 utilizes the partnership to access and integrate all medical 29 and nonmedical health-related services across all elements of 30 the health care system and the patient’s community as needed by 31 the patient and the patient’s family to achieve maximum health 32 potential; maintains a centralized, comprehensive record of all 33 health-related services to promote continuity of care; and has 34 all of the following characteristics: 35 -3- LSB 1675HV (3) 87 pf/nh 3/ 57
H.F. 393 a. A personal provider. 1 b. A provider-directed team-based medical practice. 2 c. Whole person orientation. 3 d. Coordination and integration of care. 4 e. Quality and safety. 5 f. Enhanced access to health care. 6 g. A payment system that appropriately recognizes the added 7 value provided to patients who have a patient-centered medical 8 home. 9 19. “Primary medical provider” means the personal provider 10 as defined in section 135.157 trained to provide first contact 11 and continuous and comprehensive care to a member, chosen by 12 a member or to whom a member is assigned under the Iowa health 13 and wellness plan. 14 Sec. 7. Section 249N.2, Code 2017, is amended by adding the 15 following new subsections: 16 NEW SUBSECTION . 17A. “Personal provider” means the 17 patient’s first point of contact in the health care system 18 with a primary care provider who identifies the patient’s 19 health-related needs and, working with a team of health 20 care professionals and providers of medical and nonmedical 21 health-related services, provides for and coordinates 22 appropriate care to address the health-related needs 23 identified. 24 NEW SUBSECTION . 18A. “Primary care provider” includes but 25 is not limited to any of the following licensed or certified 26 health care professionals who provide primary care: 27 a. A physician who is a family or general practitioner, a 28 pediatrician, an internist, an obstetrician, or a gynecologist. 29 b. An advanced registered nurse practitioner. 30 c. A physician assistant. 31 d. A chiropractor. 32 Sec. 8. Section 249N.6, subsection 2, paragraph c, Code 33 2017, is amended to read as follows: 34 c. The department shall develop a mechanism for primary 35 -4- LSB 1675HV (3) 87 pf/nh 4/ 57
H.F. 393 medical providers, medical homes, and participating accountable 1 care organizations to jointly facilitate member care 2 coordination. The Iowa health and wellness plan shall provide 3 for reimbursement of care coordination services provided 4 under the plan consistent with the reimbursement methodology 5 developed pursuant to section 135.159 . 6 Sec. 9. Section 249N.6, subsection 3, paragraph a, Code 7 2017, is amended to read as follows: 8 a. The department shall provide procedures for accountable 9 care organizations that emerge through local markets to 10 participate in the Iowa health and wellness plan provider 11 network. Such accountable care organizations shall incorporate 12 the medical home as defined and specified in chapter 135, 13 division XXII , as a foundation and shall emphasize whole-person 14 orientation and coordination and integration of both clinical 15 services and nonclinical community and social supports that 16 address social determinants of health. A participating 17 accountable care organization shall enter into a contract with 18 the department to ensure the coordination and management of the 19 health of attributed members, to produce quality health care 20 outcomes, and to control overall cost. 21 Sec. 10. PALLIATIVE CARE REVIEW —— PATIENT-CENTERED HEALTH 22 ADVISORY COUNCIL. The patient-centered health advisory council 23 shall review the current level of public awareness regarding 24 and the availability of palliative care services in the state 25 and shall submit a report to the governor and the general 26 assembly by December 31, 2017, including the council’s findings 27 and providing recommendations to increase public awareness 28 and reduce barriers to access to palliative care services 29 throughout the state. 30 Sec. 11. REPEAL. Sections 135.157 and 135.158, Code 2017, 31 are repealed. 32 DIVISION III 33 WORKFORCE PROGRAMMING 34 Sec. 12. Section 84A.11, subsection 4, Code 2017, is amended 35 -5- LSB 1675HV (3) 87 pf/nh 5/ 57
H.F. 393 to read as follows: 1 4. The nursing workforce data clearinghouse shall be 2 established and maintained in a manner consistent with the 3 health care delivery infrastructure and health care workforce 4 resources strategic plan developed pursuant to section 135.164 5 135.163 . 6 Sec. 13. Section 135.107, subsection 3, Code 2017, is 7 amended to read as follows: 8 3. The center for rural health and primary care shall 9 establish a primary care provider recruitment and retention 10 endeavor, to be known as PRIMECARRE. The endeavor shall 11 include a health care workforce and community support grant 12 program , and a primary care provider loan repayment program , 13 and a primary care provider community scholarship program . The 14 endeavor shall be developed and implemented in a manner to 15 promote and accommodate local creativity in efforts to recruit 16 and retain health care professionals to provide services in 17 the locality. The focus of the endeavor shall be to promote 18 and assist local efforts in developing health care provider 19 recruitment and retention programs. The center for rural 20 health and primary care may enter into an agreement with the 21 college student aid commission for the administration of the 22 center’s grant and loan repayment programs. 23 a. Community Health care workforce and community support 24 grant program. 25 (1) The center for rural health and primary care shall adopt 26 rules establishing an flexible application process processes 27 based upon the department’s strategic plan to be used by the 28 center to establish a grant assistance program as provided 29 in this paragraph “a” , and establishing the criteria to be 30 used in evaluating the applications. Selection criteria 31 shall include a method for prioritizing grant applications 32 based on illustrated efforts to meet the health care provider 33 needs of the locality and surrounding area. Such assistance 34 may be in the form of a forgivable loan, grant, or other 35 -6- LSB 1675HV (3) 87 pf/nh 6/ 57
H.F. 393 nonfinancial assistance as deemed appropriate by the center. 1 An application submitted shall may contain a commitment of at 2 least a dollar-for-dollar match of matching funds for the grant 3 assistance. Application may be made for assistance by a single 4 community or group of communities or in response to programs 5 recommended in the strategic plan to address health workforce 6 shortages . 7 (2) Grants awarded under the program shall be subject to the 8 following limitations: 9 (a) Ten thousand dollars for a single community or region 10 with a population of ten thousand or less. An award shall not 11 be made under this program to a community with a population of 12 more than ten thousand. 13 (b) An amount not to exceed one dollar per capita for a 14 region in which the population exceeds ten thousand. For 15 purposes of determining the amount of a grant for a region, 16 the population of the region shall not include the population 17 of any community with a population of more than ten thousand 18 located in the region awarded to rural, underserved areas or 19 special populations as identified by the department’s strategic 20 plan or evidence-based documentation . 21 b. Primary care provider loan repayment program. 22 (1) A primary care provider loan repayment program is 23 established to increase the number of health professionals 24 practicing primary care in federally designated health 25 professional shortage areas of the state. Under the program, 26 loan repayment may be made to a recipient for educational 27 expenses incurred while completing an accredited health 28 education program directly related to obtaining credentials 29 necessary to practice the recipient’s health profession. 30 (2) The center for rural health and primary care shall adopt 31 rules relating to the establishment and administration of the 32 primary care provider loan repayment program. Rules adopted 33 pursuant to this paragraph shall provide, at a minimum, for all 34 of the following: 35 -7- LSB 1675HV (3) 87 pf/nh 7/ 57
H.F. 393 (a) Determination of eligibility requirements and 1 qualifications of an applicant to receive loan repayment under 2 the program, including but not limited to years of obligated 3 service, clinical practice requirements, and residency 4 requirements. One year of obligated service shall be provided 5 by the applicant in exchange for each year of loan repayment, 6 unless federal requirements otherwise require. Loan repayment 7 under the program shall not be approved for a health provider 8 whose license or certification is restricted by a medical 9 regulatory authority of any jurisdiction of the United States, 10 other nations, or territories. 11 (b) Identification of federally designated health 12 professional shortage areas of the state and prioritization of 13 such areas according to need. 14 (c) Determination of the amount and duration of the loan 15 repayment an applicant may receive, giving consideration to the 16 availability of funds under the program, and the applicant’s 17 outstanding educational loans and professional credentials. 18 (d) Determination of the conditions of loan repayment 19 applicable to an applicant. 20 (e) Enforcement of the state’s rights under a loan repayment 21 program contract, including the commencement of any court 22 action. 23 (f) Cancellation of a loan repayment program contract for 24 reasonable cause unless federal requirements otherwise require . 25 (g) Participation in federal programs supporting repayment 26 of loans of health care providers and acceptance of gifts, 27 grants, and other aid or amounts from any person, association, 28 foundation, trust, corporation, governmental agency, or other 29 entity for the purposes of the program. 30 (h) Upon availability of state funds, determination of 31 eligibility criteria and qualifications for participating 32 communities and applicants not located in federally designated 33 shortage areas. 34 (i) Other rules as necessary. 35 -8- LSB 1675HV (3) 87 pf/nh 8/ 57
H.F. 393 (3) The center for rural health and primary care may enter 1 into an agreement under chapter 28E with the college student 2 aid commission for the administration of this program. 3 c. Primary care provider community scholarship program. 4 (1) A primary care provider community scholarship program 5 is established to recruit and to provide scholarships to train 6 primary health care practitioners in federally designated 7 health professional shortage areas of the state. Under 8 the program, scholarships may be awarded to a recipient for 9 educational expenses incurred while completing an accredited 10 health education program directly related to obtaining the 11 credentials necessary to practice the recipient’s health 12 profession. 13 (2) The department shall adopt rules relating to the 14 establishment and administration of the primary care provider 15 community scholarship program. Rules adopted pursuant to 16 this paragraph shall provide, at a minimum, for all of the 17 following: 18 (a) Determination of eligibility requirements and 19 qualifications of an applicant to receive scholarships under 20 the program, including but not limited to years of obligated 21 service, clinical practice requirements, and residency 22 requirements. One year of obligated service shall be provided 23 by the applicant in exchange for each year of scholarship 24 receipt, unless federal requirements otherwise require. 25 (b) Identification of federally designated health 26 professional shortage areas of the state and prioritization of 27 such areas according to need. 28 (c) Determination of the amount of the scholarship an 29 applicant may receive. 30 (d) Determination of the conditions of scholarship to be 31 awarded to an applicant. 32 (e) Enforcement of the state’s rights under a scholarship 33 contract, including the commencement of any court action. 34 (f) Cancellation of a scholarship contract for reasonable 35 -9- LSB 1675HV (3) 87 pf/nh 9/ 57
H.F. 393 cause. 1 (g) Participation in federal programs supporting 2 scholarships for health care providers and acceptance of gifts, 3 grants, and other aid or amounts from any person, association, 4 foundation, trust, corporation, governmental agency, or other 5 entity for the purposes of the program. 6 (h) Upon availability of state funds, determination of 7 eligibility criteria and qualifications for participating 8 communities and applicants not located in federally designated 9 shortage areas. 10 (i) Other rules as necessary. 11 (3) The center for rural health and primary care may enter 12 into an agreement under chapter 28E with the college student 13 aid commission for the administration of this program. 14 Sec. 14. Section 135.107, subsection 4, paragraphs a, b, and 15 c, Code 2017, are amended to read as follows: 16 a. Eligibility under any of the programs established under 17 the primary care provider recruitment and retention endeavor 18 shall be based upon a community health services assessment 19 completed under subsection 2 , paragraph “a” . A community 20 or region, as applicable, shall submit a letter of intent 21 to conduct a community health services assessment and to 22 apply for assistance under this subsection . The letter shall 23 be in a form and contain information as determined by the 24 center. A letter of intent shall be submitted to the center by 25 January 1 preceding the fiscal year for which an application 26 for assistance is to be made. Participation in a community 27 health services assessment process shall be documented by the 28 community or region. 29 b. Assistance under this subsection shall not be granted 30 until such time as the community or region making application 31 has completed the a community health services assessment and 32 adopted a long-term community health services assessment and 33 developmental plan. In addition to any other requirements, a 34 developmental an applicant’s plan shall include , to the extent 35 -10- LSB 1675HV (3) 87 pf/nh 10/ 57
