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H.B. 165

             1     

STATE REIMBURSEMENT FOR REQUIRED MEDICAL

             2     
SERVICES ACT

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Christopher N. Herrod

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Utah Health Code to provide for state reimbursement of required
             11      medical services provided to an individual not lawfully present in the United States and
             12      to seek repayment of the money from the federal government.
             13      Highlighted Provisions:
             14          This bill:
             15          .    enacts the State Reimbursement for Required Medical Services Act, including:
             16              .    defining terms;
             17              .    establishing what costs can be reimbursed;
             18              .    providing an application process to obtain reimbursement;
             19              .    providing for rulemaking;
             20              .    creating a restricted account;
             21              .    outlining violations of the chapter;
             22              .    providing for enforcement; and
             23              .    requiring the creation of a plan to assert or litigate an obligation by the federal
             24      government to repay the money reimbursed by the state.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          This bill takes effect on July 1, 2011.
             29      Utah Code Sections Affected:
             30      ENACTS:
             31          26-8c-101, Utah Code Annotated 1953
             32          26-8c-102, Utah Code Annotated 1953
             33          26-8c-201, Utah Code Annotated 1953
             34          26-8c-202, Utah Code Annotated 1953
             35          26-8c-203, Utah Code Annotated 1953
             36          26-8c-204, Utah Code Annotated 1953
             37          26-8c-301, Utah Code Annotated 1953
             38     
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 26-8c-101 is enacted to read:
             41     
CHAPTER 8c. STATE REIMBURSEMENT FOR REQUIRED

             42     
MEDICAL SERVICES ACT

             43     
Part 1. General Provisions

             44          26-8c-101. Title.
             45          This chapter is known as the "State Reimbursement for Required Medical Services
             46      Act."
             47          Section 2. Section 26-8c-102 is enacted to read:
             48          26-8c-102. Definitions.
             49          As used in this chapter:
             50          (1) "Lawfully present in the United States" is as defined in 8 C.F.R. Sec. 103.12.
             51          (2) "Medical services provider" means a person who is licensed or certified to provide
             52      a required medical service.
             53          (3) (a) "Required medical service" means assistance for a health care item or service
             54      that is:
             55          (i) required to be provided by federal law to an individual not lawfully present in the
             56      United States;
             57          (ii) necessary for the treatment of an emergency medical condition, as defined in 42
             58      U.S.C. Sec. 1396b(v)(3), of the individual involved; and


             59          (iii) not related to an organ transplant procedure.
             60          (b) "Required medical service" includes the following that meet the conditions of
             61      Subsection (3)(a):
             62          (i) hospital services; and
             63          (ii) ambulance or other emergency transportation.
             64          (4) "Restricted account" means the Required Medical Services Restricted Account
             65      created in Section 26-8c-203 .
             66          Section 3. Section 26-8c-201 is enacted to read:
             67     
Part 2. Reimbursement Process

             68          26-8c-201. Costs for which reimbursement may be made.
             69          (1) On and after July 1, 2011, the department shall reimburse a medical service
             70      provider who applies for reimbursement in accordance with Section 26-8c-202 the costs
             71      incurred by the medical service provider in providing required medical services in this state to
             72      an individual who is not lawfully present in the United States.
             73          (2) For purposes of this chapter, a cost is considered incurred by a medical service
             74      provider in providing required medical services in this state to an individual who is not
             75      lawfully present in the United States if the cost:
             76          (a) directly relates to providing a required medical service to the individual;
             77          (b) is not incurred for a health care item or service that is not required by federal law;
             78          (c) is not reimbursed by a private or public source other than under this chapter after
             79      reasonable efforts taken by the medical service provider; and
             80          (d) but for providing the required medical service to the individual, would not be
             81      incurred by the medical service provider.
             82          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             83      department may define terms used to determine whether under Subsection (2) a cost is
             84      considered incurred by the medical service provider in providing required medical services in
             85      this state to an individual who is not lawfully present in the United States.
             86          Section 4. Section 26-8c-202 is enacted to read:
             87          26-8c-202. Process to apply for reimbursement.
             88          (1) (a) To receive reimbursement from the department of a cost incurred by the medical
             89      service provider in providing required medical services in this state to an individual who is not


