S.B. 74

1

HEALTH CARE PROVIDER ACCESS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: D. Chris Buttars
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends the Unfair Practices Act.
10 Highlighted Provisions:
11 This bill:
12 . amends definitions; and
13 . provides that a hospital with 25% or more of the licensed beds in a county may not:
14 . provide discounts to an insurer in return for the insurer restricting its provider
15 network; or
16 . otherwise restrict the ability of an insurer to contract with providers.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 13-5-2, Utah Code Annotated 1953
24 ENACTS:
25 13-5-19, Utah Code Annotated 1953
26 REPEALS:
27 13-5-5, Utah Code Annotated 1953

28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 13-5-2 is amended to read:
31 13-5-2. Definitions.
32 [When used in this act, unless the context otherwise requires, the term "person"]
33 As used in this chapter:
34 (1) "Commerce" means intrastate commerce in Utah.
35 (2) "Hospital" means a general acute hospital as defined in Section 26-21-2 .
36 (3) "Person" means an individual, a corporation, a partnership, an association, a joint
37 stock company, a business trust or any unincorporated organization.
38 Section 2. Section 13-5-19 is enacted to read:
39 13-5-19. Unfair competition by hospitals.
40 (1) For purposes of this section:
41 (a) "Insurer" means any person that offers a health benefit plan in the state as defined in
42 Section 31A-1-301 .
43 (b) "Provider" means a health care provider as defined in Section 78-14-3 .
44 (2) (a) (i) This section applies to a hospital that has 25% or more of the licensed
45 hospital beds in a county.
46 (ii) A hospital is engaged in commerce subject to this chapter if the hospital is licensed
47 in the state, regardless of whether the hospital treats patients from outside of the state.
48 (b) It is a violation of this chapter for any hospital engaged in commerce, in the course
49 of commerce, either directly or indirectly, to:
50 (i) offer a discount in price to any insurer in return for the insurer restricting the ability
51 of another hospital or provider to participate on the insurer's panel of providers; or
52 (ii) otherwise restrict the ability of an insurer to contract with providers.
53 Section 3. Repealer.
54 This bill repeals:
55 Section 13-5-5,"Commerce" defined.

Legislative Review Note
as of 1-22-08 3:36 PM

Office of Legislative Research and General Counsel