Senate Bill No. 1100

Introduced by Senator Hernandez

February 19, 2014

An act to amend Section 1373.96 of the Health and Safety Code, and to amend Section 10133.56 of the Insurance Code, relating to health care coverage.

LEGISLATIVE COUNSEL’S DIGEST

SB 1100, as introduced, Hernandez. Continuity of care.

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law also provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan or a health insurer to provide for the completion of covered services by a terminated provider for enrollees or insureds who were receiving services from the provider for a specified condition at the time of the provider termination. Existing law also requires a health care service plan to provide for the completion of covered services by a nonparticipating provider to a newly covered enrollee who, at the time his or her coverage became effective, was receiving services from that provider for a specified condition. Existing law requires a health care service plan to provide a disclosure form regarding the benefits, services, and terms of a plan contract and requires the disclosure form to include a description of how an enrollee can request continuity of care under the provisions described above.

This bill would also require a health care service plan to include notice of the process to obtain continuity of care in every evidence of coverage issued after January 1, 2015. The bill would also require a plan to provide a written copy of this information to its contracting providers and provider groups, as well as a copy to its enrollees upon request. The bill would make other technical changes to the provisions governing health insurers and continuity of care. Because a willful violation of the bill’s requirements by a health care service plan would be a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 1373.96 of the Health and Safety Code
is amended to read:

1373.96.  

(a) A health care service plan shall at the request of
an enrollee, provide the completion of covered services as set forth
in this section by a terminated provider or by a nonparticipating
provider.

(b) (1) The completion of covered services shall be provided
by a terminated provider to an enrollee who at the time of the
contract’s termination, was receiving services from that provider
for one of the conditions described in subdivision (c).

(2) The completion of covered services shall be provided by a
nonparticipating provider to a newly covered enrollee who, at the
time his or her coverage became effective, was receiving services
from that provider for one of the conditions described in
subdivision (c).

(c) The health care service plan shall provide for the completion
of covered services for the following conditions:

(1) An acute condition. An acute condition is a medical
condition that involves a sudden onset of symptoms due to an
illness, injury, or other medical problem that requires prompt
medical attention and that has a limited duration. Completion of
covered services shall be provided for the duration of the acute
condition.

(2) A serious chronic condition. A serious chronic condition is
a medical condition due to a disease, illness, or other medical
problem or medical disorder that is serious in nature and that
persists without full cure or worsens over an extended period of
time or requires ongoing treatment to maintain remission or prevent
deterioration. Completion of covered services shall be provided
for a period of time necessary to complete a course of treatment
and to arrange for a safe transfer to another provider, as determined
by the health care service plan in consultation with the enrollee
and the terminated provider or nonparticipating provider and
consistent with good professional practice. Completion of covered
services under this paragraph shall not exceed 12 months from the
contract termination date or 12 months from the effective date of
coverage for a newly covered enrollee.

(3) A pregnancy. A pregnancy is the three trimesters of
pregnancy and the immediate postpartum period. Completion of
covered services shall be provided for the duration of the
pregnancy.

(4) A terminal illness. A terminal illness is an incurable or
irreversible condition that has a high probability of causing death
within one year or less. Completion of covered services shall be
provided for the duration of a terminal illness, which may exceed
12 months from the contract termination date or 12 months from
the effective date of coverage for a new enrollee.

(5) The care of a newborn child between birth and age 36
months. Completion of covered services under this paragraph shall
not exceed 12 months from the contract termination date or 12
months from the effective date of coverage for a newly covered
enrollee.

(6) Performance of a surgery or other procedure that is
authorized by the plan as part of a documented course of treatment
and has been recommended and documented by the provider to
occur within 180 days of the contract’s termination date or within
180 days of the effective date of coverage for a newly covered
enrollee.

(d) (1) The plan may require the terminated provider whose
services are continued beyond the contract termination date
pursuant to this section to agree in writing to be subject to the same
contractual terms and conditions that were imposed upon the
provider prior to termination, including, but not limited to,
credentialing, hospital privileging, utilization review, peer review,
and quality assurance requirements. If the terminated provider
does not agree to comply or does not comply with these contractual
terms and conditions, the plan is not required to continue the
provider’s services beyond the contract termination date.

