House Study Bill 25 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON HUMAN RESOURCES BILL BY CHAIRPERSON FRY) 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 1675YC (11) 87 pf/nh
H.F. _____ 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 135.159, Code 2017, is amended by striking 23 the section and inserting in lieu thereof the following: 24 135.159 Patient-centered health advisory council. 25 1. The department shall establish a patient-centered health 26 advisory council which shall include but is not limited to 27 all of the following members, selected by their respective 28 organizations, and any other members the department determines 29 necessary: 30 a. The director of human services, or the director’s 31 designee. 32 b. The commissioner of insurance, or the commissioner’s 33 designee. 34 c. A representative of the federation of Iowa insurers. 35 -1- LSB 1675YC (11) 87 pf/nh 1/ 57
H.F. _____ d. A representative of the Iowa dental association. 1 e. A representative of the Iowa nurses association. 2 f. A physician and an osteopathic physician licensed 3 pursuant to chapter 148 who are family physicians and members 4 of the Iowa academy of family physicians. 5 g. A health care consumer. 6 h. A representative of the Iowa collaborative safety net 7 provider network established pursuant to section 135.153. 8 i. A representative of the Iowa developmental disabilities 9 council. 10 j. A representative of the Iowa chapter of the American 11 academy of pediatrics. 12 k. A representative of the child and family policy center. 13 l. A representative of the Iowa pharmacy association. 14 m. A representative of the Iowa chiropractic society. 15 n. A representative of the university of Iowa college of 16 public health. 17 2. The patient-centered health advisory council may utilize 18 the assistance of other relevant public health and health care 19 expertise when necessary to carry out the council’s purposes 20 and responsibilities. 21 3. A public member of the patient-centered health advisory 22 council shall receive reimbursement for actual expenses 23 incurred while serving in the member’s official capacity 24 only if the member is not eligible for reimbursement by the 25 organization the member represents. 26 4. The purposes of the patient-centered health advisory 27 council shall include all of the following: 28 a. To serve as a resource on emerging health care 29 transformation initiatives in Iowa. 30 b. To convene stakeholders in Iowa to streamline efforts 31 that support state-level and community-level integration and 32 focus on reducing fragmentation of the health care system. 33 c. To encourage partnerships and synergy between community 34 health care partners in the state who are working on new 35 -2- LSB 1675YC (11) 87 pf/nh 2/ 57
H.F. _____ system-level models to provide better health care at lower 1 costs by focusing on shifting from volume-based to value-based 2 health care. 3 d. To lead discussions on the transformation of the 4 health care system to a patient-centered infrastructure that 5 integrates and coordinates services and supports to address 6 social determinants of health and to meet population health 7 goals. 8 e. To provide a venue for education and information 9 gathering for stakeholders and interested parties to learn 10 about emerging health care initiatives across the state. 11 f. To develop recommendations for submission to the 12 department related to health care transformation issues. 13 Sec. 5. Section 136.3, subsection 13, Code 2017, is amended 14 to read as follows: 15 13. Perform those duties authorized pursuant to sections 16 section 135.156 and 135.159 and other provisions of law. 17 Sec. 6. Section 249N.2, subsections 15 and 19, Code 2017, 18 are amended to read as follows: 19 15. “Medical home” means medical home as defined in 20 section 135.157 . a team approach to providing health care that 21 originates in a primary care setting; fosters a partnership 22 among the patient, the personal provider, and other health care 23 professionals, and where appropriate, the patient’s family; 24 utilizes the partnership to access and integrate all medical 25 and nonmedical health-related services across all elements of 26 the health care system and the patient’s community as needed by 27 the patient and the patient’s family to achieve maximum health 28 potential; maintains a centralized, comprehensive record of all 29 health-related services to promote continuity of care; and has 30 all of the following characteristics: 31 a. A personal provider. 32 b. A provider-directed team-based medical practice. 33 c. Whole person orientation. 34 d. Coordination and integration of care. 35 -3- LSB 1675YC (11) 87 pf/nh 3/ 57
H.F. _____ e. Quality and safety. 1 f. Enhanced access to health care. 2 g. A payment system that appropriately recognizes the added 3 value provided to patients who have a patient-centered medical 4 home. 5 19. “Primary medical provider” means the personal provider 6 as defined in section 135.157 trained to provide first contact 7 and continuous and comprehensive care to a member, chosen by 8 a member or to whom a member is assigned under the Iowa health 9 and wellness plan. 10 Sec. 7. Section 249N.2, Code 2017, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 17A. “Personal provider” means the 13 patient’s first point of contact in the health care system 14 with a primary care provider who identifies the patient’s 15 health-related needs and, working with a team of health 16 care professionals and providers of medical and nonmedical 17 health-related services, provides for and coordinates 18 appropriate care to address the health-related needs 19 identified. 20 Sec. 8. Section 249N.6, subsection 2, paragraph c, Code 21 2017, is amended to read as follows: 22 c. The department shall develop a mechanism for primary 23 medical providers, medical homes, and participating accountable 24 care organizations to jointly facilitate member care 25 coordination. The Iowa health and wellness plan shall provide 26 for reimbursement of care coordination services provided 27 under the plan consistent with the reimbursement methodology 28 developed pursuant to section 135.159 . 29 Sec. 9. Section 249N.6, subsection 3, paragraph a, Code 30 2017, is amended to read as follows: 31 a. The department shall provide procedures for accountable 32 care organizations that emerge through local markets to 33 participate in the Iowa health and wellness plan provider 34 network. Such accountable care organizations shall incorporate 35 -4- LSB 1675YC (11) 87 pf/nh 4/ 57
H.F. _____ the medical home as defined and specified in chapter 135, 1 division XXII , as a foundation and shall emphasize whole-person 2 orientation and coordination and integration of both clinical 3 services and nonclinical community and social supports that 4 address social determinants of health. A participating 5 accountable care organization shall enter into a contract with 6 the department to ensure the coordination and management of the 7 health of attributed members, to produce quality health care 8 outcomes, and to control overall cost. 9 Sec. 10. REPEAL. Sections 135.157 and 135.158, Code 2017, 10 are repealed. 11 DIVISION III 12 WORKFORCE PROGRAMMING 13 Sec. 11. Section 84A.11, subsection 4, Code 2017, is amended 14 to read as follows: 15 4. The nursing workforce data clearinghouse shall be 16 established and maintained in a manner consistent with the 17 health care delivery infrastructure and health care workforce 18 resources strategic plan developed pursuant to section 135.164 19 135.163 . 20 Sec. 12. Section 135.107, subsection 3, Code 2017, is 21 amended to read as follows: 22 3. The center for rural health and primary care shall 23 establish a primary care provider recruitment and retention 24 endeavor, to be known as PRIMECARRE. The endeavor shall 25 include a health care workforce and community support grant 26 program , and a primary care provider loan repayment program , 27 and a primary care provider community scholarship program . 28 The endeavor shall be developed and implemented in a manner 29 to promote and accommodate local creativity in efforts to 30 recruit and retain health care professionals to provide 31 services in the locality. The focus of the endeavor shall 32 be to promote and assist local efforts in developing health 33 care provider recruitment and retention programs. The center 34 for rural health and primary care may enter into an agreement 35 -5- LSB 1675YC (11) 87 pf/nh 5/ 57
H.F. _____ under chapter 28E with the college student aid commission for 1 the administration of the center’s grant and loan repayment 2 programs. 3 a. Community Health care workforce and community support 4 grant program. 5 (1) The center for rural health and primary care shall adopt 6 rules establishing an flexible application process processes 7 based upon the department’s strategic plan to be used by the 8 center to establish a grant assistance program as provided 9 in this paragraph “a” , and establishing the criteria to be 10 used in evaluating the applications. Selection criteria 11 shall include a method for prioritizing grant applications 12 based on illustrated efforts to meet the health care provider 13 needs of the locality and surrounding area. Such assistance 14 may be in the form of a forgivable loan, grant, or other 15 nonfinancial assistance as deemed appropriate by the center. 16 An application submitted shall may contain a commitment of at 17 least a dollar-for-dollar match of matching funds for the grant 18 assistance. Application may be made for assistance by a single 19 community or group of communities or in response to programs 20 recommended in the strategic plan to address health workforce 21 shortages . 22 (2) Grants awarded under the program shall be subject to the 23 following limitations: 24 (a) Ten thousand dollars for a single community or region 25 with a population of ten thousand or less. An award shall not 26 be made under this program to a community with a population of 27 more than ten thousand. 28 (b) An amount not to exceed one dollar per capita for a 29 region in which the population exceeds ten thousand. For 30 purposes of determining the amount of a grant for a region, 31 the population of the region shall not include the population 32 of any community with a population of more than ten thousand 33 located in the region awarded to rural, underserved areas or 34 special populations as identified by the department’s strategic 35 -6- LSB 1675YC (11) 87 pf/nh 6/ 57
H.F. _____ plan or evidence-based documentation . 1 b. Primary care provider loan repayment program. 2 (1) A primary care provider loan repayment program is 3 established to increase the number of health professionals 4 practicing primary care in federally designated health 5 professional shortage areas of the state. Under the program, 6 loan repayment may be made to a recipient for educational 7 expenses incurred while completing an accredited health 8 education program directly related to obtaining credentials 9 necessary to practice the recipient’s health profession. 10 (2) The center for rural health and primary care shall adopt 11 rules relating to the establishment and administration of the 12 primary care provider loan repayment program. Rules adopted 13 pursuant to this paragraph shall provide, at a minimum, for all 14 of the following: 15 (a) Determination of eligibility requirements and 16 qualifications of an applicant to receive loan repayment under 17 the program, including but not limited to years of obligated 18 service, clinical practice requirements, and residency 19 requirements. One year of obligated service shall be provided 20 by the applicant in exchange for each year of loan repayment, 21 unless federal requirements otherwise require. Loan repayment 22 under the program shall not be approved for a health provider 23 whose license or certification is restricted by a medical 24 regulatory authority of any jurisdiction of the United States, 25 other nations, or territories. 26 (b) Identification of federally designated health 27 professional shortage areas of the state and prioritization of 28 such areas according to need. 29 (c) Determination of the amount and duration of the loan 30 repayment an applicant may receive, giving consideration to the 31 availability of funds under the program, and the applicant’s 32 outstanding educational loans and professional credentials. 33 (d) Determination of the conditions of loan repayment 34 applicable to an applicant. 35 -7- LSB 1675YC (11) 87 pf/nh 7/ 57
H.F. _____ (e) Enforcement of the state’s rights under a loan repayment 1 program contract, including the commencement of any court 2 action. 3 (f) Cancellation of a loan repayment program contract for 4 reasonable cause unless federal requirements otherwise require . 5 (g) Participation in federal programs supporting repayment 6 of loans of health care providers and acceptance of gifts, 7 grants, and other aid or amounts from any person, association, 8 foundation, trust, corporation, governmental agency, or other 9 entity for the purposes of the program. 10 (h) Upon availability of state funds, determination of 11 eligibility criteria and qualifications for participating 12 communities and applicants not located in federally designated 13 shortage areas. 14 (i) Other rules as necessary. 15 (3) The center for rural health and primary care may enter 16 into an agreement under chapter 28E with the college student 17 aid commission for the administration of this program. 18 c. Primary care provider community scholarship program. 19 (1) A primary care provider community scholarship program 20 is established to recruit and to provide scholarships to train 21 primary health care practitioners in federally designated 22 health professional shortage areas of the state. Under 23 the program, scholarships may be awarded to a recipient for 24 educational expenses incurred while completing an accredited 25 health education program directly related to obtaining the 26 credentials necessary to practice the recipient’s health 27 profession. 28 (2) The department shall adopt rules relating to the 29 establishment and administration of the primary care provider 30 community scholarship program. Rules adopted pursuant to 31 this paragraph shall provide, at a minimum, for all of the 32 following: 33 (a) Determination of eligibility requirements and 34 qualifications of an applicant to receive scholarships under 35 -8- LSB 1675YC (11) 87 pf/nh 8/ 57
