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        PRIOR PRINTER'S NOS. 1959, 2208, 2246         PRINTER'S NO. 2267

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1372 Session of 2008


        INTRODUCED BY FONTANA, TARTAGLIONE, LAVALLE, MUSTO, C. WILLIAMS,
           STOUT, M. WHITE, PIPPY, KASUNIC, BOSCOLA, BROWNE, O'PAKE,
           RHOADES, COSTA, WOZNIAK, WASHINGTON, STACK, FERLO, REGOLA AND
           A. WILLIAMS, APRIL 14, 2008

        AS AMENDED ON THIRD CONSIDERATION, JUNE 27, 2008

                                     AN ACT

     1  Amending the act of July 8, 1986 (P.L.408, No.89), entitled, as
     2     reenacted, "An act providing for the creation of the Health
     3     Care Cost Containment Council, for its powers and duties, for
     4     health care cost containment through the collection and
     5     dissemination of data, for public accountability of health
     6     care costs and for health care for the indigent; and making
     7     an appropriation," DEFINING "COMMITTEE"; further providing     <--
     8     for the Health Care Cost Containment Council and its powers
     9     and duties, for data submission and collection AND for access  <--
    10     to council data; PROVIDING FOR THE ESTABLISHMENT OF A HEALTH   <--
    11     CARE COST CONTAINMENT COUNCIL ACT REVIEW COMMITTEE and for
    12     sunset of act; PROVIDING FOR ABATEMENT UNDER HEALTH CARE       <--
    13     PROVIDER RETENTION PROGRAM; AND MAKING A RELATED REPEAL.

    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16     Section 1.  Sections 4(f), 5(c) and (d), 6(a)(1) and (d), 10   <--
    17  (b)(5) and 19 of the act of July 8, 1986 (P.L.408, No.89), known
    18  as the Health Care Cost Containment Act, reenacted and amended
    19  July 17, 2003 (P.L.31, No.14), are amended to read:
    20     SECTION 1.  THE TITLE OF THE ACT OF JULY 8, 1986 (P.L.408,     <--
    21  NO.89), KNOWN AS THE HEALTH CARE COST CONTAINMENT ACT, REENACTED
    22  AND AMENDED JULY 17, 2003 (P.L.31, NO.14), IS AMENDED TO READ:


     1                               AN ACT
     2  PROVIDING FOR THE CREATION OF THE HEALTH CARE COST CONTAINMENT
     3     COUNCIL, FOR ITS POWERS AND DUTIES, FOR HEALTH CARE COST
     4     CONTAINMENT THROUGH THE COLLECTION AND DISSEMINATION OF DATA,
     5     FOR PUBLIC ACCOUNTABILITY OF HEALTH CARE COSTS AND FOR HEALTH
     6     CARE FOR THE INDIGENT; PROVIDING FOR HEALTH CARE PROVIDER
     7     RETENTION;AND MAKING AN APPROPRIATION.
     8     SECTION 1.1.  SECTION 3 OF THE ACT IS AMENDED BY ADDING A
     9  DEFINITION TO READ:
    10  SECTION 3.  DEFINITIONS.
    11     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
    12  HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    13  CONTEXT CLEARLY INDICATES OTHERWISE:
    14     * * *
    15     "COMMITTEE."  THE HEALTH CARE COST CONTAINMENT COUNCIL ACT
    16  REVIEW COMMITTEE.
    17     * * *
    18     SECTION 2.  SECTIONS 4(F), 5(C) AND (D), 6(A) AND (D) AND
    19  10(B)(5) OF THE ACT ARE AMENDED TO READ:
    20  Section 4.  Health Care Cost Containment Council.
    21     * * *
    22     (f)  Bylaws.--The council shall adopt bylaws, not
    23  inconsistent with this act, and may appoint such committees or
    24  elect such officers subordinate to those provided for in
    25  subsection (c) as it deems advisable. The council shall provide
    26  for the approval and participation of additional delegates
    27  appointed under subsection (b)(7) and (8) so that each
    28  organization represented by delegates under those paragraphs
    29  shall not have more than one vote on any committee to which they
    30  are appointed. The council shall also appoint a technical
    20080S1372B2267                  - 2 -     

