H.B. 459 Health Amendments
Bill Sponsor: Rep. Clark, David | Floor Sponsor: ![]() Sen. Niederhauser, Wayne L. |
- Drafting Attorney: Cathy J. Dupont
- Bill Text
- Introduced
- Amended
- Enrolled
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- Introduced
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- Information
- Last Action: 23 Mar 2010, Governor Signed
- Last Location: Executive Branch - Lieutenant Governor
- Effective Date: 23 Mar 2010
- Session Law Chapter: 149
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H.B. 459
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H.B. 459 Enrolled
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7 LONG TITLE
8 General Description:
9 This bill amends provisions related to transparency and health benefits in the Insurance
10 Code and the Medicaid program.
11 Highlighted Provisions:
12 This bill:
13 . requires accountability and transparency from the state Medicaid program;
14 . requires an insurer to provide information to consumers regarding health insurance
15 policies; and
16 . requires greater choice of benefit plans for employers in the defined contribution
17 market of the health insurance exchange.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill provides an effective date.
22 This bill coordinates with H.B. 294, Health System Reform Amendments, by
23 substantively superseding a provision.
24 This bill coordinates with H.B. 39, Insurance Related Amendments, by providing
25 substantive changes.
26 Utah Code Sections Affected:
27 AMENDS:
28 26-18-2.3, as last amended by Laws of Utah 2006, Chapter 46
29 26-18-3, as last amended by Laws of Utah 2008, Chapters 62 and 382
30 31A-22-613.5, as last amended by Laws of Utah 2009, Chapter 12
31 31A-22-722.5, as enacted by Laws of Utah 2009, Chapter 274
32 31A-30-205, as enacted by Laws of Utah 2009, Chapter 12
33 Utah Code Sections Affected by Coordination Clause:
34 31A-22-613.5, as last amended by Laws of Utah 2009, Chapter 12
35 31A-22-722.5, as enacted by Laws of Utah 2009, Chapter 274
36 31A-30-205, as enacted by Laws of Utah 2009, Chapter 12
37
38 Be it enacted by the Legislature of the state of Utah:
39 Section 1. Section 26-18-2.3 is amended to read:
40 26-18-2.3. Division responsibilities -- Emphasis -- Periodic assessment.
41 (1) In accordance with the requirements of Title XIX of the Social Security Act and
42 applicable federal regulations, the division is responsible for the effective and impartial
43 administration of this chapter in an efficient, economical manner. The division shall:
44 (a) establish, on a statewide basis, a program to safeguard against unnecessary or
45 inappropriate use of Medicaid services, excessive payments, and unnecessary or inappropriate
46 hospital admissions or lengths of stay;
47 (b) deny any provider claim for services that fail to meet criteria established by the
48 division concerning medical necessity or appropriateness; and
49 (c) place its emphasis on high quality care to recipients in the most economical and
50 cost-effective manner possible, with regard to both publicly and privately provided services.
51 (2) The division shall implement and utilize cost-containment methods, where
52 possible, which may include[
53 (a) prepayment and postpayment review systems to determine if utilization is
54 reasonable and necessary;
55 (b) preadmission certification of nonemergency admissions;
56 (c) mandatory outpatient, rather than inpatient, surgery in appropriate cases;
57 (d) second surgical opinions;
58 (e) procedures for encouraging the use of outpatient services;
59 (f) consistent with Sections 26-18-2.4 and 58-17b-606 , a Medicaid drug program;
60 (g) coordination of benefits; and
61 (h) review and exclusion of providers who are not cost effective or who have abused
62 the Medicaid program, in accordance with the procedures and provisions of federal law and
63 regulation.
64 (3) The director of the division shall periodically assess the cost effectiveness and
65 health implications of the existing Medicaid program, and consider alternative approaches to
66 the provision of covered health and medical services through the Medicaid program, in order
67 to reduce unnecessary or unreasonable utilization.