H.F. _____ the program, including but not limited to years of obligated 1 service, clinical practice requirements, and residency 2 requirements. One year of obligated service shall be provided 3 by the applicant in exchange for each year of scholarship 4 receipt, unless federal requirements otherwise require. 5 (b) Identification of federally designated health 6 professional shortage areas of the state and prioritization of 7 such areas according to need. 8 (c) Determination of the amount of the scholarship an 9 applicant may receive. 10 (d) Determination of the conditions of scholarship to be 11 awarded to an applicant. 12 (e) Enforcement of the state’s rights under a scholarship 13 contract, including the commencement of any court action. 14 (f) Cancellation of a scholarship contract for reasonable 15 cause. 16 (g) Participation in federal programs supporting 17 scholarships for health care providers and acceptance of gifts, 18 grants, and other aid or amounts from any person, association, 19 foundation, trust, corporation, governmental agency, or other 20 entity for the purposes of the program. 21 (h) Upon availability of state funds, determination of 22 eligibility criteria and qualifications for participating 23 communities and applicants not located in federally designated 24 shortage areas. 25 (i) Other rules as necessary. 26 (3) The center for rural health and primary care may enter 27 into an agreement under chapter 28E with the college student 28 aid commission for the administration of this program. 29 Sec. 13. Section 135.107, subsection 4, paragraphs a, b, and 30 c, Code 2017, are amended to read as follows: 31 a. Eligibility under any of the programs established under 32 the primary care provider recruitment and retention endeavor 33 shall be based upon a community health services assessment 34 completed under subsection 2 , paragraph “a” . A community 35 -9- LSB 1675YC (11) 87 pf/nh 9/ 57
H.F. _____ or region, as applicable, shall submit a letter of intent 1 to conduct a community health services assessment and to 2 apply for assistance under this subsection . The letter shall 3 be in a form and contain information as determined by the 4 center. A letter of intent shall be submitted to the center by 5 January 1 preceding the fiscal year for which an application 6 for assistance is to be made. Participation in a community 7 health services assessment process shall be documented by the 8 community or region. 9 b. Assistance under this subsection shall not be granted 10 until such time as the community or region making application 11 has completed the a community health services assessment and 12 adopted a long-term community health services assessment and 13 developmental plan. In addition to any other requirements, a 14 developmental an applicant’s plan shall include , to the extent 15 possible, a clear commitment to informing high school students 16 of the health care opportunities which may be available to such 17 students. 18 c. The center for rural health and primary care shall 19 seek additional assistance and resources from other state 20 departments and agencies, federal agencies and grant programs, 21 private organizations, and any other person, as appropriate. 22 The center is authorized and directed to accept on behalf of 23 the state any grant or contribution, federal or otherwise, 24 made to assist in meeting the cost of carrying out the purpose 25 of this subsection . All federal grants to and the federal 26 receipts of the center are appropriated for the purpose set 27 forth in such federal grants or receipts. Funds appropriated 28 by the general assembly to the center for implementation of 29 this subsection shall first be used for securing any available 30 federal funds requiring a state match, with remaining funds 31 being used for the health care workforce and community support 32 grant program. 33 Sec. 14. Section 135.107, subsection 5, paragraph a, Code 34 2017, is amended to read as follows: 35 -10- LSB 1675YC (11) 87 pf/nh 10/ 57
H.F. _____ a. There is established an advisory committee to the 1 center for rural health and primary care consisting of one 2 representative, approved by the respective agency, of each 3 of the following agencies: the department of agriculture 4 and land stewardship, the Iowa department of public health, 5 the department of inspections and appeals, the a national or 6 regional institute for rural health policy, the rural health 7 resource center, the institute of agricultural medicine 8 and occupational health, and the Iowa state association of 9 counties. The governor shall appoint two representatives 10 of consumer groups active in rural health issues and a 11 representative of each of two farm organizations active within 12 the state, a representative of an agricultural business in 13 the state, a representative of a critical needs hospital, 14 a practicing rural family physician, a practicing rural 15 physician assistant, a practicing rural advanced registered 16 nurse practitioner, and a rural health practitioner who is 17 not a physician, physician assistant, or advanced registered 18 nurse practitioner, as members of the advisory committee. The 19 advisory committee shall also include as members two state 20 representatives, one appointed by the speaker of the house of 21 representatives and one by the minority leader of the house, 22 and two state senators, one appointed by the majority leader of 23 the senate and one by the minority leader of the senate. 24 Sec. 15. Section 135.163, Code 2017, is amended to read as 25 follows: 26 135.163 Health and long-term care access. 27 The department shall coordinate public and private efforts 28 to develop and maintain an appropriate health care delivery 29 infrastructure and a stable, well-qualified, diverse, and 30 sustainable health care workforce in this state. The health 31 care delivery infrastructure and the health care workforce 32 shall address the broad spectrum of health care needs of Iowans 33 throughout their lifespan including long-term care needs . The 34 department shall, at a minimum, do all of the following: 35 -11- LSB 1675YC (11) 87 pf/nh 11/ 57
H.F. _____ 1. Develop a strategic plan for health care delivery 1 infrastructure and health care workforce resources in this 2 state. 3 2. Provide for the continuous collection of data to provide 4 a basis for health care strategic planning and health care 5 policymaking. 6 3. Make recommendations regarding the health care delivery 7 infrastructure and the health care workforce that assist 8 in monitoring current needs, predicting future trends, and 9 informing policymaking. 10 Sec. 16. Section 135.175, subsection 1, paragraph b, Code 11 2017, is amended to read as follows: 12 b. A health care workforce shortage fund is created in 13 the state treasury as a separate fund under the control of 14 the department, in cooperation with the entities identified 15 in this section as having control over the accounts within 16 the fund. The fund and the accounts within the fund shall 17 be controlled and managed in a manner consistent with the 18 principles specified and the strategic plan developed pursuant 19 to sections section 135.163 and 135.164 . 20 Sec. 17. Section 135.175, subsections 6 and 7, Code 2017, 21 are amended to read as follows: 22 6. a. Moneys in the fund and the accounts in the fund shall 23 only be appropriated in a manner consistent with the principles 24 specified and the strategic plan developed pursuant to sections 25 section 135.163 and 135.164 to support the medical residency 26 training state matching grants program, the fulfilling Iowa’s 27 need for dentists matching grant program, and to provide 28 funding for state health care workforce shortage programs as 29 provided in this section . 30 b. State programs that may receive funding from the fund 31 and the accounts in the fund, if specifically designated for 32 the purpose of drawing down federal funding, are the primary 33 care recruitment and retention endeavor (PRIMECARRE), the Iowa 34 affiliate of the national rural recruitment and retention 35 -12- LSB 1675YC (11) 87 pf/nh 12/ 57
H.F. _____ network, the oral and health delivery systems bureau of the 1 department, the primary care office and shortage designation 2 program, and the state office of rural health, and the Iowa 3 health workforce center, administered through the oral and 4 health delivery systems bureau of health care access of the 5 department of public health; the area health education centers 6 programs at Des Moines university —— osteopathic medical center 7 and the university of Iowa; the Iowa collaborative safety net 8 provider network established pursuant to section 135.153 ; any 9 entity identified by the federal government entity through 10 which federal funding for a specified health care workforce 11 shortage initiative is received; and a program developed in 12 accordance with the strategic plan developed by the department 13 of public health in accordance with sections section 135.163 14 and 135.164 . 15 c. State appropriations to the fund shall be allocated in 16 equal amounts to each of the accounts within the fund, unless 17 otherwise specified in the appropriation or allocation. Any 18 federal funding received for the purposes of addressing state 19 health care workforce shortages shall be deposited in the 20 health care workforce shortage national initiatives account, 21 unless otherwise specified by the source of the funds, and 22 shall be used as required by the source of the funds. If use 23 of the federal funding is not designated, the funds shall be 24 used in accordance with the strategic plan developed by the 25 department of public health in accordance with sections section 26 135.163 and 135.164 , or to address workforce shortages as 27 otherwise designated by the department of public health. Other 28 sources of funding shall be deposited in the fund or account 29 and used as specified by the source of the funding. 30 7. No more than five percent of the moneys in any of the 31 accounts within the fund , not to exceed one hundred thousand 32 dollars in each account, shall be used for administrative 33 purposes, unless otherwise provided by the appropriation, 34 allocation, or source of the funds. 35 -13- LSB 1675YC (11) 87 pf/nh 13/ 57
H.F. _____ Sec. 18. REPEAL. Sections 135.164 and 135.180, Code 2017, 1 are repealed. 2 DIVISION IV 3 UNFUNDED OR OUTDATED PROGRAM PROVISIONS 4 Sec. 19. Section 135.11, subsection 25, Code 2017, is 5 amended by striking the subsection. 6 Sec. 20. Section 135.141, subsection 2, paragraph c, Code 7 2017, is amended by striking the paragraph. 8 Sec. 21. Section 135.141, subsection 2, paragraph e, Code 9 2017, is amended to read as follows: 10 e. For the purpose of paragraphs “c” and paragraph “d” , 11 an employee or agent of the department may enter into and 12 examine any premises containing potentially dangerous agents 13 with the consent of the owner or person in charge of the 14 premises or, if the owner or person in charge of the premises 15 refuses admittance, with an administrative search warrant 16 obtained under section 808.14 . Based on findings of the risk 17 assessment and examination of the premises, the director may 18 order reasonable safeguards or take any other action reasonably 19 necessary to protect the public health pursuant to rules 20 adopted to administer this subsection . 21 Sec. 22. Section 901B.1, subsection 4, paragraph a, Code 22 2017, is amended to read as follows: 23 a. The district department of correctional services shall 24 place an individual committed to it under section 907.3 to the 25 sanction and level of supervision which is appropriate to the 26 individual based upon a current risk assessment evaluation. 27 Placements may be to levels two and three of the corrections 28 continuum. The district department may, with the approval of 29 the Iowa department of public health and the department of 30 corrections, place an individual in a level three substance 31 abuse treatment facility established pursuant to section 32 135.130 , to assist the individual in complying with a condition 33 of probation. The district department may, with the approval 34 of the department of corrections, place an individual in a 35 -14- LSB 1675YC (11) 87 pf/nh 14/ 57
H.F. _____ level four violator facility established pursuant to section 1 904.207 only as a penalty for a violation of a condition 2 imposed under this section . 3 Sec. 23. REPEAL. Sections 135.26, 135.29, 135.130, and 4 135.152, Code 2017, are repealed. 5 DIVISION V 6 MISCELLANEOUS PROVISIONS 7 Sec. 24. Section 135A.2, subsection 6, Code 2017, is amended 8 to read as follows: 9 6. “Local board of health” means a county or district board 10 of health the same as defined in section 137.102 . 11 Sec. 25. REPEAL. Section 135.132, Code 2017, is repealed. 12 DIVISION VI 13 IOWA HEALTH INFORMATION NETWORK 14 Sec. 26. Section 136.3, subsection 13, Code 2017, is amended 15 to read as follows: 16 13. Perform those duties authorized pursuant to sections 17 135.156 and section 135.159 and other provisions of law. 18 Sec. 27. EFFECTIVE DATE. This division of this Act 19 takes effect upon the assumption of the administration and 20 governance, including but not limited to the assumption of the 21 assets and liabilities, of the Iowa health information network 22 by the designated entity as defined in 2015 Iowa Acts, ch.73, 23 section 2. The department of public health shall notify the 24 Code editor of the date of such assumption by the designated 25 entity. 26 DIVISION VII 27 ORGANIZED DELIVERY SYSTEMS 28 Sec. 28. Section 135H.3, subsection 2, Code 2017, is amended 29 to read as follows: 30 2. If a child is diagnosed with a biologically based mental 31 illness as defined in section 514C.22 and meets the medical 32 assistance program criteria for admission to a psychiatric 33 medical institution for children, the child shall be deemed 34 to meet the acuity criteria for medically necessary inpatient 35 -15- LSB 1675YC (11) 87 pf/nh 15/ 57
