2008 Legislation
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SENATE BILL NO. 1344<br /> – Insurers, cooperate H&W Dept, when

SENATE BILL NO. 1344

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Bill Status



S1344aa...............................................by HEALTH AND WELFARE
INSURERS - HEALTH AND WELFARE DEPARTMENT - Amends existing law to provide
for specific cooperation with the Department of Health and Welfare by
specified insurers as a condition for doing business in Idaho; and to
provide a penalty for failure to cooperate.

01/24    Senate intro - 1st rdg - to printing
01/25    Rpt prt - to Health/Wel
02/12    Rpt out - to 14th Ord
02/19    Rpt out amen - to engros
02/20    Rpt engros - 1st rdg - to 2nd rdg as amen
02/21    2nd rdg - to 3rd rdg as amen
02/25    3rd rdg as amen - PASSED - 33-0-2
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Corder, Darrington, Davis, Fulcher, 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 -- Coiner, Gannon
    Floor Sponsor - Werk
    Title apvd - to House
02/26    House intro - 1st rdg - to Bus
03/04    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/11    3rd rdg - PASSED - 63-0-7
      AYES -- Anderson, Andrus, Barrett, Bedke, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
      Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
      Harwood, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
      LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Nielsen,
      Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Ruchti,
      Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08), Shirley,
      Shively, Smith(30), Stevenson, Thayn, Thomas, Trail, Vander Woude,
      Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bayer, Henbest, Mortimer, Moyle, Roberts,
      Smith(24), Snodgrass
    Floor Sponsor - Rusche
    Title apvd - to Senate
03/12    To enrol
03/13    Rpt enrol - Pres signed - Sp signed
03/14    To Governor
03/17    Governor signed
         Session Law Chapter 147
         Effective: 07/01/08

Bill Text




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

                                                                       

                                       IN THE SENATE

                                    SENATE BILL NO. 1344

                              BY HEALTH AND WELFARE COMMITTEE

  1                                        AN ACT
  2    RELATING TO INSURANCE; AMENDING CHAPTER 3, TITLE 41, IDAHO CODE, BY THE  ADDI-
  3        TION OF A NEW SECTION 41-318, IDAHO CODE, TO PROVIDE FOR SPECIFIC COOPERA-
  4        TION  WITH THE DEPARTMENT OF HEALTH AND WELFARE BY SPECIFIED INSURERS AS A
  5        CONDITION FOR DOING BUSINESS IN THE STATE AND TO  PROVIDE  A  PENALTY  FOR
  6        FAILURE TO COOPERATE.

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

  8        SECTION  1.  That  Chapter  3,  Title  41, Idaho Code, be, and the same is
  9    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 10    ignated as Section 41-318, Idaho Code, and to read as follows:

 11        41-318.  COOPERATION  WITH  THE  DEPARTMENT  OF HEALTH AND WELFARE. (1) An
 12    insurer, including self-insured plans, group health plans as defined  in  sec-
 13    tion  607(1)  of  the employee retirement income security act of 1974, service
 14    benefit plans, managed care organizations, pharmacy benefit managers or  other
 15    parties  that  are  by  statute, contract or agreement legally responsible for
 16    payment of a claim for a health care item or service with respect  to  medical
 17    assistance  programs under chapter 2, title 56, Idaho Code, shall, as a condi-
 18    tion of doing business in the state of Idaho, cooperate with the Idaho depart-
 19    ment of health and welfare by doing the following:
 20        (a)  Provide, with respect to an individual who is eligible for or who  is
 21        or  has  been provided medical assistance under chapter 2, title 56, Idaho
 22        Code, within sixty (60) days of a request of the  department,  information
 23        to  determine  the  period  the  individual  or the individual's spouse or
 24        dependents are, or have been, covered by the insurer  and  the  nature  of
 25        that  coverage.  The information shall include the name and address of the
 26        insurer and the identifying number of the health care insurance plan.  The
 27        format of the information provided shall include the data elements, medium
 28        and  frequency of reporting, any costs of the insurer to be reimbursed and
 29        procedures that will be followed when a data match is found;
 30        (b)  Accept the department's right of recovery on behalf of the  state  of
 31        Idaho,  and the assignment to the department of any right of an individual
 32        or other entity to payment from the party for an item or service for which
 33        payment has been made under chapter 2, title 56, Idaho Code;
 34        (c)  Respond to any inquiry by the department regarding a claim  for  pay-
 35        ment  for  any  health care item or service submitted not later than three
 36        (3) years after the date of the provision of the health care item or  ser-
 37        vice; and
 38        (d)  Agree  not  to deny a claim submitted by the department solely on the
 39        basis of the date of submission of the claim, the type or  format  of  the
 40        claim  form, or a failure to present proper documentation at the point-of-
 41        sale that is the basis of the claim, if:
 42             (i)   The claim is submitted by the department within the  three  (3)
 43             year  period  beginning  on the date on which the item or service was

                                       2

  1             furnished; and
  2             (ii)  Any action by the department to enforce its rights with respect
  3             to the claim is commenced within six (6) years after the department's
  4             submission of the claim.
  5        (2)  Failure to cooperate with the department as set forth  in  subsection
  6    (1)  of  this section shall subject the insurer to suspension or revocation of
  7    its certificate of authority pursuant to section 41-326, Idaho Code.

