TITLE 41

INSURANCE

CHAPTER 39

MANAGED CARE REFORM

41-3915.  Health care contracts. (1) All health care contracts or other marketing documents describing health care services offered by any managed care organization shall contain:

(a)  A complete description of the health care services and other benefits to which the member is entitled;

(b)  A description of the accessibility and availability of services, including a list of the providers participating in the managed care plan and of the providers who are accepting new patients, the addresses of primary care physicians and participating hospitals, and the specialty of each physician and category of the other participating providers. The information required by this subsection (1)(b) may be contained in a separate document and incorporated in the contract by reference and shall be amended from time to time as necessary to provide members with the most current information;

(c)  Any predetermined and prepaid rate of payment for health care services and for other benefits, if any, and any services or benefits for which the member is obliged to pay, including member responsibility for deductibles, copayments, and coinsurance;

(d)  All exclusions and limitations on services or other benefits including all restrictions relating to preexisting conditions;

(e)  A statement as to whether the plan includes a limited formulary of medications and a statement that the formulary will be made available to any member on request;

(f)  All criteria by which a member may be terminated or denied reenrollment;

(g)  Service priorities in case of epidemic, or other emergency conditions affecting demand for health care services;

(h)  A statement that members shall not, under any circumstances, be liable, assessable or in any way subject to payment for the debts, liabilities, insolvency, impairment or any other financial obligations of the managed care organization;

(i)  Grievance procedures;

(j)  Procedures for notifying enrollees of any change in benefits; and

(k)  A description of all prior authorization review procedures for health care services.

(2)  In addition to the requirements of subsection (1) of this section, an organization offering a general managed care plan shall:

(a)  Establish procedures for members to select or change primary care providers;

(b)  Establish procedures to notify members of the termination of their primary care provider and the manner in which the managed care organization will assist members in transferring to another participating primary care provider;

(c)  Establish referral procedures for specialty care and procedures for after-hours, out-of-network, out-of-area and emergency care;

(d)  Allow members direct access to network obstetricians and gynecologists for maternity care, annual visits, and follow-up gynecological care for conditions diagnosed during maternity care or annual visits;

(e)  Allow family practice and general practice physicians, general internists, pediatricians, obstetricians, and gynecologists to be included in the general managed care plan’s listing of primary care providers.

(3)  No managed care organization shall cancel the enrollment of a member or refuse to transfer a member from a group to an individual basis for reasons relating to age, sex, race, religion, occupation, or health status. However, nothing contained herein shall prevent termination of a member who has violated any published policies of the organization, which have been approved by the director.

(4)  No managed care organization shall contract with any provider under provisions which require a member to guarantee payment, other than specified copayments, deductibles and coinsurance to such provider in the event of nonpayment by the managed care organization for any services rendered under contract directly or indirectly between the member and the managed care organization.

(5)  No health care provider shall require a member to make additional payments for covered services under a health care contract, other than specified deductibles, copayments, or coinsurance once a provider has agreed in writing to accept the managed care organization’s reimbursement rate to provide a covered service.

(6)  The rates charged by any managed care organization to its members shall not be excessive, inadequate, or unfairly discriminatory. The director may define by rule what constitutes excessive, inadequate or unfairly discriminatory rates and may require a description of the actuarial assumptions and analysis upon which such rates are based as well as whatever other information, available to the managed care organization, he deems necessary to determine that a rate or proposed rate meets the requirements of this subsection. If experience rating is a common health insurance practice in the area served by the managed care organization, it shall have the right to experience-rate its own contracts.

(7)  No such contract form or amendment to an approved contract form shall be issued unless it has been filed with the director. The contract form or amendment shall become effective thirty (30) days after such filing unless specifically disapproved by the director. Any such disapproval shall be based on the requirements of section 41-3905, Idaho Code, or subsection (1), (2), (4), (5) or (6) of this section.

(8)  The director shall disapprove any contract which, with amendments, does not constitute the entire contractual obligation between the parties involved. No portion of the charter, bylaws, or other constituent document of the managed care organization shall constitute part of such a contract unless set forth in full therein or incorporated by reference as authorized in this section.

History:

[41-3915, added 1974, ch. 177, sec. 15, p. 1444; am. 1997, ch. 204, sec. 17, p. 590; am. 1998, ch. 421, sec. 1, p. 1330.]