BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    SB 137    
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          |AUTHOR:        |Hernandez                                      |
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          |VERSION:       |March 26, 2015                                 |
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          |HEARING DATE:  |April 15, 2015 |               |               |
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          |CONSULTANT:    |Teri Boughton                                  |
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           SUBJECT  :  Health care coverage:  provider directories

           SUMMARY  :  Requires a health plan or insurer to make available a provider  
          directory or directories that provide information on contracting  
          providers, including those that accept new patients.  Prohibits  
          a provider directory from including information on a provider  
          that does not have a current contract with the plan or insurer.   
          Requires the plan or insurer to update the provider directory or  
          directories at least weekly, with any change to contracting  
          providers and ensure that the provider directory meets or  
          exceeds a 97 percent accuracy rate.

          Existing law:
          1.Requires a health plan to provide, upon request, a list of the  
            following contracting providers, within the enrollee's or  
            prospective enrollee's general geographic area:

                  a.        Primary care providers;

                  b.        Medical groups;

                  c.        Independent practice associations;

                  d.        Hospitals; and,

                  e.        All other available contracting physicians and  
                    surgeons, psychologists, acupuncturists, optometrists,  
                    podiatrists, chiropractors, licensed clinical social  
                    workers, marriage and family therapists, professional  
                    clinical counselors, and nurse midwives to the extent  
                    their services may be accessed and are covered through  
                    the contract with the plan.








          SB 137 (Hernandez)                                 Page 2 of ?
          
          
          2.Requires this list to indicate which providers have notified  
            the plan that they have closed practices or are otherwise not  
            accepting new patients at that time, and that the list is  
            subject to change without notice. 

          3.Requires the list to include a telephone number that enrollees  
            can contact to obtain information regarding a particular  
            provider and information on whether or not that provider has  
            indicated that he or she is accepting new patients.

          4.Requires the plan to provide this information in written form  
            to its enrollees or prospective enrollees upon request.  
            Permits a plan, with the permission of the enrollee, to direct  
            the enrollee or prospective enrollee to the plan's provider  
            listings on its Internet Web site. 

          5.Requires plans to ensure that the information provided is  
            updated at least quarterly. Permits a plan to satisfy this  
            update requirement by providing an insert or addendum to any  
            existing provider listing.

          6.Requires insurers to provide group policyholders with a  
            current roster of institutional and professional providers  
            under contract to provide services at alternative rates under  
            their group policy and make such lists available for public  
            inspection during regular business hours at the insurer's or  
            plan's principal office within the state.

          
          This bill:
          1.Requires a health plan or insurer to make available a provider  
            directory or directories that provide information on  
            contracting providers, including those that accept new  
            patients, as specified.  Prohibits a provider directory from  
            including information on a provider that does not have a  
            current contract with the plan or insurer.

          2.Requires a plan or insurer to provide the directory or  
            directories for the specific network offered for each product  
            using a consistent method of network and product naming,  
            numbering, or other classification method that ensures the  
            public, enrollees, potential enrollees, the regulators, and  
            other state or federal agencies can easily identify which  
            providers participate in which networks for which products.









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          3.Requires a health plan or insurer to use the same consistent  
            classification method in provider contracts and communications  
            to ensure that providers can identify the products and  
            networks that they are legally contracted to provide services  
            in.  Requires the classification to be consistent across plans  
            in order to permit the regulators and other state or federal  
            agencies to construct multi-plan directories.

          4.Requires the provider directory or directories to be available  
            on the plan's or insurer's Internet Web site and available  
            without any requirement that a member of the public or  
            potential enrollee indicate intent to obtain coverage from the  
            plan or insurer, without demonstrating coverage with the plan  
            or insurer, providing a policy number, providing any other  
            identifying information, or creating or accessing an account,  
            and accessible through a clearly identifiable link or tab.  

          5.Requires searches by name, practice address, National Provider  
            Identification number, California license, facility or  
            identification number, product, tier, provider language,  
            medical group or independent practice association, hospital or  
            clinic, as appropriate.