     1  advisory group which shall, on an ad hoc basis, respond to
     2  issues presented to it by the council or committees of the
     3  council and shall make recommendations to the council. The
     4  technical advisory group shall include physicians, researchers,
     5  biostatisticians, one representative of the Hospital and
     6  Healthsystem Association of Pennsylvania and one representative
     7  of the Pennsylvania Medical Society. The Hospital and
     8  Healthsystem Association of Pennsylvania and the Pennsylvania
     9  Medical Society representatives shall not be subject to
    10  executive committee approval. In appointing other physicians,
    11  researchers and biostatisticians to the technical advisory
    12  group, the council shall consult with and take nominations from
    13  the representatives of the Hospital Association of Pennsylvania,
    14  the Pennsylvania Medical Society, the Pennsylvania Osteopathic
    15  Medical Society or other like organizations. At its discretion
    16  and in accordance with this section, nominations shall be
    17  approved by the executive committee of the council. If the
    18  subject matter of any project exceeds the expertise of the
    19  technical advisory group, physicians in appropriate specialties
    20  who possess current knowledge of the issue under study may be
    21  consulted. The technical advisory group shall also review the
    22  availability and reliability of severity of illness measurements
    23  as they relate to small hospitals and psychiatric,
    24  rehabilitation and children's hospitals and shall make
    25  recommendations to the council based upon this review. Meetings
    26  of the technical advisory group shall be open to the general
    27  public.
    28     * * *
    29  Section 5.  Powers and duties of the council.
    30     * * *
    20080S1372B2267                  - 3 -     

     1     (c)  Audit powers.--The council shall have the right to
     2  independently audit all information required to be submitted by
     3  data sources as needed to corroborate the accuracy of the
     4  submitted data, pursuant to the following:
     5         (1)  Audits of information submitted by providers or
     6     health care insurers shall be performed on a sample and
     7     issue-specific basis, as needed by the council, and shall be
     8     coordinated, to the extent practicable, with audits performed
     9     by the Commonwealth. All health care insurers and providers
    10     are hereby required to make those books, records of accounts
    11     and any other data needed by the auditors available to the
    12     council at a convenient location within 30 days of a written
    13     notification by the council.
    14         (2)  Audits of information submitted by purchasers shall
    15     be performed on a sample basis, unless there exists
    16     reasonable cause to audit specific purchasers, but in no case
    17     shall the council have the power to audit financial
    18     statements of purchasers.
    19         (3)  All audits performed by the council shall be
    20     performed at the expense of the council.
    21         (4)  The results of audits of providers or health care
    22     insurers shall be provided to the audited providers and
    23     health care insurers on a timely basis, not to exceed 30 days
    24     beyond presentation of audit findings to the council.
    25     (d)  General duties and functions.--The council is hereby
    26  authorized to and shall perform the following duties and
    27  functions:
    28         (1)  Develop a computerized system for the collection,
    29     analysis and dissemination of data. The council may contract
    30     with a vendor who will provide such data processing services.
    20080S1372B2267                  - 4 -     

     1     The council shall assure that the system will be capable of
     2     processing all data required to be collected under this act.
     3     Any vendor selected by the council shall be selected in
     4     accordance with the provisions of section 16, and said vendor
     5     shall relinquish any and all proprietary rights or claims to
     6     the data base created as a result of implementation of the
     7     data processing system.
     8         (2)  Establish a Pennsylvania Uniform Claims and Billing
     9     Form for all data sources and all providers which shall be
    10     utilized and maintained by all data sources and all providers
    11     for all services covered under this act.
    12         (3)  Collect and disseminate data, as specified in
    13     section 6, and other information from data sources to which
    14     the council is entitled, prepared according to formats, time
    15     frames and confidentiality provisions as specified in
    16     sections 6 and 10, and by the council.
    17         (4)  Adopt [and implement a methodology to collect and     <--
    18     disseminate data reflecting provider quality and provider
    19     service effectiveness pursuant to section 6] methodologies     <--
    20     for risk-adjusting provider quality data.
    21         (5)  Subject to the restrictions on access to raw data
    22     set forth in section 10, issue special reports and make
    23     available raw data as defined in section 3 to any purchaser
    24     requesting it. Sale by any recipient or exchange or
    25     publication by a recipient, other than a purchaser, of raw
    26     council data to other parties without the express written
    27     consent of, and under terms approved by, the council shall be
    28     unauthorized use of data pursuant to section 10(c).
    29         (6)  On an annual basis, publish in the Pennsylvania
    30     Bulletin a list of all the raw data reports it has prepared
    20080S1372B2267                  - 5 -     

