2007 Legislation
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HOUSE BILL NO. 122 – Anatomic pathology services/billing

HOUSE BILL NO. 122

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Bill Status



H0122.................................................by HEALTH AND WELFARE
ANATOMIC PATHOLOGY SERVICES - Adds to existing law relating to anatomic
pathology services to define terms; to provide who may be billed for
anatomic pathology services; to provide conditions when payment may be
solicited; to provide exceptions; and to provide penalties.
                                                                        
02/07    House intro - 1st rdg - to printing
02/08    Rpt prt - to Health/Wel

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 122
                                                                        
                              BY HEALTH AND WELFARE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO DIRECT BILLING OF ANATOMIC PATHOLOGY  SERVICES;  AMENDING  CHAPTER
  3        18,  TITLE 54, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 54-1842, IDAHO
  4        CODE, TO DEFINE TERMS, TO PROVIDE  DUTIES  OF  A  CLINICAL  LABORATORY  OR
  5        LICENSED  PRACTITIONER  PROVIDING ANATOMIC PATHOLOGY SERVICES FOR PATIENTS
  6        IN IDAHO, TO PROVIDE CONDITIONS WHEN PAYMENT FOR ANATOMIC  PATHOLOGY  SER-
  7        VICES MAY BE REQUESTED, TO PROVIDE THAT A VIOLATION OF THIS ACT SHALL REN-
  8        DER  REIMBURSEMENT  CLAIMS VOID, TO PROVIDE APPLICATION, TO PROVIDE EXCEP-
  9        TIONS AND TO PROVIDE PENALTIES.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION 1.  That Chapter 18, Title 54, Idaho Code, be,  and  the  same  is
 12    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 13    ignated as Section 54-1842, Idaho Code, and to read as follows:
                                                                        
 14        54-1842.  DIRECT BILLING OF ANATOMIC PATHOLOGY SERVICES. (1)  As  used  in
 15    this section:
 16        (a)  "Anatomic pathology services" means:
 17             (i)   Histopathology  or surgical pathology, meaning the gross micro-
 18             scopic examination and histologic processing  of  organ  tissue  per-
 19             formed by a physician; or
 20             (ii)  Cytopathology,  meaning  the examination of cells from the fol-
 21             lowing: fluids, aspirates, washings, brushings  or  smears  including
 22             the Pap test examination performed by a physician or under the super-
 23             vision of a physician; or
 24             (iii) Hematology,  meaning  the microscopic evaluation of bone marrow
 25             aspirates and biopsies performed by a physician, or under the  super-
 26             vision of a physician, and peripheral blood smears when the attending
 27             or  treating physician or technologist requests that a blood smear be
 28             reviewed by a pathologist;
 29             (iv)  Subcellular pathology and molecular pathology; and
 30             (v)   Blood-banking services performed by pathologists.
 31        (b)  "Licensed practitioner" means any person licensed  pursuant  to  this
 32        chapter.
 33        (2)  A  clinical laboratory or licensed practitioner located in this state
 34    or another state providing anatomic pathology services for patients  in  Idaho
 35    shall present or cause to be presented a claim, bill or demand for payment for
 36    these services only to the following:
 37        (a)  The patient directly;
 38        (b)  The responsible insurer or other third-party payer;
 39        (c)  The hospital, clinic, public health clinic or nonprofit health clinic
 40        ordering such services;
 41        (d)  The  referring  laboratory,  other than a laboratory of a physician's
 42        office or group practice that ordered the  services.  A  laboratory  of  a
 43        physician's office or group practice that ordered the services may be pre-
                                                                        
                                       2
                                                                        
  1        sented  a  claim,  bill  or  demand  for  payment  if  a  physician in the
  2        physician's office or group practice is performing the professional compo-
  3        nent of the anatomic pathology services;
  4        (e)  Governmental agencies or their specified  public  or  private  agent,
  5        agency or organization on behalf of the recipient of the services.
  6        (3)  Except  as  provided  in  subsection (6) of this section, no licensed
  7    practitioner in this state shall, directly  or  indirectly,  charge,  bill  or
  8    otherwise solicit payment for anatomic pathology services unless such services
  9    were  rendered  personally  by the licensed practitioner or under the licensed
 10    practitioner's direct supervision in accordance with section 353 of the Public
 11    Health Service Act, 42 U.S.C. section 263a.
 12        (4)  No patient, insurer, third-party  payer,  hospital,  clinic,   public
 13    health  clinic  or  nonprofit health clinic shall be required to reimburse any
 14    licensed practitioners for charges or claims submitted in  violation  of  this
 15    section.
 16        (5)  Nothing  in this section shall be construed to mandate the assignment
 17    of benefits for anatomic pathology services as defined in this section.
 18        (6)  The provisions of this section do not prohibit billing of a referring
 19    laboratory for anatomic pathology services in instances where a sample or sam-
 20    ples must be sent to another specialist, except that for purposes of this sub-
 21    section, the term "referring laboratory" does not include a  laboratory  of  a
 22    physician's  office  or  group  practice  unless in accordance with subsection
 23    (2)(d) of this section.
 24        (7)  Any licensed practitioner who may request or provide anatomic pathol-
 25    ogy services in violation of the provisions of  this  section   may  have  his
 26    license revoked, suspended or denied renewal by the board of medicine.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 16840C1

This legislation will protect Idaho patients against "markup"
charges by prohibiting an ordering physician from billing
patients for anatomic pathology services performed or supervised
by another physician. "Markup" charges occur when a physician
sends a tissue specimen or smear to a laboratory and asks that
the laboratory bill the physician instead of the patient, or the
patient's insurance company, for the service.  The physician will
then bill the patient or the insurance company at a higher price
and pocket the difference.  This bill complies with American
Medical Association guidelines for billing of services.


                           FISCAL NOTE

There is no impact to the General Fund.




Contact
Name:  Rep. McGeachin 
Phone: 208 332 1000

Idaho Pathology Society 
Phone: 208 381 2378


STATEMENT OF PURPOSE/FISCAL NOTE                         H 122