H.F. _____ benefits under a group policy, contract, or plan providing 1 for third-party payment or prepayment of health, medical, and 2 surgical coverage benefits issued by a carrier, as defined in 3 section 513B.2 , or by an organized delivery system authorized 4 under 1993 Iowa Acts, ch. 158, that is subject to section 5 514C.22 . Such medically necessary benefits shall not be 6 excluded or denied as care that is substantially custodial in 7 nature under section 514C.22, subsection 8 , paragraph “b” . 8 Sec. 29. Section 505.32, subsection 2, paragraph h, Code 9 2017, is amended by striking the paragraph. 10 Sec. 30. Section 505.32, subsection 4, paragraph b, 11 subparagraphs (1) and (2), Code 2017, are amended to read as 12 follows: 13 (1) The commissioner may establish methodologies to provide 14 uniform and consistent side-by-side comparisons of the health 15 care coverage options that are offered by carriers , organized 16 delivery systems, and public programs in this state including 17 but not limited to benefits covered and not covered, the amount 18 of coverage for each service, including copays and deductibles, 19 administrative costs, and any prior authorization requirements 20 for coverage. 21 (2) The commissioner may require each carrier , organized 22 delivery system, and public program in this state to describe 23 each health care coverage option offered by that carrier , 24 organized delivery system, or public program in a manner 25 so that the various options can be compared as provided in 26 subparagraph (1). 27 Sec. 31. Section 507B.4, subsection 1, Code 2017, is amended 28 to read as follows: 29 1. For purposes of subsection 3 , paragraph “p” , “insurer” 30 means an entity providing a plan of health insurance, health 31 care benefits, or health care services, or an entity subject 32 to the jurisdiction of the commissioner performing utilization 33 review, including an insurance company offering sickness and 34 accident plans, a health maintenance organization, an organized 35 -16- LSB 1675YC (11) 87 pf/nh 16/ 57
H.F. _____ delivery system authorized under 1993 Iowa Acts, ch. 158 , and 1 licensed by the department of public health, a nonprofit health 2 service corporation, a plan established pursuant to chapter 3 509A for public employees, or any other entity providing a 4 plan of health insurance, health care benefits, or health care 5 services. However, “insurer” does not include an entity that 6 sells disability income or long-term care insurance. 7 Sec. 32. Section 507B.4A, subsection 2, paragraph a, Code 8 2017, is amended to read as follows: 9 a. An insurer providing accident and sickness insurance 10 under chapter 509 , 514 , or 514A ; a health maintenance 11 organization; an organized delivery system authorized under 12 1993 Iowa Acts, ch. 158 , and licensed by the department of 13 public health; or another entity providing health insurance or 14 health benefits subject to state insurance regulation shall 15 either accept and pay or deny a clean claim. 16 Sec. 33. Section 509.3A, subsection 11, Code 2017, is 17 amended by striking the subsection. 18 Sec. 34. Section 509.19, subsection 2, paragraph d, Code 19 2017, is amended by striking the paragraph. 20 Sec. 35. Section 509A.6, Code 2017, is amended to read as 21 follows: 22 509A.6 Contract with insurance carrier , or health maintenance 23 organization , or organized delivery system . 24 The governing body may contract with a nonprofit corporation 25 operating under the provisions of this chapter or chapter 26 514 or with any insurance company having a certificate of 27 authority to transact an insurance business in this state with 28 respect of a group insurance plan, which may include life, 29 accident, health, hospitalization and disability insurance 30 during period of active service of such employees, with the 31 right of any employee to continue such life insurance in force 32 after termination of active service at such employee’s sole 33 expense; may contract with a nonprofit corporation operating 34 under and governed by the provisions of this chapter or chapter 35 -17- LSB 1675YC (11) 87 pf/nh 17/ 57
H.F. _____ 514 with respect of any hospital or medical service plan; and 1 may contract with a health maintenance organization or an 2 organized delivery system authorized to operate in this state 3 with respect to health maintenance organization or organized 4 delivery system activities. 5 Sec. 36. Section 513B.2, subsection 8, paragraph k, Code 6 2017, is amended by striking the paragraph. 7 Sec. 37. Section 513B.5, Code 2017, is amended to read as 8 follows: 9 513B.5 Provisions on renewability of coverage. 10 1. Health insurance coverage subject to this chapter is 11 renewable with respect to all eligible employees or their 12 dependents, at the option of the small employer, except for one 13 or more of the following reasons: 14 a. The health insurance coverage sponsor fails to pay, or to 15 make timely payment of, premiums or contributions pursuant to 16 the terms of the health insurance coverage. 17 b. The health insurance coverage sponsor performs an 18 act or practice constituting fraud or makes an intentional 19 misrepresentation of a material fact under the terms of the 20 coverage. 21 c. Noncompliance with the carrier’s or organized delivery 22 system’s minimum participation requirements. 23 d. Noncompliance with the carrier’s or organized delivery 24 system’s employer contribution requirements. 25 e. A decision by the carrier or organized delivery system 26 to discontinue offering a particular type of health insurance 27 coverage in the state’s small employer market. Health 28 insurance coverage may be discontinued by the carrier or 29 organized delivery system in that market only if the carrier or 30 organized delivery system does all of the following: 31 (1) Provides advance notice of its decision to discontinue 32 such plan to the commissioner or director of public health . 33 Notice to the commissioner or director , at a minimum, shall be 34 no less than three days prior to the notice provided for in 35 -18- LSB 1675YC (11) 87 pf/nh 18/ 57
H.F. _____ subparagraph (2) to affected small employers, participants, and 1 beneficiaries. 2 (2) Provides notice of its decision not to renew such 3 plan to all affected small employers, participants, and 4 beneficiaries no less than ninety days prior to the nonrenewal 5 of the plan. 6 (3) Offers to each plan sponsor of the discontinued 7 coverage, the option to purchase any other coverage currently 8 offered by the carrier or organized delivery system to other 9 employers in this state. 10 (4) Acts uniformly, in opting to discontinue the coverage 11 and in offering the option under subparagraph (3), without 12 regard to the claims experience of the sponsors under the 13 discontinued coverage or to a health status-related factor 14 relating to any participants or beneficiaries covered or new 15 participants or beneficiaries who may become eligible for the 16 coverage. 17 f. A decision by the carrier or organized delivery system to 18 discontinue offering and to cease to renew all of its health 19 insurance coverage delivered or issued for delivery to small 20 employers in this state. A carrier or organized delivery 21 system making such decision shall do all of the following: 22 (1) Provide advance notice of its decision to discontinue 23 such coverage to the commissioner or director of public health . 24 Notice to the commissioner or director , at a minimum, shall be 25 no less than three days prior to the notice provided for in 26 subparagraph (2) to affected small employers, participants, and 27 beneficiaries. 28 (2) Provide notice of its decision not to renew such 29 coverage to all affected small employers, participants, and 30 beneficiaries no less than one hundred eighty days prior to the 31 nonrenewal of the coverage. 32 (3) Discontinue all health insurance coverage issued or 33 delivered for issuance to small employers in this state and 34 cease renewal of such coverage. 35 -19- LSB 1675YC (11) 87 pf/nh 19/ 57
H.F. _____ g. The membership of an employer in an association, which 1 is the basis for the coverage which is provided through such 2 association, ceases, but only if the termination of coverage 3 under this paragraph occurs uniformly without regard to 4 any health status-related factor relating to any covered 5 individual. 6 h. The commissioner or director of public health finds that 7 the continuation of the coverage is not in the best interests 8 of the policyholders or certificate holders, or would impair 9 the carrier’s or organized delivery system’s ability to meet 10 its contractual obligations. 11 i. At the time of coverage renewal, a carrier or organized 12 delivery system may modify the health insurance coverage for 13 a product offered under group health insurance coverage in 14 the small group market, for coverage that is available in 15 such market other than only through one or more bona fide 16 associations, if such modification is consistent with the laws 17 of this state, and is effective on a uniform basis among group 18 health insurance coverage with that product. 19 2. A carrier or organized delivery system that elects not to 20 renew health insurance coverage under subsection 1 , paragraph 21 “f” , shall not write any new business in the small employer 22 market in this state for a period of five years after the date 23 of notice to the commissioner or director of public health . 24 3. This section , with respect to a carrier or organized 25 delivery system doing business in one established geographic 26 service area of the state, applies only to such carrier’s or 27 organized delivery system’s operations in that service area. 28 Sec. 38. Section 513B.6, unnumbered paragraph 1, Code 2017, 29 is amended to read as follows: 30 A small employer carrier or organized delivery system shall 31 make reasonable disclosure in solicitation and sales materials 32 provided to small employers of all of the following: 33 Sec. 39. Section 513B.6, subsection 2, Code 2017, is amended 34 to read as follows: 35 -20- LSB 1675YC (11) 87 pf/nh 20/ 57
H.F. _____ 2. The provisions concerning the small employer carrier’s 1 or organized delivery system’s right to change premium rates 2 and factors, including case characteristics, which affect 3 changes in premium rates. 4 Sec. 40. Section 513B.7, Code 2017, is amended to read as 5 follows: 6 513B.7 Maintenance of records. 7 1. A small employer carrier or organized delivery system 8 shall maintain at its principal place of business a complete 9 and detailed description of its rating practices and renewal 10 underwriting practices, including information and documentation 11 which demonstrate that its rating methods and practices are 12 based upon commonly accepted actuarial assumptions and are in 13 accordance with sound actuarial principles. 14 2. A small employer carrier or organized delivery system 15 shall file each March 1 with the commissioner or the director 16 of public health an actuarial certification that the small 17 employer carrier or organized delivery system is in compliance 18 with this section and that the rating methods of the small 19 employer carrier or organized delivery system are actuarially 20 sound. A copy of the certification shall be retained by the 21 small employer carrier or organized delivery system at its 22 principal place of business. 23 3. A small employer carrier or organized delivery system 24 shall make the information and documentation described in 25 subsection 1 available to the commissioner or the director of 26 public health upon request. The information is not a public 27 record or otherwise subject to disclosure under chapter 22 , 28 and is considered proprietary and trade secret information 29 and is not subject to disclosure by the commissioner or the 30 director of public health to persons outside of the division or 31 department except as agreed to by the small employer carrier or 32 organized delivery system or as ordered by a court of competent 33 jurisdiction. 34 Sec. 41. Section 513B.9A, subsection 1, unnumbered 35 -21- LSB 1675YC (11) 87 pf/nh 21/ 57
H.F. _____ paragraph 1, Code 2017, is amended to read as follows: 1 A carrier or organized delivery system offering group health 2 insurance coverage shall not establish rules for eligibility, 3 including continued eligibility, of an individual to enroll 4 under the terms of the coverage based on any of the following 5 health status-related factors in relation to the individual or 6 a dependent of the individual: 7 Sec. 42. Section 513B.9A, subsection 4, paragraph a, Code 8 2017, is amended to read as follows: 9 a. A carrier or organized delivery system offering health 10 insurance coverage shall not require an individual, as a 11 condition of enrollment or continued enrollment under the 12 coverage, to pay a premium or contribution which is greater 13 than a premium or contribution for a similarly situated 14 individual enrolled in the coverage on the basis of a health 15 status-related factor in relation to the individual or to a 16 dependent of an individual enrolled under the coverage. 17 Sec. 43. Section 513B.9A, subsection 4, paragraph b, 18 subparagraph (2), Code 2017, is amended to read as follows: 19 (2) Prevent a carrier or organized delivery system 20 offering group health insurance coverage from establishing 21 premium discounts or rebates or modifying otherwise applicable 22 copayments or deductibles in return for adherence to programs 23 of health promotion and disease prevention. 24 Sec. 44. Section 513B.10, Code 2017, is amended to read as 25 follows: 26 513B.10 Availability of coverage. 27 1. a. A carrier or an organized delivery system that offers 28 health insurance coverage in the small group market shall 29 accept every small employer that applies for health insurance 30 coverage and shall accept for enrollment under such coverage 31 every eligible individual who applies for enrollment during the 32 period in which the individual first becomes eligible to enroll 33 under the terms of the health insurance coverage and shall not 34 place any restriction which is inconsistent with eligibility 35 -22- LSB 1675YC (11) 87 pf/nh 22/ 57