H.F. 393 possible, a clear commitment to informing high school students 1 of the health care opportunities which may be available to such 2 students. 3 c. The center for rural health and primary care shall 4 seek additional assistance and resources from other state 5 departments and agencies, federal agencies and grant programs, 6 private organizations, and any other person, as appropriate. 7 The center is authorized and directed to accept on behalf of 8 the state any grant or contribution, federal or otherwise, 9 made to assist in meeting the cost of carrying out the purpose 10 of this subsection . All federal grants to and the federal 11 receipts of the center are appropriated for the purpose set 12 forth in such federal grants or receipts. Funds appropriated 13 by the general assembly to the center for implementation of 14 this subsection shall first be used for securing any available 15 federal funds requiring a state match, with remaining funds 16 being used for the health care workforce and community support 17 grant program. 18 Sec. 15. Section 135.107, subsection 5, paragraph a, Code 19 2017, is amended to read as follows: 20 a. There is established an advisory committee to the 21 center for rural health and primary care consisting of one 22 representative, approved by the respective agency, of each 23 of the following agencies: the department of agriculture 24 and land stewardship, the Iowa department of public health, 25 the department of inspections and appeals, the a national or 26 regional institute for rural health policy, the rural health 27 resource center, the institute of agricultural medicine 28 and occupational health, and the Iowa state association of 29 counties. The governor shall appoint two representatives 30 of consumer groups active in rural health issues and a 31 representative of each of two farm organizations active within 32 the state, a representative of an agricultural business in 33 the state, a representative of a critical needs hospital, 34 a practicing rural family physician, a practicing rural 35 -11- LSB 1675HV (3) 87 pf/nh 11/ 57
H.F. 393 physician assistant, a practicing rural advanced registered 1 nurse practitioner, and a rural health practitioner who is 2 not a physician, physician assistant, or advanced registered 3 nurse practitioner, as members of the advisory committee. The 4 advisory committee shall also include as members two state 5 representatives, one appointed by the speaker of the house of 6 representatives and one by the minority leader of the house, 7 and two state senators, one appointed by the majority leader of 8 the senate and one by the minority leader of the senate. 9 Sec. 16. Section 135.163, Code 2017, is amended to read as 10 follows: 11 135.163 Health and long-term care access. 12 The department shall coordinate public and private efforts 13 to develop and maintain an appropriate health care delivery 14 infrastructure and a stable, well-qualified, diverse, and 15 sustainable health care workforce in this state. The health 16 care delivery infrastructure and the health care workforce 17 shall address the broad spectrum of health care needs of Iowans 18 throughout their lifespan including long-term care needs . The 19 department shall, at a minimum, do all of the following: 20 1. Develop a strategic plan for health care delivery 21 infrastructure and health care workforce resources in this 22 state. 23 2. Provide for the continuous collection of data to provide 24 a basis for health care strategic planning and health care 25 policymaking. 26 3. Make recommendations regarding the health care delivery 27 infrastructure and the health care workforce that assist 28 in monitoring current needs, predicting future trends, and 29 informing policymaking. 30 Sec. 17. Section 135.175, subsection 1, paragraph b, Code 31 2017, is amended to read as follows: 32 b. A health care workforce shortage fund is created in 33 the state treasury as a separate fund under the control of 34 the department, in cooperation with the entities identified 35 -12- LSB 1675HV (3) 87 pf/nh 12/ 57
H.F. 393 in this section as having control over the accounts within 1 the fund. The fund and the accounts within the fund shall 2 be controlled and managed in a manner consistent with the 3 principles specified and the strategic plan developed pursuant 4 to sections section 135.163 and 135.164 . 5 Sec. 18. Section 135.175, subsections 6 and 7, Code 2017, 6 are amended to read as follows: 7 6. a. Moneys in the fund and the accounts in the fund shall 8 only be appropriated in a manner consistent with the principles 9 specified and the strategic plan developed pursuant to sections 10 section 135.163 and 135.164 to support the medical residency 11 training state matching grants program, the fulfilling Iowa’s 12 need for dentists matching grant program, and to provide 13 funding for state health care workforce shortage programs as 14 provided in this section . 15 b. State programs that may receive funding from the fund 16 and the accounts in the fund, if specifically designated for 17 the purpose of drawing down federal funding, are the primary 18 care recruitment and retention endeavor (PRIMECARRE), the Iowa 19 affiliate of the national rural recruitment and retention 20 network, the oral and health delivery systems bureau of the 21 department, the primary care office and shortage designation 22 program, and the state office of rural health, and the Iowa 23 health workforce center, administered through the oral and 24 health delivery systems bureau of health care access of the 25 department of public health; the area health education centers 26 programs at Des Moines university —— osteopathic medical center 27 and the university of Iowa; the Iowa collaborative safety net 28 provider network established pursuant to section 135.153 ; any 29 entity identified by the federal government entity through 30 which federal funding for a specified health care workforce 31 shortage initiative is received; and a program developed in 32 accordance with the strategic plan developed by the department 33 of public health in accordance with sections section 135.163 34 and 135.164 . 35 -13- LSB 1675HV (3) 87 pf/nh 13/ 57
H.F. 393 c. State appropriations to the fund shall be allocated in 1 equal amounts to each of the accounts within the fund, unless 2 otherwise specified in the appropriation or allocation. Any 3 federal funding received for the purposes of addressing state 4 health care workforce shortages shall be deposited in the 5 health care workforce shortage national initiatives account, 6 unless otherwise specified by the source of the funds, and 7 shall be used as required by the source of the funds. If use 8 of the federal funding is not designated, the funds shall be 9 used in accordance with the strategic plan developed by the 10 department of public health in accordance with sections section 11 135.163 and 135.164 , or to address workforce shortages as 12 otherwise designated by the department of public health. Other 13 sources of funding shall be deposited in the fund or account 14 and used as specified by the source of the funding. 15 7. No more than five percent of the moneys in any of the 16 accounts within the fund , not to exceed one hundred thousand 17 dollars in each account, shall be used for administrative 18 purposes, unless otherwise provided by the appropriation, 19 allocation, or source of the funds. 20 Sec. 19. REPEAL. Sections 135.164 and 135.180, Code 2017, 21 are repealed. 22 DIVISION IV 23 UNFUNDED OR OUTDATED PROGRAM PROVISIONS 24 Sec. 20. Section 135.11, subsection 25, Code 2017, is 25 amended by striking the subsection. 26 Sec. 21. Section 135.141, subsection 2, paragraph c, Code 27 2017, is amended by striking the paragraph. 28 Sec. 22. Section 135.141, subsection 2, paragraph e, Code 29 2017, is amended to read as follows: 30 e. For the purpose of paragraphs “c” and paragraph “d” , 31 an employee or agent of the department may enter into and 32 examine any premises containing potentially dangerous agents 33 with the consent of the owner or person in charge of the 34 premises or, if the owner or person in charge of the premises 35 -14- LSB 1675HV (3) 87 pf/nh 14/ 57
H.F. 393 refuses admittance, with an administrative search warrant 1 obtained under section 808.14 . Based on findings of the risk 2 assessment and examination of the premises, the director may 3 order reasonable safeguards or take any other action reasonably 4 necessary to protect the public health pursuant to rules 5 adopted to administer this subsection . 6 Sec. 23. Section 901B.1, subsection 4, paragraph a, Code 7 2017, is amended to read as follows: 8 a. The district department of correctional services shall 9 place an individual committed to it under section 907.3 to the 10 sanction and level of supervision which is appropriate to the 11 individual based upon a current risk assessment evaluation. 12 Placements may be to levels two and three of the corrections 13 continuum. The district department may, with the approval of 14 the Iowa department of public health and the department of 15 corrections, place an individual in a level three substance 16 abuse treatment facility established pursuant to section 17 135.130 , to assist the individual in complying with a condition 18 of probation. The district department may, with the approval 19 of the department of corrections, place an individual in a 20 level four violator facility established pursuant to section 21 904.207 only as a penalty for a violation of a condition 22 imposed under this section . 23 Sec. 24. REPEAL. Sections 135.26, 135.29, 135.130, and 24 135.152, Code 2017, are repealed. 25 DIVISION V 26 MISCELLANEOUS PROVISIONS 27 Sec. 25. Section 135A.2, subsection 6, Code 2017, is amended 28 to read as follows: 29 6. “Local board of health” means a county or district board 30 of health the same as defined in section 137.102 . 31 Sec. 26. REPEAL. Section 135.132, Code 2017, is repealed. 32 DIVISION VI 33 IOWA HEALTH INFORMATION NETWORK 34 Sec. 27. Section 136.3, subsection 13, Code 2017, is amended 35 -15- LSB 1675HV (3) 87 pf/nh 15/ 57
H.F. 393 by striking the subsection. 1 Sec. 28. EFFECTIVE DATE. This division of this Act 2 takes effect upon the assumption of the administration and 3 governance, including but not limited to the assumption of the 4 assets and liabilities, of the Iowa health information network 5 by the designated entity as defined in 2015 Iowa Acts, ch.73, 6 section 2. The department of public health shall notify the 7 Code editor of the date of such assumption by the designated 8 entity. 9 DIVISION VII 10 ORGANIZED DELIVERY SYSTEMS 11 Sec. 29. Section 135H.3, subsection 2, Code 2017, is amended 12 to read as follows: 13 2. If a child is diagnosed with a biologically based mental 14 illness as defined in section 514C.22 and meets the medical 15 assistance program criteria for admission to a psychiatric 16 medical institution for children, the child shall be deemed 17 to meet the acuity criteria for medically necessary inpatient 18 benefits under a group policy, contract, or plan providing 19 for third-party payment or prepayment of health, medical, and 20 surgical coverage benefits issued by a carrier, as defined in 21 section 513B.2 , or by an organized delivery system authorized 22 under 1993 Iowa Acts, ch. 158, that is subject to section 23 514C.22 . Such medically necessary benefits shall not be 24 excluded or denied as care that is substantially custodial in 25 nature under section 514C.22, subsection 8 , paragraph “b” . 26 Sec. 30. Section 505.32, subsection 2, paragraph h, Code 27 2017, is amended by striking the paragraph. 28 Sec. 31. Section 505.32, subsection 4, paragraph b, 29 subparagraphs (1) and (2), Code 2017, are amended to read as 30 follows: 31 (1) The commissioner may establish methodologies to provide 32 uniform and consistent side-by-side comparisons of the health 33 care coverage options that are offered by carriers , organized 34 delivery systems, and public programs in this state including 35 -16- LSB 1675HV (3) 87 pf/nh 16/ 57
H.F. 393 but not limited to benefits covered and not covered, the amount 1 of coverage for each service, including copays and deductibles, 2 administrative costs, and any prior authorization requirements 3 for coverage. 4 (2) The commissioner may require each carrier , organized 5 delivery system, and public program in this state to describe 6 each health care coverage option offered by that carrier , 7 organized delivery system, or public program in a manner 8 so that the various options can be compared as provided in 9 subparagraph (1). 10 Sec. 32. Section 507B.4, subsection 1, Code 2017, is amended 11 to read as follows: 12 1. For purposes of subsection 3 , paragraph “p” , “insurer” 13 means an entity providing a plan of health insurance, health 14 care benefits, or health care services, or an entity subject 15 to the jurisdiction of the commissioner performing utilization 16 review, including an insurance company offering sickness and 17 accident plans, a health maintenance organization, an organized 18 delivery system authorized under 1993 Iowa Acts, ch. 158 , and 19 licensed by the department of public health, a nonprofit health 20 service corporation, a plan established pursuant to chapter 21 509A for public employees, or any other entity providing a 22 plan of health insurance, health care benefits, or health care 23 services. However, “insurer” does not include an entity that 24 sells disability income or long-term care insurance. 25 Sec. 33. Section 507B.4A, subsection 2, paragraph a, Code 26 2017, is amended to read as follows: 27 a. An insurer providing accident and sickness insurance 28 under chapter 509 , 514 , or 514A ; a health maintenance 29 organization; an organized delivery system authorized under 30 1993 Iowa Acts, ch. 158 , and licensed by the department of 31 public health; or another entity providing health insurance or 32 health benefits subject to state insurance regulation shall 33 either accept and pay or deny a clean claim. 34 Sec. 34. Section 509.3A, subsection 11, Code 2017, is 35 -17- LSB 1675HV (3) 87 pf/nh 17/ 57
