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                                                      PRINTER'S NO. 3929

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2841 Session of 1998


        INTRODUCED BY BROWNE, CORNELL, E. Z. TAYLOR, GEIST, GORDNER,
           McCALL, NAILOR, RAMOS, SEMMEL, DALLY, MELIO, ROSS, KENNEY,
           BELFANTI, BOSCOLA, THOMAS, HALUSKA, PESCI, BARD, READSHAW,
           HENNESSEY, BENNINGHOFF, DENT, GIGLIOTTI, CLARK, BARRAR,
           ITKIN, WALKO, MANDERINO, C. WILLIAMS AND YOUNGBLOOD,
           OCTOBER 5, 1998

        REFERRED TO COMMITTEE ON INSURANCE, OCTOBER 5, 1998

                                     AN ACT

     1  Amending the act of July 8, 1986 (P.L.408, No.89), entitled, as
     2     reenacted and amended, "An act providing for the creation of
     3     the Health Care Cost Containment Council, for its powers and
     4     duties, for health care cost containment through the
     5     collection and dissemination of data, for public
     6     accountability of health care costs and for health care for
     7     the indigent; and making an appropriation," further providing
     8     for data submission and collection and for data dissemination
     9     and publication; providing for fees; and establishing the
    10     Health Maintenance Organization Reports Restricted Account.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 6(d) of the act of July 8, 1986 (P.L.408,
    14  No.89), known as the Health Care Cost Containment Act, reenacted
    15  and amended June 28, 1993 (P.L.146, No.34), is amended to read:
    16  Section 6.  Data submission and collection.
    17     * * *
    18     (d)  [Provider quality] Quality and [provider] service
    19  effectiveness data elements.--
    20         (1)  Providers.--In carrying out its duty to collect data

     1     on provider quality and provider service effectiveness under
     2     section 5(d)(4) and subsection (c)(21), the council shall
     3     define a methodology to measure provider service
     4     effectiveness which may include additional data elements to
     5     be specified by the council sufficient to carry out its
     6     responsibilities under section 5(d)(4). The council may adopt
     7     a nationally recognized methodology of quantifying and
     8     collecting data on provider quality and provider service
     9     effectiveness until such time as the council has the
    10     capability of developing its own methodology and standard
    11     data elements. The council shall include in the Pennsylvania
    12     Uniform Claims and Billing Form a field consisting of the
    13     data elements required pursuant to subsection (c)(21) to
    14     provide information on each provision of covered services
    15     sufficient to permit analysis of provider quality and
    16     provider service effectiveness within 180 days of
    17     commencement of its operations pursuant to section 4.
    18         (2)  Health maintenance organizations.--In order to
    19     comparably measure performance of health maintenance
    20     organizations, the council has the following powers and
    21     duties:
    22             (i)  To establish and implement a system to
    23         comparatively evaluate the quality of care outcomes and
    24         performance measurements of health maintenance
    25         organizations on an objective basis. This subparagraph
    26         includes, but is not limited to, surveying patient
    27         satisfaction and assessing health maintenance
    28         organizations' clinical and service performance for:
    29                 (A)  information and communication;
    30                 (B)  treatment;
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     1                 (C)  preventive care;
     2                 (D)  services for individuals with special needs;
     3                 (D)  referrals; and
     4                 (E)  options available to patients.
     5             (ii)  To contract with a private nonprofit entity
     6         with experience in measuring health maintenance
     7         organizations' clinical and service performance to
     8         develop the system under subparagraph (i). An insurer may
     9         not be a contracting entity under this subparagraph.
    10             (iii)  To ensure coordination with evaluations
    11         performed by private sector accrediting organizations and
    12         the Department of Health.
    13     * * *
    14     Section 2.  Section 7(a) of the act is amended by adding a
    15  paragraph to read:
    16  Section 7.  Data dissemination and publication.
    17     (a)  Public reports.--Subject to the restrictions on access
    18  to council data set forth in section 10 and utilizing the data
    19  collected under section 6 as well as other data, records and
    20  matters of record available to it, the council shall prepare and
    21  issue reports to the General Assembly and to the general public,
    22  according to the following provisions:
    23         * * *
    24         (5)  The council shall, for every health maintenance
    25     organization in this Commonwealth, prepare and issue an
    26     annual report to assist consumers, purchasers and providers
    27     with a comparison of health plan performance. Wherever
    28     possible, the council may coordinate its work with existing
    29     health plan performance measurement efforts developed by
    30     other State agencies or private sector accrediting
    19980H2841B3929                  - 3 -

     1     organizations. The annual report shall include, but is not
     2     limited to, information in the following areas:
     3             (i)  Availability and appropriateness of services and
     4         treatment provided to enrollees.
     5             (ii)  Availability and appropriateness of preventive
     6         care provided to enrollees.
     7             (iii)  Availability and appropriateness of services
     8         provided to enrollees with ongoing and/or severe medical
     9         needs as well as those with special needs.
    10             (iv)  Enrollee satisfaction, including access to
    11         specialty care and services, satisfaction with network
    12         adequacy and health plan materials.
    13             (v)  Licensure and accreditation status.
    14     * * *
    15     Section 3.  The act is amended by adding a section to read:
    16  Section 16.1.  Fees.
    17     For purposes of implementing section 7(a)(5) the council
    18  shall assess a fee on all health maintenance organizations based
    19  on the ratio of each health maintenance organization's total
    20  premiums collected in this Commonwealth to the total collected
    21  premiums of all health maintenance organizations in this
    22  Commonwealth. The fees shall be deposited in the General Fund in
    23  a restricted account to be known as the Health Maintenance
    24  Organization Reports Restricted Account from which money shall
    25  be appropriated annually by the General Assembly for the
    26  purposes set forth in section 7(a)(5).
    27     Section 4.  This act shall take effect in 60 days.


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