          6.Requires the Department of Managed Health Care (DMHC) to  
            direct the plan and the California Department of Insurance  
            (CDI) to direct the insurer to make the information available  
            on another technology if one emerges that takes the place of  
            the Internet in a timeframe that allows for implementation not  
            to exceed six months.  

          7.Requires the plan or insurer to make a paper copy of the  
            directory or directories available upon request.

          8.Requires the plan or insurer to update the provider directory  
            or directories, at least weekly, with any change to  
            contracting providers, including all of the following:

                  a.        Instances where a contracting provider is no  
                    longer accepting new patients, or that the provider  
                    moved or relocated from the contracted service area of  
                    the plan or insurer or has retired or has otherwise  
                    ceased to practice;
                  b.        Instances where the contracting provider  
                    group, if any, has identified that the provider is no  
                    longer associated with the group or is no longer  








          SB 137 (Hernandez)                                 Page 4 of ?
          
          
                    accepting new patients;
                  c.        Instances where the plan or insurer identified  
                    a change based on an enrollee complaint that a  
                    provider was not accepting new patients or was  
                    otherwise not available; and,
                  d.        Any other relevant information that has come  
                    to the attention of the plan or insurer affecting the  
                    content of the provider directory.

          9.Requires the provider directory or directories to include both  
            an email address and a telephone number for members of the  
            public and providers to notify the plan if the provider  
            directory information appears to be inaccurate.

          10.Requires a full service health plan and insurer to include  
            all of the following in the directory or directories:
                  a.        Provider's name, location(s), and contact  
                    information;
                  b.        Type of practitioner;
                  c.        National Provider Identification number;
                  d.        California license number and type of license;
                  e.        The area of specialty, including board  
                    certification, if any;
                  f.        For physicians, the medical group, if any;
                  g.        Nurse practitioners, physician assistants,  
                    psychologists, acupuncturists, optometrists,  
                    podiatrists, chiropractors, licensed clinical social  
                    workers, marriage and family therapists, professional  
                    clinical counselors, and nurse midwives, to the extent  
                    their services may be accessed and are covered through  
                    the contract with the plan or insurer;
                  h.        For federally qualified health centers (FQHCs)  
                    or primary care clinics, the name of the FQHC or  
                    clinic;
                  i.        The name of the provider and the name of the  
                    FQHC or clinic for any provider described in f or g  
                    above who is employed by a FQHC or primary care  
                    clinic;
                  j.        Hospital admitting privileges, if any, for  
                    physicians and other health professionals contracted  
                    with the plan or insurer whose scope of services for  
                    the plan include admitting patients and who have  
                    admitting privileges at a hospital;
                  aa.       Non-English language, if any, spoken by a  
                    health professional as well as non-English language,  








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                    if any, spoken by staff to the provider;
                  bb.       Whether a provider is accepting new patients  
                    with the product selected by the enrollee or potential  
                    enrollee;
                  cc.       Network tier to which the provider is  
                    assigned, if applicable.  Defines "Tiered provider  
                    network" as a network of participating providers that  
                    has been divided into subgroupings differentiated by  
                    the health plan or insurer according to enrollee cost  
                    sharing levels or quality scores.  
                  dd.       A disclosure that enrollees are entitled to  
                    full and equal access to covered services, including  
                    enrollees with disabilities as required under relevant  
                    federal law; and,
                  ee.       All other information necessary to conduct a  
                    search pursuant to 5 above.

          11.Establishes similar requirements as in 10) above for  
            specialized health plans.
                     
          12.Requires by March 15, 2016, DMHC and CDI to develop provider  
            directory standards that are sufficient to permit a single  
            uniform electronic directory that would allow a member of the  
            public to determine whether a physician or other provider is  
            available to an enrollee of the California Health Benefit  
            Exchange (Covered California), a beneficiary of the Medi-Cal  
            program enrolled in a Medi-Cal managed care plan, or an  
            enrollee or potential enrollee of group coverage.  Requires by  
            September 15, 2016, or no later than six months after the date

            that provider directory standards are developed by DMHC and  
            CDI, a plan or insurer to use the standards for each product  
            offered by the plan or insurer.