H.F. _____ rules established under this chapter . 1 b. A carrier or organized delivery system that offers health 2 insurance coverage in the small group market through a network 3 plan may do either of the following: 4 (1) Limit employers that may apply for such coverage to 5 those with eligible individuals who live, work, or reside in 6 the service area for such network plan. 7 (2) Deny such coverage to such employers within the service 8 area of such plan if the carrier or organized delivery system 9 has demonstrated to the applicable state authority both of the 10 following: 11 (a) The carrier or organized delivery system will not have 12 the capacity to deliver services adequately to enrollees of any 13 additional groups because of its obligations to existing group 14 contract holders and enrollees. 15 (b) The carrier or organized delivery system is applying 16 this subparagraph uniformly to all employers without regard to 17 the claims experience of those employers and their employees 18 and their dependents, or any health status-related factor 19 relating to such employees or dependents. 20 c. A carrier or organized delivery system , upon denying 21 health insurance coverage in any service area pursuant to 22 paragraph “b” , subparagraph (2), shall not offer coverage in the 23 small group market within such service area for a period of one 24 hundred eighty days after the date such coverage is denied. 25 d. A carrier or organized delivery system may deny health 26 insurance coverage in the small group market if the issuer has 27 demonstrated to the commissioner or director of public health 28 both of the following: 29 (1) The carrier or organized delivery system does not have 30 the financial reserves necessary to underwrite additional 31 coverage. 32 (2) The carrier or organized delivery system is applying the 33 provisions of this paragraph uniformly to all employers in the 34 small group market in this state consistent with state law and 35 -23- LSB 1675YC (11) 87 pf/nh 23/ 57
H.F. _____ without regard to the claims experience of those employers and 1 the employees and dependents of such employers, or any health 2 status-related factor relating to such employees and their 3 dependents. 4 e. A carrier or organized delivery system , upon denying 5 health insurance coverage pursuant to paragraph “d” , shall not 6 offer coverage in connection with health insurance coverages 7 in the small group market in this state for a period of one 8 hundred eighty days after the date such coverage is denied or 9 until the carrier or organized delivery system has demonstrated 10 to the commissioner or director of public health that the 11 carrier or organized delivery system has sufficient financial 12 reserves to underwrite additional coverage, whichever is later. 13 The commissioner or director may provide for the application of 14 this paragraph on a service area-specific basis. 15 f. Paragraph “a” shall not be construed to preclude 16 a carrier or organized delivery system from establishing 17 employer contribution rules or group participation rules for 18 the offering of health insurance coverage in the small group 19 market. 20 2. A carrier or organized delivery system , subject to 21 subsection 1 , shall issue health insurance coverage to an 22 eligible small employer that applies for the coverage and 23 agrees to make the required premium payments and satisfy the 24 other reasonable provisions of the health insurance coverage 25 not inconsistent with this chapter . A carrier or organized 26 delivery system is not required to issue health insurance 27 coverage to a self-employed individual who is covered by, or is 28 eligible for coverage under, health insurance coverage offered 29 by an employer. 30 3. Health insurance coverage for small employers shall 31 satisfy all of the following: 32 a. A carrier or organized delivery system offering group 33 health insurance coverage, with respect to a participant or 34 beneficiary, may impose a preexisting condition exclusion only 35 -24- LSB 1675YC (11) 87 pf/nh 24/ 57
H.F. _____ as follows: 1 (1) The exclusion relates to a condition, whether physical 2 or mental, regardless of the cause of the condition, for 3 which medical advice, diagnosis, care, or treatment was 4 recommended or received within the six-month period ending on 5 the enrollment date. However, genetic information shall not be 6 treated as a condition under this subparagraph in the absence 7 of a diagnosis of the condition related to such information. 8 (2) The exclusion extends for a period of not more than 9 twelve months, or eighteen months in the case of a late 10 enrollee, after the enrollment date. 11 (3) The period of any such preexisting condition exclusion 12 is reduced by the aggregate of the periods of creditable 13 coverage applicable to the participant or beneficiary as of the 14 enrollment date. 15 b. A carrier or organized delivery system offering group 16 health insurance coverage shall not impose any preexisting 17 condition exclusion as follows: 18 (1) In the case of a child who is adopted or placed for 19 adoption before attaining eighteen years of age and who, as of 20 the last day of the thirty-day period beginning on the date 21 of the adoption or placement for adoption, is covered under 22 creditable coverage. This subparagraph shall not apply to 23 coverage before the date of such adoption or placement for 24 adoption. 25 (2) In the case of an individual who, as of the last day 26 of the thirty-day period beginning with the date of birth, is 27 covered under creditable coverage. 28 (3) Relating to pregnancy as a preexisting condition. 29 c. A carrier or organized delivery system shall waive 30 any waiting period applicable to a preexisting condition 31 exclusion or limitation period with respect to particular 32 services under health insurance coverage for the period 33 of time an individual was covered by creditable coverage, 34 provided that the creditable coverage was continuous to a 35 -25- LSB 1675YC (11) 87 pf/nh 25/ 57
H.F. _____ date not more than sixty-three days prior to the effective 1 date of the new coverage. Any period that an individual 2 is in a waiting period for any coverage under group health 3 insurance coverage, or is in an affiliation period, shall not 4 be taken into account in determining the period of continuous 5 coverage. A health maintenance organization that does not 6 use preexisting condition limitations in any of its health 7 insurance coverage may impose an affiliation period. For 8 purposes of this section , “affiliation period” means a period 9 of time not to exceed sixty days for new entrants and not to 10 exceed ninety days for late enrollees during which no premium 11 shall be collected and coverage issued is not effective, so 12 long as the affiliation period is applied uniformly, without 13 regard to any health status-related factors. This paragraph 14 does not preclude application of a waiting period applicable 15 to all new enrollees under the health insurance coverage, 16 provided that any carrier or organized delivery system-imposed 17 carrier-imposed waiting period is no longer than sixty days and 18 is used in lieu of a preexisting condition exclusion. 19 d. Health insurance coverage may exclude coverage for late 20 enrollees for preexisting conditions for a period not to exceed 21 eighteen months. 22 e. (1) Requirements used by a carrier or organized delivery 23 system in determining whether to provide coverage to a small 24 employer shall be applied uniformly among all small employers 25 applying for coverage or receiving coverage from the carrier 26 or organized delivery system . 27 (2) In applying minimum participation requirements with 28 respect to a small employer, a carrier or organized delivery 29 system shall not consider employees or dependents who have 30 other creditable coverage in determining whether the applicable 31 percentage of participation is met. 32 (3) A carrier or organized delivery system shall not 33 increase any requirement for minimum employee participation 34 or modify any requirement for minimum employer contribution 35 -26- LSB 1675YC (11) 87 pf/nh 26/ 57
H.F. _____ applicable to a small employer at any time after the small 1 employer has been accepted for coverage. 2 f. (1) If a carrier or organized delivery system offers 3 coverage to a small employer, the carrier or organized delivery 4 system shall offer coverage to all eligible employees of the 5 small employer and the employees’ dependents. A carrier or 6 organized delivery system shall not offer coverage to only 7 certain individuals or dependents in a small employer group or 8 to only part of the group. 9 (2) Except as provided under paragraphs “a” and “d” , a 10 carrier or organized delivery system shall not modify health 11 insurance coverage with respect to a small employer or any 12 eligible employee or dependent through riders, endorsements, or 13 other means, to restrict or exclude coverage or benefits for 14 certain diseases, medical conditions, or services otherwise 15 covered by the health insurance coverage. 16 g. A carrier or organized delivery system offering coverage 17 through a network plan shall not be required to offer coverage 18 or accept applications pursuant to subsection 1 with respect to 19 a small employer where any of the following apply applies : 20 (1) The small employer does not have eligible individuals 21 who live, work, or reside in the service area for the network 22 plan. 23 (2) The small employer does have eligible individuals who 24 live, work, or reside in the service area for the network plan, 25 but the carrier or organized delivery system , if required, has 26 demonstrated to the commissioner or the director of public 27 health that it will not have the capacity to deliver services 28 adequately to enrollees of any additional groups because of its 29 obligations to existing group contract holders and enrollees 30 and that it is applying the requirements of this lettered 31 paragraph uniformly to all employers without regard to the 32 claims experience of those employers and their employees and 33 the employees’ dependents, or any health status-related factor 34 relating to such employees and dependents. 35 -27- LSB 1675YC (11) 87 pf/nh 27/ 57
H.F. _____ (3) A carrier or organized delivery system , upon denying 1 health insurance coverage in a service area pursuant to 2 subparagraph (2), shall not offer coverage in the small 3 employer market within such service area for a period of one 4 hundred eighty days after the coverage is denied. 5 4. A carrier or organized delivery system shall not be 6 required to offer coverage to small employers pursuant to 7 subsection 1 for any period of time where the commissioner or 8 director of public health determines that the acceptance of the 9 offers by small employers in accordance with subsection 1 would 10 place the carrier or organized delivery system in a financially 11 impaired condition. 12 5. A carrier or organized delivery system shall not be 13 required to provide coverage to small employers pursuant to 14 subsection 1 if the carrier or organized delivery system elects 15 not to offer new coverage to small employers in this state. 16 However, a carrier or organized delivery system that elects not 17 to offer new coverage to small employers under this subsection 18 shall be allowed to maintain its existing policies in the 19 state, subject to the requirements of section 513B.5 . 20 6. A carrier or organized delivery system that elects not to 21 offer new coverage to small employers pursuant to subsection 5 22 shall provide notice to the commissioner or director of public 23 health and is prohibited from writing new business in the small 24 employer market in this state for a period of five years from 25 the date of notice to the commissioner or director . 26 Sec. 45. Section 513C.3, subsection 5, Code 2017, is amended 27 to read as follows: 28 5. “Carrier” means any entity that provides individual 29 health benefit plans in this state. For purposes of this 30 chapter , carrier includes an insurance company, a group 31 hospital or medical service corporation, a fraternal benefit 32 society, a health maintenance organization, and any other 33 entity providing an individual plan of health insurance 34 or health benefits subject to state insurance regulation. 35 -28- LSB 1675YC (11) 87 pf/nh 28/ 57
H.F. _____ “Carrier” does not include an organized delivery system. 1 Sec. 46. Section 513C.3, subsection 7, Code 2017, is amended 2 by striking the subsection. 3 Sec. 47. Section 513C.3, subsection 9, Code 2017, is amended 4 to read as follows: 5 9. “Established service area” means a geographic area, 6 as approved by the commissioner and based upon the carrier’s 7 certificate of authority to transact business in this state, 8 within which the carrier is authorized to provide coverage or 9 a geographic area, as approved by the director and based upon 10 the organized delivery system’s license to transact business 11 in this state, within which the organized delivery system is 12 authorized to provide coverage . 13 Sec. 48. Section 513C.3, subsection 12, Code 2017, is 14 amended by striking the subsection. 15 Sec. 49. Section 513C.3, subsection 15, paragraph a, 16 subparagraph (3), Code 2017, is amended by striking the 17 subparagraph. 18 Sec. 50. Section 513C.3, subsection 18, Code 2017, is 19 amended to read as follows: 20 18. “Restricted network provision” means a provision of an 21 individual health benefit plan that conditions the payment 22 of benefits, in whole or in part, on the use of health care 23 providers that have entered into a contractual arrangement with 24 the carrier or the organized delivery system to provide health 25 care services to covered individuals. 26 Sec. 51. Section 513C.5, subsection 1, unnumbered paragraph 27 1, Code 2017, is amended to read as follows: 28 Premium rates for any block of individual health benefit 29 plan business issued on or after January 1, 1996, or the date 30 rules are adopted by the commissioner of insurance and the 31 director of public health and become effective, whichever 32 date is later, by a carrier subject to this chapter shall be 33 limited to the composite effect of allocating costs among the 34 following: 35 -29- LSB 1675YC (11) 87 pf/nh 29/ 57