     1     under section 10(f) and a description of the data obtained
     2     through each computer-to-computer access it has provided
     3     under section 10(f) and of the names of the parties to whom
     4     the council provided the reports or the computer-to-computer
     5     access during the previous month.
     6         (7)  Promote competition in the health care and health
     7     insurance markets.
     8         (8)  Assure that the use of council data does not raise
     9     access barriers to care.
    10         (10)  Make annual reports to the General Assembly on the
    11     rate of increase in the cost of health care in the
    12     Commonwealth and the effectiveness of the council in carrying
    13     out the legislative intent of this act. In addition, the
    14     council may make recommendations on the need for further
    15     health care cost containment legislation. The council shall
    16     also make annual reports to the General Assembly on the
    17     quality and effectiveness of health care and access to health
    18     care for all citizens of the Commonwealth.
    19         (12)  Conduct studies and publish reports thereon
    20     analyzing the effects that noninpatient, alternative health
    21     care delivery systems have on health care costs. These
    22     systems shall include, but not be limited to: HMO's; PPO's;
    23     primary health care facilities; home health care; attendant
    24     care; ambulatory service facilities; freestanding emergency
    25     centers; birthing centers; and hospice care. These reports
    26     shall be submitted to the General Assembly and shall be made
    27     available to the public.
    28         (13)  Conduct studies and make reports concerning the
    29     utilization of experimental and nonexperimental transplant
    30     surgery and other highly technical and experimental
    20080S1372B2267                  - 6 -     

     1     procedures, including costs and mortality rates.
     2         (14)  In order to ensure that the council adopts and
     3     maintains both scientifically credible and cost-effective
     4     methodology to collect and disseminate data reflecting
     5     provider quality and SERVICE effectiveness, the council        <--
     6     shall, within one year of the effective date of this
     7     paragraph, utilizing current Commonwealth agency guidelines
     8     and procedures, issue a request for information from any
     9     vendor that wishes to provide data collection or risk
    10     adjustment methodology to the council to help meet the
    11     requirements of this subsection and section 6. The council
    12     shall establish an independent Request for Information Review
    13     Committee to review and rank all responses and to make a
    14     final recommendation to the council. The Request for
    15     Information Review Committee shall consist of the following
    16     members appointed by the Governor:
    17             (i)  One representative of the Hospital and
    18         Healthsystem Association of Pennsylvania.
    19             (ii)  One representative of the Pennsylvania Medical
    20         Society.
    21             (iii)  One representative of insurance.
    22             (iv)  One representative of labor.
    23             (v)  One representative of business.
    24             (vi)  Two representatives of the general public.
    25         (15)  The council shall execute a request for proposals
    26     with third-party vendors for the purpose of demonstrating a
    27     methodology for the collection, analysis and reporting of
    28     hospital-specific complication rates. The results of this
    29     demonstration shall be provided to the chairman and minority
    30     chairman of the Public Health and Welfare Committee of the
    20080S1372B2267                  - 7 -     

     1     Senate and the chairman and minority chairman of the Health
     2     and Human Services Committee of the House of Representatives.
     3     This methodology may be utilized by the council for public
     4     reporting on comparative hospital complication rates.
     5  Section 6.  Data submission and collection.
     6     (a)  (1)  Submission of data.--The council is hereby
     7     authorized to collect and data sources are hereby required to
     8     submit, upon request of the council, all data required in
     9     this section, according to uniform submission formats, coding
    10     systems and other technical specifications necessary to
    11     render the incoming data substantially valid, consistent,
    12     compatible and manageable using electronic data processing
    13     according to data submission schedules, such schedules to
    14     avoid, to the extent possible, submission of identical data
    15     from more than one data source, established and promulgated
    16     by the council in regulations pursuant to its authority under
    17     section 5(b). If payor data is requested by the council, it
    18     shall, to the extent possible, be obtained from primary payor
    19     sources. The council shall not require any data sources to
    20     contract with any specific vendor for submission of any
    21     specific data elements to the council.
    22         (1.1)  ANY VENDOR SHALL COMPLY WITH DATA SUBMISSION        <--
    23     GUIDELINES ESTABLISHED IN THE REPORT SUBMITTED UNDER SECTION
    24     17.2. THE COUNCIL SHALL MAINTAIN A VENDOR LIST OF AT LEAST
    25     TWO VENDORS THAT MAY BE CHOSEN BY ANY DATA SOURCE FOR
    26     SUBMISSION OF ANY SPECIFIC DATA ELEMENTS.
    27         (2)  EXCEPT AS PROVIDED IN THIS SECTION, THE COUNCIL MAY
    28     ADOPT ANY NATIONALLY RECOGNIZED METHODOLOGY TO ADJUST DATA
    29     SUBMITTED UNDER SUBSECTION (C) FOR SEVERITY OF ILLNESS. EVERY
    30     THREE YEARS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH, THE
    20080S1372B2267                  - 8 -     

