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        PRIOR PRINTER'S NO. 2961                      PRINTER'S NO. 3230

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2028 Session of 2007


        INTRODUCED BY STERN, BOYD, WATSON, PICKETT, KILLION, MUSTIO,
           KENNEY, CUTLER, TURZAI, REICHLEY, GILLESPIE, MILNE,
           R. MILLER, GRUCELA, CAPPELLI, SAYLOR, HESS, FLECK,
           CALTAGIRONE, SIPTROTH, BELFANTI, HALUSKA, GINGRICH, GEIST,
           HELM, DALLY, MENSCH, FAIRCHILD, MARSHALL, CREIGHTON, RUBLEY,
           SONNEY, SCHRODER, MURT, MOYER, MYERS, DeLUCA, SWANGER AND
           HORNAMAN, DECEMBER 6, 2007

        AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
           REPRESENTATIVES, AS AMENDED, FEBRUARY 12, 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," providing for the Health Care Cost
     8     Containment and Comparison Council; further providing for
     9     definitions; adding powers and duties of the council; and      <--
    10     further providing for data submission and collection and;      <--
    11     PROVIDING FOR COMMON SERVICES DATA ANALYSIS; AND FURTHER
    12     PROVIDING for sunset.

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  The title and sections 1 and 2 of the act of July
    16  8, 1986 (P.L.408, No.89), known as the Health Care Cost
    17  Containment Act, reenacted and amended July 17, 2003 (P.L.31,
    18  No.14), are amended to read:
    19                               AN ACT
    20  Providing for the creation of the Health Care Cost Containment

     1     and Comparison Council, for its powers and duties, for health
     2     care cost containment through the collection and
     3     dissemination of data, for public accountability of health
     4     care costs and for health care for the indigent; and making
     5     an appropriation.
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Health Care
     8  Cost Containment and Comparison Act.
     9  Section 2.  Legislative finding and declaration.
    10     The General Assembly finds that there exists in this
    11  Commonwealth a major crisis because of the continuing escalation
    12  of costs for health care services. Because of the continuing
    13  escalation of costs, an increasingly large number of
    14  Pennsylvania citizens have severely limited access to
    15  appropriate and timely health care. Increasing costs are also
    16  undermining the quality of health care services currently being
    17  provided. Further, the continuing escalation is negatively
    18  affecting the economy of this Commonwealth, is restricting new
    19  economic growth and is impeding the creation of new job
    20  opportunities in this Commonwealth.
    21     The continuing escalation of health care costs is
    22  attributable to a number of interrelated causes, including:
    23         (1)  Inefficiency in the present configuration of health
    24     care service systems and in their operation.
    25         (2)  The present system of health care cost payments by
    26     third parties.
    27         (3)  The increasing burden of indigent care which
    28     encourages cost shifting.
    29         (4)  The absence of a concentrated and continuous effort
    30     in all segments of the health care industry to contain health
    20070H2028B3230                  - 2 -     

     1     care costs.
     2         (5)  The need for consumers of health care to have access
     3     to charge information from physicians for common services and
     4     treatments.
     5     Therefore, it is hereby declared to be the policy of the
     6  Commonwealth of Pennsylvania to promote health care cost
     7  containment and to identify appropriate utilization practices by
     8  creating an independent council to be known as the Health Care
     9  Cost Containment Council.
    10     It is the purpose of this legislation to promote the public
    11  interest by encouraging the development of competitive health
    12  care services in which health care costs are contained and to
    13  assure that all citizens have reasonable access to quality
    14  health care.
    15     It is further the intent of this act to facilitate the
    16  continuing provision of quality, cost-effective health services
    17  throughout the Commonwealth by providing current, accurate data
    18  and information to the purchasers and consumers of health care
    19  on both cost and quality of health care services and to public
    20  officials for the purpose of determining health-related programs
    21  and policies and to assure access to health care services.
    22     Nothing in this act shall prohibit a purchaser from obtaining
    23  from its third-party insurer, carrier or administrator, nor
    24  relieve said third-party insurer, carrier or administrator from
    25  the obligation of providing, on terms consistent with past
    26  practices, data previously provided to a purchaser pursuant to
    27  any existing or future arrangement, agreement or understanding.
    28     Section 2.  The definitions of "ambulatory service facility,"  <--
    29  "council," "covered services," "data source," "health care
    30  facility," "physician" and "provider" in section 3 of the act
    20070H2028B3230                  - 3 -     