H.F. _____ Sec. 52. Section 513C.6, Code 2017, is amended to read as 1 follows: 2 513C.6 Provisions on renewability of coverage. 3 1. An individual health benefit plan subject to this 4 chapter is renewable with respect to an eligible individual or 5 dependents, at the option of the individual, except for one or 6 more of the following reasons: 7 a. The individual fails to pay, or to make timely payment 8 of, premiums or contributions pursuant to the terms of the 9 individual health benefit plan. 10 b. The individual performs an act or practice constituting 11 fraud or makes an intentional misrepresentation of a material 12 fact under the terms of the individual health benefit plan. 13 c. A decision by the individual carrier or organized 14 delivery system to discontinue offering a particular type 15 of individual health benefit plan in the state’s individual 16 insurance market. An individual health benefit plan may be 17 discontinued by the carrier or organized delivery system in 18 that market with the approval of the commissioner or the 19 director and only if the carrier or organized delivery system 20 does all of the following: 21 (1) Provides advance notice of its decision to discontinue 22 such plan to the commissioner or director . Notice to the 23 commissioner or director , at a minimum, shall be no less than 24 three days prior to the notice provided for in subparagraph (2) 25 to affected individuals. 26 (2) Provides notice of its decision not to renew such plan 27 to all affected individuals no less than ninety days prior 28 to the nonrenewal date of any discontinued individual health 29 benefit plans. 30 (3) Offers to each individual of the discontinued plan the 31 option to purchase any other health plan currently offered by 32 the carrier or organized delivery system to individuals in this 33 state. 34 (4) Acts uniformly in opting to discontinue the plan and 35 -30- LSB 1675YC (11) 87 pf/nh 30/ 57
H.F. _____ in offering the option under subparagraph (3), without regard 1 to the claims experience of any affected eligible individual 2 or beneficiary under the discontinued plan or to a health 3 status-related factor relating to any covered individuals or 4 beneficiaries who may become eligible for the coverage. 5 d. A decision by the carrier or organized delivery system 6 to discontinue offering and to cease to renew all of its 7 individual health benefit plans delivered or issued for 8 delivery to individuals in this state. A carrier or organized 9 delivery system making such decision shall do all of the 10 following: 11 (1) Provide advance notice of its decision to discontinue 12 such plan to the commissioner or director . Notice to the 13 commissioner or director , at a minimum, shall be no less than 14 three days prior to the notice provided for in subparagraph (2) 15 to affected individuals. 16 (2) Provide notice of its decision not to renew such plan 17 to all individuals and to the commissioner or director in each 18 state in which an individual under the discontinued plan is 19 known to reside, no less than one hundred eighty days prior to 20 the nonrenewal of the plan. 21 e. The commissioner or director finds that the continuation 22 of the coverage is not in the best interests of the 23 individuals, or would impair the carrier’s or organized 24 delivery system’s ability to meet its contractual obligations. 25 2. At the time of coverage renewal, a carrier or organized 26 delivery system may modify the health insurance coverage for 27 a policy form offered to individuals in the individual market 28 so long as such modification is consistent with state law and 29 effective on a uniform basis among all individuals with that 30 policy form. 31 3. An individual carrier or organized delivery system that 32 elects not to renew an individual health benefit plan under 33 subsection 1 , paragraph “d” , shall not write any new business in 34 the individual market in this state for a period of five years 35 -31- LSB 1675YC (11) 87 pf/nh 31/ 57
H.F. _____ after the date of notice to the commissioner or director . 1 4. This section , with respect to a carrier or organized 2 delivery system doing business in one established geographic 3 service area of the state, applies only to such carrier’s or 4 organized delivery system’s operations in that service area. 5 5. A carrier or organized delivery system offering coverage 6 through a network plan is not required to renew or continue in 7 force coverage or to accept applications from an individual who 8 no longer resides or lives in, or is no longer employed in, 9 the service area of such carrier or organized delivery system , 10 or no longer resides or lives in, or is no longer employed 11 in, a service area for which the carrier is authorized to do 12 business, but only if coverage is not offered or terminated 13 uniformly without regard to health status-related factors of a 14 covered individual. 15 6. A carrier or organized delivery system offering coverage 16 through a bona fide association is not required to renew or 17 continue in force coverage or to accept applications from an 18 individual through an association if the membership of the 19 individual in the association on which the basis of coverage 20 is provided ceases, but only if the coverage is not offered or 21 terminated under this paragraph uniformly without regard to 22 health status-related factors of a covered individual. 23 7. An individual who has coverage as a dependent under a 24 basic or standard health benefit plan may, when that individual 25 is no longer a dependent under such coverage, elect to continue 26 coverage under the basic or standard health benefit plan if 27 the individual so elects immediately upon termination of the 28 coverage under which the individual was covered as a dependent. 29 Sec. 53. Section 513C.7, subsection 1, Code 2017, is amended 30 to read as follows: 31 1. a. (1) A carrier shall file with the commissioner, in 32 a form and manner prescribed by the commissioner, the basic 33 or standard health benefit plan. A basic or standard health 34 benefit plan filed pursuant to this paragraph may be used by 35 -32- LSB 1675YC (11) 87 pf/nh 32/ 57
H.F. _____ a carrier beginning thirty days after it is filed unless the 1 commissioner disapproves of its use. 2 (2) b. The commissioner may at any time, after providing 3 notice and an opportunity for a hearing to the carrier, 4 disapprove the continued use by a carrier of a basic or 5 standard health benefit plan on the grounds that the plan does 6 not meet the requirements of this chapter . 7 b. (1) An organized delivery system shall file with the 8 director, in a form and manner prescribed by the director, 9 the basic or standard health benefit plan to be used by the 10 organized delivery system. A basic or standard health benefit 11 plan filed pursuant to this paragraph may be used by the 12 organized delivery system beginning thirty days after it is 13 filed unless the director disapproves of its use. 14 (2) The director may at any time, after providing notice and 15 an opportunity for a hearing to the organized delivery system, 16 disapprove the continued use by an organized delivery system of 17 a basic or standard health benefit plan on the grounds that the 18 plan does not meet the requirements of this chapter . 19 Sec. 54. Section 513C.7, subsection 3, Code 2017, is amended 20 to read as follows: 21 3. A carrier or an organized delivery system shall not 22 modify a basic or standard health benefit plan with respect 23 to an individual or dependent through riders, endorsements, 24 or other means to restrict or exclude coverage for certain 25 diseases or medical conditions otherwise covered by the health 26 benefit plan. 27 Sec. 55. Section 513C.9, subsections 1, 2, 3, 6, and 8, Code 28 2017, are amended to read as follows: 29 1. A carrier , an organized delivery system, or an agent 30 shall not do either of the following: 31 a. Encourage or direct individuals to refrain from 32 filing an application for coverage with the carrier or the 33 organized delivery system because of the health status, claims 34 experience, industry, occupation, or geographic location of the 35 -33- LSB 1675YC (11) 87 pf/nh 33/ 57
H.F. _____ individuals. 1 b. Encourage or direct individuals to seek coverage from 2 another carrier or another organized delivery system because of 3 the health status, claims experience, industry, occupation, or 4 geographic location of the individuals. 5 2. Subsection 1 , paragraph “a” , shall not apply with respect 6 to information provided by a carrier or an organized delivery 7 system or an agent to an individual regarding the established 8 geographic service area of the carrier or the organized 9 delivery system, or the restricted network provision of the 10 carrier or the organized delivery system . 11 3. A carrier or an organized delivery system shall not, 12 directly or indirectly, enter into any contract, agreement, or 13 arrangement with an agent that provides for, or results in, the 14 compensation paid to an agent for a sale of a basic or standard 15 health benefit plan to vary because of the health status or 16 permitted rating characteristics of the individual or the 17 individual’s dependents. 18 6. Denial by a carrier or an organized delivery system of an 19 application for coverage from an individual shall be in writing 20 and shall state the reason or reasons for the denial. 21 8. If a carrier or an organized delivery system enters into 22 a contract, agreement, or other arrangement with a third-party 23 administrator to provide administrative, marketing, or other 24 services related to the offering of individual health benefit 25 plans in this state, the third-party administrator is subject 26 to this section as if it were a carrier or an organized 27 delivery system . 28 Sec. 56. Section 513C.10, subsection 1, paragraph a, Code 29 2017, is amended to read as follows: 30 a. All persons that provide health benefit plans in this 31 state including insurers providing accident and sickness 32 insurance under chapter 509 , 514 , or 514A , whether on an 33 individual or group basis; fraternal benefit societies 34 providing hospital, medical, or nursing benefits under chapter 35 -34- LSB 1675YC (11) 87 pf/nh 34/ 57
H.F. _____ 512B ; and health maintenance organizations, organized delivery 1 systems, other entities providing health insurance or health 2 benefits subject to state insurance regulation, and all other 3 insurers as designated by the board of directors of the Iowa 4 comprehensive health insurance association with the approval of 5 the commissioner shall be members of the association. 6 Sec. 57. Section 513C.10, subsection 2, paragraph a, Code 7 2017, is amended to read as follows: 8 a. Rates for basic and standard coverages as provided in 9 this chapter shall be determined by each carrier or organized 10 delivery system as the product of a basic and standard factor 11 and the lowest rate available for issuance by that carrier or 12 organized delivery system adjusted for rating characteristics 13 and benefits. Basic and standard factors shall be established 14 annually by the Iowa comprehensive health insurance association 15 board with the approval of the commissioner. Multiple basic 16 and standard factors for a distinct grouping of basic and 17 standard policies may be established. A basic and standard 18 factor is limited to a minimum value defined as the ratio 19 of the average of the lowest rate available for issuance and 20 the maximum rate allowable by law divided by the lowest rate 21 available for issuance. A basic and standard factor is limited 22 to a maximum value defined as the ratio of the maximum rate 23 allowable by law divided by the lowest rate available for 24 issuance. The maximum rate allowable by law and the lowest 25 rate available for issuance is determined based on the rate 26 restrictions under this chapter . For policies written after 27 January 1, 2002, rates for the basic and standard coverages 28 as provided in this chapter shall be calculated using the 29 basic and standard factors and shall be no lower than the 30 maximum rate allowable by law. However, to maintain assessable 31 loss assessments at or below one percent of total health 32 insurance premiums or payments as determined in accordance 33 with subsection 6 , the Iowa comprehensive health insurance 34 association board with the approval of the commissioner may 35 -35- LSB 1675YC (11) 87 pf/nh 35/ 57
H.F. _____ increase the value for any basic and standard factor greater 1 than the maximum value. 2 Sec. 58. Section 513C.10, subsections 3, 4, 7, 8, 9, and 10, 3 Code 2017, are amended to read as follows: 4 3. Following the close of each calendar year, the 5 association, in conjunction with the commissioner, shall 6 require each carrier or organized delivery system to report 7 the amount of earned premiums and the associated paid losses 8 for all basic and standard plans issued by the carrier or 9 organized delivery system . The reporting of these amounts must 10 be certified by an officer of the carrier or organized delivery 11 system . 12 4. The board shall develop procedures and assessment 13 mechanisms and make assessments and distributions as required 14 to equalize the individual carrier and organized delivery 15 system gains or losses so that each carrier or organized 16 delivery system receives the same ratio of paid claims to 17 ninety percent of earned premiums as the aggregate of all 18 basic and standard plans insured by all carriers and organized 19 delivery systems in the state. 20 7. The board shall develop procedures for distributing 21 the assessable loss assessments to each carrier and organized 22 delivery system in proportion to the carrier’s and organized 23 delivery system’s respective share of premium for basic and 24 standard plans to the statewide total premium for all basic and 25 standard plans. 26 8. The board shall ensure that procedures for collecting 27 and distributing assessments are as efficient as possible 28 for carriers and organized delivery systems . The board may 29 establish procedures which combine, or offset, the assessment 30 from, and the distribution due to, a carrier or organized 31 delivery system . 32 9. A carrier or an organized delivery system may 33 petition the association board to seek remedy from writing a 34 significantly disproportionate share of basic and standard 35 -36- LSB 1675YC (11) 87 pf/nh 36/ 57