H.F. 393 amended by striking the subsection. 1 Sec. 35. Section 509.19, subsection 2, paragraph d, Code 2 2017, is amended by striking the paragraph. 3 Sec. 36. Section 509A.6, Code 2017, is amended to read as 4 follows: 5 509A.6 Contract with insurance carrier , or health maintenance 6 organization , or organized delivery system . 7 The governing body may contract with a nonprofit corporation 8 operating under the provisions of this chapter or chapter 9 514 or with any insurance company having a certificate of 10 authority to transact an insurance business in this state with 11 respect of a group insurance plan, which may include life, 12 accident, health, hospitalization and disability insurance 13 during period of active service of such employees, with the 14 right of any employee to continue such life insurance in force 15 after termination of active service at such employee’s sole 16 expense; may contract with a nonprofit corporation operating 17 under and governed by the provisions of this chapter or chapter 18 514 with respect of any hospital or medical service plan; and 19 may contract with a health maintenance organization or an 20 organized delivery system authorized to operate in this state 21 with respect to health maintenance organization or organized 22 delivery system activities. 23 Sec. 37. Section 513B.2, subsection 8, paragraph k, Code 24 2017, is amended by striking the paragraph. 25 Sec. 38. Section 513B.5, Code 2017, is amended to read as 26 follows: 27 513B.5 Provisions on renewability of coverage. 28 1. Health insurance coverage subject to this chapter is 29 renewable with respect to all eligible employees or their 30 dependents, at the option of the small employer, except for one 31 or more of the following reasons: 32 a. The health insurance coverage sponsor fails to pay, or to 33 make timely payment of, premiums or contributions pursuant to 34 the terms of the health insurance coverage. 35 -18- LSB 1675HV (3) 87 pf/nh 18/ 57
H.F. 393 b. The health insurance coverage sponsor performs an 1 act or practice constituting fraud or makes an intentional 2 misrepresentation of a material fact under the terms of the 3 coverage. 4 c. Noncompliance with the carrier’s or organized delivery 5 system’s minimum participation requirements. 6 d. Noncompliance with the carrier’s or organized delivery 7 system’s employer contribution requirements. 8 e. A decision by the carrier or organized delivery system 9 to discontinue offering a particular type of health insurance 10 coverage in the state’s small employer market. Health 11 insurance coverage may be discontinued by the carrier or 12 organized delivery system in that market only if the carrier or 13 organized delivery system does all of the following: 14 (1) Provides advance notice of its decision to discontinue 15 such plan to the commissioner or director of public health . 16 Notice to the commissioner or director , at a minimum, shall be 17 no less than three days prior to the notice provided for in 18 subparagraph (2) to affected small employers, participants, and 19 beneficiaries. 20 (2) Provides notice of its decision not to renew such 21 plan to all affected small employers, participants, and 22 beneficiaries no less than ninety days prior to the nonrenewal 23 of the plan. 24 (3) Offers to each plan sponsor of the discontinued 25 coverage, the option to purchase any other coverage currently 26 offered by the carrier or organized delivery system to other 27 employers in this state. 28 (4) Acts uniformly, in opting to discontinue the coverage 29 and in offering the option under subparagraph (3), without 30 regard to the claims experience of the sponsors under the 31 discontinued coverage or to a health status-related factor 32 relating to any participants or beneficiaries covered or new 33 participants or beneficiaries who may become eligible for the 34 coverage. 35 -19- LSB 1675HV (3) 87 pf/nh 19/ 57
H.F. 393 f. A decision by the carrier or organized delivery system to 1 discontinue offering and to cease to renew all of its health 2 insurance coverage delivered or issued for delivery to small 3 employers in this state. A carrier or organized delivery 4 system making such decision shall do all of the following: 5 (1) Provide advance notice of its decision to discontinue 6 such coverage to the commissioner or director of public health . 7 Notice to the commissioner or director , at a minimum, shall be 8 no less than three days prior to the notice provided for in 9 subparagraph (2) to affected small employers, participants, and 10 beneficiaries. 11 (2) Provide notice of its decision not to renew such 12 coverage to all affected small employers, participants, and 13 beneficiaries no less than one hundred eighty days prior to the 14 nonrenewal of the coverage. 15 (3) Discontinue all health insurance coverage issued or 16 delivered for issuance to small employers in this state and 17 cease renewal of such coverage. 18 g. The membership of an employer in an association, which 19 is the basis for the coverage which is provided through such 20 association, ceases, but only if the termination of coverage 21 under this paragraph occurs uniformly without regard to 22 any health status-related factor relating to any covered 23 individual. 24 h. The commissioner or director of public health finds that 25 the continuation of the coverage is not in the best interests 26 of the policyholders or certificate holders, or would impair 27 the carrier’s or organized delivery system’s ability to meet 28 its contractual obligations. 29 i. At the time of coverage renewal, a carrier or organized 30 delivery system may modify the health insurance coverage for 31 a product offered under group health insurance coverage in 32 the small group market, for coverage that is available in 33 such market other than only through one or more bona fide 34 associations, if such modification is consistent with the laws 35 -20- LSB 1675HV (3) 87 pf/nh 20/ 57
H.F. 393 of this state, and is effective on a uniform basis among group 1 health insurance coverage with that product. 2 2. A carrier or organized delivery system that elects not to 3 renew health insurance coverage under subsection 1 , paragraph 4 “f” , shall not write any new business in the small employer 5 market in this state for a period of five years after the date 6 of notice to the commissioner or director of public health . 7 3. This section , with respect to a carrier or organized 8 delivery system doing business in one established geographic 9 service area of the state, applies only to such carrier’s or 10 organized delivery system’s operations in that service area. 11 Sec. 39. Section 513B.6, unnumbered paragraph 1, Code 2017, 12 is amended to read as follows: 13 A small employer carrier or organized delivery system shall 14 make reasonable disclosure in solicitation and sales materials 15 provided to small employers of all of the following: 16 Sec. 40. Section 513B.6, subsection 2, Code 2017, is amended 17 to read as follows: 18 2. The provisions concerning the small employer carrier’s 19 or organized delivery system’s right to change premium rates 20 and factors, including case characteristics, which affect 21 changes in premium rates. 22 Sec. 41. Section 513B.7, Code 2017, is amended to read as 23 follows: 24 513B.7 Maintenance of records. 25 1. A small employer carrier or organized delivery system 26 shall maintain at its principal place of business a complete 27 and detailed description of its rating practices and renewal 28 underwriting practices, including information and documentation 29 which demonstrate that its rating methods and practices are 30 based upon commonly accepted actuarial assumptions and are in 31 accordance with sound actuarial principles. 32 2. A small employer carrier or organized delivery system 33 shall file each March 1 with the commissioner or the director 34 of public health an actuarial certification that the small 35 -21- LSB 1675HV (3) 87 pf/nh 21/ 57
H.F. 393 employer carrier or organized delivery system is in compliance 1 with this section and that the rating methods of the small 2 employer carrier or organized delivery system are actuarially 3 sound. A copy of the certification shall be retained by the 4 small employer carrier or organized delivery system at its 5 principal place of business. 6 3. A small employer carrier or organized delivery system 7 shall make the information and documentation described in 8 subsection 1 available to the commissioner or the director of 9 public health upon request. The information is not a public 10 record or otherwise subject to disclosure under chapter 22 , 11 and is considered proprietary and trade secret information 12 and is not subject to disclosure by the commissioner or the 13 director of public health to persons outside of the division or 14 department except as agreed to by the small employer carrier or 15 organized delivery system or as ordered by a court of competent 16 jurisdiction. 17 Sec. 42. Section 513B.9A, subsection 1, unnumbered 18 paragraph 1, Code 2017, is amended to read as follows: 19 A carrier or organized delivery system offering group health 20 insurance coverage shall not establish rules for eligibility, 21 including continued eligibility, of an individual to enroll 22 under the terms of the coverage based on any of the following 23 health status-related factors in relation to the individual or 24 a dependent of the individual: 25 Sec. 43. Section 513B.9A, subsection 4, paragraph a, Code 26 2017, is amended to read as follows: 27 a. A carrier or organized delivery system offering health 28 insurance coverage shall not require an individual, as a 29 condition of enrollment or continued enrollment under the 30 coverage, to pay a premium or contribution which is greater 31 than a premium or contribution for a similarly situated 32 individual enrolled in the coverage on the basis of a health 33 status-related factor in relation to the individual or to a 34 dependent of an individual enrolled under the coverage. 35 -22- LSB 1675HV (3) 87 pf/nh 22/ 57
H.F. 393 Sec. 44. Section 513B.9A, subsection 4, paragraph b, 1 subparagraph (2), Code 2017, is amended to read as follows: 2 (2) Prevent a carrier or organized delivery system 3 offering group health insurance coverage from establishing 4 premium discounts or rebates or modifying otherwise applicable 5 copayments or deductibles in return for adherence to programs 6 of health promotion and disease prevention. 7 Sec. 45. Section 513B.10, Code 2017, is amended to read as 8 follows: 9 513B.10 Availability of coverage. 10 1. a. A carrier or an organized delivery system that offers 11 health insurance coverage in the small group market shall 12 accept every small employer that applies for health insurance 13 coverage and shall accept for enrollment under such coverage 14 every eligible individual who applies for enrollment during the 15 period in which the individual first becomes eligible to enroll 16 under the terms of the health insurance coverage and shall not 17 place any restriction which is inconsistent with eligibility 18 rules established under this chapter . 19 b. A carrier or organized delivery system that offers health 20 insurance coverage in the small group market through a network 21 plan may do either of the following: 22 (1) Limit employers that may apply for such coverage to 23 those with eligible individuals who live, work, or reside in 24 the service area for such network plan. 25 (2) Deny such coverage to such employers within the service 26 area of such plan if the carrier or organized delivery system 27 has demonstrated to the applicable state authority both of the 28 following: 29 (a) The carrier or organized delivery system will not have 30 the capacity to deliver services adequately to enrollees of any 31 additional groups because of its obligations to existing group 32 contract holders and enrollees. 33 (b) The carrier or organized delivery system is applying 34 this subparagraph uniformly to all employers without regard to 35 -23- LSB 1675HV (3) 87 pf/nh 23/ 57