     1  are amended and the section is amended by adding definitions to
     2  THE DEFINITION OF "COUNCIL" IN SECTION 3 OF THE ACT IS AMENDED    <--
     3  TO read:
     4  Section 3.  Definitions.
     5     The following words and phrases when used in this act shall
     6  have the meanings given to them in this section unless the
     7  context clearly indicates otherwise:
     8     "Adult basic."  The health investment insurance program        <--
     9  established under Chapter 13 of the act of June 26, 2001
    10  (P.L.755, No.77), known as the Tobacco Settlement Act.
    11     "Ambulatory service facility."  A facility licensed in this
    12  Commonwealth, not part of a hospital, which provides medical,
    13  diagnostic or surgical treatment to patients not requiring
    14  hospitalization, including ambulatory surgical facilities,
    15  ambulatory imaging or diagnostic centers, birthing centers,
    16  freestanding emergency rooms and any other facilities providing
    17  ambulatory care which charge a separate facility charge. [This
    18  term does not include the offices of private physicians or
    19  dentists, whether for individual or group practices.]
    20  Physician's offices and offices of other licensed health care
    21  providers, whether in group or individual practices, shall be
    22  considered ambulatory service facilities for the purposes of
    23  this act.
    24     * * *
    25     "Children's Health Insurance Program" or "CHIP."  The program  <--
    26  established under Article XXIII of the act of May 17, 1921
    27  (P.L.682, No.284), known as The Insurance Company Law of 1921.
    28     "Council."  The Health Care Cost Containment and Comparison
    29  Council.
    30     "Covered services."  Any health care services or procedures    <--
    20070H2028B3230                  - 4 -     

     1  connected with episodes of illness that require either inpatient
     2  hospital care or major ambulatory service such as surgical,
     3  medical or major radiological procedures, including any initial
     4  and follow-up outpatient services associated with the episode of
     5  illness before, during or after inpatient hospital care or major
     6  ambulatory service. [The term does not include routine
     7  outpatient services connected with episodes of illness that do
     8  not require hospitalization or major ambulatory service.] The
     9  term includes routine outpatient services connected with
    10  episodes of illness that do not require hospitalization or major
    11  ambulatory service, including all office visits to physicians,
    12  chiropractors and other data sources including other licensed
    13  health care providers.
    14     "Data source."  A hospital; ambulatory service facility;
    15  physician; audiologist; birthing center; chiropractor; dentist;
    16  doctor of medicine; mental health professional including
    17  psychologists; nurse practitioner; optometrist; osteopath;
    18  physical therapist; podiatrist; speech pathologist or other
    19  licensed health care provider; health maintenance organization
    20  as defined in the act of December 29, 1972 (P.L.1701, No.364),
    21  known as the Health Maintenance Organization Act; hospital,
    22  medical or health service plan with a certificate of authority
    23  issued by the Insurance Department, including, but not limited
    24  to, hospital plan corporations as defined in 40 Pa.C.S. Ch. 61
    25  (relating to hospital plan corporations) and professional health
    26  services plan corporations as defined in 40 Pa.C.S. Ch. 63
    27  (relating to professional health services plan corporations);
    28  commercial insurer with a certificate of authority issued by the
    29  Insurance Department providing health or accident insurance;
    30  self-insured employer providing health or accident coverage or
    20070H2028B3230                  - 5 -     