H.F. _____ policies in relation to total premiums written in this state 1 for health benefit plans. Upon a finding that a carrier or 2 organized delivery system has written a disproportionate share, 3 the board may agree to compensate the carrier or organized 4 delivery system either by paying to the carrier or organized 5 delivery system an additional fee not to exceed two percent 6 of earned premiums from basic and standard policies for that 7 carrier or organized delivery system or by petitioning the 8 commissioner or director, as appropriate, for remedy. 9 10. a. The commissioner, upon a finding that the acceptance 10 of the offer of basic and standard coverage by individuals 11 pursuant to this chapter would place the carrier in a 12 financially impaired condition, shall not require the carrier 13 to offer coverage or accept applications for any period of time 14 the financial impairment is deemed to exist. 15 b. The director, upon a finding that the acceptance of the 16 offer of basic and standard coverage by individuals pursuant 17 to this chapter would place the organized delivery system in a 18 financially impaired condition, shall not require the organized 19 delivery system to offer coverage or accept applications for 20 any period of time the financial impairment is deemed to exist. 21 Sec. 59. Section 514A.3B, subsection 3, paragraph k, Code 22 2017, is amended by striking the paragraph. 23 Sec. 60. Section 514B.25A, Code 2017, is amended to read as 24 follows: 25 514B.25A Insolvency protection —— assessment. 26 1. Upon a health maintenance organization or organized 27 delivery system authorized to do business in this state and 28 licensed by the director of public health being declared 29 insolvent by the district court, the commissioner may levy an 30 assessment on each health maintenance organization or organized 31 delivery system doing business in this state and licensed by 32 the director of public health, as applicable , to pay claims 33 for uncovered expenditures for enrollees. The commissioner 34 shall not assess an amount in any one calendar year which is 35 -37- LSB 1675YC (11) 87 pf/nh 37/ 57
H.F. _____ more than two percent of the aggregate premium written by each 1 health maintenance organization or organized delivery system . 2 2. The commissioner may use funds obtained through an 3 assessment under subsection 1 to pay claims for uncovered 4 expenditures for enrollees of an insolvent health maintenance 5 organization or organized delivery system and administrative 6 costs. The commissioner, by rule, may prescribe the time, 7 manner, and form for filing claims under this section . The 8 commissioner may require claims to be allowed by an ancillary 9 receiver or the domestic receiver or liquidator. 10 3. a. A receiver or liquidator of an insolvent health 11 maintenance organization or organized delivery system shall 12 allow a claim in the proceeding in an amount equal to uncovered 13 expenditures and administrative costs paid under this section . 14 b. A person receiving benefits under this section for 15 uncovered expenditures is deemed to have assigned the rights 16 under the covered health care plan certificates to the 17 commissioner to the extent of the benefits received. The 18 commissioner may require an assignment of such rights by a 19 payee, enrollee, or beneficiary, to the commissioner as a 20 condition precedent to the receipt of such benefits. The 21 commissioner is subrogated to these rights against the assets 22 of the insolvent health maintenance organization or organized 23 delivery system that are held by a receiver or liquidator of 24 a foreign jurisdiction. 25 c. The assigned subrogation rights of the commissioner and 26 allowed claims under this subsection have the same priority 27 against the assets of the insolvent health maintenance 28 organization or organized delivery system as those claims of 29 persons entitled to receive benefits under this section or for 30 similar expenses in the receivership or liquidation. 31 4. If funds assessed under subsection 1 are unused 32 following the completion of the liquidation of an insolvent 33 health maintenance organization or organized delivery system , 34 the commissioner shall distribute the remaining amounts, if 35 -38- LSB 1675YC (11) 87 pf/nh 38/ 57
H.F. _____ such amounts are not de minimis, to the health maintenance 1 organizations or organized delivery systems that were assessed. 2 5. The aggregate coverage of uncovered expenditures under 3 this section shall not exceed three hundred thousand dollars 4 with respect to one individual. Continuation of coverage 5 shall cease after the lesser of one year after the health 6 maintenance organization or organized delivery system is 7 terminated by insolvency or the remaining term of the contract. 8 The commissioner may provide continuation of coverage on a 9 reasonable basis, including, but not limited to, continuation 10 of the health maintenance organization or organized delivery 11 system contract or substitution of indemnity coverage in a form 12 as determined by the commissioner. 13 6. The commissioner may waive an assessment of a health 14 maintenance organization or organized delivery system if such 15 organization or system is impaired financially or would be 16 impaired financially as a result of such assessment. A health 17 maintenance organization or organized delivery system that 18 fails to pay an assessment within thirty days after notice of 19 the assessment is subject to a civil forfeiture of not more 20 than one thousand dollars for each day the failure continues, 21 and suspension or revocation of its certificate of authority. 22 An action taken by the commissioner to enforce an assessment 23 under this section may be appealed by the health maintenance 24 organization or organized delivery system pursuant to chapter 25 17A . 26 Sec. 61. Section 514C.10, subsection 2, paragraph e, Code 27 2017, is amended by striking the paragraph. 28 Sec. 62. Section 514C.11, Code 2017, is amended to read as 29 follows: 30 514C.11 Services provided by licensed physician assistants 31 and licensed advanced registered nurse practitioners. 32 1. Notwithstanding section 514C.6 , a policy or contract 33 providing for third-party payment or prepayment of health or 34 medical expenses shall include a provision for the payment of 35 -39- LSB 1675YC (11) 87 pf/nh 39/ 57
H.F. _____ necessary medical or surgical care and treatment provided by 1 a physician assistant licensed pursuant to chapter 148C , or 2 provided by an advanced registered nurse practitioner licensed 3 pursuant to chapter 152 and performed within the scope of the 4 license of the licensed physician assistant or the licensed 5 advanced registered nurse practitioner if the policy or 6 contract would pay for the care and treatment if the care and 7 treatment were provided by a person engaged in the practice 8 of medicine and surgery or osteopathic medicine and surgery 9 under chapter 148 . The policy or contract shall provide that 10 policyholders and subscribers under the policy or contract may 11 reject the coverage for services which may be provided by a 12 licensed physician assistant or licensed advanced registered 13 nurse practitioner if the coverage is rejected for all 14 providers of similar services. A policy or contract subject 15 to this section shall not impose a practice or supervision 16 restriction which is inconsistent with or more restrictive than 17 the restriction already imposed by law. 18 2. This section applies to services provided under a policy 19 or contract delivered, issued for delivery, continued, or 20 renewed in this state on or after July 1, 1996, and to an 21 existing policy or contract, on the policy’s or contract’s 22 anniversary or renewal date, or upon the expiration of the 23 applicable collective bargaining contract, if any, whichever 24 is later. This section does not apply to policyholders or 25 subscribers eligible for coverage under Tit. XVIII of the 26 federal Social Security Act or any similar coverage under a 27 state or federal government plan. 28 3. For the purposes of this section , third-party payment or 29 prepayment includes an individual or group policy of accident 30 or health insurance or individual or group hospital or health 31 care service contract issued pursuant to chapter 509 , 514 , or 32 514A , an individual or group health maintenance organization 33 contract issued and regulated under chapter 514B , an organized 34 delivery system contract regulated under rules adopted by the 35 -40- LSB 1675YC (11) 87 pf/nh 40/ 57
H.F. _____ director of public health, or a preferred provider organization 1 contract regulated pursuant to chapter 514F . 2 4. Nothing in this section shall be interpreted to require 3 an individual or group health maintenance organization , an 4 organized delivery system, or a preferred provider organization 5 or arrangement to provide payment or prepayment for services 6 provided by a licensed physician assistant or licensed advanced 7 registered nurse practitioner unless the physician assistant’s 8 supervising physician, the physician-physician assistant team, 9 the advanced registered nurse practitioner, or the advanced 10 registered nurse practitioner’s collaborating physician has 11 entered into a contract or other agreement to provide services 12 with the individual or group health maintenance organization , 13 the organized delivery system, or the preferred provider 14 organization or arrangement. 15 Sec. 63. Section 514C.13, subsection 1, paragraph h, Code 16 2017, is amended by striking the paragraph. 17 Sec. 64. Section 514C.13, subsection 2, Code 2017, is 18 amended to read as follows: 19 2. A carrier or organized delivery system which offers to 20 a small employer a limited provider network plan to provide 21 health care services or benefits to the small employer’s 22 employees shall also offer to the small employer a point of 23 service option to the limited provider network plan. 24 Sec. 65. Section 514C.13, subsection 3, unnumbered 25 paragraph 1, Code 2017, is amended to read as follows: 26 A carrier or organized delivery system which offers to a 27 large employer a limited provider network plan to provide 28 health care services or benefits to the large employer’s 29 employees shall also offer to the large employer one or more 30 of the following: 31 Sec. 66. Section 514C.14, subsections 1 and 3, Code 2017, 32 are amended to read as follows: 33 1. Except as provided under subsection 2 or 3 , a carrier, 34 as defined in section 513B.2 , an organized delivery system 35 -41- LSB 1675YC (11) 87 pf/nh 41/ 57
H.F. _____ authorized under 1993 Iowa Acts, ch. 158, or a plan established 1 pursuant to chapter 509A for public employees, which terminates 2 its contract with a participating health care provider, 3 shall continue to provide coverage under the contract to a 4 covered person in the second or third trimester of pregnancy 5 for continued care from such health care provider. Such 6 persons may continue to receive such treatment or care through 7 postpartum care related to the child birth and delivery. 8 Payment for covered benefits and benefit levels shall be 9 according to the terms and conditions of the contract. 10 3. A carrier , organized delivery system, or a plan 11 established under chapter 509A , which terminates the contract 12 of a participating health care provider for cause shall not 13 be liable to pay for health care services provided by the 14 health care provider to a covered person following the date of 15 termination. 16 Sec. 67. Section 514C.15, Code 2017, is amended to read as 17 follows: 18 514C.15 Treatment options. 19 A carrier, as defined in section 513B.2 , ; an organized 20 delivery system authorized under 1993 Iowa Acts, ch. 158, 21 and licensed by the director of public health; or a plan 22 established pursuant to chapter 509A for public employees, 23 shall not prohibit a participating provider from, or penalize a 24 participating provider for, doing either of the following: 25 1. Discussing treatment options with a covered individual, 26 notwithstanding the carrier’s, organized delivery system’s, or 27 plan’s position on such treatment option. 28 2. Advocating on behalf of a covered individual within 29 a review or grievance process established by the carrier , 30 organized delivery system, or chapter 509A plan, or established 31 by a person contracting with the carrier , organized delivery 32 system, or chapter 509A plan. 33 Sec. 68. Section 514C.16, subsection 1, Code 2017, is 34 amended to read as follows: 35 -42- LSB 1675YC (11) 87 pf/nh 42/ 57
H.F. _____ 1. A carrier, as defined in section 513B.2 , ; an organized 1 delivery system authorized under 1993 Iowa Acts, ch. 158, 2 and licensed by the director of public health; or a plan 3 established pursuant to chapter 509A for public employees, 4 which provides coverage for emergency services, is responsible 5 for charges for emergency services provided to a covered 6 individual, including services furnished outside any 7 contractual provider network or preferred provider network. 8 Coverage for emergency services is subject to the terms and 9 conditions of the health benefit plan or contract. 10 Sec. 69. Section 514C.17, subsections 1 and 3, Code 2017, 11 are amended to read as follows: 12 1. Except as provided under subsection 2 or 3 , if a carrier, 13 as defined in section 513B.2 , an organized delivery system 14 authorized under 1993 Iowa Acts, ch. 158, or a plan established 15 pursuant to chapter 509A for public employees, terminates its 16 contract with a participating health care provider, a covered 17 individual who is undergoing a specified course of treatment 18 for a terminal illness or a related condition, with the 19 recommendation of the covered individual’s treating physician 20 licensed under chapter 148 may continue to receive coverage for 21 treatment received from the covered individual’s physician for 22 the terminal illness or a related condition, for a period of 23 up to ninety days. Payment for covered benefits and benefit 24 levels shall be according to the terms and conditions of the 25 contract. 26 3. Notwithstanding subsections 1 and 2 , a carrier , 27 organized delivery system, or a plan established under chapter 28 509A which terminates the contract of a participating health 29 care provider for cause shall not be required to cover health 30 care services provided by the health care provider to a covered 31 person following the date of termination. 32 Sec. 70. Section 514C.18, subsection 2, paragraph a, 33 subparagraph (6), Code 2017, is amended by striking the 34 subparagraph. 35 -43- LSB 1675YC (11) 87 pf/nh 43/ 57