H.F. 393 the claims experience of those employers and their employees 1 and their dependents, or any health status-related factor 2 relating to such employees or dependents. 3 c. A carrier or organized delivery system , upon denying 4 health insurance coverage in any service area pursuant to 5 paragraph “b” , subparagraph (2), shall not offer coverage in the 6 small group market within such service area for a period of one 7 hundred eighty days after the date such coverage is denied. 8 d. A carrier or organized delivery system may deny health 9 insurance coverage in the small group market if the issuer has 10 demonstrated to the commissioner or director of public health 11 both of the following: 12 (1) The carrier or organized delivery system does not have 13 the financial reserves necessary to underwrite additional 14 coverage. 15 (2) The carrier or organized delivery system is applying the 16 provisions of this paragraph uniformly to all employers in the 17 small group market in this state consistent with state law and 18 without regard to the claims experience of those employers and 19 the employees and dependents of such employers, or any health 20 status-related factor relating to such employees and their 21 dependents. 22 e. A carrier or organized delivery system , upon denying 23 health insurance coverage pursuant to paragraph “d” , shall not 24 offer coverage in connection with health insurance coverages 25 in the small group market in this state for a period of one 26 hundred eighty days after the date such coverage is denied or 27 until the carrier or organized delivery system has demonstrated 28 to the commissioner or director of public health that the 29 carrier or organized delivery system has sufficient financial 30 reserves to underwrite additional coverage, whichever is later. 31 The commissioner or director may provide for the application of 32 this paragraph on a service area-specific basis. 33 f. Paragraph “a” shall not be construed to preclude 34 a carrier or organized delivery system from establishing 35 -24- LSB 1675HV (3) 87 pf/nh 24/ 57
H.F. 393 employer contribution rules or group participation rules for 1 the offering of health insurance coverage in the small group 2 market. 3 2. A carrier or organized delivery system , subject to 4 subsection 1 , shall issue health insurance coverage to an 5 eligible small employer that applies for the coverage and 6 agrees to make the required premium payments and satisfy the 7 other reasonable provisions of the health insurance coverage 8 not inconsistent with this chapter . A carrier or organized 9 delivery system is not required to issue health insurance 10 coverage to a self-employed individual who is covered by, or is 11 eligible for coverage under, health insurance coverage offered 12 by an employer. 13 3. Health insurance coverage for small employers shall 14 satisfy all of the following: 15 a. A carrier or organized delivery system offering group 16 health insurance coverage, with respect to a participant or 17 beneficiary, may impose a preexisting condition exclusion only 18 as follows: 19 (1) The exclusion relates to a condition, whether physical 20 or mental, regardless of the cause of the condition, for 21 which medical advice, diagnosis, care, or treatment was 22 recommended or received within the six-month period ending on 23 the enrollment date. However, genetic information shall not be 24 treated as a condition under this subparagraph in the absence 25 of a diagnosis of the condition related to such information. 26 (2) The exclusion extends for a period of not more than 27 twelve months, or eighteen months in the case of a late 28 enrollee, after the enrollment date. 29 (3) The period of any such preexisting condition exclusion 30 is reduced by the aggregate of the periods of creditable 31 coverage applicable to the participant or beneficiary as of the 32 enrollment date. 33 b. A carrier or organized delivery system offering group 34 health insurance coverage shall not impose any preexisting 35 -25- LSB 1675HV (3) 87 pf/nh 25/ 57
H.F. 393 condition exclusion as follows: 1 (1) In the case of a child who is adopted or placed for 2 adoption before attaining eighteen years of age and who, as of 3 the last day of the thirty-day period beginning on the date 4 of the adoption or placement for adoption, is covered under 5 creditable coverage. This subparagraph shall not apply to 6 coverage before the date of such adoption or placement for 7 adoption. 8 (2) In the case of an individual who, as of the last day 9 of the thirty-day period beginning with the date of birth, is 10 covered under creditable coverage. 11 (3) Relating to pregnancy as a preexisting condition. 12 c. A carrier or organized delivery system shall waive 13 any waiting period applicable to a preexisting condition 14 exclusion or limitation period with respect to particular 15 services under health insurance coverage for the period 16 of time an individual was covered by creditable coverage, 17 provided that the creditable coverage was continuous to a 18 date not more than sixty-three days prior to the effective 19 date of the new coverage. Any period that an individual 20 is in a waiting period for any coverage under group health 21 insurance coverage, or is in an affiliation period, shall not 22 be taken into account in determining the period of continuous 23 coverage. A health maintenance organization that does not 24 use preexisting condition limitations in any of its health 25 insurance coverage may impose an affiliation period. For 26 purposes of this section , “affiliation period” means a period 27 of time not to exceed sixty days for new entrants and not to 28 exceed ninety days for late enrollees during which no premium 29 shall be collected and coverage issued is not effective, so 30 long as the affiliation period is applied uniformly, without 31 regard to any health status-related factors. This paragraph 32 does not preclude application of a waiting period applicable 33 to all new enrollees under the health insurance coverage, 34 provided that any carrier or organized delivery system-imposed 35 -26- LSB 1675HV (3) 87 pf/nh 26/ 57
H.F. 393 carrier-imposed waiting period is no longer than sixty days and 1 is used in lieu of a preexisting condition exclusion. 2 d. Health insurance coverage may exclude coverage for late 3 enrollees for preexisting conditions for a period not to exceed 4 eighteen months. 5 e. (1) Requirements used by a carrier or organized delivery 6 system in determining whether to provide coverage to a small 7 employer shall be applied uniformly among all small employers 8 applying for coverage or receiving coverage from the carrier 9 or organized delivery system . 10 (2) In applying minimum participation requirements with 11 respect to a small employer, a carrier or organized delivery 12 system shall not consider employees or dependents who have 13 other creditable coverage in determining whether the applicable 14 percentage of participation is met. 15 (3) A carrier or organized delivery system shall not 16 increase any requirement for minimum employee participation 17 or modify any requirement for minimum employer contribution 18 applicable to a small employer at any time after the small 19 employer has been accepted for coverage. 20 f. (1) If a carrier or organized delivery system offers 21 coverage to a small employer, the carrier or organized delivery 22 system shall offer coverage to all eligible employees of the 23 small employer and the employees’ dependents. A carrier or 24 organized delivery system shall not offer coverage to only 25 certain individuals or dependents in a small employer group or 26 to only part of the group. 27 (2) Except as provided under paragraphs “a” and “d” , a 28 carrier or organized delivery system shall not modify health 29 insurance coverage with respect to a small employer or any 30 eligible employee or dependent through riders, endorsements, or 31 other means, to restrict or exclude coverage or benefits for 32 certain diseases, medical conditions, or services otherwise 33 covered by the health insurance coverage. 34 g. A carrier or organized delivery system offering coverage 35 -27- LSB 1675HV (3) 87 pf/nh 27/ 57
H.F. 393 through a network plan shall not be required to offer coverage 1 or accept applications pursuant to subsection 1 with respect to 2 a small employer where any of the following apply applies : 3 (1) The small employer does not have eligible individuals 4 who live, work, or reside in the service area for the network 5 plan. 6 (2) The small employer does have eligible individuals who 7 live, work, or reside in the service area for the network plan, 8 but the carrier or organized delivery system , if required, has 9 demonstrated to the commissioner or the director of public 10 health that it will not have the capacity to deliver services 11 adequately to enrollees of any additional groups because of its 12 obligations to existing group contract holders and enrollees 13 and that it is applying the requirements of this lettered 14 paragraph uniformly to all employers without regard to the 15 claims experience of those employers and their employees and 16 the employees’ dependents, or any health status-related factor 17 relating to such employees and dependents. 18 (3) A carrier or organized delivery system , upon denying 19 health insurance coverage in a service area pursuant to 20 subparagraph (2), shall not offer coverage in the small 21 employer market within such service area for a period of one 22 hundred eighty days after the coverage is denied. 23 4. A carrier or organized delivery system shall not be 24 required to offer coverage to small employers pursuant to 25 subsection 1 for any period of time where the commissioner or 26 director of public health determines that the acceptance of the 27 offers by small employers in accordance with subsection 1 would 28 place the carrier or organized delivery system in a financially 29 impaired condition. 30 5. A carrier or organized delivery system shall not be 31 required to provide coverage to small employers pursuant to 32 subsection 1 if the carrier or organized delivery system elects 33 not to offer new coverage to small employers in this state. 34 However, a carrier or organized delivery system that elects not 35 -28- LSB 1675HV (3) 87 pf/nh 28/ 57
H.F. 393 to offer new coverage to small employers under this subsection 1 shall be allowed to maintain its existing policies in the 2 state, subject to the requirements of section 513B.5 . 3 6. A carrier or organized delivery system that elects not to 4 offer new coverage to small employers pursuant to subsection 5 5 shall provide notice to the commissioner or director of public 6 health and is prohibited from writing new business in the small 7 employer market in this state for a period of five years from 8 the date of notice to the commissioner or director . 9 Sec. 46. Section 513C.3, subsection 5, Code 2017, is amended 10 to read as follows: 11 5. “Carrier” means any entity that provides individual 12 health benefit plans in this state. For purposes of this 13 chapter , carrier includes an insurance company, a group 14 hospital or medical service corporation, a fraternal benefit 15 society, a health maintenance organization, and any other 16 entity providing an individual plan of health insurance 17 or health benefits subject to state insurance regulation. 18 “Carrier” does not include an organized delivery system. 19 Sec. 47. Section 513C.3, subsection 7, Code 2017, is amended 20 by striking the subsection. 21 Sec. 48. Section 513C.3, subsection 9, Code 2017, is amended 22 to read as follows: 23 9. “Established service area” means a geographic area, 24 as approved by the commissioner and based upon the carrier’s 25 certificate of authority to transact business in this state, 26 within which the carrier is authorized to provide coverage or 27 a geographic area, as approved by the director and based upon 28 the organized delivery system’s license to transact business 29 in this state, within which the organized delivery system is 30 authorized to provide coverage . 31 Sec. 49. Section 513C.3, subsection 12, Code 2017, is 32 amended by striking the subsection. 33 Sec. 50. Section 513C.3, subsection 15, paragraph a, 34 subparagraph (3), Code 2017, is amended by striking the 35 -29- LSB 1675HV (3) 87 pf/nh 29/ 57
H.F. 393 subparagraph. 1 Sec. 51. Section 513C.3, subsection 18, Code 2017, is 2 amended to read as follows: 3 18. “Restricted network provision” means a provision of an 4 individual health benefit plan that conditions the payment 5 of benefits, in whole or in part, on the use of health care 6 providers that have entered into a contractual arrangement with 7 the carrier or the organized delivery system to provide health 8 care services to covered individuals. 9 Sec. 52. Section 513C.5, subsection 1, unnumbered paragraph 10 1, Code 2017, is amended to read as follows: 11 Premium rates for any block of individual health benefit 12 plan business issued on or after January 1, 1996, or the date 13 rules are adopted by the commissioner of insurance and the 14 director of public health and become effective, whichever 15 date is later, by a carrier subject to this chapter shall be 16 limited to the composite effect of allocating costs among the 17 following: 18 Sec. 53. Section 513C.6, Code 2017, is amended to read as 19 follows: 20 513C.6 Provisions on renewability of coverage. 21 1. An individual health benefit plan subject to this 22 chapter is renewable with respect to an eligible individual or 23 dependents, at the option of the individual, except for one or 24 more of the following reasons: 25 a. The individual fails to pay, or to make timely payment 26 of, premiums or contributions pursuant to the terms of the 27 individual health benefit plan. 28 b. The individual performs an act or practice constituting 29 fraud or makes an intentional misrepresentation of a material 30 fact under the terms of the individual health benefit plan. 31 c. A decision by the individual carrier or organized 32 delivery system to discontinue offering a particular type 33 of individual health benefit plan in the state’s individual 34 insurance market. An individual health benefit plan may be 35 -30- LSB 1675HV (3) 87 pf/nh 30/ 57