     1     COUNCIL SHALL SOLICIT BIDS FROM THIRD-PARTY VENDORS TO ADJUST
     2     THE DATA. THE SOLICITATION SHALL BE IN ACCORDANCE WITH 62
     3     PA.C.S. (RELATING TO PROCUREMENT). EXCEPT AS PROVIDED IN
     4     SUBPARAGRAPH (I), IN CARRYING OUT ITS RESPONSIBILITIES, THE
     5     COUNCIL SHALL NOT REQUIRE HEALTH CARE FACILITIES TO REPORT
     6     DATA ELEMENTS WHICH ARE NOT INCLUDED IN THE MANUAL DEVELOPED
     7     BY THE NATIONAL UNIFORM BILLING COMMITTEE. THE FOLLOWING
     8     APPLY:
     9             (I)  WITHIN 60 DAYS OF THE EFFECTIVE DATE OF THIS
    10         PARAGRAPH, THE COUNCIL SHALL PUBLISH IN THE PENNSYLVANIA
    11         BULLETIN A LIST OF DISEASES, PROCEDURES AND MEDICAL
    12         CONDITIONS, NOT TO EXCEED 35, FOR WHICH DATA UNDER
    13         SUBSECTIONS (C)(21) AND (D) SHALL BE REQUIRED. THE CHOSEN
    14         LIST SHALL NOT REPRESENT MORE THAN 50% OF TOTAL HOSPITAL
    15         DISCHARGES, BASED UPON THE PREVIOUS YEAR'S HOSPITAL
    16         DISCHARGE DATA. SUBSEQUENT TO THE PUBLICATION OF THE
    17         LIST, ANY DATA SUBMISSION REQUIREMENTS UNDER SUBSECTIONS
    18         (C)(21) AND (D) PREVIOUSLY IN EFFECT SHALL BE NULL AND
    19         VOID FOR DISEASES, PROCEDURES AND MEDICAL CONDITIONS NOT
    20         FOUND ON THE LIST. ALL OTHER DATA ELEMENTS PURSUANT TO
    21         SUBSECTION (C) SHALL CONTINUE TO BE REQUIRED FROM DATA
    22         SOURCES. THE COUNCIL SHALL REVIEW THE LIST AND MAY ADD NO
    23         MORE THAN A NET OF THREE DISEASES, PROCEDURES OR MEDICAL
    24         CONDITIONS PER YEAR OVER A FIVE-YEAR PERIOD STARTING ON
    25         THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. THE ADJUSTED
    26         LIST OF DISEASES, PROCEDURES AND MEDICAL CONDITIONS SHALL
    27         AT NO TIME BE MORE THAN 50% OF TOTAL HOSPITAL DISCHARGES.
    28             (II)  IF THE CURRENT DATA VENDOR IS UNABLE TO
    29         ACHIEVE, ON A PER-CHART BASIS, SAVINGS OF AT LEAST 40% IN
    30         THE COST OF HOSPITAL COMPLIANCE WITH THE DATA ABSTRACTING
    20080S1372B2267                  - 9 -     

     1         AND SUBMISSION REQUIREMENTS OF THIS ACT BY JUNE 30, 2004,
     2         AS COMPARED TO JUNE 30, 2003, THEN THE COUNCIL SHALL
     3         DISQUALIFY THE CURRENT VENDOR AND REOPEN THE BIDDING
     4         PROCESS. THE INDEPENDENT AUDITOR SHALL DETERMINE THE
     5         EXTENT AND VALIDITY OF THE SAVINGS. IN DETERMINING ANY
     6         DEMONSTRATED COST SAVINGS, SURVEYS OF ALL HOSPITALS IN
     7         THIS COMMONWEALTH SHALL BE CONDUCTED AND CONSIDERATION
     8         SHALL BE GIVEN AT A MINIMUM TO:
     9                 (A)  NEW COSTS, IN TERMS OF MAKING THE
    10             METHODOLOGY OPERATIONAL, ASSOCIATED WITH LABORATORY,
    11             PHARMACY AND OTHER INFORMATION SYSTEMS A HOSPITAL IS
    12             REQUIRED TO PURCHASE IN ORDER TO REDUCE HOSPITAL
    13             COMPLIANCE COSTS, INCLUDING THE COST OF ELECTRONIC
    14             TRANSFER OF REQUIRED DATA; AND
    15                 (B)  THE AUDITED DIRECT PERSONNEL AND RELATED
    16             COSTS OF DATA ABSTRACTING AND SUBMISSION REQUIRED.
    17             (III)  REVIEW BY THE INDEPENDENT AUDITOR SHALL
    18         COMMENCE BY MARCH 1, 2004, AND SHALL CONCLUDE WITH A
    19         REPORT OF FINDINGS BY JULY 31, 2004. THE REPORT SHALL BE
    20         DELIVERED TO THE COUNCIL, THE GOVERNOR, THE HEALTH AND
    21         HUMAN SERVICES COMMITTEE OF THE HOUSE OF REPRESENTATIVES
    22         AND THE PUBLIC HEALTH AND WELFARE COMMITTEE OF THE
    23         SENATE.
    24         * * *
    25     (d)  Provider quality [and provider service effectiveness      <--
    26  data elements].--In carrying out its duty to collect data on      <--
    27  provider quality [and provider service effectiveness] under       <--
    28  section 5(d)(4) [and subsection (c)(21)], the council shall       <--
    29  define a methodology to measure [provider service effectiveness]  <--
    30  quality, which may include additional data elements to be
    20080S1372B2267                 - 10 -     