     1  benefits for employees employed in the Commonwealth;
     2  administrator of a self-insured or partially self-insured health
     3  or accident plan providing covered services in the Commonwealth;
     4  any health and welfare fund that provides health or accident
     5  benefits or insurance pertaining to covered service in the
     6  Commonwealth; the Department of Public Welfare for those covered
     7  services it purchases or provides through the medical assistance
     8  program under the act of June 13, 1967 (P.L.31, No.21), known as
     9  the Public Welfare Code, and any other payor for covered
    10  services in the Commonwealth other than an individual. This term
    11  shall also include physicians.
    12     "Health care facility."  A general or special hospital,
    13  including tuberculosis and psychiatric hospitals, kidney disease
    14  treatment centers, including freestanding hemodialysis units,
    15  birthing centers, offices of physicians, chiropractors and other
    16  data sources including other licensed health care providers, and
    17  ambulatory service facilities as defined in this section, and
    18  hospices, both profit and nonprofit, and including those
    19  operated by an agency of State or local government.
    20     * * *
    21     "Licensee."  An individual who is a data source and is
    22  licensed or certified by the Commonwealth of Pennsylvania to
    23  provide a covered service in a hospital, an office or other
    24  health care facility in this Commonwealth.
    25     * * *
    26     "Medicaid."  The program established under Title XIX of the
    27  Social Security Act (49 Stat. 620, 42 U.S.C. § 1396 et seq.).
    28     "Medical assistance."  Medical treatment which is subsidized
    29  or completely paid for by the Commonwealth under Article IV of
    30  the act of June 13, 1967 (P.L.31, No.21), known as the Public
    20070H2028B3230                  - 6 -     

     1  Welfare Code.
     2     * * *
     3     "Medicare."  The program established under Title XVIII of the
     4  Social Security Act (Public Law 74-271, 42 U.S.C. § 1395 et
     5  seq.).
     6     "Other licensed health care provider."  Any of the following:
     7         (1)  a licensee;
     8         (2)  a health care facility; or
     9         (3)  an officer, employee or entity of a licensee or
    10     health care facility acting in the course and scope of
    11     employment.
    12     * * *
    13     "Physician."  An individual licensed under the laws of this
    14  Commonwealth to practice medicine [and] or surgery within the
    15  scope of the act of October 5, 1978 (P.L.1109, No.261), known as
    16  the Osteopathic Medical Practice Act, or the act of December 20,
    17  1985 (P.L.457, No.112), known as the Medical Practice Act of
    18  1985. The term includes other licensed health care providers.
    19     * * *
    20     "Provider."  A hospital, an ambulatory service facility or a
    21  physician or a data source, a birthing center or other licensed
    22  health care provider.
    23     * * *
    24     Section 3.  Sections 4 heading and (a), 5(d), 6(a.1), (c) and  <--
    25  (d) and 19 AND 6(C) of the act are amended to read:               <--
    26  Section 4.  Health Care Cost Containment and Comparison Council.
    27     (a)  Establishment.--The General Assembly hereby establishes
    28  an independent council to be known as the Health Care Cost
    29  Containment and Comparison Council.
    30     * * *
    20070H2028B3230                  - 7 -     

     1  Section 5.  Powers and duties of the council.
     2     * * *
     3     (d)  General duties and functions.--The council is hereby
     4  authorized to and shall perform the following duties and
     5  functions:
     6         (1)  Develop a computerized system for the collection,
     7     analysis and dissemination of data. The council may contract
     8     with a vendor who will provide such data processing services.
     9     The council shall assure that the system will be capable of
    10     processing all data required to be collected under this act.
    11     Any vendor selected by the council shall be selected in
    12     accordance with the provisions of section 16, and said vendor
    13     shall relinquish any and all proprietary rights or claims to
    14     the data base created as a result of implementation of the
    15     data processing system.
    16         (2)  Establish a Pennsylvania Uniform Claims and Billing
    17     Form for all data sources and all providers which shall be
    18     utilized and maintained by all data sources and all providers
    19     for all services covered under this act.
    20         (3)  Collect and disseminate data, as specified in
    21     section 6, and other information from data sources to which
    22     the council is entitled, prepared according to formats, time
    23     frames and confidentiality provisions as specified in
    24     sections 6 and 10, and by the council.
    25         (4)  Adopt and implement a methodology to collect and
    26     disseminate data reflecting provider quality and provider
    27     service effectiveness pursuant to section 6.
    28         (5)  Subject to the restrictions on access to raw data
    29     set forth in section 10, issue special reports and make
    30     available raw data as defined in section 3 to any purchaser
    20070H2028B3230                  - 8 -     