H.F. 393 discontinued by the carrier or organized delivery system in 1 that market with the approval of the commissioner or the 2 director and only if the carrier or organized delivery system 3 does all of the following: 4 (1) Provides advance notice of its decision to discontinue 5 such plan to the commissioner or director . Notice to the 6 commissioner or director , at a minimum, shall be no less than 7 three days prior to the notice provided for in subparagraph (2) 8 to affected individuals. 9 (2) Provides notice of its decision not to renew such plan 10 to all affected individuals no less than ninety days prior 11 to the nonrenewal date of any discontinued individual health 12 benefit plans. 13 (3) Offers to each individual of the discontinued plan the 14 option to purchase any other health plan currently offered by 15 the carrier or organized delivery system to individuals in this 16 state. 17 (4) Acts uniformly in opting to discontinue the plan and 18 in offering the option under subparagraph (3), without regard 19 to the claims experience of any affected eligible individual 20 or beneficiary under the discontinued plan or to a health 21 status-related factor relating to any covered individuals or 22 beneficiaries who may become eligible for the coverage. 23 d. A decision by the carrier or organized delivery system 24 to discontinue offering and to cease to renew all of its 25 individual health benefit plans delivered or issued for 26 delivery to individuals in this state. A carrier or organized 27 delivery system making such decision shall do all of the 28 following: 29 (1) Provide advance notice of its decision to discontinue 30 such plan to the commissioner or director . Notice to the 31 commissioner or director , at a minimum, shall be no less than 32 three days prior to the notice provided for in subparagraph (2) 33 to affected individuals. 34 (2) Provide notice of its decision not to renew such plan 35 -31- LSB 1675HV (3) 87 pf/nh 31/ 57
H.F. 393 to all individuals and to the commissioner or director in each 1 state in which an individual under the discontinued plan is 2 known to reside, no less than one hundred eighty days prior to 3 the nonrenewal of the plan. 4 e. The commissioner or director finds that the continuation 5 of the coverage is not in the best interests of the 6 individuals, or would impair the carrier’s or organized 7 delivery system’s ability to meet its contractual obligations. 8 2. At the time of coverage renewal, a carrier or organized 9 delivery system may modify the health insurance coverage for 10 a policy form offered to individuals in the individual market 11 so long as such modification is consistent with state law and 12 effective on a uniform basis among all individuals with that 13 policy form. 14 3. An individual carrier or organized delivery system that 15 elects not to renew an individual health benefit plan under 16 subsection 1 , paragraph “d” , shall not write any new business in 17 the individual market in this state for a period of five years 18 after the date of notice to the commissioner or director . 19 4. This section , with respect to a carrier or organized 20 delivery system doing business in one established geographic 21 service area of the state, applies only to such carrier’s or 22 organized delivery system’s operations in that service area. 23 5. A carrier or organized delivery system offering coverage 24 through a network plan is not required to renew or continue in 25 force coverage or to accept applications from an individual who 26 no longer resides or lives in, or is no longer employed in, 27 the service area of such carrier or organized delivery system , 28 or no longer resides or lives in, or is no longer employed 29 in, a service area for which the carrier is authorized to do 30 business, but only if coverage is not offered or terminated 31 uniformly without regard to health status-related factors of a 32 covered individual. 33 6. A carrier or organized delivery system offering coverage 34 through a bona fide association is not required to renew or 35 -32- LSB 1675HV (3) 87 pf/nh 32/ 57
H.F. 393 continue in force coverage or to accept applications from an 1 individual through an association if the membership of the 2 individual in the association on which the basis of coverage 3 is provided ceases, but only if the coverage is not offered or 4 terminated under this paragraph uniformly without regard to 5 health status-related factors of a covered individual. 6 7. An individual who has coverage as a dependent under a 7 basic or standard health benefit plan may, when that individual 8 is no longer a dependent under such coverage, elect to continue 9 coverage under the basic or standard health benefit plan if 10 the individual so elects immediately upon termination of the 11 coverage under which the individual was covered as a dependent. 12 Sec. 54. Section 513C.7, subsection 1, Code 2017, is amended 13 to read as follows: 14 1. a. (1) A carrier shall file with the commissioner, in 15 a form and manner prescribed by the commissioner, the basic 16 or standard health benefit plan. A basic or standard health 17 benefit plan filed pursuant to this paragraph may be used by 18 a carrier beginning thirty days after it is filed unless the 19 commissioner disapproves of its use. 20 (2) b. The commissioner may at any time, after providing 21 notice and an opportunity for a hearing to the carrier, 22 disapprove the continued use by a carrier of a basic or 23 standard health benefit plan on the grounds that the plan does 24 not meet the requirements of this chapter . 25 b. (1) An organized delivery system shall file with the 26 director, in a form and manner prescribed by the director, 27 the basic or standard health benefit plan to be used by the 28 organized delivery system. A basic or standard health benefit 29 plan filed pursuant to this paragraph may be used by the 30 organized delivery system beginning thirty days after it is 31 filed unless the director disapproves of its use. 32 (2) The director may at any time, after providing notice and 33 an opportunity for a hearing to the organized delivery system, 34 disapprove the continued use by an organized delivery system of 35 -33- LSB 1675HV (3) 87 pf/nh 33/ 57
H.F. 393 a basic or standard health benefit plan on the grounds that the 1 plan does not meet the requirements of this chapter . 2 Sec. 55. Section 513C.7, subsection 3, Code 2017, is amended 3 to read as follows: 4 3. A carrier or an organized delivery system shall not 5 modify a basic or standard health benefit plan with respect 6 to an individual or dependent through riders, endorsements, 7 or other means to restrict or exclude coverage for certain 8 diseases or medical conditions otherwise covered by the health 9 benefit plan. 10 Sec. 56. Section 513C.9, subsections 1, 2, 3, 6, and 8, Code 11 2017, are amended to read as follows: 12 1. A carrier , an organized delivery system, or an agent 13 shall not do either of the following: 14 a. Encourage or direct individuals to refrain from 15 filing an application for coverage with the carrier or the 16 organized delivery system because of the health status, claims 17 experience, industry, occupation, or geographic location of the 18 individuals. 19 b. Encourage or direct individuals to seek coverage from 20 another carrier or another organized delivery system because of 21 the health status, claims experience, industry, occupation, or 22 geographic location of the individuals. 23 2. Subsection 1 , paragraph “a” , shall not apply with respect 24 to information provided by a carrier or an organized delivery 25 system or an agent to an individual regarding the established 26 geographic service area of the carrier or the organized 27 delivery system, or the restricted network provision of the 28 carrier or the organized delivery system . 29 3. A carrier or an organized delivery system shall not, 30 directly or indirectly, enter into any contract, agreement, or 31 arrangement with an agent that provides for, or results in, the 32 compensation paid to an agent for a sale of a basic or standard 33 health benefit plan to vary because of the health status or 34 permitted rating characteristics of the individual or the 35 -34- LSB 1675HV (3) 87 pf/nh 34/ 57
H.F. 393 individual’s dependents. 1 6. Denial by a carrier or an organized delivery system of an 2 application for coverage from an individual shall be in writing 3 and shall state the reason or reasons for the denial. 4 8. If a carrier or an organized delivery system enters into 5 a contract, agreement, or other arrangement with a third-party 6 administrator to provide administrative, marketing, or other 7 services related to the offering of individual health benefit 8 plans in this state, the third-party administrator is subject 9 to this section as if it were a carrier or an organized 10 delivery system . 11 Sec. 57. Section 513C.10, subsection 1, paragraph a, Code 12 2017, is amended to read as follows: 13 a. All persons that provide health benefit plans in this 14 state including insurers providing accident and sickness 15 insurance under chapter 509 , 514 , or 514A , whether on an 16 individual or group basis; fraternal benefit societies 17 providing hospital, medical, or nursing benefits under chapter 18 512B ; and health maintenance organizations, organized delivery 19 systems, other entities providing health insurance or health 20 benefits subject to state insurance regulation, and all other 21 insurers as designated by the board of directors of the Iowa 22 comprehensive health insurance association with the approval of 23 the commissioner shall be members of the association. 24 Sec. 58. Section 513C.10, subsection 2, paragraph a, Code 25 2017, is amended to read as follows: 26 a. Rates for basic and standard coverages as provided in 27 this chapter shall be determined by each carrier or organized 28 delivery system as the product of a basic and standard factor 29 and the lowest rate available for issuance by that carrier or 30 organized delivery system adjusted for rating characteristics 31 and benefits. Basic and standard factors shall be established 32 annually by the Iowa comprehensive health insurance association 33 board with the approval of the commissioner. Multiple basic 34 and standard factors for a distinct grouping of basic and 35 -35- LSB 1675HV (3) 87 pf/nh 35/ 57
H.F. 393 standard policies may be established. A basic and standard 1 factor is limited to a minimum value defined as the ratio 2 of the average of the lowest rate available for issuance and 3 the maximum rate allowable by law divided by the lowest rate 4 available for issuance. A basic and standard factor is limited 5 to a maximum value defined as the ratio of the maximum rate 6 allowable by law divided by the lowest rate available for 7 issuance. The maximum rate allowable by law and the lowest 8 rate available for issuance is determined based on the rate 9 restrictions under this chapter . For policies written after 10 January 1, 2002, rates for the basic and standard coverages 11 as provided in this chapter shall be calculated using the 12 basic and standard factors and shall be no lower than the 13 maximum rate allowable by law. However, to maintain assessable 14 loss assessments at or below one percent of total health 15 insurance premiums or payments as determined in accordance 16 with subsection 6 , the Iowa comprehensive health insurance 17 association board with the approval of the commissioner may 18 increase the value for any basic and standard factor greater 19 than the maximum value. 20 Sec. 59. Section 513C.10, subsections 3, 4, 7, 8, 9, and 10, 21 Code 2017, are amended to read as follows: 22 3. Following the close of each calendar year, the 23 association, in conjunction with the commissioner, shall 24 require each carrier or organized delivery system to report 25 the amount of earned premiums and the associated paid losses 26 for all basic and standard plans issued by the carrier or 27 organized delivery system . The reporting of these amounts must 28 be certified by an officer of the carrier or organized delivery 29 system . 30 4. The board shall develop procedures and assessment 31 mechanisms and make assessments and distributions as required 32 to equalize the individual carrier and organized delivery 33 system gains or losses so that each carrier or organized 34 delivery system receives the same ratio of paid claims to 35 -36- LSB 1675HV (3) 87 pf/nh 36/ 57
H.F. 393 ninety percent of earned premiums as the aggregate of all 1 basic and standard plans insured by all carriers and organized 2 delivery systems in the state. 3 7. The board shall develop procedures for distributing 4 the assessable loss assessments to each carrier and organized 5 delivery system in proportion to the carrier’s and organized 6 delivery system’s respective share of premium for basic and 7 standard plans to the statewide total premium for all basic and 8 standard plans. 9 8. The board shall ensure that procedures for collecting 10 and distributing assessments are as efficient as possible 11 for carriers and organized delivery systems . The board may 12 establish procedures which combine, or offset, the assessment 13 from, and the distribution due to, a carrier or organized 14 delivery system . 15 9. A carrier or an organized delivery system may 16 petition the association board to seek remedy from writing a 17 significantly disproportionate share of basic and standard 18 policies in relation to total premiums written in this state 19 for health benefit plans. Upon a finding that a carrier or 20 organized delivery system has written a disproportionate share, 21 the board may agree to compensate the carrier or organized 22 delivery system either by paying to the carrier or organized 23 delivery system an additional fee not to exceed two percent 24 of earned premiums from basic and standard policies for that 25 carrier or organized delivery system or by petitioning the 26 commissioner or director, as appropriate, for remedy. 27 10. a. The commissioner, upon a finding that the acceptance 28 of the offer of basic and standard coverage by individuals 29 pursuant to this chapter would place the carrier in a 30 financially impaired condition, shall not require the carrier 31 to offer coverage or accept applications for any period of time 32 the financial impairment is deemed to exist. 33 b. The director, upon a finding that the acceptance of the 34 offer of basic and standard coverage by individuals pursuant 35 -37- LSB 1675HV (3) 87 pf/nh 37/ 57