68 (4) The department shall ensure Medicaid program integrity by conducting internal
69 audits of the Medicaid program for efficiencies, best practices, fraud, waste, abuse, and cost
70 recovery, at least in proportion to the percent of funding for the program that comes from state
71 funds.
72 (5) The department shall, by December 31 of each year, report to the Health and
73 Human Services Appropriations Subcommittee regarding:
74 (a) measures taken under this section to increase:
75 (i) efficiencies within the program; and
76 (ii) cost avoidance and cost recovery efforts in the program; and
77 (b) results of program integrity efforts under Subsection (4).
78 Section 2. Section 26-18-3 is amended to read:
79 26-18-3. Administration of Medicaid program by department -- Reporting to the
80 Legislature -- Disciplinary measures and sanctions -- Funds collected -- Eligibility
81 standards.
82 (1) The department shall be the single state agency responsible for the administration
83 of the Medicaid program in connection with the United States Department of Health and
84 Human Services pursuant to Title XIX of the Social Security Act.
85 (2) (a) The department shall implement the Medicaid program through administrative
86 rules in conformity with this chapter, Title 63G, Chapter 3, Utah Administrative Rulemaking
87 Act, the requirements of Title XIX, and applicable federal regulations.
88 (b) The rules adopted under Subsection (2)(a) shall include, in addition to other rules
89 necessary to implement the program:
90 (i) the standards used by the department for determining eligibility for Medicaid
91 services;
92 (ii) the services and benefits to be covered by the Medicaid program; and
93 (iii) reimbursement methodologies for providers under the Medicaid program.
94 (3) (a) The department shall, in accordance with Subsection (3)(b), report to either the
95 Legislative Executive Appropriations Committee or the Legislative Health and Human
96 Services Appropriations Subcommittee when the department:
97 (i) implements a change in the Medicaid State Plan;
98 (ii) initiates a new Medicaid waiver;
99 (iii) initiates an amendment to an existing Medicaid waiver; [
100 (iv) applies for an extension of an application for a waiver or an existing Medicaid
101 waiver; or
102 [
103 (b) The report required by Subsection (3)(a) shall:
104 (i) be submitted to the Legislature's Executive Appropriations Committee or the
105 legislative Health and Human Services Appropriations Subcommittee prior to the department
106 implementing the proposed change; and
107 (ii) [
108 (A) a description of the department's current practice or policy that the department is
109 proposing to change;
110 (B) an explanation of why the department is proposing the change;
111 (C) the proposed change in services or reimbursement, including a description of the
112 effect of the change;
113 (D) the effect of an increase or decrease in services or benefits on individuals and
114 families;
115 (E) the degree to which any proposed cut may result in cost-shifting to more expensive
116 services in health or human service programs; and
117 (F) the fiscal impact of the proposed change, including:
118 (I) the effect of the proposed change on current or future appropriations from the
119 Legislature to the department;
120 (II) the effect the proposed change may have on federal matching dollars received by
121 the state Medicaid program;
122 (III) any cost shifting or cost savings within the department's budget that may result
123 from the proposed change; and
124 (IV) identification of the funds that will be used for the proposed change, including
125 any transfer of funds within the department's budget.
126 (4) Any rules adopted by the department under Subsection (2) are subject to review
127 and reauthorization by the Legislature in accordance with Section 63G-3-502 .
128 (5) The department may, in its discretion, contract with the Department of Human
129 Services or other qualified agencies for services in connection with the administration of the
130 Medicaid program, including:
131 (a) the determination of the eligibility of individuals for the program;
132 (b) recovery of overpayments; and
133 (c) consistent with Section 26-20-13 , and to the extent permitted by law and quality
134 control services, enforcement of fraud and abuse laws.
135 (6) The department shall provide, by rule, disciplinary measures and sanctions for
136 Medicaid providers who fail to comply with the rules and procedures of the program, provided
137 that sanctions imposed administratively may not extend beyond:
138 (a) termination from the program;
139 (b) recovery of claim reimbursements incorrectly paid; and
140 (c) those specified in Section 1919 of Title XIX of the federal Social Security Act.