     1     requesting it. Sale by any recipient or exchange or
     2     publication by a recipient, other than a purchaser, of raw
     3     council data to other parties without the express written
     4     consent of, and under terms approved by, the council shall be
     5     unauthorized use of data pursuant to section 10(c).
     6         (6)  On an annual basis, publish in the Pennsylvania
     7     Bulletin a list of all the raw data reports it has prepared
     8     under section 10(f) and a description of the data obtained
     9     through each computer-to-computer access it has provided
    10     under section 10(f) and of the names of the parties to whom
    11     the council provided the reports or the computer-to-computer
    12     access during the previous month.
    13         (7)  Promote competition in the health care and health
    14     insurance markets.
    15         (8)  Assure that the use of council data does not raise
    16     access barriers to care.
    17         (9.1)  Compile and establish an Internet database for the
    18     general public showing physician charge comparisons for
    19     common services and treatments DERIVED FROM THE REPORT UNDER   <--
    20     SECTION 11.1(A)(3).
    21         (10)  Make annual reports to the General Assembly on the
    22     rate of increase in the cost of health care in the
    23     Commonwealth and the effectiveness of the council in carrying
    24     out the legislative intent of this act. In addition, the
    25     council may make recommendations on the need for further
    26     health care cost containment legislation. The council shall
    27     also make annual reports to the General Assembly on the
    28     quality and effectiveness of health care and access to health
    29     care for all citizens of the Commonwealth.
    30         (12)  Conduct studies and publish reports thereon
    20070H2028B3230                  - 9 -     

     1     analyzing the effects that noninpatient, alternative health
     2     care delivery systems have on health care costs. These
     3     systems shall include, but not be limited to: HMO's; PPO's;
     4     primary health care facilities; home health care; attendant
     5     care; ambulatory service facilities; freestanding emergency
     6     centers; birthing centers; and hospice care. These reports
     7     shall be submitted to the General Assembly and shall be made
     8     available to the public.
     9         (13)  Conduct studies and make reports concerning the
    10     utilization of experimental and nonexperimental transplant
    11     surgery and other highly technical and experimental
    12     procedures, including costs and mortality rates.
    13         (14)  In order to ensure that the council adopts and
    14     maintains both scientifically credible and cost-effective
    15     methodology to collect and disseminate data reflecting
    16     provider quality and effectiveness, the council shall, within
    17     one year of the effective date of this paragraph, utilizing
    18     current Commonwealth agency guidelines and procedures, issue
    19     a request for information from any vendor that wishes to
    20     provide data collection or risk adjustment methodology to the
    21     council to help meet the requirements of this subsection and
    22     section 6. The council shall establish an independent Request
    23     for Information Review Committee to review and rank all
    24     responses and to make a final recommendation to the council.
    25     The Request for Information Review Committee shall consist of
    26     the following members appointed by the Governor:
    27             (i)  One representative of the Hospital and
    28         Healthsystem Association of Pennsylvania.
    29             (ii)  One representative of the Pennsylvania Medical
    30         Society.
    20070H2028B3230                 - 10 -     

     1             (iii)  One representative of insurance.
     2             (iv)  One representative of labor.
     3             (v)  One representative of business.
     4             (vi)  Two representatives of the general public.
     5         (15)  The council shall execute a request for proposals
     6     with third-party vendors for the purpose of demonstrating a
     7     methodology for the collection, analysis and reporting of
     8     hospital-specific complication rates. The results of this
     9     demonstration shall be provided to the chairman and minority
    10     chairman of the Public Health and Welfare Committee of the
    11     Senate and the chairman and minority chairman of the Health
    12     and Human Services Committee of the House of Representatives.
    13     This methodology may be utilized by the council for public
    14     reporting on comparative hospital complication rates.
    15  Section 6.  Data submission and collection.
    16     * * *
    17     (a.1)  Abstraction and technology work group.--                <--
    18         (1)  The council shall establish a data abstraction and
    19     technology work group to produce recommendations for
    20     improving and refining the data required by the council and
    21     reducing, through innovative direct data collection
    22     techniques, the cost of collecting required data. The work
    23     group shall consist of the following members appointed by the
    24     council:
    25             (i)  one member representing the Office of Health
    26         Care Reform;
    27             (ii)  one member representing the business community;
    28             (iii)  one member representing labor;
    29             (iv)  one member representing consumers;
    30             (v)  two members representing physicians;
    20070H2028B3230                 - 11 -     