H.F. 393 to this chapter would place the organized delivery system in a 1 financially impaired condition, shall not require the organized 2 delivery system to offer coverage or accept applications for 3 any period of time the financial impairment is deemed to exist. 4 Sec. 60. Section 514A.3B, subsection 3, paragraph k, Code 5 2017, is amended by striking the paragraph. 6 Sec. 61. Section 514B.25A, Code 2017, is amended to read as 7 follows: 8 514B.25A Insolvency protection —— assessment. 9 1. Upon a health maintenance organization or organized 10 delivery system authorized to do business in this state and 11 licensed by the director of public health being declared 12 insolvent by the district court, the commissioner may levy an 13 assessment on each health maintenance organization or organized 14 delivery system doing business in this state and licensed by 15 the director of public health, as applicable , to pay claims 16 for uncovered expenditures for enrollees. The commissioner 17 shall not assess an amount in any one calendar year which is 18 more than two percent of the aggregate premium written by each 19 health maintenance organization or organized delivery system . 20 2. The commissioner may use funds obtained through an 21 assessment under subsection 1 to pay claims for uncovered 22 expenditures for enrollees of an insolvent health maintenance 23 organization or organized delivery system and administrative 24 costs. The commissioner, by rule, may prescribe the time, 25 manner, and form for filing claims under this section . The 26 commissioner may require claims to be allowed by an ancillary 27 receiver or the domestic receiver or liquidator. 28 3. a. A receiver or liquidator of an insolvent health 29 maintenance organization or organized delivery system shall 30 allow a claim in the proceeding in an amount equal to uncovered 31 expenditures and administrative costs paid under this section . 32 b. A person receiving benefits under this section for 33 uncovered expenditures is deemed to have assigned the rights 34 under the covered health care plan certificates to the 35 -38- LSB 1675HV (3) 87 pf/nh 38/ 57
H.F. 393 commissioner to the extent of the benefits received. The 1 commissioner may require an assignment of such rights by a 2 payee, enrollee, or beneficiary, to the commissioner as a 3 condition precedent to the receipt of such benefits. The 4 commissioner is subrogated to these rights against the assets 5 of the insolvent health maintenance organization or organized 6 delivery system that are held by a receiver or liquidator of 7 a foreign jurisdiction. 8 c. The assigned subrogation rights of the commissioner and 9 allowed claims under this subsection have the same priority 10 against the assets of the insolvent health maintenance 11 organization or organized delivery system as those claims of 12 persons entitled to receive benefits under this section or for 13 similar expenses in the receivership or liquidation. 14 4. If funds assessed under subsection 1 are unused 15 following the completion of the liquidation of an insolvent 16 health maintenance organization or organized delivery system , 17 the commissioner shall distribute the remaining amounts, if 18 such amounts are not de minimis, to the health maintenance 19 organizations or organized delivery systems that were assessed. 20 5. The aggregate coverage of uncovered expenditures under 21 this section shall not exceed three hundred thousand dollars 22 with respect to one individual. Continuation of coverage 23 shall cease after the lesser of one year after the health 24 maintenance organization or organized delivery system is 25 terminated by insolvency or the remaining term of the contract. 26 The commissioner may provide continuation of coverage on a 27 reasonable basis, including, but not limited to, continuation 28 of the health maintenance organization or organized delivery 29 system contract or substitution of indemnity coverage in a form 30 as determined by the commissioner. 31 6. The commissioner may waive an assessment of a health 32 maintenance organization or organized delivery system if such 33 organization or system is impaired financially or would be 34 impaired financially as a result of such assessment. A health 35 -39- LSB 1675HV (3) 87 pf/nh 39/ 57
H.F. 393 maintenance organization or organized delivery system that 1 fails to pay an assessment within thirty days after notice of 2 the assessment is subject to a civil forfeiture of not more 3 than one thousand dollars for each day the failure continues, 4 and suspension or revocation of its certificate of authority. 5 An action taken by the commissioner to enforce an assessment 6 under this section may be appealed by the health maintenance 7 organization or organized delivery system pursuant to chapter 8 17A . 9 Sec. 62. Section 514C.10, subsection 2, paragraph e, Code 10 2017, is amended by striking the paragraph. 11 Sec. 63. Section 514C.11, Code 2017, is amended to read as 12 follows: 13 514C.11 Services provided by licensed physician assistants 14 and licensed advanced registered nurse practitioners. 15 1. Notwithstanding section 514C.6 , a policy or contract 16 providing for third-party payment or prepayment of health or 17 medical expenses shall include a provision for the payment of 18 necessary medical or surgical care and treatment provided by 19 a physician assistant licensed pursuant to chapter 148C , or 20 provided by an advanced registered nurse practitioner licensed 21 pursuant to chapter 152 and performed within the scope of the 22 license of the licensed physician assistant or the licensed 23 advanced registered nurse practitioner if the policy or 24 contract would pay for the care and treatment if the care and 25 treatment were provided by a person engaged in the practice 26 of medicine and surgery or osteopathic medicine and surgery 27 under chapter 148 . The policy or contract shall provide that 28 policyholders and subscribers under the policy or contract may 29 reject the coverage for services which may be provided by a 30 licensed physician assistant or licensed advanced registered 31 nurse practitioner if the coverage is rejected for all 32 providers of similar services. A policy or contract subject 33 to this section shall not impose a practice or supervision 34 restriction which is inconsistent with or more restrictive than 35 -40- LSB 1675HV (3) 87 pf/nh 40/ 57
H.F. 393 the restriction already imposed by law. 1 2. This section applies to services provided under a policy 2 or contract delivered, issued for delivery, continued, or 3 renewed in this state on or after July 1, 1996, and to an 4 existing policy or contract, on the policy’s or contract’s 5 anniversary or renewal date, or upon the expiration of the 6 applicable collective bargaining contract, if any, whichever 7 is later. This section does not apply to policyholders or 8 subscribers eligible for coverage under Tit. XVIII of the 9 federal Social Security Act or any similar coverage under a 10 state or federal government plan. 11 3. For the purposes of this section , third-party payment or 12 prepayment includes an individual or group policy of accident 13 or health insurance or individual or group hospital or health 14 care service contract issued pursuant to chapter 509 , 514 , or 15 514A , an individual or group health maintenance organization 16 contract issued and regulated under chapter 514B , an organized 17 delivery system contract regulated under rules adopted by the 18 director of public health, or a preferred provider organization 19 contract regulated pursuant to chapter 514F . 20 4. Nothing in this section shall be interpreted to require 21 an individual or group health maintenance organization , an 22 organized delivery system, or a preferred provider organization 23 or arrangement to provide payment or prepayment for services 24 provided by a licensed physician assistant or licensed advanced 25 registered nurse practitioner unless the physician assistant’s 26 supervising physician, the physician-physician assistant team, 27 the advanced registered nurse practitioner, or the advanced 28 registered nurse practitioner’s collaborating physician has 29 entered into a contract or other agreement to provide services 30 with the individual or group health maintenance organization , 31 the organized delivery system, or the preferred provider 32 organization or arrangement. 33 Sec. 64. Section 514C.13, subsection 1, paragraph h, Code 34 2017, is amended by striking the paragraph. 35 -41- LSB 1675HV (3) 87 pf/nh 41/ 57
H.F. 393 Sec. 65. Section 514C.13, subsection 2, Code 2017, is 1 amended to read as follows: 2 2. A carrier or organized delivery system which offers to 3 a small employer a limited provider network plan to provide 4 health care services or benefits to the small employer’s 5 employees shall also offer to the small employer a point of 6 service option to the limited provider network plan. 7 Sec. 66. Section 514C.13, subsection 3, unnumbered 8 paragraph 1, Code 2017, is amended to read as follows: 9 A carrier or organized delivery system which offers to a 10 large employer a limited provider network plan to provide 11 health care services or benefits to the large employer’s 12 employees shall also offer to the large employer one or more 13 of the following: 14 Sec. 67. Section 514C.14, subsections 1 and 3, Code 2017, 15 are amended to read as follows: 16 1. Except as provided under subsection 2 or 3 , a carrier, 17 as defined in section 513B.2 , an organized delivery system 18 authorized under 1993 Iowa Acts, ch. 158, or a plan established 19 pursuant to chapter 509A for public employees, which terminates 20 its contract with a participating health care provider, 21 shall continue to provide coverage under the contract to a 22 covered person in the second or third trimester of pregnancy 23 for continued care from such health care provider. Such 24 persons may continue to receive such treatment or care through 25 postpartum care related to the child birth and delivery. 26 Payment for covered benefits and benefit levels shall be 27 according to the terms and conditions of the contract. 28 3. A carrier , organized delivery system, or a plan 29 established under chapter 509A , which terminates the contract 30 of a participating health care provider for cause shall not 31 be liable to pay for health care services provided by the 32 health care provider to a covered person following the date of 33 termination. 34 Sec. 68. Section 514C.15, Code 2017, is amended to read as 35 -42- LSB 1675HV (3) 87 pf/nh 42/ 57
H.F. 393 follows: 1 514C.15 Treatment options. 2 A carrier, as defined in section 513B.2 , ; an organized 3 delivery system authorized under 1993 Iowa Acts, ch. 158, 4 and licensed by the director of public health; or a plan 5 established pursuant to chapter 509A for public employees, 6 shall not prohibit a participating provider from, or penalize a 7 participating provider for, doing either of the following: 8 1. Discussing treatment options with a covered individual, 9 notwithstanding the carrier’s, organized delivery system’s, or 10 plan’s position on such treatment option. 11 2. Advocating on behalf of a covered individual within 12 a review or grievance process established by the carrier , 13 organized delivery system, or chapter 509A plan, or established 14 by a person contracting with the carrier , organized delivery 15 system, or chapter 509A plan. 16 Sec. 69. Section 514C.16, subsection 1, Code 2017, is 17 amended to read as follows: 18 1. A carrier, as defined in section 513B.2 , ; an organized 19 delivery system authorized under 1993 Iowa Acts, ch. 158, 20 and licensed by the director of public health; or a plan 21 established pursuant to chapter 509A for public employees, 22 which provides coverage for emergency services, is responsible 23 for charges for emergency services provided to a covered 24 individual, including services furnished outside any 25 contractual provider network or preferred provider network. 26 Coverage for emergency services is subject to the terms and 27 conditions of the health benefit plan or contract. 28 Sec. 70. Section 514C.17, subsections 1 and 3, Code 2017, 29 are amended to read as follows: 30 1. Except as provided under subsection 2 or 3 , if a carrier, 31 as defined in section 513B.2 , an organized delivery system 32 authorized under 1993 Iowa Acts, ch. 158, or a plan established 33 pursuant to chapter 509A for public employees, terminates its 34 contract with a participating health care provider, a covered 35 -43- LSB 1675HV (3) 87 pf/nh 43/ 57
