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Enrolled Version - Final Version Senate Bill 665 History

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SB665 SUB1 enr
ENROLLED

COMMITTEE SUBSTITUTE

FOR


Senate Bill No. 665

(Senator Prezioso, original sponsor)

____________

[Passed March 11, 2010; in effect ninety days from passage.]

____________


AN ACT to repeal §33-15B-4 of the Code of West Virginia, 1931, as amended; and to amend and reenact §33-15B-1, §33-15B-2, §33- 15B-3 and §33-15B-5 of said code, all relating to health care forms; explaining legislative purpose; defining scope of article; transferring certain duties regarding uniform forms from the Health Care Authority to the Insurance Commissioner; adding Department of Health and Human Resources to advisory committee; authorizing Insurance Commissioner to propose rules; and prescribing penalties.

Be it enacted by the Legislature of West Virginia:
That §33-15B-4 of the Code of West Virginia, 1931, as amended, be repealed; and that §33-15B-1, §33-15B-2, §33-15B-3 and §33-15B-5 of said code be amended and reenacted, all to read as follows:
ARTICLE 15B. UNIFORM HEALTH CARE ADMINISTRATION ACT.
§33-15B-1. Legislative findings; purpose.

The Legislature hereby finds that there is a need to provide guidelines regarding uniform health care administration in order to best serve consumers, health care providers and insurers and to organize and streamline the claims process. The purpose of this article is to authorize the insurance commissioner to develop standard forms and procedures regarding health care claims and to require that all insurers, third party payers, and health care providers implement and use such standards in a uniform manner.
§33-15B-2. Scope of article.
The provisions of this article apply to all health care providers in the state; all health insurers writing or issuing accident and sickness policies, including hospital service corporations, health service corporations, medical service corporations, dental service corporations and HMOs; all third party payers; all state agencies and departments, including, but not limited to, the public employees insurance agency and providers of services under Medicare and Medicaid; and all entities involved in the payment of health care claims.
§33-15B-3. Insurance commissioner to propose rules; use of standardized forms and classifications; advisory group.
(a) The commissioner shall propose rules for legislative approval, in accordance with the provisions of chapter twenty-nine- a of this code, regarding the implementation and use of uniform health care administrative forms. Such rules shall establish, where practicable, the acceptance and use throughout the health care system of standard administrative forms, terms or procedures, including, but not limited to, the following:
(1) The standard CMS 1500 health insurance claim form, as amended, or other similar forms, terms, and definitions to be used which are consistent with health care and insurance industry standards.
(2) International classification of disease, ninth clinical modifications (ICD-9-CM) and common procedural terminology (CPT) codes, as amended, or other similar forms, terms, and definitions to be used which are consistent with health care and insurance industry standards.
(3) National uniform billing data element specifications(UB- 04), as amended, and as supplemented by the West Virginia uniform billing committee, or other similar forms, terms, and definitions to be used which are consistent with health care and insurance industry standards.
(4) Consideration of current practices involving reimbursement of claims and explanation of benefits, and the implementation of standards and guidelines regarding explanation of benefits, including, but not limited to, consideration of line item explanations of payments or denial of payments.
(b) The legislative rules required herein shall be developed with the advice of an advisory group to be appointed by the commissioner. Such advisory group shall consist of representatives of consumers, providers, payors, and regulatory agencies, including representatives from the following: The department of health and human resources; the West Virginia health care authority; West Virginia dental association; West Virginia pharmacists association; the West Virginia hospital association; commercial health insurers; third party administrators; the West Virginia state medical association; the West Virginia nurses association; public employees insurance agency; and consumers.
(c) The commissioner and the advisory group shall review the legislative rules to be proposed pursuant to this section as necessary and update the same in a timely manner in order to conform to current legislation and health care and insurance industry standards and trends.
§33-15B-5. Penalties for violation.
Any person, partnership, corporation, limited liability company, professional corporation, health care provider, insurer or other payer, or other entity violating any provision of this article shall be subject to a fine imposed by the commissioner of not more than $1000 for each violation and, in addition to or in lieu of any fine imposed, the West Virginia health care authority is empowered to withhold rate approval or a certificate of need for any health care provider violating any provision of this article.
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