     1             (vi)  two members representing nurses;
     2             (vii)  two members representing hospitals;
     3             (viii)  one member representing health underwriters;
     4         and
     5             (ix)  one member representing commercial insurance
     6         carriers.
     7         (2)  The work group, with approval of the council, may
     8     hire an independent auditor to determine the value of various
     9     data sets. The work group shall have no more than one year to
    10     study current data requirements and methods of collecting and
    11     transferring data and to make recommendations for changes to
    12     produce a 50% overall reduction in the cost of collecting and
    13     reporting required data to the council while maintaining the
    14     scientific credibility of the council's analysis and
    15     reporting. The work group recommendations shall be presented
    16     to the council for a vote.
    17         (3)  (i)  The work group shall develop a system of data
    18         collection and analysis on physician charges for common
    19         services and treatments working with council staff and
    20         outside third-party venders as needed and authorized by
    21         the council. The analysis shall provide a methodology for
    22         developing a charge comparison Internet search capability
    23         showing most commonly utilized medical services and
    24         treatments.
    25             (ii)  The work group will, as part of its analysis,
    26         examine physician charge comparison systems used in other
    27         states as an addendum to its report identifying which
    28         components of those other state systems are applicable or
    29         appropriate to Pennsylvania. This analysis of other
    30         states shall include descriptions as to how the physician
    20070H2028B3230                 - 12 -     

     1         charge data is collected and shall include a
     2         recommendation to the council, as to the most efficient,
     3         cost-effective and least intrusive way to determine the
     4         physician charge comparisons for common utilized services
     5         and treatments. The work group recommendation to the
     6         council shall contain comparison by common physician
     7         service or treatment and geographic location of the
     8         physician searchable by county.
     9             (iii)  This physician charge comparison shall also
    10         contain data on reimbursement rates for adult basic,
    11         CHIP, Medicaid, medical assistance, Medicare and insurer
    12         reimbursement rates by insurer.
    13             (iv)  The work group shall report its recommendations
    14         to the council no later than 180 days after the effective
    15         date of this section. The physician charge comparison
    16         described in this paragraph shall be available to
    17         consumers beginning January 1, 2009, or sooner.
    18     * * *
    19     (c)  Data elements.--For each covered service performed in
    20  Pennsylvania, the council shall be required to collect the
    21  following data elements:
    22         (1)  uniform patient identifier, continuous across
    23     multiple episodes and providers;
    24         (2)  patient date of birth;
    25         (3)  patient sex;
    26         (3.1)  patient race, consistent with the method of
    27     collection of race/ethnicity data by the United States Bureau
    28     of the Census and the United States Standard Certificates of
    29     Live Birth and Death;
    30         (4)  patient ZIP Code number;
    20070H2028B3230                 - 13 -     

     1         (5)  date of admission;
     2         (6)  date of discharge;
     3         (7)  principal and secondary diagnoses by standard code,
     4     including external cause of injury, complication, infection
     5     and childbirth;
     6         (8)  principal procedure by council-specified standard
     7     code and date;
     8         (9)  up to three secondary procedures by council-
     9     specified standard codes and dates;
    10         (10)  uniform health care facility identifier, continuous
    11     across episodes, patients and providers;
    12         (11)  uniform identifier of admitting physician, by
    13     unique physician identification number established by the
    14     council, continuous across episodes, patients and providers;
    15         (12)  uniform identifier of consulting physicians, by
    16     unique physician identification number established by the
    17     council, continuous across episodes, patients and providers;
    18         (13)  total charges of health care facility, segregated
    19     into major categories, including, but not limited to, room
    20     and board, radiology, laboratory, operating room, drugs,
    21     medical supplies and other goods and services according to
    22     guidelines specified by the council;
    23         (14)  actual payments to health care facility,
    24     segregated, if available, according to the categories
    25     specified in paragraph (13);
    26         (15)  charges of each physician or professional rendering
    27     service relating to an incident of hospitalization [or],
    28     treatment in an ambulatory service facility and charges from
    29     physicians for commonly utilized treatments as approved by
    30     the council in accordance with subsection(a.1)(3)(iv) SECTION  <--
    20070H2028B3230                 - 14 -     