     1  specified by the council sufficient to carry out its
     2  responsibilities under section 5(d)(4). [The council may adopt a  <--
     3  nationally recognized methodology of quantifying and collecting
     4  data on provider quality and provider service effectiveness
     5  until such time as the council has the capability of developing
     6  its own methodology and standard data elements. The council
     7  shall include in the Pennsylvania Uniform Claims and Billing
     8  Form a field consisting of the data elements required pursuant
     9  to subsection (c)(21) to provide information on each provision
    10  of covered services sufficient to permit analysis of provider
    11  quality and provider service effectiveness within 180 days of
    12  commencement of its operations pursuant to section 4. In
    13  carrying out its responsibilities, the council shall not require
    14  health care insurers to report on data elements that are not
    15  reported to nationally recognized accrediting organizations, to
    16  the Department of Health or to the Insurance Department in
    17  quarterly or annual reports. The council shall not require
    18  reporting by health care insurers in different formats than are
    19  required for reporting to nationally recognized accrediting
    20  organizations or on quarterly or annual reports submitted to the
    21  Department of Health or to the Insurance Department. The council
    22  may adopt the quality findings as reported to nationally
    23  recognized accrediting organizations.] Additional quality data    <--
    24  elements must be defined and released for public comment prior
    25  to the promulgation of regulations pursuant to section 5(b). THE  <--
    26  PUBLIC COMMENT PERIOD SHALL BE NO LESS THAN 30 DAYS FROM THE
    27  RELEASE OF THESE ELEMENTS.
    28     * * *
    29  Section 10.  Access to council data.
    30     * * *
    20080S1372B2267                 - 11 -     

     1     (b)  Limitations on access.--Unless specifically provided for
     2  in this act, neither the council nor any contracting system
     3  vendor shall release and no data source, person, member of the
     4  public or other user of any data of the council shall gain
     5  access to:
     6         * * *
     7         (5)  Any raw data disclosing discounts or differentials
     8     between payments accepted by providers for services and their
     9     billed charges obtained by identified payors from identified
    10     providers unless the data is released in a Statewide,
    11     aggregate format that does not identify any individual payor
    12     or class of payors and the council assures that the release
    13     of such information is not prejudicial or inequitable to any
    14     individual payor or provider or group thereof. Payor data
    15     shall be released to individual providers for purposes of
    16     verification and validation prior to inclusion in a public
    17     report. AN INDIVIDUAL PROVIDER SHALL VERIFY AND VALIDATE THE   <--
    18     PAYOR DATA WITHIN 30 DAYS OF ITS RELEASE TO THAT SPECIFIC
    19     INDIVIDUAL PROVIDER.
    20     * * *
    21     SECTION 3.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:     <--
    22  SECTION 17.2.  HEALTH CARE COST CONTAINMENT COUNCIL ACT REVIEW
    23                 COMMITTEE.
    24     (A)  ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED AN
    25  INDEPENDENT COMMITTEE TO BE KNOWN AS THE HEALTH CARE COST
    26  CONTAINMENT COUNCIL ACT REVIEW COMMITTEE.
    27     (B)  COMPOSITION.--THE COMMITTEE SHALL CONSIST OF THE
    28  FOLLOWING VOTING MEMBERS COMPOSED OF AND APPOINTED AS FOLLOWS:
    29         (1)  ONE MEMBER APPOINTED BY THE GOVERNOR.
    30         (2)  FOUR MEMBERS APPOINTED BY THE GENERAL ASSEMBLY, ONE
    20080S1372B2267                 - 12 -     