          13.Requires a directory or directories to be provided to DMHC or  
            CDI in a format required by DMHC or CDI.

          14.Requires the plan or insurer to demonstrate no less than  
            quarterly that the information is consistent with information  
            required under existing law related to timely access to care  
            and for DMHC plans adequate provider networks.

          15.Requires the plan or insurer to ensure that the accuracy of  
            the provider directory meets or exceeds 97 percent.









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          16.Requires the plan or insurer to contact any provider listed  
            in the directory which has not submitted a claim or encounter  
            data, if claims are not submitted, in the past three months  
            for primary care providers, or six months for specialty care  
            providers, to determine whether the provider is accepting  
            patients or referrals from the plan or insurer.  Requires a  
            provider who does not respond within 30 days to be removed  
            from the provider directory.

          17.Requires the plan or insurer to make available an electronic  
            copy of the directory, or upon request, one physical copy, to  
            the Department of Health Care Services (DHCS) for Medi-Cal  
            managed care plans, to Covered California for the networks of  
            the products offered through the exchange, as required by  
            contract, on request to the Public Employees' Retirement  
            System, the regulators, and on request by a group purchaser.

          18.Requires a plan or insurer to undertake immediate corrective  
            action to ensure the accuracy of the directory or directories  
            if informed of a possible inaccuracy.  

          19.Requires plans or insurers to ensure processes are in place  
            to allow providers to promptly verify or submit changes to  
            demographic information and participation status that at a  
            minimum, include an online interface for providers to submit  
            verification or changes electronically and to allow providers  
            to receive an acknowledgement of receipt from the plan or  
            insurer.  

          20.Requires providers to verify or submit changes to demographic  
            information and participation status using this process  
            according to the terms of their contract with the contracted  
            health plan or insurer.  

          21.Requires plans or insurers to allow enrollees to request the  
            information required by this bill through their toll-free  
            telephone number, electronically, or in writing.  Permits  
            information provided in written form to be limited by the  
            geographic region in which the enrollee or potential enrollee  
            resides or intends to reside.


           FISCAL  
          EFFECT  :  This bill has not been analyzed by a fiscal committee.









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           COMMENTS  :
          1.Author's statement.  According to the author, Californians  
            shopping for health insurance must have confidence in provider  
            directory information in order to make coverage decisions,  
            especially when health insurance coverage is required by  
            government for most of the population. For too long,  
            Californians have been unable to rely on information provided  
            by health insurance carriers and health care providers about  
            which carriers their existing health care providers are  
            contracted with, and if a provider is taking new patients.  
            California's provider directory law also needs to be updated  
            to reflect technological advancements away from paper-based  
            directories.  Federal and state health insurance regulations  
            have established requirements on different segments of health  
            insurance carriers, but uniform standards are necessary to  
            ensure consistency among carriers, markets and programs.  This  
            bill would establish uniform provider directory standards and  
            require weekly updates of online directories.
          
          2.Federal Regulations. The following regulations have been  
            issued by the federal government relative to health plans and  
            insurers participating in exchanges under the Patient  
            Protection and Affordable Care Act (ACA).  These plans and  
            insurers are referred to as qualified health plans (QHPs).   
            Each QHP that uses a provider network must ensure that the  
            network of contracted providers meets the following standards:  
             

               a.     The QHP provider directory must be available to an  
                 exchange for publication online in accordance with  
                 guidance from the federal Department of Health and Human  
                 Services (HHS) and to potential enrollees in hard copy  
                 upon request;
               b.     A QHP must identify providers that are not accepting  
                 new patients; and,
               c.     For plan years beginning on or after January 1,  
                 2016, a QHP must publish an up-to-date, accurate, and  
                 complete provider directory, including information on  
                 which providers are accepting new patients, the  
                 provider's location, contact information, specialty,  
                 medical group, and any institutional affiliations, in a  
                 manner that is easily accessible to plan enrollees,  
                 prospective enrollees, the state, the exchange, HHS and  
                 United States Office of Personnel Management. A provider  
                 directory is easily accessible when:








          SB 137 (Hernandez)                                 Page 8 of ?
          
