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