     1     OF WHOM SHALL BE APPOINTED BY EACH OF THE FOLLOWING:
     2             (I)  ONE BY THE PRESIDENT PRO TEMPORE OF THE SENATE;
     3             (II)  ONE BY THE MINORITY LEADER OF THE SENATE;
     4             (III)  ONE BY THE MAJORITY LEADER OF THE HOUSE OF
     5         REPRESENTATIVES; AND
     6             (IV)  ONE BY THE MINORITY LEADER OF THE HOUSE OF
     7         REPRESENTATIVES .
     8         (3)  TWO REPRESENTATIVES OF THE BUSINESS COMMUNITY, AT
     9     LEAST ONE OF WHOM REPRESENTS SMALL BUSINESS, AND NEITHER OF
    10     WHOM IS PRIMARILY INVOLVED IN THE PROVISION OF HEALTH CARE OR
    11     HEALTH INSURANCE, ONE OF WHOM SHALL BE APPOINTED BY THE
    12     PRESIDENT PRO TEMPORE OF THE SENATE AND ONE OF WHOM SHALL BE
    13     APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES FROM
    14     A LIST OF FOUR QUALIFIED PERSONS RECOMMENDED BY THE
    15     PENNSYLVANIA CHAMBER OF BUSINESS AND INDUSTRY.
    16         (4)  TWO REPRESENTATIVES OF ORGANIZED LABOR, ONE OF WHOM
    17     SHALL BE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE SENATE
    18     AND ONE OF WHOM SHALL BE APPOINTED BY THE SPEAKER OF THE
    19     HOUSE OF REPRESENTATIVES FROM A LIST OF FOUR QUALIFIED
    20     PERSONS RECOMMENDED BY THE PENNSYLVANIA AFL-CIO.
    21         (5)  ONE REPRESENTATIVE OF CONSUMERS WHO IS NOT PRIMARILY
    22     INVOLVED IN THE PROVISION OF HEALTH CARE OR HEALTH CARE
    23     INSURANCE, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
    24     QUALIFIED PERSONS RECOMMENDED JOINTLY BY THE PRESIDENT PRO
    25     TEMPORE OF THE SENATE AND THE SPEAKER OF THE HOUSE OF
    26     REPRESENTATIVES.
    27         (6)  ONE REPRESENTATIVE OF HOSPITALS, APPOINTED BY THE
    28     GOVERNOR FROM A LIST OF THREE QUALIFIED HOSPITAL
    29     REPRESENTATIVES RECOMMENDED BY THE HOSPITAL AND HEALTH SYSTEM
    30     ASSOCIATION OF PENNSYLVANIA.
    20080S1372B2267                 - 13 -     

     1         (7)  ONE REPRESENTATIVE OF PHYSICIANS, APPOINTED BY THE
     2     GOVERNOR FROM A LIST OF THREE QUALIFIED PHYSICIAN
     3     REPRESENTATIVES RECOMMENDED JOINTLY BY THE PENNSYLVANIA
     4     MEDICAL SOCIETY AND THE PENNSYLVANIA OSTEOPATHIC MEDICAL
     5     SOCIETY.
     6         (8)  ONE REPRESENTATIVE OF NURSES, APPOINTED BY THE
     7     GOVERNOR FROM A LIST OF THREE QUALIFIED REPRESENTATIVES
     8     RECOMMENDED BY THE PENNSYLVANIA STATE NURSES ASSOCIATION.
     9         (9)  ONE REPRESENTATIVE OF THE BLUE CROSS AND BLUE SHIELD
    10     PLANS IN PENNSYLVANIA, APPOINTED BY THE GOVERNOR FROM A LIST
    11     OF THREE QUALIFIED PERSONS RECOMMENDED JOINTLY BY THE BLUE
    12     CROSS AND BLUE SHIELD PLANS OF PENNSYLVANIA.
    13         (10)  ONE REPRESENTATIVE OF COMMERCIAL INSURANCE
    14     CARRIERS, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
    15     QUALIFIED PERSONS RECOMMENDED BY THE INSURANCE FEDERATION OF
    16     PENNSYLVANIA, INC.
    17     (C)  CHAIRPERSON.--THE APPOINTMENT MADE BY THE GOVERNOR UNDER
    18  SUBSECTION (B)(1) SHALL SERVE AS CHAIRMAN OF THE COMMITTEE.
    19     (D)  QUORUM.--ELEVEN MEMBERS SHALL CONSTITUTE A QUORUM FOR
    20  THE TRANSACTION OF ANY BUSINESS, AND THE ACT BY THE MAJORITY OF
    21  THE MEMBERS PRESENT AT ANY MEETING IN WHICH THERE IS A QUORUM
    22  SHALL BE DEEMED TO BE THE ACT OF THE COMMITTEE.
    23     (E)  MEETINGS.--
    24         (1)  ALL MEETINGS OF THE COMMITTEE SHALL BE ADVERTISED
    25     AND CONDUCTED PURSUANT TO 65 PA.C.S. CH. 7 (RELATING TO OPEN
    26     MEETINGS).
    27         (2)  ALL ACTION TAKEN BY THE COMMITTEE SHALL BE TAKEN IN
    28     OPEN PUBLIC SESSION, AND ACTION OF THE COMMITTEE SHALL NOT BE
    29     TAKEN EXCEPT UPON THE AFFIRMATIVE VOTE OF A MAJORITY OF THE
    30     MEMBERS OF THE COMMITTEE PRESENT DURING MEETINGS AT WHICH A
    20080S1372B2267                 - 14 -     