          
                     i.          The general public is able to view all of  
                      the current providers for a plan in the provider  
                      directory on the QHP's public Web site through a  
                      clearly identifiable link or tab and without  
                      creating or accessing an account or entering a  
                      policy number; and
                     ii.         If a carrier maintains multiple provider  
                      networks, the general public is able to easily  
                      discern which providers participate in which plans  
                      and which provider networks. 

          3.CDI Regulations.  Recently approved emergency regulations  
            issued by CDI require network provider directories to be  
            offered to accommodate individuals with limited English  
            proficiency or disabilities, and require an insurer to post  
            its current network provider directory on its internet web  
            site, updated weekly, and available online to both covered  
            persons and consumers shopping for coverage without  
            requirements to log on or enter a password or a policy number.  
             The CDI regulations require an insurer to maintain accurate  
            provider directories for its networks and demonstrate the  
            accuracy of its directories to CDI.  Insurers must inform its  
            covered persons of the availability of a paper copy of the  
            network provider directory at no cost in its coverage material  
            and on its internet web site, and requires the paper copy of  
            the network provider directory to be printed annually and  
            updated quarterly during the calendar year.  The regulations  
            require, if an insurer has more than one provider network,  
            that it be reasonably clear to a covered person which network  
            applies to each insurance product.  Covered persons must be  
            informed of the availability of translations and interpreter  
            services in languages other than English. The regulations  
            require the following listing for each provider: the name of  
            the provider, the specialty area or areas of the provider,  
            whether the provider is currently accepting new patients,  
            whether the provider may be accessed without referral, the  
            location(s), including address, and contact information for  
            the provider, the gender of the provider, languages spoken by  
            the provider, languages spoken by office staff, list of  
            network facilities where the provider has admitting  
            privileges, whether the provider is a primary care physician  
            (PCP), and whether the office is accessible under the  
            Americans with Disabilities Act (ADA).  The network provider  
            directories, both printed and online, are required to also  
            inform consumers of the insurer's obligation to offer  








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            consumers primary care and specialty care within the specified  
            time frames. The network provider directories, both printed  
            and online, must identify those contracting providers who are  
            themselves multilingual or who employ other multilingual  
            providers and/or office staff, based on language capability  
            disclosure forms signed by the multilingual providers and/or  
            office staff, attesting to their fluency in languages other  
            than English.  The regulations require an insurer to promptly  
            notify those patients seen by a provider within the past year  
            when the provider, for any reason, leaves the insurer's  
            network. This may include, but is not limited to, the  
            provider's decision to retire or stop practicing medicine for  
            other reasons, relocating to an area outside the service area,  
            leaving a group practice that is included as a participant in  
            the network, or withdrawing from a network for any other  
            reason.

          4.Medi-Cal Requirements.  Plans contracting for Medi-Cal managed  
            care enrollees must meet state and federal provider directory  
            requirements.  The following are provisions from contracts  
            between DHCS and Medi-Cal managed care plans.  "Contractor  
            shall cooperate with the DHCS Enrollment program and shall  
            provide to DHCS' enrollment contractor a list of network  
            providers (provider directory), linguistic capabilities of the  
            providers and other information deemed necessary by DHCS to  
            assist Medi-Cal beneficiaries, and Potential Enrollees, in  
            making an informed choice in health plans. The provider  
            directory will be submitted every six months and in accordance  
            with MMCD Policy Letter 00-02."  Additionally, Medi-Cal  
            managed care plans are required to comply with provider  
            listing requirements applicable to DMHC regulation health  
            plans and they are required to report quarterly and at the  
            time of a significant change to the network affecting provider  
            capacity and services, including: 1) Change in services or  
            benefits; 2) Geographic service area or payments; or 3)  
            Enrollment of a new population. The report is required to  
            identify the number of primary care providers, provider  
            deletions and additions, and the resulting impact to: 1)  
            geographic access for the members; 2) cultural and linguistic  
            services including provider and provider staff language  
            capability; 3) the percentage of traditional and safety-net  
            providers; 4) the number of members assigned to each primary  
            care physician; 5) the percentage of members assigned to  
            traditional and safety-net providers; and 6) the network  
            providers who are not accepting new patients. 