141 (7) Funds collected as a result of a sanction imposed under Section 1919 of Title XIX
142 of the federal Social Security Act shall be deposited in the General Fund as nonlapsing
143 dedicated credits to be used by the division in accordance with the requirements of Section
144 1919 of Title XIX of the federal Social Security Act.
145 (8) (a) In determining whether an applicant or recipient is eligible for a service or
146 benefit under this part or Chapter 40, Utah Children's Health Insurance Act, the department
147 shall, if Subsection (8)(b) is satisfied, exclude from consideration one passenger vehicle
148 designated by the applicant or recipient.
149 (b) Before Subsection (8)(a) may be applied:
150 (i) the federal government must:
151 (A) determine that Subsection (8)(a) may be implemented within the state's existing
152 public assistance-related waivers as of January 1, 1999;
153 (B) extend a waiver to the state permitting the implementation of Subsection (8)(a); or
154 (C) determine that the state's waivers that permit dual eligibility determinations for
155 cash assistance and Medicaid are no longer valid; and
156 (ii) the department must determine that Subsection (8)(a) can be implemented within
157 existing funding.
158 (9) (a) For purposes of this Subsection (9):
159 (i) "aged, blind, or disabled" shall be defined by administrative rule; and
160 (ii) "spend down" means an amount of income in excess of the allowable income
161 standard that must be paid in cash to the department or incurred through the medical services
162 not paid by Medicaid.
163 (b) In determining whether an applicant or recipient who is aged, blind, or disabled is
164 eligible for a service or benefit under this chapter, the department shall use 100% of the
165 federal poverty level as:
166 (i) the allowable income standard for eligibility for services or benefits; and
167 (ii) the allowable income standard for eligibility as a result of spend down.
168 Section 3. Section 31A-22-613.5 is amended to read:
169 31A-22-613.5. Price and value comparisons of health insurance -- Basic Health
170 Care Plan.
171 (1) (a) [
172 [
173 (b) Subsection (2) applies to:
174 (i) all [
175 benefit plans; and
176 (ii) coverage offered to state employees under Subsection 49-20-202 (1)(a).
177 (2) (a) The commissioner shall promote informed consumer behavior and responsible
178 [
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180 (i) provide to all enrollees, prior to enrollment in the health benefit plan [
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182 [
183 (I) the use of a formulary [
184 (II) co-payments and deductibles for prescription drugs; and
185 (III) requirements for generic substitution;
186 [
187 [
188 [
189 limitation or exclusion from coverage; and
190 [
191 exclusion of coverage for a secondary medical condition[
192 (ii) provide the commissioner with:
193 (A) the information described in Subsections 63M-1-2506 (3) through (6) in the
194 standardized electronic format required by Subsection 63M-1-2506 (1); and
195 (B) information regarding insurer transparency in accordance with Subsection (5).
196 (b) [
197
198 required by [
199 (i) upon commencement of operations in the state; and
200 (ii) anytime the insurer amends any of the following described in Subsection (2)(a)(i):
201 (A) treatment policies;
202 (B) practice standards;
203 (C) restrictions;
204 (D) coverage limits of the insurer's health benefit plan or health insurance policy; or
205 (E) limitations or exclusions of coverage including a limitation or exclusion for a
206 secondary medical condition related to a limitation or exclusion of the insurer's health
207 insurance plan.
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214 (c) An insurer shall provide the enrollee with notice of an increase in costs for
215 prescription drug coverage due to a change in benefit design under Subsection (2)(a)(i)(A):
216 (i) either:
217 (A) in writing; or
218 (B) on the insurer's website; and
219 (ii) at least 30 days prior to the date of the implementation of the increase in cost, or as
220 soon as reasonably possible.
221 (d) If under Subsection (2)(a)(i)(A) a formulary is used, the insurer shall make
222 available to prospective enrollees and maintain evidence of the fact of the disclosure of:
223 (i) the drugs included;
224 (ii) the patented drugs not included;
225 (iii) any conditions that exist as a precedent to coverage; and
226 (iv) any exclusion from coverage for secondary medical conditions that may result
227 from the use of an excluded drug.