Amendment




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

                                                                       

                                                       Moved by     Werk

                                                       Seconded by Lodge


                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1344

  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the printed bill, in line 11, delete "An"  and  in  line  12,
  3    delete  "insurer,"   and  insert:  "A  health insurer that provides disability
  4    insurance as defined in section 41-503, Idaho Code,".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)




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

                                                                       

                                       IN THE SENATE

                              SENATE BILL NO. 1344, As Amended

                              BY HEALTH AND WELFARE COMMITTEE

  1                                        AN ACT
  2    RELATING TO INSURANCE; AMENDING CHAPTER 3, TITLE 41, IDAHO CODE, BY THE  ADDI-
  3        TION OF A NEW SECTION 41-318, IDAHO CODE, TO PROVIDE FOR SPECIFIC COOPERA-
  4        TION  WITH THE DEPARTMENT OF HEALTH AND WELFARE BY SPECIFIED INSURERS AS A
  5        CONDITION FOR DOING BUSINESS IN THE STATE AND TO  PROVIDE  A  PENALTY  FOR
  6        FAILURE TO COOPERATE.

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

  8        SECTION  1.  That  Chapter  3,  Title  41, Idaho Code, be, and the same is
  9    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 10    ignated as Section 41-318, Idaho Code, and to read as follows:

 11        41-318.  COOPERATION  WITH  THE  DEPARTMENT  OF  HEALTH AND WELFARE. (1) A
 12    health insurer that  provides  disability  insurance  as  defined  in  section
 13    41-503,  Idaho  Code,  including  self-insured  plans,  group  health plans as
 14    defined in section 607(1) of the employee retirement income  security  act  of
 15    1974, service benefit plans, managed care organizations, pharmacy benefit man-
 16    agers  or  other  parties  that  are by statute, contract or agreement legally
 17    responsible for payment of a claim for a health  care  item  or  service  with
 18    respect  to medical assistance programs under chapter 2, title 56, Idaho Code,
 19    shall, as a condition of doing business in the state of Idaho, cooperate  with
 20    the Idaho department of health and welfare by doing the following:
 21        (a)  Provide,  with respect to an individual who is eligible for or who is
 22        or has been provided medical assistance under chapter 2, title  56,  Idaho
 23        Code,  within  sixty (60) days of a request of the department, information
 24        to determine the period the  individual  or  the  individual's  spouse  or
 25        dependents  are,  or  have  been, covered by the insurer and the nature of
 26        that coverage. The information shall include the name and address  of  the
 27        insurer  and the identifying number of the health care insurance plan. The
 28        format of the information provided shall include the data elements, medium
 29        and frequency of reporting, any costs of the insurer to be reimbursed  and
 30        procedures that will be followed when a data match is found;
 31        (b)  Accept  the  department's right of recovery on behalf of the state of
 32        Idaho, and the assignment to the department of any right of an  individual
 33        or other entity to payment from the party for an item or service for which
 34        payment has been made under chapter 2, title 56, Idaho Code;
 35        (c)  Respond  to  any inquiry by the department regarding a claim for pay-
 36        ment for any health care item or service submitted not  later  than  three
 37        (3)  years after the date of the provision of the health care item or ser-
 38        vice; and
 39        (d)  Agree not to deny a claim submitted by the department solely  on  the
 40        basis  of  the  date of submission of the claim, the type or format of the
 41        claim form, or a failure to present proper documentation at the  point-of-
 42        sale that is the basis of the claim, if:
 43             (i)   The  claim  is submitted by the department within the three (3)

                                       2

  1             year period beginning on the date on which the item  or  service  was
  2             furnished; and
  3             (ii)  Any action by the department to enforce its rights with respect
  4             to the claim is commenced within six (6) years after the department's
  5             submission of the claim.
  6        (2)  Failure  to  cooperate with the department as set forth in subsection
  7    (1) of this section shall subject the insurer to suspension or  revocation  of
  8    its certificate of authority pursuant to section 41-326, Idaho Code.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE

                            RS 17432

The purpose of this proposed legislation is to bring Idaho in
compliance with Federal Law. Specifically to address changes
enacted by the Deficit Reduction Act Of 2005, Section 6035. 

Enhancing Third Party Identification and Payment.

(A)  Clarification of third parties legally responsible for
payment of a claim for a health care item or service.

      Section 1902(A)(25) of the Social Security Act (42
     U.S.C.1396a(A)(25)) 

(B)   Requirement for third parties to provide the state with
coverage eligibility and claims data.

      Section 1902(A)(25) of such Act (42 U.S.C. 1396a(A)(25)) 

This legislation would require insurance companies to share
coverage information about Medicaid recipients and enhances the
Department's ability to recover funds that should have been paid
by insurance carriers.



                          FISCAL NOTE
The fiscal impact would be positive, as this legislation would
allow the Medicaid program to identify insurance coverage that is
required to pay prior to Medicaid coverage payments.  It would
also increase recoveries from insurance coverage that should have
paid prior to Medicaid coverage.  At this time it is not possible
to accurately estimate the positive fiscal impact.


CONTACT
Name:     Larry Tisdale
Agency:   Health and Welfare
Phone:    208-287-1141

STATEMENT OF PURPOSE/FISCAL NOTE                              S1344   

REVISED        REVISED         REVISED        REVISED       REVISED