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H.B. 374

             1     

INTEGRATED HEALTH SYSTEM FAIR

             2     
PRACTICES ACT

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Rebecca D. Lockhart

             6     
Senate Sponsor: Curtis S. Bramble

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill creates the Integrated Health System Fair Practices Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms; and
             14          .    requires an integrated health system to restrict certain communications between
             15      affiliates and subsidiaries in certain circumstances.
             16      Monies Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      ENACTS:
             22          13-5b-101, Utah Code Annotated 1953
             23          13-5b-102, Utah Code Annotated 1953
             24          13-5b-103, Utah Code Annotated 1953
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 13-5b-101 is enacted to read:


             28     
CHAPTER 5b. INTEGRATED HEALTH SYSTEM FAIR PRACTICES ACT

             29          13-5b-101. Title.
             30          This chapter is known as the "Integrated Health System Fair Practices Act."
             31          Section 2. Section 13-5b-102 is enacted to read:
             32          13-5b-102. Definitions.
             33          For purposes of this chapter:
             34          (1) "Affiliate" means an organization that directly or indirectly through one or more
             35      intermediaries controls, is controlled by, or is under common control with a nonprofit
             36      organization.
             37          (2) "Integrated health system" means a nonprofit organization that directly, or through
             38      an affiliate or subsidiary:
             39          (a) owns and operates one or more hospitals in the state; and
             40          (b) offers health insurance to residents of the state.
             41          (3) "Subsidiary" means an affiliate controlled:
             42          (a) by a specified person;
             43          (b) directly or indirectly; and
             44          (c) through one or more intermediaries.
             45          Section 3. Section 13-5b-103 is enacted to read:
             46          13-5b-103. Contract negotiation standards.
             47          (1) An integrated health system shall prohibit any employee or independent contractor
             48      of any division, subsidiary, or affiliate engaged in the business of health insurance from
             49      negotiating contracts on behalf of the integrated health care systems' health care facilities,
             50      subject to licensing under Title 26, Chapter 21, Health Care Facility Licensing and Inspection
             51      Act, with any other licensed health insurer in the state.
             52          (2) An integrated health system shall prohibit the disclosure of contract pricing terms
             53      between the integrated health care systems' health care facilities and other health insurers with
             54      the integrated health care systems' divisions, subsidiaries, or affiliates which are engaged in the
             55      business of health insurance.





Legislative Review Note
    as of 1-19-07 6:51 PM


Office of Legislative Research and General Counsel


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