228 (e) (i) The department shall develop examples of limitations or exclusions of a
229 secondary medical condition that an insurer may use under Subsection (2)(a)[
230 (ii) Examples of a limitation or exclusion of coverage provided under Subsection
231 (2)(a)[
232 fact situation to fall within the description of an example does not, by itself, support a finding
233 of coverage.
234 (3) An insurer who offers a health [
235 Small Employer, and Group Health Insurance Act, shall[
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239 Chapter 30, Individual, Small Employer, and Group Health Insurance Act, that:
240 [
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242 qualifies under a federally qualified high deductible health plan, as adjusted by federal law;
243 and
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245 amount of the annual deductible.
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298 (a) shall forward the information submitted by an insurer under Subsection (2)(a)(ii) to
299 the Health Insurance Exchange created under Section 63M-1-2504 ; and
300 (b) may request information from an insurer to verify the information submitted by the
301 insurer [
302 (5) The commissioner shall:
303 (a) convene a group of insurers, a member representing the Public Employees' Benefit
304 and Insurance Program, consumers, and an organization described in Subsection
305 31A-22-614.6 (3)(b), to develop information for consumers to compare health insurers and
306 health benefit plans on the Health Insurance Exchange, which shall include consideration of:
307 (i) the number and cost of an insurer's denied health claims;
308 (ii) the cost of denied claims that is transferred to providers;
309 (iii) the average out-of-pocket expenses incurred by participants in each health benefit
310 plan that is offered by an insurer in the Health Insurance Exchange;
311 (iv) the relative efficiency and quality of claims administration and other
312 administrative processes for each insurer offering plans in the Health Insurance Exchange; and
313 (v) consumer assessment of each insurer or health benefit plan;
314 (b) adopt an administrative rule that establishes:
315 (i) definition of terms;
316 (ii) the methodology for determining and comparing the insurer transparency
317 information;
318 (iii) the data, and format of the data, that an insurer must submit to the department in
319 order to facilitate the consumer comparison on the Health Insurance Exchange in accordance
320 with Section 63M-1-2506 ; and
321 (iv) the dates on which the insurer must submit the data to the department in order for
322 the department to transmit the data to the Health Insurance Exchange in accordance with
323 Section 63M-1-2506 ; and
324 (c) implement the rules adopted under Subsection (5)(b) in a manner that protects the
325 business confidentiality of the insurer.
326 Section 4. Section 31A-22-722.5 is amended to read:
327 31A-22-722.5. Mini-COBRA election -- American Recovery and Reinvestment
328 Act.
329 (1) [
330
331 participate in a [
332 31A-22-722 in accordance with Section 3001 of the American Recovery and Reinvestment
333 Act of 2009 (Pub. S. 111-5) [
334 [
335 (i) was involuntarily terminated from employment [
336
337 American Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended;
338 [
339 American Recovery and Reinvestment Act of 2009 (Pub. S. 111-5), as amended; [
340 [
341 the time of termination[
342 (iv) elected Utah mini-Cobra; and
343 (v) voluntarily dropped coverage, which includes dropping coverage through
344 non-payment of premiums, between December 1, 2009 and February 1, 2010.
345 (2) (a) An individual or the employer of the individual shall contact the insurer and
346 inform the insurer that the individual wants to [
347 maintain coverage and pay retroactive premiums under a transition period for mini-COBRA
348 coverage [
349 and Reinvestment Act of 2009 (Pub. S. 111-5), as amended.
350 (b) An individual or an employer on behalf of an eligible individual must submit the
351 [
352 insurer [
353 American Recovery and Reinvestment Act of 2009 (Pub. S. 11-5), as amended.
354 (3) [
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358 employee's coverage under mini-cobra with the current employer's group policy beyond the 12
359 months to the period of time the insured is eligible to receive assistance in accordance with
360 Section 3001 of the American Recovery and Reinvestment Act of 2009 (Pub. S. 111-5) as
361 amended.