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          5.Audit Request.  In the summer of 2014, the Joint Legislative  
            Audit Committee approved a request by Senator Ricardo Lara to  
            examine California's Medi-Cal managed care provider  
            directories, provider networks and the current regulatory  
            framework to ensure the accuracy of the provider directories.   
            According to the request, there were several alarming reports  
            about the difficulty some Medi-Cal beneficiaries are having in  
            finding Medi-Cal providers who will accept new patients.  The  
            audit conducted by the Bureau of State Audits is expected  
                                                                                 sometime this summer.
          
          6.Related Legislation.  AB 533 (Bonta) requires a health plan  
            contract or health insurance policy issued, amended, or  
            renewed on or after January 1, 2016, to provide that if an  
            enrollee or insured obtains care from a participating  
            facility, as defined, at which, or as a result of which, the  
            enrollee or insured receives covered services provided by a  
            nonparticipating provider, as defined, the enrollee or insured  
            is required to pay the nonparticipating provider only the same  
            cost sharing required if the services were provided by a  
            participating provider.   AB 533 is scheduled for a hearing in  
            the Assembly Health Committee on April 21, 2015.

          7.Prior legislation.  
               a.     SB 964 (Hernandez), Chapter 573, Statutes of 2014,  
                 increases the oversight of health plans and compliance  
                 with timely access to care requirements by requiring  
                 health plans to annually report specified network  
                 adequacy data, authorizing health plans to include  
                 provisions requiring compliance with timely access in its  
                 provider contracts, and requiring DHCS to publicly report  
                 its findings of finalized medical audits as soon as  
                 possible, as specified, and to share those findings and  
                 other information with respect to health plans regulated  
                 by DMHC.

               b.     AB 2179 (Cohn), Chapter 797, Statutes of 2002,  
                 requires DMHC and CDI to develop and adopted  
                 regulations to ensure that enrollees have access to  
                 needed health care services.
               
          8.Support.  The California Pan Ethnic Health Network (CPEHN),  
            cosponsor of this bill writes, health care coverage alone does  
            not ensure consumers can access care. Consumers rely on  








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            information supplied by health plan provider directories to  
            make decisions about which plans best meet their needs. Errors  
            and misleading information in provider directories can become  
            a huge obstacle for individuals in accessing care. These  
            obstacles are exacerbated in communities of color who often  
            face an insufficient distribution of providers, transportation  
            barriers, language barriers, and lack of flexible hours.  
            Incorrect or out-of-date provider directories further limit  
            the number of available providers, may delay timely access to  
            care, require excessive amount of travel or prevent a consumer  
            from receiving culturally and linguistically appropriate care.  
             Consumers Union and Health Access California, also cosponsors  
            of this bill, writes without knowing which providers are in  
            the network, consumers cannot keep medical costs under control  
            and avoid the surprise medical bills that can come with  
            getting care from out-of-network providers.  California  
            recognized the importance of provider directories by enacting  
            a law on access to them a decade ago.  Since that time,  
            technology has transformed, making information once available  
            only in telephone book-sized tomes now more readily accessible  
            online.  The statutes have not been updated to reflect both  
            advances in technology and the transformation of the health  
            insurance landscape of active consumers shopping for coverage.  
             The first ACA open enrollment period drew significant  
            attention to the issue of inaccurate and insufficiently  
            accessible provider directories.  Some consumers faced  
            difficulty getting accurate provider information prior to  
            enrolling; others once enrolled found that the directories  
            they relied upon were not up to date.  These issues prompted  
            DMHC to audit two of California's largest insurers last summer  
            and fall, revealing deficiencies in their provider  
            directories. Health Access California believes this bill is  
            the next logical step now that timely access and network  
            adequacy requirements are in place.  The Montebello Unified  
            School District supports this bill indicating that many of  
            their employees selected a certain CalPERS plan based on  
            misinformation by the plan that a community hospital was in  
            the network.  This hospital continues to be listed in the  
            network three months later despite CalPERS responding to the  
            district that it was working with the plan "to ensure their  
            website is clear and understandable to our members."
          