     1     11.1(A)(3);
     2         (16)  actual payments to each physician or professional
     3     rendering service pursuant to paragraph (15);
     4         (17)  uniform identifier of primary payor;
     5         (18)  ZIP Code number of facility where health care
     6     service is rendered;
     7         (19)  uniform identifier for payor group contract number;
     8         (20)  patient discharge status; and
     9         (21)  provider service effectiveness and provider quality
    10     pursuant to section 5(d)(4) and subsection (d).
    11     (d)  Provider quality and provider service effectiveness data  <--
    12  elements.--In carrying out its duty to collect data on provider
    13  quality and provider service effectiveness under section 5(d)(4)
    14  and subsection (c)(21), the council shall, by January 1, 2007,
    15  define a methodology to measure provider service effectiveness
    16  which may include additional data elements to be specified by
    17  the council sufficient to carry out its responsibilities under
    18  section 5(d)(4). The council shall not require a hospital to
    19  contract with a specific vendor for provider quality and
    20  provider service effectiveness data elements; however, the
    21  council may adopt a nationally recognized methodology of
    22  quantifying and collecting data on provider quality and provider
    23  service effectiveness until such time as the council has the
    24  capability of developing its own methodology and standard data
    25  elements. The council shall include in the Pennsylvania Uniform
    26  Claims and Billing Form a field consisting of the data elements
    27  required pursuant to subsection (c)(21) to provide information
    28  on each provision of covered services sufficient to permit
    29  analysis of provider quality and provider service effectiveness
    30  within 180 days of commencement of its operations pursuant to
    20070H2028B3230                 - 15 -     

     1  section 4. In carrying out its responsibilities, the council
     2  shall not require health care insurers to report on data
     3  elements that are not reported to nationally recognized
     4  accrediting organizations, to the Department of Health or to the
     5  Insurance Department in quarterly or annual reports. The council
     6  shall not require reporting by health care insurers in different
     7  formats than are required for reporting to nationally recognized
     8  accrediting organizations or on quarterly or annual reports
     9  submitted to the Department of Health or to the Insurance
    10  Department. The council may adopt the quality findings as
    11  reported to nationally recognized accrediting organizations.
    12     * * *
    13     SECTION 4.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:    <--
    14  SECTION 11.1.  COMMON SERVICES DATA ANALYSIS.
    15     (A)  WORK GROUP.--THE WORK GROUP UNDER SECTION 6(A.1) SHALL
    16  DO ALL OF THE FOLLOWING:
    17         (1)  DEVELOP A SYSTEM OF DATA COLLECTION AND ANALYSIS ON
    18     PHYSICIAN CHARGES FOR COMMON SERVICES AND TREATMENTS WORKING
    19     WITH COUNCIL STAFF AND OUTSIDE THIRD-PARTY VENDORS AS NEEDED
    20     AND AUTHORIZED BY THE COUNCIL. THE ANALYSIS SHALL PROVIDE A
    21     METHODOLOGY FOR DEVELOPING A CHARGE COMPARISON INTERNET
    22     SEARCH CAPABILITY SHOWING MOST COMMONLY UTILIZED MEDICAL
    23     SERVICES AND TREATMENTS.
    24         (2)  AS PART OF ITS ANALYSIS, EXAMINE PHYSICIAN CHARGE
    25     COMPARISON SYSTEMS USED IN OTHER STATES AS AN ADDENDUM TO ITS
    26     REPORT IDENTIFYING WHICH COMPONENTS OF THOSE OTHER STATE
    27     SYSTEMS ARE APPLICABLE OR APPROPRIATE TO PENNSYLVANIA. THIS
    28     ANALYSIS OF OTHER STATES SHALL INCLUDE DESCRIPTIONS AS TO HOW
    29     THE PHYSICIAN CHARGE DATA IS COLLECTED AND SHALL INCLUDE A
    30     RECOMMENDATION TO THE COUNCIL, AS TO THE MOST EFFICIENT,
    20070H2028B3230                 - 16 -     