362 (4) An insurer that violates this section is subject to penalties in accordance with
363 Section 31A-2-308 .
364 Section 5. Section 31A-30-205 is amended to read:
365 31A-30-205. Health benefit plans offered in the defined contribution market.
366 (1) An insurer who [
367 contribution [
368 benefit plans as defined contribution arrangements:
369 [
370 [
371 [
372
373 [
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375 (a) the basic benefit plan;
376 (b) one health benefit plan with [
377 least 15% greater [
378 basic benefit plan;
379 (c) on or before January 1, 2011, one health benefit plan that is a federally qualified
380 high deductible health plan that has an individual deductible of $2,500 and a deductible of
381 $5,000 for coverage including two or more individuals, and does not exceed an annual
382 out-of-pocket maximum equal to three times the amount of the annual deductible;
383 (d) on or before January 1, 2011, one health benefit plan that is a federally qualified
384 high deductible health plan that has a deductible that is within $250 of the highest deductible
385 that qualifies as a federally qualified high deductible health plan as adjusted by federal law,
386 and does not exceed an annual out-of-pocket maximum equal to three times the amount of the
387 annual deductible; and
388 (e) the insurer's five most commonly selected health benefit plans that:
389 (i) include:
390 (A) the provider panel;
391 (B) the deductible;
392 (C) co-payments;
393 (D) co-insurance; and
394 (E) pharmacy benefits; and
395 (ii) are currently being marketed by the carrier to new groups for enrollment.
396 (2) (a) The provisions of Subsection (1) do not limit the number of defined
397 contribution arrangement health benefit plans an insurer may offer in the defined contribution
398 arrangement market.
399 (b) An insurer who offers the health benefit plans required by Subsection (1) may also
400 offer any other health benefit plan [
401 (i) the health benefit plan provides benefits that are [
402 actuarial value than the benefits required in [
403 (ii) the health benefit plan provides benefits with an aggregate actuarial value that is
404 no lower than the actuarial value of the plan required in Subsection (1)(c).
405 Section 6. Effective date.
406 If approved by two-thirds of all the members elected to each house, this bill takes effect
407 upon approval by the governor, or the day following the constitutional time limit of Utah
408 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
409 the date of veto override.
410 Section 7. Coordinating H.B. 459 with H.B. 294 -- Superseding amendments.
411 If this H.B. 459 and H.B. 294, Health System Reform Amendments, both pass, it is the
412 intent of the Legislature that the amendments to Sections 31A-22-613.5 and 31A-30-205 in
413 this bill supersede the amendments to Sections 31A-22-613.5 and 31A-30-205 in H.B. 294,
414 when the Office of Legislative Research and General Counsel prepares the Utah Code
415 database for publication.
416 Section 8. Coordinating H.B. 459 with H.B. 39 -- Substantive changes.
417 If this H.B. 459 and H.B. 39, Insurance Related Amendments, both pass, it is the intent
418 of the Legislature that the amendments to Section 31A-22-722.5 in this bill supersede the
419 amendments to Section 31A-22-722.5 in H.B. 39, and has retrospective operation to the date
420 the governor signed H.B. 39, when the Office of Legislative Research and General Counsel
421 prepares the Utah Code database for publication.