     1     QUORUM IS PRESENT.
     2     (F)  COMPENSATION AND EXPENSES.--THE MEMBERS OF THE COMMITTEE
     3  SHALL NOT RECEIVE A SALARY OR PER DIEM ALLOWANCE FOR SERVING AS
     4  MEMBERS OF THE COMMITTEE BUT SHALL BE REIMBURSED FOR ACTUAL AND
     5  NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
     6  EXPENSES MAY INCLUDE REIMBURSEMENT OF TRAVEL AND LIVING EXPENSES
     7  WHILE ENGAGED IN COMMITTEE BUSINESS.
     8     (G)  COMMENCEMENT OF COMMITTEE.--
     9         (1)  WITHIN 15 DAYS AFTER THE EFFECTIVE DATE OF THIS
    10     SECTION, EACH ORGANIZATION OR INDIVIDUAL REQUIRED TO SUBMIT A
    11     LIST OF RECOMMENDED PERSONS TO THE GOVERNOR, THE PRESIDENT
    12     PRO TEMPORE OF THE SENATE OR THE SPEAKER OF THE HOUSE OF
    13     REPRESENTATIVES UNDER SUBSECTION (B) SHALL SUBMIT THE LIST.
    14         (2)  WITHIN 30 DAYS OF THE EFFECTIVE DATE OF THIS
    15     SECTION, THE GOVERNOR, THE PRESIDENT PRO TEMPORE OF THE
    16     SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES SHALL
    17     MAKE THE APPOINTMENTS CALLED FOR IN SUBSECTION (B), AND THE
    18     COMMITTEE SHALL BEGIN OPERATIONS IMMEDIATELY FOLLOWING THE
    19     APPOINTMENTS.
    20     (H)  RESPONSIBILITIES OF THE COMMITTEE.--THE COMMITTEE SHALL
    21  HAVE THE FOLLOWING POWERS AND DUTIES:
    22         (1)  TO STUDY, REVIEW AND RECOMMEND CHANGES TO THIS ACT.
    23         (2)  TO ACCEPT AND REVIEW SUGGESTED CHANGES TO THIS ACT
    24     SUBMITTED BY MEMBERS OF THE COMMITTEE.
    25         (3)  TO APPROVE, BY A MAJORITY VOTE OF THE MEMBERS OF THE
    26     COMMITTEE, A REPORT RECOMMENDING STATUTORY CHANGES TO THIS
    27     ACT. THE REPORT SHALL INCLUDE, AT A MINIMUM, THE FOLLOWING:
    28             (I)  THE ESTABLISHMENT OF AN INTERNET DATABASE FOR
    29         THE GENERAL PUBLIC SHOWING MEDICARE REIMBURSEMENT RATES
    30         FOR COMMON COVERED SERVICES AND TREATMENT.
    20080S1372B2267                 - 15 -     