     1     COST-EFFECTIVE AND LEAST INTRUSIVE WAY TO DETERMINE THE
     2     PHYSICIAN CHARGE COMPARISONS FOR COMMON UTILIZED SERVICES AND
     3     TREATMENTS. THE WORK GROUP RECOMMENDATION TO THE COUNCIL
     4     SHALL CONTAIN COMPARISON BY COMMON PHYSICIAN SERVICE OR
     5     TREATMENT AND GEOGRAPHIC LOCATION OF THE PHYSICIAN SEARCHABLE
     6     BY COUNTY. THIS PHYSICIAN CHARGE COMPARISON SHALL ALSO
     7     CONTAIN DATA ON REIMBURSEMENT RATES FOR ADULT BASIC, CHIP,
     8     MEDICAID, MEDICAL ASSISTANCE, MEDICARE AND INSURER
     9     REIMBURSEMENT RATES BY INSURER.
    10         (3)  REPORT ITS RECOMMENDATIONS TO THE COUNCIL NO LATER
    11     THAN 180 DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION. THE
    12     PHYSICIAN CHARGE COMPARISON DESCRIBED IN THIS PARAGRAPH SHALL
    13     BE AVAILABLE TO CONSUMERS BEGINNING JANUARY 1, 2009, OR
    14     SOONER.
    15     (B)  DEFINITIONS.--NOTWITHSTANDING SECTION 3, AS USED IN THIS
    16  SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS
    17  GIVEN TO THEM IN THIS SUBSECTION:
    18     "ADULT BASIC."  THE HEALTH INVESTMENT INSURANCE PROGRAM
    19  ESTABLISHED UNDER CHAPTER 13 OF THE ACT OF JUNE 26, 2001
    20  (P.L.755, NO.77), KNOWN AS THE TOBACCO SETTLEMENT ACT.
    21     "AMBULATORY SERVICE FACILITY."  A FACILITY LICENSED IN THIS
    22  COMMONWEALTH, NOT PART OF A HOSPITAL, WHICH PROVIDES MEDICAL,
    23  DIAGNOSTIC OR SURGICAL TREATMENT TO PATIENTS NOT REQUIRING
    24  HOSPITALIZATION, INCLUDING AMBULATORY SURGICAL FACILITIES,
    25  AMBULATORY IMAGING OR DIAGNOSTIC CENTERS, BIRTHING CENTERS,
    26  FREESTANDING EMERGENCY ROOMS AND ANY OTHER FACILITIES PROVIDING
    27  AMBULATORY CARE WHICH CHARGE A SEPARATE FACILITY CHARGE.
    28  PHYSICIAN'S OFFICES AND OFFICES OF OTHER LICENSED HEALTH CARE
    29  PROVIDERS, WHETHER IN GROUP OR INDIVIDUAL PRACTICES, SHALL BE
    30  CONSIDERED AMBULATORY SERVICE FACILITIES FOR THE PURPOSES OF
    20070H2028B3230                 - 17 -     

     1  THIS ACT.
     2     "CHILDREN'S HEALTH INSURANCE PROGRAM" OR "CHIP."  THE PROGRAM
     3  ESTABLISHED UNDER ARTICLE XXIII OF THE ACT OF MAY 17, 1921
     4  (P.L.682, NO.284), KNOWN AS THE INSURANCE COMPANY LAW OF 1921.
     5     "COVERED SERVICES."  ANY HEALTH CARE SERVICES OR PROCEDURES
     6  CONNECTED WITH EPISODES OF ILLNESS THAT REQUIRE EITHER INPATIENT
     7  HOSPITAL CARE OR MAJOR AMBULATORY SERVICE SUCH AS SURGICAL,
     8  MEDICAL OR MAJOR RADIOLOGICAL PROCEDURES, INCLUDING ANY INITIAL
     9  AND FOLLOW-UP OUTPATIENT SERVICES ASSOCIATED WITH THE EPISODE OF
    10  ILLNESS BEFORE, DURING OR AFTER INPATIENT HOSPITAL CARE OR MAJOR
    11  AMBULATORY SERVICE. THE TERM INCLUDES ROUTINE OUTPATIENT
    12  SERVICES CONNECTED WITH EPISODES OF ILLNESS THAT DO NOT REQUIRE
    13  HOSPITALIZATION OR MAJOR AMBULATORY SERVICE, INCLUDING ALL
    14  OFFICE VISITS TO PHYSICIANS, CHIROPRACTORS AND OTHER DATA
    15  SOURCES INCLUDING OTHER LICENSED HEALTH CARE PROVIDERS.
    16     "DATA SOURCE."  A HOSPITAL; AMBULATORY SERVICE FACILITY;
    17  PHYSICIAN; AUDIOLOGIST; BIRTHING CENTER; CHIROPRACTOR; DENTIST;
    18  DOCTOR OF MEDICINE; MENTAL HEALTH PROFESSIONAL INCLUDING
    19  PSYCHOLOGISTS; NURSE PRACTITIONER; OPTOMETRIST; OSTEOPATH;
    20  PHYSICAL THERAPIST; PODIATRIST; SPEECH PATHOLOGIST OR OTHER
    21  LICENSED HEALTH CARE PROVIDER; HEALTH MAINTENANCE ORGANIZATION
    22  AS DEFINED IN THE ACT OF DECEMBER 29, 1972 (P.L.1701, NO.364),
    23  KNOWN AS THE HEALTH MAINTENANCE ORGANIZATION ACT; HOSPITAL,
    24  MEDICAL OR HEALTH SERVICE PLAN WITH A CERTIFICATE OF AUTHORITY
    25  ISSUED BY THE INSURANCE DEPARTMENT, INCLUDING, BUT NOT LIMITED
    26  TO, HOSPITAL PLAN CORPORATIONS AS DEFINED IN 40 PA.C.S. CH. 61
    27  (RELATING TO HOSPITAL PLAN CORPORATIONS) AND PROFESSIONAL HEALTH
    28  SERVICES PLAN CORPORATIONS AS DEFINED IN 40 PA.C.S. CH. 63
    29  (RELATING TO PROFESSIONAL HEALTH SERVICES PLAN CORPORATIONS);
    30  COMMERCIAL INSURER WITH A CERTIFICATE OF AUTHORITY ISSUED BY THE
    20070H2028B3230                 - 18 -     