(2) Unless otherwise agreed by the terminated provider and the
plan or by the individual provider and the provider group, the
services rendered pursuant to this section shall be compensated at
rates and methods of payment similar to those used by the plan or
the provider group for currently contracting providers providing
similar services who are not capitated and who are practicing in
the same or a similar geographic area as the terminated provider.
Neither the plan nor the provider group is required to continue the
services of a terminated provider if the provider does not accept
the payment rates provided for in this paragraph.

(e) (1) The plan may require a nonparticipating provider whose
services are continued pursuant to this section for a newly covered
enrollee to agree in writing to be subject to the same contractual
terms and conditions that are imposed upon currently contracting
providers providing similar services who are not capitated and
who are practicing in the same or a similar geographic area as the
nonparticipating provider, including, but not limited to,
credentialing, hospital privileging, utilization review, peer review,
and quality assurance requirements. If the nonparticipating provider
does not agree to comply or does not comply with these contractual
terms and conditions, the plan is not required to continue the
provider’s services.

(2) Unless otherwise agreed upon by the nonparticipating
provider and the plan or by the nonparticipating provider and the
provider group, the services rendered pursuant to this section shall
be compensated at rates and methods of payment similar to those
used by the plan or the provider group for currently contracting
providers providing similar services who are not capitated and
who are practicing in the same or a similar geographic area as the
nonparticipating provider. Neither the plan nor the provider group
is required to continue the services of a nonparticipating provider
if the provider does not accept the payment rates provided for in
this paragraph.

begin insert

(f) Notice as to the process by which an enrollee may request
completion of covered services pursuant to this section shall be
provided in every disclosure form as required under Section 1363
and in any evidence of coverage issued after January 1, 2015. A
plan shall provide a written copy of this information to its
contracting providers and provider groups. A plan shall also
provide a copy to its enrollees upon request.

end insert begin delete

(f)

end delete

begin insert (g) end insert  The amount of, and the requirement for payment of,
copayments, deductibles, or other cost sharing components during
the period of completion of covered services with a terminated
provider or a nonparticipating provider are the same as would be
paid by the enrollee if receiving care from a provider currently
contracting with or employed by the plan.

begin delete

(g)

end delete

begin insert (h) end insert  If a plan delegates the responsibility of complying with this
section to a provider group, the plan shall ensure that the
requirements of this section are met.

begin delete

(h)

end delete

begin insert (i) end insert  This section shall not require a plan to provide for completion
of covered services by a provider whose contract with the plan or
provider group has been terminated or not renewed for reasons
relating to a medical disciplinary cause or reason, as defined in
paragraph (6) of subdivision (a) of Section 805 of the Business
and Profession Code, or fraud or other criminal activity.

begin delete

(i)

end delete

begin insert (j) end insert  This section shall not require a plan to cover services or
provide benefits that are not otherwise covered under the terms
and conditions of the plan contract. This section shall not apply to
a newly covered enrollee covered under an individual subscriber
agreement who is undergoing a course of treatment on the effective
date of his or her coverage for a condition described in subdivision
(c).

begin delete

(j)

end delete

begin insert (k) end insert  This section shall not apply to a newly covered enrollee who
is offered an out-of-network option or to a newly covered enrollee
who had the option to continue with his or her previous health plan
or provider and instead voluntarily chose to change health plans.

begin delete

(k)

end delete

begin insert (l) end insert  The provisions contained in this section are in addition to
any other responsibilities of a health care service plan to provide
continuity of care pursuant to this chapter. Nothing in this section
shall preclude a plan from providing continuity of care beyond the
requirements of this section.

begin delete

(l)

end delete

begin insert (m) end insert  The following definitions apply for the purposes of this
section:

(1) “Individual provider” means a person who is a licentiate, as
defined in Section 805 of the Business and Professions Code, or
a person licensed under Chapter 2 (commencing with Section
1000) of Division 2 of the Business and Professions Code.

(2) “Nonparticipating provider” means a provider who is not
contracted with a health care service plan.

(3) “Provider” shall have the same meaning as set forth in
subdivision (i) of Section 1345.

(4) “Provider group” means a medical group, independent
practice association, or any other similar organization.

SEC. 2.  

Section 10133.56 of the Insurance Code is amended
to read:

10133.56.  

(a) A health insurer that enters into a contract with
a professional or institutional provider to provide services at
alternative rates of payment pursuant to Section 10133 shall, at
the request of an insured, arrange for the completion of covered
services by a terminated provider, if the insured is undergoing a
course of treatment for any of the following conditions:

(1) An acute condition. An acute condition is a medical
condition that involves a sudden onset of symptoms due to an
illness, injury, or other medical problem that requires prompt
medical attention and that has a limited duration. Completion of
covered services shall be provided for the duration of the acute
condition.