H.F. 393 individual who is undergoing a specified course of treatment 1 for a terminal illness or a related condition, with the 2 recommendation of the covered individual’s treating physician 3 licensed under chapter 148 may continue to receive coverage for 4 treatment received from the covered individual’s physician for 5 the terminal illness or a related condition, for a period of 6 up to ninety days. Payment for covered benefits and benefit 7 levels shall be according to the terms and conditions of the 8 contract. 9 3. Notwithstanding subsections 1 and 2 , a carrier , 10 organized delivery system, or a plan established under chapter 11 509A which terminates the contract of a participating health 12 care provider for cause shall not be required to cover health 13 care services provided by the health care provider to a covered 14 person following the date of termination. 15 Sec. 71. Section 514C.18, subsection 2, paragraph a, 16 subparagraph (6), Code 2017, is amended by striking the 17 subparagraph. 18 Sec. 72. Section 514C.19, subsection 7, paragraph a, 19 subparagraph (6), Code 2017, is amended by striking the 20 subparagraph. 21 Sec. 73. Section 514C.20, subsection 3, paragraph f, Code 22 2017, is amended by striking the paragraph. 23 Sec. 74. Section 514C.21, subsection 2, paragraph d, Code 24 2017, is amended by striking the paragraph. 25 Sec. 75. Section 514C.22, subsection 1, unnumbered 26 paragraph 1, Code 2017, is amended to read as follows: 27 Notwithstanding the uniformity of treatment requirements of 28 section 514C.6 , a group policy, contract, or plan providing 29 for third-party payment or prepayment of health, medical, and 30 surgical coverage benefits issued by a carrier, as defined in 31 section 513B.2 , or by an organized delivery system authorized 32 under 1993 Iowa Acts, ch. 158, shall provide coverage benefits 33 for treatment of a biologically based mental illness if either 34 of the following is satisfied: 35 -44- LSB 1675HV (3) 87 pf/nh 44/ 57
H.F. 393 Sec. 76. Section 514C.22, subsection 6, Code 2017, is 1 amended to read as follows: 2 6. A carrier , organized delivery system, or plan 3 established pursuant to chapter 509A may manage the benefits 4 provided through common methods including, but not limited to, 5 providing payment of benefits or providing care and treatment 6 under a capitated payment system, prospective reimbursement 7 rate system, utilization control system, incentive system for 8 the use of least restrictive and least costly levels of care, 9 a preferred provider contract limiting choice of specific 10 providers, or any other system, method, or organization 11 designed to assure services are medically necessary and 12 clinically appropriate. 13 Sec. 77. Section 514C.25, subsection 2, paragraph a, 14 subparagraph (5), Code 2017, is amended by striking the 15 subparagraph. 16 Sec. 78. Section 514C.26, subsection 5, paragraph a, 17 subparagraph (6), Code 2017, is amended by striking the 18 subparagraph. 19 Sec. 79. Section 514C.27, subsection 1, unnumbered 20 paragraph 1, Code 2017, is amended to read as follows: 21 Notwithstanding the uniformity of treatment requirements 22 of section 514C.6 , a group policy or contract providing for 23 third-party payment or prepayment of health or medical expenses 24 issued by a carrier, as defined in section 513B.2 , or by an 25 organized delivery system authorized under 1993 Iowa Acts, ch. 26 158 , shall provide coverage benefits to an insured who is a 27 veteran for treatment of mental illness and substance abuse if 28 either of the following is satisfied: 29 Sec. 80. Section 514C.27, subsection 6, Code 2017, is 30 amended to read as follows: 31 6. A carrier , organized delivery system, or plan 32 established pursuant to chapter 509A may manage the benefits 33 provided through common methods including but not limited to 34 providing payment of benefits or providing care and treatment 35 -45- LSB 1675HV (3) 87 pf/nh 45/ 57
H.F. 393 under a capitated payment system, prospective reimbursement 1 rate system, utilization control system, incentive system for 2 the use of least restrictive and least costly levels of care, 3 a preferred provider contract limiting choice of specific 4 providers, or any other system, method, or organization 5 designed to assure services are medically necessary and 6 clinically appropriate. 7 Sec. 81. Section 514C.29, subsection 2, paragraph e, Code 8 2017, is amended by striking the paragraph. 9 Sec. 82. Section 514C.30, subsection 2, paragraph e, Code 10 2017, is amended by striking the paragraph. 11 Sec. 83. Section 514E.1, subsection 6, paragraph k, Code 12 2017, is amended by striking the paragraph. 13 Sec. 84. Section 514E.1, subsection 17, Code 2017, is 14 amended by striking the subsection. 15 Sec. 85. Section 514E.2, subsection 1, paragraph a, Code 16 2017, is amended to read as follows: 17 a. All carriers and all organized delivery systems licensed 18 by the director of public health providing health insurance or 19 health care services in Iowa, whether on an individual or group 20 basis, and all other insurers designated by the association’s 21 board of directors and approved by the commissioner shall be 22 members of the association. 23 Sec. 86. Section 514E.2, subsection 2, paragraph a, 24 subparagraph (3), Code 2017, is amended to read as follows: 25 (3) Two members selected by the members of the association, 26 one of whom shall be a representative from a corporation 27 operating pursuant to chapter 514 on July 1, 1989, or 28 any successor in interest, and one of whom shall be a 29 representative of an organized delivery system or an insurer 30 providing coverage pursuant to chapter 509 or 514A . 31 Sec. 87. Section 514E.7, subsection 1, paragraph a, 32 subparagraphs (1) and (2), Code 2017, are amended to read as 33 follows: 34 (1) A notice of rejection or refusal to issue substantially 35 -46- LSB 1675HV (3) 87 pf/nh 46/ 57
H.F. 393 similar insurance for health reasons by one carrier or 1 organized delivery system . 2 (2) A refusal by a carrier or organized delivery system to 3 issue insurance except at a rate exceeding the plan rate. 4 Sec. 88. Section 514E.7, subsection 1, paragraph b, Code 5 2017, is amended to read as follows: 6 b. A rejection or refusal by a carrier or organized delivery 7 system offering only stoploss, excess of loss, or reinsurance 8 coverage with respect to an applicant under paragraph “a” , 9 subparagraphs (1) and (2) , is not sufficient evidence for 10 purposes of this subsection . 11 Sec. 89. Section 514E.9, Code 2017, is amended to read as 12 follows: 13 514E.9 Rules. 14 Pursuant to chapter 17A , the commissioner and the director 15 of public health shall adopt rules to provide for disclosure 16 by carriers and organized delivery systems of the availability 17 of insurance coverage from the association, and to otherwise 18 implement this chapter . 19 Sec. 90. Section 514E.11, Code 2017, is amended to read as 20 follows: 21 514E.11 Notice of association policy. 22 Every carrier, including a health maintenance organization 23 subject to chapter 514B and an organized delivery system , 24 authorized to provide health care insurance or coverage for 25 health care services in Iowa, shall provide a notice of the 26 availability of coverage by the association to any person 27 who receives a rejection of coverage for health insurance 28 or health care services, or a rate for health insurance or 29 coverage for health care services that will exceed the rate of 30 an association policy, and that person is eligible to apply 31 for health insurance provided by the association. Application 32 for the health insurance shall be on forms prescribed by the 33 association’s board of directors and made available to the 34 carriers and organized delivery systems and other entities 35 -47- LSB 1675HV (3) 87 pf/nh 47/ 57
H.F. 393 providing health care insurance or coverage for health care 1 services regulated by the commissioner. 2 Sec. 91. Section 514F.5, Code 2017, is amended to read as 3 follows: 4 514F.5 Experimental treatment review. 5 1. A carrier, as defined in section 513B.2 , an organized 6 delivery system authorized under 1993 Iowa Acts, ch. 158, or a 7 plan established pursuant to chapter 509A for public employees, 8 that limits coverage for experimental medical treatment, drugs, 9 or devices, shall develop and implement a procedure to evaluate 10 experimental medical treatments and shall submit a description 11 of the procedure to the division of insurance. The procedure 12 shall be in writing and must describe the process used to 13 determine whether the carrier , organized delivery system, 14 or chapter 509A plan will provide coverage for new medical 15 technologies and new uses of existing technologies. The 16 procedure, at a minimum, shall require a review of information 17 from appropriate government regulatory agencies and published 18 scientific literature concerning new medical technologies, new 19 uses of existing technologies, and the use of external experts 20 in making decisions. A carrier , organized delivery system, 21 or chapter 509A plan shall include appropriately licensed 22 or qualified professionals in the evaluation process. The 23 procedure shall provide a process for a person covered under 24 a plan or contract to request a review of a denial of coverage 25 because the proposed treatment is experimental. A review of 26 a particular treatment need not be reviewed more than once a 27 year. 28 2. A carrier , organized delivery system, or chapter 509A 29 plan that limits coverage for experimental treatment, drugs, or 30 devices shall clearly disclose such limitations in a contract, 31 policy, or certificate of coverage. 32 Sec. 92. Section 514I.2, subsection 10, Code 2017, is 33 amended to read as follows: 34 10. “Participating insurer” means any entity licensed by the 35 -48- LSB 1675HV (3) 87 pf/nh 48/ 57
H.F. 393 division of insurance of the department of commerce to provide 1 health insurance in Iowa or an organized delivery system 2 licensed by the director of public health that has contracted 3 with the department to provide health insurance coverage to 4 eligible children under this chapter . 5 Sec. 93. Section 514J.102, subsection 24, Code 2017, is 6 amended to read as follows: 7 24. “Health carrier” means an entity subject to the 8 insurance laws and regulations of this state, or subject 9 to the jurisdiction of the commissioner, including an 10 insurance company offering sickness and accident plans, a 11 health maintenance organization, a nonprofit health service 12 corporation, a plan established pursuant to chapter 509A 13 for public employees, or any other entity providing a plan 14 of health insurance, health care benefits, or health care 15 services. “Health carrier” includes, for purposes of this 16 chapter , an organized delivery system. 17 Sec. 94. Section 514J.102, subsection 29, Code 2017, is 18 amended by striking the subsection. 19 Sec. 95. Section 514K.1, subsection 1, unnumbered paragraph 20 1, Code 2017, is amended to read as follows: 21 A health maintenance organization , an organized delivery 22 system, or an insurer using a preferred provider arrangement 23 shall provide to each of its enrollees at the time of 24 enrollment, and shall make available to each prospective 25 enrollee upon request, written information as required by rules 26 adopted by the commissioner and the director of public health . 27 The information required by rule shall include, but not be 28 limited to, all of the following: 29 Sec. 96. Section 514K.1, subsection 2, Code 2017, is amended 30 to read as follows: 31 2. The commissioner and the director shall annually publish 32 a consumer guide providing a comparison by plan on performance 33 measures, network composition, and other key information to 34 enable consumers to better understand plan differences. 35 -49- LSB 1675HV (3) 87 pf/nh 49/ 57
H.F. 393 Sec. 97. Section 514L.1, subsection 3, Code 2017, is amended 1 to read as follows: 2 3. “Provider of third-party payment or prepayment of 3 prescription drug expenses” or “provider” means a provider of an 4 individual or group policy of accident or health insurance or 5 an individual or group hospital or health care service contract 6 issued pursuant to chapter 509 , 514 , or 514A , a provider of a 7 plan established pursuant to chapter 509A for public employees, 8 a provider of an individual or group health maintenance 9 organization contract issued and regulated under chapter 514B , 10 a provider of an organized delivery system contract regulated 11 under rules adopted by the director of public health, a 12 provider of a preferred provider contract issued pursuant to 13 chapter 514F , a provider of a self-insured multiple employer 14 welfare arrangement, and any other entity providing health 15 insurance or health benefits which provide for payment or 16 prepayment of prescription drug expenses coverage subject to 17 state insurance regulation. 18 Sec. 98. Section 514L.2, subsection 1, paragraph a, 19 unnumbered paragraph 1, Code 2017, is amended to read as 20 follows: 21 A provider of third-party payment or prepayment of 22 prescription drug expenses, including the provider’s agents or 23 contractors and pharmacy benefits managers, that issues a card 24 or other technology for claims processing and an administrator 25 of the payor, excluding administrators of self-funded employer 26 sponsored health benefit plans qualified under the federal 27 Employee Retirement Income Security Act of 1974, shall issue 28 to its insureds a card or other technology containing uniform 29 prescription drug information. The commissioner of insurance 30 shall adopt rules for the uniform prescription drug information 31 card or technology applicable to those entities subject to 32 regulation by the commissioner of insurance. The director of 33 public health shall adopt rules for the uniform prescription 34 drug information card or technology applicable to organized 35 -50- LSB 1675HV (3) 87 pf/nh 50/ 57
