Bill Text: NJ A2103 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires carriers offering managed care plans to report certain utilization management decisions to DOBI.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-11 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A2103 Detail]
Download: New_Jersey-2010-A2103-Introduced.html
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington and Camden)
SYNOPSIS
Requires carriers offering managed care plans to report certain utilization management decisions to DOBI.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning utilization management decisions by certain carriers and amending P.L.1997, c.192.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.1997, c.192 (C.26:2S-6) is amended to read as follows:
6. a. A carrier which offers a managed care plan or uses a utilization management system in any of its health benefits plans shall designate a licensed physician to serve as medical director. The medical director, or his designee, shall be designated to serve as the medical director for medical services provided to covered persons in the State and shall be licensed to practice medicine in New Jersey.
The medical director shall be responsible for treatment policies, protocols, quality assurance activities and utilization management decisions of the carrier. The treatment policies, protocols, quality assurance program and utilization management decisions of the carrier shall be based on generally accepted standards of health care practice. The quality assurance and utilization management programs shall be in accordance with standards adopted by regulation of the department pursuant to this act.
b. The medical director shall ensure that:
(1) Any utilization management decision to deny, reduce or terminate a health care benefit or to deny payment for a health care service, because that service is not medically necessary, shall be made by a physician. In the case of a health care service prescribed or provided by a dentist, the decision shall be made by a dentist;
(2) A utilization management decision shall not retrospectively deny coverage for health care services provided to a covered person when prior approval has been obtained from the carrier for those services, unless the approval was based upon fraudulent information submitted by the covered person or the participating provider;
(3) In the case of a managed care plan, a procedure is implemented whereby participating physicians and dentists have an opportunity to review and comment on all medical and surgical and dental protocols, respectively, of the carrier;
(4) The utilization management program is available on a 24-hour basis to respond to authorization requests for emergency and urgent services and is available, at a minimum, during normal working hours for inquiries and authorization requests for nonurgent health care services; [and]
(5) In the case of a managed
care plan, a covered person is permitted to: choose or change a primary care
physician from
among participating providers in the provider network, and, when appropriate,
choose a specialist from among participating network providers following an
authorized referral, if required by the carrier, and subject to the ability of
the specialist to accept new patients; and
(6) Any utilization management decision to deny, reduce or terminate a health care benefit or to deny payment for a health care service, because that service is not medically necessary, is reported to the Commissioner of Banking and Insurance, on a form and in a manner to be prescribed by regulation of the commissioner, for the following health care services: physical and occupational therapy services; prescription drugs and biologics; radiological examinations; durable medical equipment; and surgical services that address a single organ or organ system.
(cf: P.L.1997, c.192, s.6)
2. This act shall take effect on the 180th day after enactment, but the Commissioner of Banking and Insurance may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of the act.
STATEMENT
This bill requires a health insurance carrier that offers a managed care plan to report any utilization management decision to deny, reduce or terminate a health care benefit or to deny payment for a health care service, because that service is not medically necessary, to the Commissioner of Banking and Insurance, on a form and in a manner to be prescribed by regulation of the commissioner, for the following health care services: physical and occupational therapy services; prescription drugs and biologics; radiological examinations; durable medical equipment; and surgical services that address a single organ or organ system.
The bill takes effect on the 180th day after enactment, but authorizes the Commissioner of Banking and Insurance to take anticipatory administrative action in advance as necessary for its implementation.