     1             (II)  IN CONSULTATION WITH EXPERTS IN THE FIELDS OF
     2         QUALITY DATA AND OUTCOME MEASURES, THE DEFINITION AND
     3         IMPLEMENTATION OF:
     4                 (A)  A METHODOLOGY BY PROVIDER TYPE FOR THE
     5             COUNCIL TO RISK ADJUST QUALITY DATA.
     6                 (B)  A METHODOLOGY FOR THE COUNCIL TO COLLECT AND
     7             DISSEMINATE DATA REFLECTING PROVIDER QUALITY AND
     8             PROVIDER SERVICE EFFECTIVENESS.
     9         (4)  TO SUBMIT THE REPORT APPROVED UNDER PARAGRAPH (3) TO
    10     THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE SPEAKER OF
    11     THE HOUSE OF REPRESENTATIVES BY APRIL 30, 2009.
    12     (I) COMMITTEE SUPPORT.--THE COUNCIL SHALL OFFER STAFF AND
    13  ADMINISTRATIVE SUPPORT FROM THE COUNCIL OR ITS WORK GROUPS
    14  NECESSARY FOR THE COMMITTEE TO CARRY OUT ITS DUTIES UNDER THIS
    15  SECTION.
    16  SECTION 17.3.  ABATEMENT UNDER HEALTH CARE PROVIDER RETENTION
    17                 PROGRAM.
    18     (A)  PROGRAM.--THE INSURANCE DEPARTMENT SHALL CONTINUE THE
    19  HEALTH CARE PROVIDER RETENTION PROGRAM, ORIGINALLY ESTABLISHED
    20  IN SECTION 1102 OF THE ACT OF MARCH 20, 2002 (P.L.154, NO.13),
    21  KNOWN AS THE MEDICAL CARE AVAILABILITY AND REDUCTION OF ERROR
    22  (MCARE) ACT, FOR ALL HEALTH CARE PROVIDERS AS SET FORTH IN
    23  CHAPTER 11. THIS SECTION SHALL APPLY TO CALENDAR YEARS 2008 AND
    24  2009.
    25     (B)  ABATEMENT.--NOTWITHSTANDING SECTION 1104(B)(2) OF THE
    26  MEDICAL CARE AVAILABILITY AND REDUCTION OF ERROR (MCARE) ACT,
    27  BIRTH CENTERS SHALL BE ELIGIBLE FOR ABATEMENT UNDER SUBSECTION
    28  (A).
    29     (C)  DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
    30  WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
    20080S1372B2267                 - 16 -     

     1  SUBSECTION:
     2     "BIRTH CENTER."  AS DEFINED IN SECTION 103 OF THE ACT OF
     3  MARCH 20, 2002 (P.L.154, NO.13), KNOWN AS THE MEDICAL CARE
     4  AVAILABILITY AND REDUCTION OF ERROR (MCARE) ACT.
     5     "HEALTH CARE PROVIDER."  AS DEFINED IN SECTION 103 OF THE ACT
     6  OF MARCH 20, 2002 (P.L.154, NO.13), KNOWN AS THE MEDICAL CARE
     7  AVAILABILITY AND REDUCTION OF ERROR (MCARE) ACT.
     8     SECTION 4.  SECTION 19 OF THE ACT  IS AMENDED TO READ:
     9  Section 19.  Sunset.
    10     This act shall expire [June 30, 2008] June 30, 2013, unless
    11  reenacted prior to that date. By September 1, [2007] 2012, a
    12  written report by the Legislative Budget and Finance Committee
    13  evaluating the management, visibility, awareness and performance
    14  of the council shall be provided to the Public Health and
    15  Welfare Committee of the Senate and the Health and Human
    16  Services Committee of the House of Representatives. The report
    17  shall include a review of the council's procedures and policies,
    18  the availability and quality of data for completing reports [to
    19  hospitals and outside vendor purchasers, the ability of the
    20  council to become self-sufficient by selling data to outside
    21  purchasers], whether there is a more cost-efficient way of
    22  accomplishing the objectives of the council and the need for
    23  reauthorization of the council.
    24     SECTION 5.  REPEALS ARE AS FOLLOWS:                            <--
    25         (1)  THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER
    26     PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE ADDITION OF
    27     SECTION 17.3 OF THE ACT.
    28         (2)  SECTION 1115 OF THE ACT OF MARCH 20, 2002 (P.L.154,
    29     NO.13), KNOWN AS THE MEDICAL CARE AVAILABILITY AND REDUCTION
    30     OF ERROR (MCARE) ACT, IS REPEALED.
    20080S1372B2267                 - 17 -     

     1     Section 2 6.  This act shall take effect as follows:           <--
     2         (1)  The amendment of sections 5(d)(4) and SECTION 6 of    <--
     3     the act shall take effect October 1, 2009 JANUARY 1, 2010.     <--
     4         (2)  The remainder of this act shall take effect
     5     immediately.

















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