H.F. 393 delivery systems. The rules shall require at least both of the 1 following regarding the card or technology: 2 Sec. 99. Section 521F.2, subsection 7, Code 2017, is amended 3 to read as follows: 4 7. “Health organization” means a health maintenance 5 organization, limited service organization, dental or vision 6 plan, hospital, medical and dental indemnity or service 7 corporation or other managed care organization licensed under 8 chapter 514 , or 514B , or 1993 Iowa Acts, ch. 158 , or any other 9 entity engaged in the business of insurance, risk transfer, 10 or risk retention, that is subject to the jurisdiction of the 11 commissioner of insurance or the director of public health . 12 “Health organization” does not include an insurance company 13 licensed to transact the business of insurance under chapter 14 508 , 515 , or 520 , and which is otherwise subject to chapter 15 521E . 16 Sec. 100. 1993 Iowa Acts, chapter 158, section 4, is amended 17 to read as follows: 18 SEC. 4. EMERGENCY RULES. Pursuant to sections 1 , and 2 , and 19 3 of this Act, the commissioner of insurance or the director of 20 public health shall adopt administrative rules under section 21 17A.4, subsection 2, and section 17A.5, subsection 2, paragraph 22 “b”, to implement the provisions of this Act and the rules 23 shall become effective immediately upon filing, unless a later 24 effective date is specified in the rules. Any rules adopted in 25 accordance with the provisions of this section shall also be 26 published as notice of intended action as provided in section 27 17A.4. 28 Sec. 101. REPEAL. Section 135.120, Code 2017, is repealed. 29 Sec. 102. REPEAL. 1993 Iowa Acts, chapter 158, section 3, 30 is repealed. 31 Sec. 103. CODE EDITOR’S DIRECTIVE. The Code editor shall 32 correct and eliminate any references to the term “organized 33 delivery system” or other forms of the term anywhere else in 34 the Iowa Code or Iowa Code Supplement, in any bills awaiting 35 -51- LSB 1675HV (3) 87 pf/nh 51/ 57
H.F. 393 codification, in this Act, and in any bills enacted by the 1 Eighty-seventh General Assembly, 2017 Regular Session, or any 2 extraordinary session. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to programs and activities under the 7 purview of the department of public health (DPH). 8 Division I of the bill relates to program funding 9 flexibility and reporting. 10 The bill provides that if the amount of estimated moneys to 11 be received from certain liquor fees and retail beer permit 12 fees that is transferred to DPH annually for grants to counties 13 operating a substance abuse program exceeds grant requests, 14 in addition to using the remainder for grants to entities to 15 operate a substance abuse prevention program, DPH may also use 16 the remainder for activities and public information resources 17 that align with best practices for substance-related disorder 18 prevention. 19 The bill eliminates the requirement under Code section 20 135.11, subsection 31, that DPH report to the chairpersons and 21 ranking members of the joint appropriations subcommittee on 22 health and human services, the legislative services agency, the 23 legislative caucus staffs, and the department of management 24 within 60 calendar days of applying for or renewing a federal 25 grant which requires a state match or maintenance of effort 26 and has a value of over $100,000, including a listing of 27 the federal funding source and the potential need for the 28 commitment of state funding in the present or future. 29 The bill amends Code section 135.150 to require DPH to report 30 annually rather than semiannually to the general assembly’s 31 standing committees on government oversight regarding 32 the operation of the gambling treatment program including 33 information on the moneys expended and grants awarded for 34 operation of the program. 35 -52- LSB 1675HV (3) 87 pf/nh 52/ 57
H.F. 393 Division II of the bill relates to medical home and the 1 patient-centered health advisory council. 2 The bill amends provisions relating to medical homes. 3 Code sections 135.157 and 135.158, providing definitions and 4 describing the purposes and characteristics of medical homes, 5 are repealed by the bill. Code section 135.159 provides 6 parameters for the development and implementation of a medical 7 home system in the state, as well as the establishment of the 8 patient-centered health advisory council. The bill amends 9 Code section 135.159 to provide for the continuation of the 10 patient-centered health advisory council and to revise the 11 purposes of the council. 12 The bill also makes conforming changes throughout the Code, 13 including those relative to the definitions of “dental home”, 14 “medical home”, “personal provider”, “primary care provider”, 15 and “primary medical provider”, due to elimination of certain 16 definitions and concepts based upon the repeal of Code sections 17 135.157 and 135.158. 18 Division III of the bill includes provisions relating to 19 workforce programming. 20 The bill amends Code section 135.107 relating to the center 21 for rural health and primary care. Of the programs that 22 constitute the primary care provider recruitment and retention 23 endeavor or PRIMECARRE, the bill eliminates the primary care 24 provider community scholarship program, but retains the primary 25 care loan repayment program and the community grant program 26 that is renamed the health care workforce and community support 27 grant program. The bill amends the application and matching 28 funds requirements for a grant under the health care workforce 29 and community support grant program and specifies that the 30 target areas for awarding of such grants are rural, underserved 31 areas or special populations identified by the department’s 32 strategic plan or evidence-based documentation. 33 The bill provides that the primary care provider loan 34 repayment program may cancel a loan repayment program contract 35 -53- LSB 1675HV (3) 87 pf/nh 53/ 57
H.F. 393 for reasonable cause unless federal requirements otherwise 1 require and provides that the center for rural health and 2 primary care may enter into an agreement with the college 3 student aid commission for administration of the center’s grant 4 and loan repayment programs. 5 The bill eliminates the requirement that a community or 6 region applying for assistance under any of the programs 7 established under PRIMECARRE submit a letter of intent to 8 conduct a community health services assessment and instead 9 requires that the community or region shall document 10 participation in the community health services assessment. In 11 addition to any other requirements, an applicant’s plan is 12 also to include, to the extent possible, a clear commitment to 13 informing high school students of the health care opportunities 14 which may be available to such students. 15 The bill removes the representation by the obsolete rural 16 health resource center on the advisory committee to the center 17 for rural health and primary care and corrects the reference to 18 a national or regional institute for rural health policy. 19 The bill eliminates the reference to “long-term care” in 20 Code section 135.163 which directs DPH to coordinate public and 21 private efforts to develop and maintain an appropriate health 22 care delivery infrastructure and a stable, well-qualified, 23 diverse, and sustainable health care workforce in this state. 24 Under this section, DPH is required, at a minimum, to develop 25 a strategic plan for health care delivery infrastructure and 26 health care workforce resources in this state; provide for 27 the continuous collection of data to provide a basis for 28 health care strategic planning and health care policymaking; 29 and make recommendations regarding the health care delivery 30 infrastructure and the health care workforce that assist 31 in monitoring current needs, predicting future trends, and 32 informing policymaking. 33 The bill amends Code section 135.175 relating to the health 34 care workforce support initiative, the workforce shortage fund, 35 -54- LSB 1675HV (3) 87 pf/nh 54/ 57
H.F. 393 and the accounts within the fund. The bill provides that 1 state programs that may receive moneys from the fund or the 2 accounts in the fund, if specifically designated for drawing 3 down federal funding, include PRIMECARRE, the Iowa affiliate 4 of the national rural recruitment and retention network, the 5 oral and health delivery systems bureau of the department, 6 the primary care office and shortage designation program, and 7 the state office of rural health, but eliminates inclusion of 8 the Iowa health workforce center, the area health education 9 centers programs at Des Moines university osteopathic medical 10 center and the university of Iowa, and the Iowa collaborative 11 safety net provider network as potential recipients. The bill 12 also eliminates the requirement that state appropriations to 13 the fund shall be allocated in equal amounts to each of the 14 accounts within the fund, unless otherwise specified in the 15 appropriation or allocation, and eliminates the restriction 16 that moneys in each of the accounts in the fund used for 17 administrative purposes are not to exceed $100,000 in each 18 account, but retains the limitation that no more than 5 percent 19 of the moneys in any of the accounts within the fund shall be 20 used for administrative purposes unless otherwise provided in 21 the appropriation, allocation, or source of the funds. 22 The bill repeals Code section 135.164 which relates to the 23 health care delivery infrastructure and health care workforce 24 resources strategic plan to be developed by DPH including the 25 specific elements of the strategic plan and the requirements 26 for developing the strategic plan. 27 The bill repeals Code section 135.180, the mental health 28 professional shortage area program, which provides stipends to 29 support psychiatrist positions with an emphasis on securing and 30 retaining medical directors at community mental health centers 31 designated under Code chapter 230A and hospital psychiatric 32 units that are located in mental health professional shortage 33 areas. 34 Division IV of the bill relates to unfunded or outdated 35 -55- LSB 1675HV (3) 87 pf/nh 55/ 57
H.F. 393 program provisions. 1 The bill eliminates the provision under Code section 135.11 2 requiring DPH to establish and administer a substance abuse 3 treatment facility for persons on probation, repeals Code 4 section 135.130, and strikes the conforming provision in Code 5 section 901B.1. The substance abuse treatment facility for 6 persons on probation was authorized in 2001 but was never 7 established. 8 The bill strikes the directive in Code section 135.141 for 9 the division of acute disease prevention and emergency response 10 of DPH to conduct and maintain a statewide risk assessment 11 of any present or potential danger to the public health from 12 biological agents. 13 The bill repeals Code section 135.26 establishing the 14 automated external defibrillator (AED) grant program to provide 15 matching fund grants to local boards of health, community 16 organizations, or cities to implement AED programs. 17 The bill repeals Code section 135.29, relating to local 18 substitute medical decision-making boards, which authorized 19 each county to establish and fund a local substituted medical 20 decision-making board to act as a substitute decision maker for 21 patients incapable of making their own medical care decisions 22 if no other substitute decision maker is available to act. 23 The bill repeals Code section 135.120, relating to the 24 taxation of organized delivery systems (ODSs). 1993 Iowa 25 Acts, chapter 158, section 3, directs DPH to adopt rules and a 26 licensing procedure for the establishment of ODSs. The bill 27 only eliminates the provision for taxation of ODSs, not all 28 other provisions relating to ODSs. 29 The bill repeals Code section 135.152, the statewide 30 obstetrical and newborn indigent patient care program. The 31 program acts as a payer of last resort for eligible individuals 32 but has not been utilized since 2009 due to other options 33 for coverage including through the Medicaid program and the 34 Affordable Care Act for otherwise eligible individuals. 35 -56- LSB 1675HV (3) 87 pf/nh 56/ 57
H.F. 393 Division V includes miscellaneous provisions. 1 The bill amends the definition of “local board of health” in 2 Code section 135A.2 under the public health modernization Act 3 to be consistent with the definition under Code chapter 137, 4 relating to local boards of health. 5 The bill repeals Code section 135.132, the interagency 6 pharmaceuticals bulk purchasing council. The provision was 7 enacted in 2003, but the council was never established. 8 Division VI relates to the Iowa health information 9 network. Legislation was enacted in 2015 Iowa Acts, chapter 10 73, to provide for the future assumption of the Iowa health 11 information network by a designated entity. The bill 12 includes a conforming change that would take effect upon 13 future assumption of the Iowa health information network by a 14 designated entity. 15 Division VII relates to organized delivery systems that are 16 regulated by DPH. Organized delivery systems were created 17 pursuant to 1993 Iowa Acts, chapter 158. Rules adopted 18 under the provision define an organized delivery system as 19 “an organization with defined governance that is responsible 20 for delivering or arranging to deliver the full range of 21 health care services covered under a standard benefit plan 22 and is accountable to the public for the cost, quality and 23 access of its services and for the effect of its services 24 on their health.” (641 IAC 201.2) An organization operating 25 as an organized delivery system is required to assume risk 26 and be subject to solvency standards. The bill eliminates 27 all references to organized delivery systems in the Code and 28 repeals the provision in the Acts authorizing the establishment 29 of organized delivery systems. The most recent application for 30 licensure was received by DPH in 1998. Since being authorized 31 in 1993, only two entities applied for licensure as organized 32 delivery systems and both of these entities have since ceased 33 operations. 34 -57- LSB 1675HV (3) 87 pf/nh 57/ 57