          9.Concerns.  The California Association of Health Plans (CAHP)  
            writes that the accuracy of the directory should be based on a  
            shared responsibility between plans and practitioners.  CAHP  








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            has concerns regarding the volume of detail that is to be  
            incorporated into an on-line database with a 97 percent  
            accuracy rate.  The concern is based on the heavy reliance of  
            practitioners and medical groups to maintain accurate records,  
            such as phone numbers, which will require a higher degree of  
            shared responsibility between practitioners and plans.  CAHP  
            states that it would be helpful to collectively consider a  
            mechanism for health plans to utilize, outside of contractual  
            requirements, to ensure that practitioner information  
            contained in the database is accurate.  CAHP's other concerns  
            with the bill surround the timeframes and efforts spent in  
            regard to the frequency of the updates and CAHP recommends  
            that only data which will assist enrollees in identifying  
            network practitioners be included in the directory.  Some  
            health plans, including smaller regional or Medi-Cal managed  
            care plans, may have issues with implementing the new  
            requirements in the timeframes contained in the bill.  Plans  
            will be required to make a significant investment in  
            information technology and possibly new network management  
            staff.  There are significant technical issues to be  
            considered for implementation, such as in identifying data  
            processing issues to incorporate on-line practitioner feedback  
            into the on-line directory.  CAHP also points out that  
            practitioners have one year to bill for care provided, however  
            the bill requires that a practitioner be contacted if a  
            primary care provider has not submitted a claim or encounter  
            data for three months and specialty providers for six months.

          10.Amendments. The author intends to request the committee adopt  
            several technical and clarifying amendments.
          
           SUPPORT AND OPPOSITION :
          Support:  California Pan-Ethnic Health Network (co-sponsor)
                    Consumers Union (co-sponsor)
                    Health Access California (co-sponsor)
                    American Cancer Society Cancer Action Network
                    American Federation of State, County, and Municipal  
               Employees, AFL-CIO
                    Asian Law Alliance
                    California Academy of Family Physicians 
                    California Black Health Network
                    California Chapter American College of Emergency  
               Physicians
                    California Chapter National Association of Social  
               Workers








          SB 137 (Hernandez)                                 Page 13 of ?
          
          
                    California Council of Community Mental Health Agencies
                    California Coverage and Health Initiatives
                    California Labor Federation
                    California Primary Care Association
                    California Optometric Association
                    CALPIRG
                    California School Employees Association, AFL-CIO
                    Children Now
                    Children's Defense Fund California
                    Montebello Unified School District
                    National Health Law Program
                    National Multiple Sclerosis Society California Action  
               Network
                    The Children's Partnership
                    Southeast Asia Resource Action Center
                    Susan G. Komen, Central Valley Affiliate
                    Susan G. Komen, Inland Empire Affiliate
                    Susan G. Komen, Los Angeles County Affiliate
                    Susan G. Komen, Orange County Affiliate
                    Susan G. Komen, Sacramento Valley Affiliate
                    Susan G. Komen, San Diego Affiliate
                    Susan G. Komen, San Francisco Bay Area Affiliate
                    United Way of California
                    Western Center on Law and Poverty

          Oppose:   None on file
          
                                      -- END --