422
[Bill Documents][Bills Directory]
Bill Status / Votes
• Senate Actions • House Actions • Fiscal Actions • Other Actions
Date | Action | Location | Vote |
2/5/2010 | Bill Numbered by Title Without any Substance | Legislative Research and General Counsel | |
2/5/2010 | Numbered Bill Publicly Distributed | Legislative Research and General Counsel | |
2/5/2010 | Bill Numbered by Title Without any Substance | Legislative Research and General Counsel | |
2/26/2010 | Bill Numbered but not Distributed | Legislative Research and General Counsel | |
2/26/2010 | Numbered Bill Publicly Distributed | Legislative Research and General Counsel | |
2/26/2010 | House/ 1st reading (Introduced) | House Rules Committee | |
3/2/2010 | House/ to standing committee | House Health and Human Services Committee | |
3/3/2010 | LFA/ bill sent to agencies for fiscal input | House Health and Human Services Committee | |
3/3/2010 | House Comm - Substitute Recommendation | House Health and Human Services Committee | |
3/3/2010 | House Comm - Amendment Recommendation | House Health and Human Services Committee | |
3/3/2010 | House Comm - Favorable Recommendation | House Health and Human Services Committee | 5 0 2 |
3/3/2010 | Bill Substituted by Standing Committee | House Health and Human Services Committee | |
3/3/2010 | House/ comm rpt/ substituted/ amended | House Health and Human Services Committee | |
3/3/2010 | House/ 2nd reading | House 3rd Reading Calendar for House bills | |
3/4/2010 | LFA/ fiscal note sent to sponsor | House 3rd Reading Calendar for House bills | |
3/4/2010 | LFA/ fiscal note publicly available | House 3rd Reading Calendar for House bills | |
3/4/2010 | House/ to Printing with fiscal note | House 3rd Reading Calendar for House bills | |
3/4/2010 | House/ 3rd Reading Calendar to Rules | House Rules Committee | |
3/4/2010 | House/ Rules to 3rd Reading Calendar | House 3rd Reading Calendar for House bills | |
3/5/2010 | House/ 3rd reading | House 3rd Reading Calendar for House bills | |
3/5/2010 | House/ floor amendment | House 3rd Reading Calendar for House bills | |
3/5/2010 | House/ passed 3rd reading | Senate Secretary | 69 0 6 |
3/5/2010 | House/ to Senate | Senate Secretary | |
3/5/2010 | Senate/ received from House | Waiting for Introduction in the Senate | |
3/5/2010 | Senate/ 1st reading (Introduced) | Senate Rules Committee | |
3/8/2010 | Senate/ lifted from Rules | Senate Rules Committee | |
3/8/2010 | Senate/ placed on 2nd Reading Calendar | Senate 2nd Reading Calendar | |
3/9/2010 | Senate/ 2nd reading | Senate 2nd Reading Calendar | |
3/9/2010 | Senate/ circled | Senate 2nd Reading Calendar | |
3/9/2010 | Senate/ uncircled | Senate 2nd Reading Calendar | |
3/9/2010 | Senate/ 2nd & 3rd readings/ suspension | Senate 2nd Reading Calendar | |
3/9/2010 | Senate/ floor amendment | Senate 2nd Reading Calendar | |
3/9/2010 | Senate/ passed 2nd & 3rd readings/ suspension | Clerk of the House | 26 0 3 |
3/9/2010 | Senate/ to House with amendments | Clerk of the House | |
3/9/2010 | House/ received from Senate | Clerk of the House | |
3/9/2010 | House/ placed on Concurrence Calendar | House Concurrence Calendar | |
3/10/2010 | House/ concurs with Senate amendment | Senate President | 69 0 6 |
3/10/2010 | House/ to Senate | Senate President | |
3/10/2010 | Senate/ received from House | Senate President | |
3/10/2010 | Senate/ signed by President/ returned to House | House Speaker | |
3/10/2010 | Senate/ to House | House Speaker | |
3/10/2010 | House/ received from Senate | House Speaker | |
3/10/2010 | House/ signed by Speaker/ sent for enrolling | Legislative Research and General Counsel / Enrolling | |
3/10/2010 | Bill Received from House for Enrolling | Legislative Research and General Counsel / Enrolling | |
3/11/2010 | Draft of Enrolled Bill Prepared | Legislative Research and General Counsel / Enrolling | |
3/18/2010 | Enrolled Bill Returned to House or Senate | Clerk of the House | |
3/18/2010 | House/ enrolled bill to Printing | Clerk of the House | |
3/19/2010 | House/ to Governor | Executive Branch - Governor | |
3/23/2010 | Governor Signed | Executive Branch - Lieutenant Governor |
Committee Hearings/Floor Debate
- Committee Hearings
- Floor Debates