2008 Legislation
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HOUSE BILL NO. 522<br /> – Health insurance contract/assgnmt

HOUSE BILL NO. 522

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Bill Status



H0522...........................................................by BUSINESS
HEALTH INSURANCE - Adds to existing law relating to health insurance
contracts to prohibit the assignment of a health insurance contract unless
disclosed to and agreed to by a health care practitioner or facility.

02/12    House intro - 1st rdg - to printing
02/13    Rpt prt - to Bus
02/20    Rpt out - rec d/p - to 2nd rdg
02/21    2nd rdg - to 3rd rdg
02/22    3rd rdg - PASSED - 63-0-7
      AYES -- Anderson, Barrett, Bayer, Bell, Bilbao, Black, Block, Bock,
      Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Ringo, Roberts,
      Ruchti, Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08),
      Shirley, Shively, Smith(30)(Stanek), Snodgrass, Thayn, Thomas, Trail,
      Vander Woude, Wills, Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Andrus, Bedke, Kren, Raybould, Smith(24),
      Stevenson, Wood(27)
    Floor Sponsor - Crane
    Title apvd - to Senate
02/25    Senate intro - 1st rdg - to Com/HuRes
02/29    Rpt out - rec d/p - to 2nd rdg
03/03    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Fulcher, Gannon, Geddes, Goedde,
      Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Davis
    Floor Sponsor - Goedde
    Title apvd - to House
03/07    To enrol
03/10    Rpt enrol - Sp signed
03/11    Pres signed - To Governor
03/17    Governor signed
         Session Law Chapter 139
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 522

                                   BY BUSINESS COMMITTEE

  1                                        AN ACT
  2    RELATING TO HEALTH INSURANCE CONTRACTS; AMENDING CHAPTER 18, TITLE  41,  IDAHO
  3        CODE,  BY  THE  ADDITION OF A NEW SECTION 41-1847, IDAHO CODE, TO PROHIBIT
  4        THE ASSIGNMENT OF A HEALTH INSURANCE  CONTRACT  UNLESS  DISCLOSED  TO  AND
  5        AGREED TO BY A HEALTH CARE PRACTITIONER OR FACILITY.

  6    Be It Enacted by the Legislature of the State of Idaho:

  7        SECTION  1.  That  Chapter  18,  Title 41, Idaho Code, be, and the same is
  8    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  9    ignated as Section 41-1847, Idaho Code, and to read as follows:

 10        41-1847.  ASSIGNMENT  OF  HEALTH  INSURANCE  CONTRACTS. (1) No insurer, as
 11    defined in section 41-5601, Idaho Code, shall assign the benefits of any  con-
 12    tract  with  a  practitioner or facility, as defined in section 41-5601, Idaho
 13    Code, that contains an agreement by the practitioner or  facility  to  provide
 14    services to a patient covered by the insurer at a fee which is discounted from
 15    that practitioner's or facility's usual and customary fee, unless the contract
 16    between the insurer and the practitioner or facility, in conspicuous and plain
 17    language, specifically permits the contract to be assigned.
 18        (2)  An  insurer  shall  send  prompt  written or electronic notice to the
 19    practitioner or facility, in conformance with the  notice  provisions  of  the
 20    contract between the insurer and the practitioner or facility, of each assign-
 21    ment  it makes that is permitted by subsection (1) of this section. The notice
 22    shall identify the name and principal business address of each assignee.
 23        (3)  An assignment in violation of this section shall be void. The  direc-
 24    tor  shall  enforce  the  provisions  of this section and shall review and, if
 25    appropriate, investigate complaints received by the department related to non-
 26    compliance with the provisions of this section. If the director determines  an
 27    insurer  has  violated the provisions of this section, the director may impose
 28    an administrative fine not to exceed five thousand dollars ($5,000) based upon
 29    an enforcement action. The director shall not suspend or revoke  an  insurer's
 30    certificate of authority for violation of this section. This section shall not
 31    create  a  private cause of action by or on behalf of a beneficiary or practi-
 32    tioner or facility against an insurer.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                             RS17888C1

This legislation would prevent the assignment of a preferred provider 
organization (PPO) contract between an insurer and a practitioner 
without the agreement of both parties.  A PPO arrangement is an 
arrangement in which a health care practitioner agrees to discount 
normal fees in order to participate in an insurer’s network.  This 
legislation merely clarifies that such agreements may not be assigned 
to third parties without the consent of both parties to the 
agreement.




                             FISCAL NOTE

There is no fiscal impact to the general fund.





CONTACT
Name:	Ken McClure
Phone:	388-1200


STATEMENT OF PURPOSE/FISCAL NOTE	                       H 522