(2) A serious chronic condition. A serious chronic condition is
a medical condition due to a disease, illness, or other medical
problem or medical disorder that is serious in nature and that
persists without full cure or worsens over an extended period of
time or requires ongoing treatment to maintain remission or prevent
deterioration. Completion of covered services shall be provided
for a period of time necessary to complete a course of treatment
and to arrange for a safe transfer to another provider, as determined
by the health insurer in consultation with the insured and the
terminated provider and consistent with good professional practice.
Completion of covered services under this paragraph shall not
exceed 12 months from the contract termination date.

(3) A pregnancy. A pregnancy is the three trimesters of
pregnancy and the immediate postpartum period. Completion of
covered services shall be provided for the duration of the
pregnancy.

(4) A terminal illness. A terminal illness is an incurable or
irreversible condition that has a high probability of causing death
within one year or less. Completion of covered services shall be
provided for the duration of a terminal illness, which may exceed
12 months from the contract termination date.

(5) The care of a newborn child between birth and age 36
months. Completion of covered services under this paragraph shall
not exceed 12 months from the contract termination date.

(6) Performance of a surgery or other procedure that has been
recommended and documented by the provider to occur within
180 days of the contract’s termination date.

(b) The insurer may require the terminated provider whose
services are continued beyond the contract termination date
pursuant to this begin delete section, end delete begin insert section end insert to agree in writing to be subject
to the same contractual terms and conditions that were imposed
upon the provider prior to termination, including, but not limited
to, credentialing, hospital privileging, utilization review, peer
review, and quality assurance requirements. If the terminated
provider does not agree to comply or does not comply with these
contractual terms and conditions, the insurer is not required to
continue the provider’s services beyond the contract termination
date.

(c) Unless otherwise agreed upon between the terminated
provider and the insurer or between the terminated provider and
the provider group, the agreement shall be construed to require a
rate and method of payment to the terminated provider, for the
services rendered pursuant to this section, that are the same as the
rate and method of payment for the same services while under
contract with the insurer and at the time of termination. The
provider shall accept the reimbursement as payment in full and
shall not bill the insured for any amount in excess of the
reimbursement rate, with the exception of copayments and
deductibles pursuant to subdivision (e).

(d) Notice as to the process by which an insured may request
completion of covered services pursuant to this section shall be
provided in any insurer evidence of coverage and disclosure form
issued after March 31, 2004. An insurer shall provide a written
copy of this information to its contracting providers and provider
groups. An insurer shall also provide a copy to its insureds upon
request.

(e) The payment of copayments, deductibles, or other
cost-sharing components by the insured during the period of
completion of covered services with a terminated provider shall
be the same copayments, deductibles, or other cost-sharing
components that would be paid by the insured when receiving care
from a provider currently contracting with the insurer.

(f) If an insurer delegates the responsibility of complying with
this section to its contracting entities, the insurer shall ensure that
the requirements of this section are met.

(g) For the purposes of this section, the following begin delete terms have
the following meanings: end delete begin insert definitions apply: end insert

(1) “Provider” means a person who is a licentiate as defined in
Section 805 of the Business and Professions Code or a person
licensed under Chapter 2 (commencing with Section 1000) of
Division 2 of the Business and Professions Code.

(2) “Terminated provider” means a provider whose contract to
provide services to insureds is terminated or not renewed by the
insurer or one of the insurer’s contracting provider groups. A
terminated provider is not a provider who voluntarily leaves the
insurer or contracting provider group.

(3) “Provider group” includes a medical group, independent
practice association, or any other similar organization.

(h) This section shall not require an insurer or provider group
to provide for the completion of covered services by a provider
whose contract with the insurer or provider group has been
terminated or not renewed for reasons relating to medical
disciplinary cause or reason, as defined in paragraph (6) of
subdivision (a) of Section 805 of the Business and Professions
Code, or fraud or other criminal activity.

(i) This section shall not require an insurer to cover services or
provide benefits that are not otherwise covered under the terms
and conditions of the insurer contract.

(j) The provisions contained in this section are in addition to
any other responsibilities of insurers to provide continuity of care
pursuant to this chapter. Nothing in this section shall preclude an
insurer from providing continuity of care beyond the requirements
of this section.

SEC. 3.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.