             90      lawfully present in the United States, the medical service provider shall:
             91          (i) file an application for reimbursement with the department;
             92          (ii) provide the supporting documentation required by the department; and
             93          (iii) pay a fee determined by the department in accordance with Section 63J-1-504 .
             94          (b) A medical service provider may request in a single application reimbursement for
             95      costs incurred by the medical service provider in providing required medical services in this
             96      state to more than one individual who is not lawfully present in the United States.
             97          (c) An application for reimbursement is considered complete when the requirements of
             98      Subsection (1)(a) are met.
             99          (2) (a) The department shall review a complete application and determine:
             100          (i) if the medical service provider is eligible for reimbursement under Section
             101      26-8a-201 ; and
             102          (ii) when the medical service provider is eligible for reimbursement, the amount of the
             103      reimbursement.
             104          (b) The department may reimburse a medical service provider an amount less than the
             105      amount requested by the medical service provider, if:
             106          (i) the department determines that the medical service provider incurred less costs in
             107      providing required medical services in this state to an individual who is not lawfully present in
             108      the United States than requested by the medical service provider; or
             109          (ii) there is an insufficient amount in the restricted account to reimburse the medical
             110      service provider.
             111          (3) (a) The department shall provide a medical service provider who files a complete
             112      application written notice of a decision under Subsection (2).
             113          (b) A medical service provider may appeal a decision made under Subsection (2) in
             114      accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             115          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             116      department may make rules related to:
             117          (a) the information required in an application for reimbursement under this section; and
             118          (b) the supporting documentation required under this section.
             119          Section 5. Section 26-8c-203 is enacted to read:
             120          26-8c-203. Required Medical Services Restricted Account.


             121          (1) There is created a restricted account in the General Fund known as the Required
             122      Medical Services Restricted Account.
             123          (2) The restricted account shall consist of:
             124          (a) money appropriated by the Legislature to the account;
             125          (b) a fine collected under Section 26-8c-204 ; and
             126          (c) money repaid by the federal government in accordance with Section 26-8c-301 .
             127          (3) The department shall administer the restricted account and shall use money
             128      appropriated from the account to pay:
             129          (a) a reimbursement allowed under this part; and
             130          (b) the administrative costs incurred by the department under this part.
             131          (4) (a) Subject to Subsection (4)(b), if the amount in the restricted account is
             132      insufficient to pay a claim for reimbursement, the department shall pay outstanding claims for
             133      reimbursement in the order that the medical service providers filed an application for
             134      reimbursement under Section 26-8c-201 .
             135          (b) When sufficient money is deposited in the restricted account, the division shall:
             136          (i) satisfy the unpaid claims for reimbursement in the order that the applications for
             137      reimbursement are originally filed; and
             138          (ii) pay with the claim accumulated interest at the rate of 8% per annum.
             139          (5) The state is not liable, obligated, or responsible to guarantee the payment of claims
             140      for reimbursement under this chapter if the money in the restricted account is insufficient to
             141      pay the claims for reimbursement.
             142          Section 6. Section 26-8c-204 is enacted to read:
             143          26-8c-204. Penalties for improper reimbursement.
             144          (1) A person may not apply for reimbursement of a cost if:
             145          (a) the person is not a medical service provider; or
             146          (b) the cost is not incurred by the person in providing required medical services in this
             147      state to an individual who is not lawfully present in the United States.
             148          (2) It is a violation of this chapter to provide false information to the department
             149      regarding required medical services provided in this state.
             150          (3) (a) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, the
             151      department may impose a fine not to exceed $1,000 for each violation of this chapter.


             152          (b) In addition to a fine under Subsection (3)(a), a violation of the chapter related to a
             153      reimbursement may be enforced in accordance with Chapter 20, Utah False Claims Act, as if
             154      the reimbursement were a medical benefit paid or payable to a provider under a program
             155      administered by the state under Titles V and XIX of the federal Social Security Act.
             156          Section 7. Section 26-8c-301 is enacted to read:
             157     
Part 3. Repayment Obligations of Federal Government

             158          26-8c-301. Department action to seek repayment.
             159          (1) As used in this section, "plan" means a document that presents the broad
             160      framework for asserting or litigating any obligation the federal government has to repay the
             161      department for the money reimbursed by the department under this chapter.
             162          (2) (a) The department shall adopt a plan that provides for a good faith, cooperative
             163      effort between the state and the attorney general to develop litigation strategy and provide for
             164      the expenditure of resources.
             165          (b) The department shall update the plan at least annually.
             166          (c) The department shall report annually to the Health and Human Services Interim
             167      Committee by no later than that committee's November interim meeting.
             168          (3) After a plan is adopted under this section, the department and attorney general may
             169      take action under the plan to negotiate or litigate for the repayment from the federal
             170      government of the money reimbursed by the department under this chapter.
             171          Section 8. Effective date.
             172          This bill takes effect on July 1, 2011.




Legislative Review Note
    as of 2-3-11 3:04 PM


Office of Legislative Research and General Counsel


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