SENATE BILL No. 455

 

 

May 1, 2003, Introduced by Senator GEORGE and referred to the Committee on Health Policy.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1980 PA 350, entitled                                             

                                                                                

    "The nonprofit health care corporation reform act,"                         

                                                                                

    by amending section 502 (MCL 550.1502), as amended by 1998                  

                                                                                

    PA 446.                                                                     

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 502.  (1) A health care corporation may enter into                     

                                                                                

2   participating contracts for reimbursement with professional                 

                                                                                

3   health care providers practicing legally in this state for health           

                                                                                

4   care services that the professional health care providers may               

                                                                                

5   legally perform.  A participating contract may cover all members            

                                                                                

6   or may be a separate and individual contract on a per claim                 

                                                                                

7   basis, as set forth in the provider class plan.  , if, in  In               

                                                                                

8   entering into a separate and individual contract on a per claim             

                                                                                

9   basis, the health care corporation shall not require the provider           

                                                                                

10  to accept payment from the corporation as payment in full for all           

                                                                                


                                                                                

1   cases involving the procedure specified for the duration of the             

                                                                                

2   calendar year but shall require the participating provider                  

                                                                                

3   certifies  to certify to the health care corporation both of the           

                                                                                

4   following:                                                                  

                                                                                

5       (a) That the provider will accept payment from the                          

                                                                                

6   corporation as payment in full for services rendered for the                

                                                                                

7   specified claim for the member indicated.                                   

                                                                                

8       (b) That the provider will accept payment from the                          

                                                                                

9   corporation as payment in full for all cases involving the                  

                                                                                

10  procedure specified, for the duration of the calendar year.  As             

                                                                                

11  used in this subdivision, provider does not include a person                

                                                                                

12  licensed as a dentist under part 166 of the public health code,             

                                                                                

13  1978 PA 368, MCL 333.16601 to 333.16648.                                    

                                                                                

14      (b)  (c)  That the provider will not determine whether to                   

                                                                                

15  participate on a claim on the basis of the race, color, creed,              

                                                                                

16  marital status, sex, national origin, residence, age, disability,           

                                                                                

17  or lawful occupation of the member entitled to health care                  

                                                                                

18  benefits.                                                                   

                                                                                

19      (2) A contract entered into pursuant to subsection (1) shall                

                                                                                

20  provide that the private provider-patient relationship shall be             

                                                                                

21  maintained to the extent provided for by law.  A health care                

                                                                                

22  corporation shall continue to offer a reimbursement arrangement             

                                                                                

23  to any class of providers with which it has contracted prior to             

                                                                                

24  August 27, 1985 and that continues to meet the standards set by             

                                                                                

25  the corporation for that class of providers.                                

                                                                                

26      (3) A health care corporation shall not restrict the methods                

                                                                                

27  of diagnosis or treatment of professional health care providers             


                                                                                

1   who treat members.  Except as otherwise provided in section 502a,           

                                                                                

2   each member of the health care corporation shall at all times               

                                                                                

3   have a choice of professional health care providers.  This                  

                                                                                

4   subsection does not apply to limitations in benefits contained in           

                                                                                

5   certificates, to the reimbursement provisions of a provider                 

                                                                                

6   contract or reimbursement arrangement, or to standards set by the           

                                                                                

7   corporation for all contracting providers.  A health care                   

                                                                                

8   corporation may refuse to reimburse a health care provider for              

                                                                                

9   health care services that are overutilized, including those                 

                                                                                

10  services rendered, ordered, or prescribed to an extent that is              

                                                                                

11  greater than reasonably necessary.                                          

                                                                                

12      (4) A health care corporation may provide to a member, upon                 

                                                                                

13  request, a list of providers with whom the corporation contracts,           

                                                                                

14  for the purpose of assisting a member in obtaining a type of                

                                                                                

15  health care service.  However, except as otherwise provided in              

                                                                                

16  section 502a, an employee, agent, or officer of the corporation,            

                                                                                

17  or an individual on the board of directors of the corporation,              

                                                                                

18  shall not make recommendations on behalf of the corporation with            

                                                                                

19  respect to the choice of a specific health care provider.  Except           

                                                                                

20  as otherwise provided in section 502a, an employee, agent, or               

                                                                                

21  officer of the corporation, or a person on the board of directors           

                                                                                

22  of the corporation who influences or attempts to influence a                

                                                                                

23  person in the choice or selection of a specific professional                

                                                                                

24  health care provider on behalf of the corporation, is guilty of a           

                                                                                

25  misdemeanor.                                                                

                                                                                

26      (5) A health care corporation shall provide a symbol of                     

                                                                                

27  participation, which can be publicly displayed, to providers who            


                                                                                

1   participate on all claims for covered health care services                  

                                                                                

2   rendered to subscribers.                                                    

                                                                                

3       (6) This section does not impede the lawful operation of, or                

                                                                                

4   lawful promotion of, a health maintenance organization owned by a           

                                                                                

5   health care corporation.                                                    

                                                                                

6       (7) Contracts entered into under this section are subject to                

                                                                                

7   the provisions of sections 504 to 518.                                      

                                                                                

8       (8) A health care corporation shall not deny participation to               

                                                                                

9   a freestanding surgical outpatient facility on the basis of                 

                                                                                

10  ownership if the facility meets the reasonable standards set by             

                                                                                

11  the health care corporation for similar facilities, is licensed             

                                                                                

12  under part 208 of the public health code, 1978 PA 368,                      

                                                                                

13  MCL 333.20801 to 333.20821, and complies with part 222 of the               

                                                                                

14  public health code, 1978 PA 368, MCL 333.22201 to 333.22260.                

                                                                                

15      (9) Notwithstanding any other provision of this act, if a                   

                                                                                

16  certificate provides for benefits for services that are within              

                                                                                

17  the scope of practice of optometry, a health care corporation is            

                                                                                

18  not required to provide benefits or reimburse for a practice of             

                                                                                

19  optometric service unless that service was included in the                  

                                                                                

20  definition of practice of optometry under section 17401 of the              

                                                                                

21  public health code, 1978 PA 368, MCL 333.17401, as of May 20,               

                                                                                

22  1992.                                                                       

                                                                                

23      (10) Notwithstanding any other provision of this act, a                     

                                                                                

24  health care corporation is not required to reimburse for services           

                                                                                

25  otherwise covered under a certificate if the services were                  

                                                                                

26  performed by a member of a health care profession, which health             

                                                                                

27  care profession was not licensed or registered by this state on             


                                                                                

1   or before January 1, 1998 but that becomes a health care                    

                                                                                

2   profession licensed or registered by this state after January 1,            

                                                                                

3   1998.  This subsection does not change the status of a health               

                                                                                

4   care profession that was licensed or registered by this state on            

                                                                                

5   or before January 1, 1998.