H.F. _____ Sec. 71. Section 514C.19, subsection 7, paragraph a, 1 subparagraph (6), Code 2017, is amended by striking the 2 subparagraph. 3 Sec. 72. Section 514C.20, subsection 3, paragraph f, Code 4 2017, is amended by striking the paragraph. 5 Sec. 73. Section 514C.21, subsection 2, paragraph d, Code 6 2017, is amended by striking the paragraph. 7 Sec. 74. Section 514C.22, subsection 1, unnumbered 8 paragraph 1, Code 2017, is amended to read as follows: 9 Notwithstanding the uniformity of treatment requirements of 10 section 514C.6 , a group policy, contract, or plan providing 11 for third-party payment or prepayment of health, medical, and 12 surgical coverage benefits issued by a carrier, as defined in 13 section 513B.2 , or by an organized delivery system authorized 14 under 1993 Iowa Acts, ch. 158, shall provide coverage benefits 15 for treatment of a biologically based mental illness if either 16 of the following is satisfied: 17 Sec. 75. Section 514C.22, subsection 6, Code 2017, is 18 amended to read as follows: 19 6. A carrier , organized delivery system, or plan 20 established pursuant to chapter 509A may manage the benefits 21 provided through common methods including, but not limited to, 22 providing payment of benefits or providing care and treatment 23 under a capitated payment system, prospective reimbursement 24 rate system, utilization control system, incentive system for 25 the use of least restrictive and least costly levels of care, 26 a preferred provider contract limiting choice of specific 27 providers, or any other system, method, or organization 28 designed to assure services are medically necessary and 29 clinically appropriate. 30 Sec. 76. Section 514C.25, subsection 2, paragraph a, 31 subparagraph (5), Code 2017, is amended by striking the 32 subparagraph. 33 Sec. 77. Section 514C.26, subsection 5, paragraph a, 34 subparagraph (6), Code 2017, is amended by striking the 35 -44- LSB 1675YC (11) 87 pf/nh 44/ 57
H.F. _____ subparagraph. 1 Sec. 78. Section 514C.27, subsection 1, unnumbered 2 paragraph 1, Code 2017, is amended to read as follows: 3 Notwithstanding the uniformity of treatment requirements 4 of section 514C.6 , a group policy or contract providing for 5 third-party payment or prepayment of health or medical expenses 6 issued by a carrier, as defined in section 513B.2 , or by an 7 organized delivery system authorized under 1993 Iowa Acts, ch. 8 158 , shall provide coverage benefits to an insured who is a 9 veteran for treatment of mental illness and substance abuse if 10 either of the following is satisfied: 11 Sec. 79. Section 514C.27, subsection 6, Code 2017, is 12 amended to read as follows: 13 6. A carrier , organized delivery system, or plan 14 established pursuant to chapter 509A may manage the benefits 15 provided through common methods including but not limited to 16 providing payment of benefits or providing care and treatment 17 under a capitated payment system, prospective reimbursement 18 rate system, utilization control system, incentive system for 19 the use of least restrictive and least costly levels of care, 20 a preferred provider contract limiting choice of specific 21 providers, or any other system, method, or organization 22 designed to assure services are medically necessary and 23 clinically appropriate. 24 Sec. 80. Section 514C.29, subsection 2, paragraph e, Code 25 2017, is amended by striking the paragraph. 26 Sec. 81. Section 514C.30, subsection 2, paragraph e, Code 27 2017, is amended by striking the paragraph. 28 Sec. 82. Section 514E.1, subsection 6, paragraph k, Code 29 2017, is amended by striking the paragraph. 30 Sec. 83. Section 514E.1, subsection 17, Code 2017, is 31 amended by striking the subsection. 32 Sec. 84. Section 514E.2, subsection 1, paragraph a, Code 33 2017, is amended to read as follows: 34 a. All carriers and all organized delivery systems licensed 35 -45- LSB 1675YC (11) 87 pf/nh 45/ 57
H.F. _____ by the director of public health providing health insurance or 1 health care services in Iowa, whether on an individual or group 2 basis, and all other insurers designated by the association’s 3 board of directors and approved by the commissioner shall be 4 members of the association. 5 Sec. 85. Section 514E.2, subsection 2, paragraph a, 6 subparagraph (3), Code 2017, is amended to read as follows: 7 (3) Two members selected by the members of the association, 8 one of whom shall be a representative from a corporation 9 operating pursuant to chapter 514 on July 1, 1989, or 10 any successor in interest, and one of whom shall be a 11 representative of an organized delivery system or an insurer 12 providing coverage pursuant to chapter 509 or 514A . 13 Sec. 86. Section 514E.7, subsection 1, paragraph a, 14 subparagraphs (1) and (2), Code 2017, are amended to read as 15 follows: 16 (1) A notice of rejection or refusal to issue substantially 17 similar insurance for health reasons by one carrier or 18 organized delivery system . 19 (2) A refusal by a carrier or organized delivery system to 20 issue insurance except at a rate exceeding the plan rate. 21 Sec. 87. Section 514E.7, subsection 1, paragraph b, Code 22 2017, is amended to read as follows: 23 b. A rejection or refusal by a carrier or organized delivery 24 system offering only stoploss, excess of loss, or reinsurance 25 coverage with respect to an applicant under paragraph “a” , 26 subparagraphs (1) and (2) , is not sufficient evidence for 27 purposes of this subsection . 28 Sec. 88. Section 514E.9, Code 2017, is amended to read as 29 follows: 30 514E.9 Rules. 31 Pursuant to chapter 17A , the commissioner and the director 32 of public health shall adopt rules to provide for disclosure 33 by carriers and organized delivery systems of the availability 34 of insurance coverage from the association, and to otherwise 35 -46- LSB 1675YC (11) 87 pf/nh 46/ 57
H.F. _____ implement this chapter . 1 Sec. 89. Section 514E.11, Code 2017, is amended to read as 2 follows: 3 514E.11 Notice of association policy. 4 Every carrier, including a health maintenance organization 5 subject to chapter 514B and an organized delivery system , 6 authorized to provide health care insurance or coverage for 7 health care services in Iowa, shall provide a notice of the 8 availability of coverage by the association to any person 9 who receives a rejection of coverage for health insurance 10 or health care services, or a rate for health insurance or 11 coverage for health care services that will exceed the rate of 12 an association policy, and that person is eligible to apply 13 for health insurance provided by the association. Application 14 for the health insurance shall be on forms prescribed by the 15 association’s board of directors and made available to the 16 carriers and organized delivery systems and other entities 17 providing health care insurance or coverage for health care 18 services regulated by the commissioner. 19 Sec. 90. Section 514F.5, Code 2017, is amended to read as 20 follows: 21 514F.5 Experimental treatment review. 22 1. A carrier, as defined in section 513B.2 , an organized 23 delivery system authorized under 1993 Iowa Acts, ch. 158, or a 24 plan established pursuant to chapter 509A for public employees, 25 that limits coverage for experimental medical treatment, drugs, 26 or devices, shall develop and implement a procedure to evaluate 27 experimental medical treatments and shall submit a description 28 of the procedure to the division of insurance. The procedure 29 shall be in writing and must describe the process used to 30 determine whether the carrier , organized delivery system, 31 or chapter 509A plan will provide coverage for new medical 32 technologies and new uses of existing technologies. The 33 procedure, at a minimum, shall require a review of information 34 from appropriate government regulatory agencies and published 35 -47- LSB 1675YC (11) 87 pf/nh 47/ 57
H.F. _____ scientific literature concerning new medical technologies, new 1 uses of existing technologies, and the use of external experts 2 in making decisions. A carrier , organized delivery system, 3 or chapter 509A plan shall include appropriately licensed 4 or qualified professionals in the evaluation process. The 5 procedure shall provide a process for a person covered under 6 a plan or contract to request a review of a denial of coverage 7 because the proposed treatment is experimental. A review of 8 a particular treatment need not be reviewed more than once a 9 year. 10 2. A carrier , organized delivery system, or chapter 509A 11 plan that limits coverage for experimental treatment, drugs, or 12 devices shall clearly disclose such limitations in a contract, 13 policy, or certificate of coverage. 14 Sec. 91. Section 514I.2, subsection 10, Code 2017, is 15 amended to read as follows: 16 10. “Participating insurer” means any entity licensed by the 17 division of insurance of the department of commerce to provide 18 health insurance in Iowa or an organized delivery system 19 licensed by the director of public health that has contracted 20 with the department to provide health insurance coverage to 21 eligible children under this chapter . 22 Sec. 92. Section 514J.102, subsection 24, Code 2017, is 23 amended to read as follows: 24 24. “Health carrier” means an entity subject to the 25 insurance laws and regulations of this state, or subject 26 to the jurisdiction of the commissioner, including an 27 insurance company offering sickness and accident plans, a 28 health maintenance organization, a nonprofit health service 29 corporation, a plan established pursuant to chapter 509A 30 for public employees, or any other entity providing a plan 31 of health insurance, health care benefits, or health care 32 services. “Health carrier” includes, for purposes of this 33 chapter , an organized delivery system. 34 Sec. 93. Section 514J.102, subsection 29, Code 2017, is 35 -48- LSB 1675YC (11) 87 pf/nh 48/ 57
H.F. _____ amended by striking the subsection. 1 Sec. 94. Section 514K.1, subsection 1, unnumbered paragraph 2 1, Code 2017, is amended to read as follows: 3 A health maintenance organization , an organized delivery 4 system, or an insurer using a preferred provider arrangement 5 shall provide to each of its enrollees at the time of 6 enrollment, and shall make available to each prospective 7 enrollee upon request, written information as required by rules 8 adopted by the commissioner and the director of public health . 9 The information required by rule shall include, but not be 10 limited to, all of the following: 11 Sec. 95. Section 514K.1, subsection 2, Code 2017, is amended 12 to read as follows: 13 2. The commissioner and the director shall annually publish 14 a consumer guide providing a comparison by plan on performance 15 measures, network composition, and other key information to 16 enable consumers to better understand plan differences. 17 Sec. 96. Section 514L.1, subsection 3, Code 2017, is amended 18 to read as follows: 19 3. “Provider of third-party payment or prepayment of 20 prescription drug expenses” or “provider” means a provider of an 21 individual or group policy of accident or health insurance or 22 an individual or group hospital or health care service contract 23 issued pursuant to chapter 509 , 514 , or 514A , a provider of a 24 plan established pursuant to chapter 509A for public employees, 25 a provider of an individual or group health maintenance 26 organization contract issued and regulated under chapter 514B , 27 a provider of an organized delivery system contract regulated 28 under rules adopted by the director of public health, a 29 provider of a preferred provider contract issued pursuant to 30 chapter 514F , a provider of a self-insured multiple employer 31 welfare arrangement, and any other entity providing health 32 insurance or health benefits which provide for payment or 33 prepayment of prescription drug expenses coverage subject to 34 state insurance regulation. 35 -49- LSB 1675YC (11) 87 pf/nh 49/ 57
H.F. _____ Sec. 97. Section 514L.2, subsection 1, paragraph a, 1 unnumbered paragraph 1, Code 2017, is amended to read as 2 follows: 3 A provider of third-party payment or prepayment of 4 prescription drug expenses, including the provider’s agents or 5 contractors and pharmacy benefits managers, that issues a card 6 or other technology for claims processing and an administrator 7 of the payor, excluding administrators of self-funded employer 8 sponsored health benefit plans qualified under the federal 9 Employee Retirement Income Security Act of 1974, shall issue 10 to its insureds a card or other technology containing uniform 11 prescription drug information. The commissioner of insurance 12 shall adopt rules for the uniform prescription drug information 13 card or technology applicable to those entities subject to 14 regulation by the commissioner of insurance. The director of 15 public health shall adopt rules for the uniform prescription 16 drug information card or technology applicable to organized 17 delivery systems. The rules shall require at least both of the 18 following regarding the card or technology: 19 Sec. 98. Section 521F.2, subsection 7, Code 2017, is amended 20 to read as follows: 21 7. “Health organization” means a health maintenance 22 organization, limited service organization, dental or vision 23 plan, hospital, medical and dental indemnity or service 24 corporation or other managed care organization licensed under 25 chapter 514 , or 514B , or 1993 Iowa Acts, ch. 158 , or any other 26 entity engaged in the business of insurance, risk transfer, 27 or risk retention, that is subject to the jurisdiction of the 28 commissioner of insurance or the director of public health . 29 “Health organization” does not include an insurance company 30 licensed to transact the business of insurance under chapter 31 508 , 515 , or 520 , and which is otherwise subject to chapter 32 521E . 33 Sec. 99. 1993 Iowa Acts, chapter 158, section 4, is amended 34 to read as follows: 35 -50- LSB 1675YC (11) 87 pf/nh 50/ 57
H.F. _____ SEC. 4. EMERGENCY RULES. Pursuant to sections 1 , and 2 , and 1 3 of this Act, the commissioner of insurance or the director of 2 public health shall adopt administrative rules under section 3 17A.4, subsection 2, and section 17A.5, subsection 2, paragraph 4 “b”, to implement the provisions of this Act and the rules 5 shall become effective immediately upon filing, unless a later 6 effective date is specified in the rules. Any rules adopted in 7 accordance with the provisions of this section shall also be 8 published as notice of intended action as provided in section 9 17A.4. 10 Sec. 100. REPEAL. Section 135.120, Code 2017, is repealed. 11 Sec. 101. REPEAL. 1993 Iowa Acts, chapter 158, section 3, 12 is repealed. 13 Sec. 102. CODE EDITOR’S DIRECTIVE. The Code editor shall 14 correct and eliminate any references to the term “organized 15 delivery system” or other forms of the term anywhere else in 16 the Iowa Code or Iowa Code Supplement, in any bills awaiting 17 codification, in this Act, and in any bills enacted by the 18 Eighty-seventh General Assembly, 2017 Regular Session, or any 19 extraordinary session. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to programs and activities under the 24 purview of the department of public health (DPH). 25 Division I of the bill relates to program funding 26 flexibility and reporting. 27 The bill provides that if the amount of estimated moneys to 28 be received from certain liquor fees and retail beer permit 29 fees that is transferred to DPH annually for grants to counties 30 operating a substance abuse program exceeds grant requests, 31 in addition to using the remainder for grants to entities to 32 operate a substance abuse prevention program, DPH may also use 33 the remainder for activities and public information resources 34 that align with best practices for substance-related disorder 35 -51- LSB 1675YC (11) 87 pf/nh 51/ 57
H.F. _____ prevention. 1 The bill eliminates the requirement under Code section 2 135.11, subsection 31, that DPH report to the chairpersons and 3 ranking members of the joint appropriations subcommittee on 4 health and human services, the legislative services agency, the 5 legislative caucus staffs, and the department of management 6 within 60 calendar days of applying for or renewing a federal 7 grant which requires a state match or maintenance of effort 8 and has a value of over $100,000, including a listing of 9 the federal funding source and the potential need for the 10 commitment of state funding in the present or future. 11 The bill amends Code section 135.150 to require DPH to report 12 annually rather than semiannually to the general assembly’s 13 standing committees on government oversight regarding 14 the operation of the gambling treatment program including 15 information on the moneys expended and grants awarded for 16 operation of the program. 17 Division II of the bill relates to medical home and the 18 patient-centered health advisory council. 19 The bill amends provisions relating to medical homes. 20 Code sections 135.157 and 135.158, providing definitions and 21 describing the purposes and characteristics of medical homes, 22 are repealed by the bill. Code section 135.159 provides 23 parameters for the development and implementation of a medical 24 home system in the state, as well as the establishment of the 25 patient-centered health advisory council. The bill amends 26 Code section 135.159 to provide for the continuation of the 27 patient-centered health advisory council and to revise the 28 purposes of the council. 29 The bill also makes conforming changes throughout the Code, 30 including those relative to the definitions of “medical home”, 31 “personal provider”, and “primary medical provider”, due to 32 elimination of certain definitions and concepts based upon the 33 repeal of Code sections 135.157 and 135.158. 34 Division III of the bill includes provisions relating to 35 -52- LSB 1675YC (11) 87 pf/nh 52/ 57
H.F. _____ workforce programming. 1 The bill amends Code section 135.107 relating to the center 2 for rural health and primary care. Of the programs that 3 constitute the primary care provider recruitment and retention 4 endeavor or PRIMECARRE, the bill eliminates the primary care 5 provider community scholarship program, but retains the primary 6 care loan repayment program and the community grant program 7 that is renamed the health care workforce and community support 8 grant program. The bill amends the application and matching 9 funds requirements for a grant under the health care workforce 10 and community support grant program and specifies that the 11 target areas for awarding of such grants are rural, underserved 12 areas or special populations identified by the department’s 13 strategic plan or evidence-based documentation. 14 The bill provides that the primary care provider loan 15 repayment program may cancel a loan repayment program contract 16 for reasonable cause unless federal requirements otherwise 17 require and provides that the center for rural health and 18 primary care may enter into an agreement under Code chapter 28E 19 with the college student aid commission for administration of 20 the center’s grant and loan repayment programs. 21 The bill eliminates the requirement that a community or 22 region applying for assistance under any of the programs 23 established under PRIMECARRE submit a letter of intent to 24 conduct a community health services assessment and instead 25 requires that the community or region shall document 26 participation in the community health services assessment. In 27 addition to any other requirements, an applicant’s plan is 28 also to include, to the extent possible, a clear commitment to 29 informing high school students of the health care opportunities 30 which may be available to such students. 31 The bill removes the representation by the obsolete rural 32 health resource center on the advisory committee to the center 33 for rural health and primary care and corrects the reference to 34 a national or regional institute for rural health policy. 35 -53- LSB 1675YC (11) 87 pf/nh 53/ 57
H.F. _____ The bill eliminates the reference to “long-term care” in 1 Code section 135.163 which directs DPH to coordinate public and 2 private efforts to develop and maintain an appropriate health 3 care delivery infrastructure and a stable, well-qualified, 4 diverse, and sustainable health care workforce in this state. 5 Under this section, DPH is required, at a minimum, to develop 6 a strategic plan for health care delivery infrastructure and 7 health care workforce resources in this state; provide for 8 the continuous collection of data to provide a basis for 9 health care strategic planning and health care policymaking; 10 and make recommendations regarding the health care delivery 11 infrastructure and the health care workforce that assist 12 in monitoring current needs, predicting future trends, and 13 informing policymaking. 14 The bill amends Code section 135.175 relating to the health 15 care workforce support initiative, the workforce shortage fund, 16 and the accounts within the fund. The bill provides that 17 state programs that may receive moneys from the fund or the 18 accounts in the fund, if specifically designated for drawing 19 down federal funding, include PRIMECARRE, the Iowa affiliate 20 of the national rural recruitment and retention network, the 21 oral and health delivery systems bureau of the department, 22 the primary care office and shortage designation program, and 23 the state office of rural health, but eliminates inclusion of 24 the Iowa health workforce center, the area health education 25 centers programs at Des Moines university osteopathic medical 26 center and the university of Iowa, and the Iowa collaborative 27 safety net provider network as potential recipients. The bill 28 also eliminates the requirement that state appropriations to 29 the fund shall be allocated in equal amounts to each of the 30 accounts within the fund, unless otherwise specified in the 31 appropriation or allocation, and eliminates the restriction 32 that moneys in each of the accounts in the fund used for 33 administrative purposes are not to exceed $100,000 in each 34 account, but retains the limitation that no more than 5 percent 35 -54- LSB 1675YC (11) 87 pf/nh 54/ 57
H.F. _____ of the moneys in any of the accounts within the fund shall be 1 used for administrative purposes unless otherwise provided in 2 the appropriation, allocation, or source of the funds. 3 The bill repeals Code section 135.164 which relates to the 4 health care delivery infrastructure and health care workforce 5 resources strategic plan to be developed by DPH including the 6 specific elements of the strategic plan and the requirements 7 for developing the strategic plan. 8 The bill repeals Code section 135.180, the mental health 9 professional shortage area program, which provides stipends to 10 support psychiatrist positions with an emphasis on securing and 11 retaining medical directors at community mental health centers 12 designated under Code chapter 230A and hospital psychiatric 13 units that are located in mental health professional shortage 14 areas. 15 Division IV of the bill relates to unfunded or outdated 16 program provisions. 17 The bill eliminates the provision under Code section 135.11 18 requiring DPH to establish and administer a substance abuse 19 treatment facility for persons on probation, repeals Code 20 section 135.130, and strikes the conforming provision in Code 21 section 901B.1. The substance abuse treatment facility for 22 persons on probation was authorized in 2001 but was never 23 established. 24 The bill strikes the directive in Code section 135.141 for 25 the division of acute disease prevention and emergency response 26 of DPH to conduct and maintain a statewide risk assessment 27 of any present or potential danger to the public health from 28 biological agents. 29 The bill repeals Code section 135.26 establishing the 30 automated external defibrillator (AED) grant program to provide 31 matching fund grants to local boards of health, community 32 organizations, or cities to implement AED programs. 33 The bill repeals Code section 135.29, relating to local 34 substitute medical decision-making boards, which authorized 35 -55- LSB 1675YC (11) 87 pf/nh 55/ 57
H.F. _____ each county to establish and fund a local substituted medical 1 decision-making board to act as a substitute decision maker for 2 patients incapable of making their own medical care decisions 3 if no other substitute decision maker is available to act. 4 The bill repeals Code section 135.120, relating to the 5 taxation of organized delivery systems (ODSs). 1993 Iowa 6 Acts, chapter 158, section 3, directs DPH to adopt rules and a 7 licensing procedure for the establishment of ODSs. The bill 8 only eliminates the provision for taxation of ODSs, not all 9 other provisions relating to ODSs. 10 The bill repeals Code section 135.152, the statewide 11 obstetrical and newborn indigent patient care program. The 12 program acts as a payer of last resort for eligible individuals 13 but has not been utilized since 2009 due to other options 14 for coverage including through the Medicaid program and the 15 Affordable Care Act for otherwise eligible individuals. 16 Division V includes miscellaneous provisions. 17 The bill amends the definition of “local board of health” in 18 Code section 135A.2 under the public health modernization Act 19 to be consistent with the definition under Code chapter 137, 20 relating to local boards of health. 21 The bill repeals Code section 135.132, the interagency 22 pharmaceuticals bulk purchasing council. The provision was 23 enacted in 2003, but the council was never established. 24 Division VI relates to the Iowa health information 25 network. Legislation was enacted in 2015 Iowa Acts, chapter 26 73, to provide for the future assumption of the Iowa health 27 information network by a designated entity. The bill 28 includes a conforming change that would take effect upon 29 future assumption of the Iowa health information network by a 30 designated entity. 31 Division VII relates to organized delivery systems that are 32 regulated by DPH. Organized delivery systems were created 33 pursuant to 1993 Iowa Acts, chapter 158. Rules adopted 34 under the provision define an organized delivery system as 35 -56- LSB 1675YC (11) 87 pf/nh 56/ 57
H.F. _____ “an organization with defined governance that is responsible 1 for delivering or arranging to deliver the full range of 2 health care services covered under a standard benefit plan 3 and is accountable to the public for the cost, quality and 4 access of its services and for the effect of its services 5 on their health.” (641 IAC 201.2) An organization operating 6 as an organized delivery system is required to assume risk 7 and be subject to solvency standards. The bill eliminates 8 all references to organized delivery systems in the Code and 9 repeals the provision in the Acts authorizing the establishment 10 of organized delivery systems. The most recent application for 11 licensure was received by DPH in 1998. Since being authorized 12 in 1993, only two entities applied for licensure as organized 13 delivery systems and both of these entities have since ceased 14 operations. 15 -57- LSB 1675YC (11) 87 pf/nh 57/ 57