     1  INSURANCE DEPARTMENT PROVIDING HEALTH OR ACCIDENT INSURANCE;
     2  SELF-INSURED EMPLOYER PROVIDING HEALTH OR ACCIDENT COVERAGE OR
     3  BENEFITS FOR EMPLOYEES EMPLOYED IN THIS COMMONWEALTH;
     4  ADMINISTRATOR OF A SELF-INSURED OR PARTIALLY SELF-INSURED HEALTH
     5  OR ACCIDENT PLAN PROVIDING COVERED SERVICES IN THIS
     6  COMMONWEALTH; ANY HEALTH AND WELFARE FUND THAT PROVIDES HEALTH
     7  OR ACCIDENT BENEFITS OR INSURANCE PERTAINING TO COVERED SERVICE
     8  IN THIS COMMONWEALTH; THE DEPARTMENT OF PUBLIC WELFARE FOR THOSE
     9  COVERED SERVICES IT PURCHASES OR PROVIDES THROUGH THE MEDICAL
    10  ASSISTANCE PROGRAM UNDER THE ACT OF JUNE 13, 1967 (P.L.31,
    11  NO.21), KNOWN AS THE PUBLIC WELFARE CODE, AND ANY OTHER PAYOR
    12  FOR COVERED SERVICES IN THIS COMMONWEALTH OTHER THAN AN
    13  INDIVIDUAL. THIS TERM SHALL ALSO INCLUDE PHYSICIANS.
    14     "HEALTH CARE FACILITY."  A GENERAL OR SPECIAL HOSPITAL,
    15  INCLUDING TUBERCULOSIS AND PSYCHIATRIC HOSPITALS, KIDNEY DISEASE
    16  TREATMENT CENTERS, INCLUDING FREESTANDING HEMODIALYSIS UNITS,
    17  BIRTHING CENTERS, OFFICES OF PHYSICIANS, CHIROPRACTORS AND OTHER
    18  DATA SOURCES INCLUDING OTHER LICENSED HEALTH CARE PROVIDERS, AND
    19  AMBULATORY SERVICE FACILITIES AS DEFINED IN THIS SECTION, AND
    20  HOSPICES, BOTH PROFIT AND NONPROFIT, AND INCLUDING THOSE
    21  OPERATED BY AN AGENCY OF STATE OR LOCAL GOVERNMENT.
    22     "LICENSEE."  AN INDIVIDUAL WHO IS A DATA SOURCE AND IS
    23  LICENSED OR CERTIFIED BY THE COMMONWEALTH OF PENNSYLVANIA TO
    24  PROVIDE A COVERED SERVICE IN A HOSPITAL, AN OFFICE OR OTHER
    25  HEALTH CARE FACILITY IN THIS COMMONWEALTH.
    26     "MEDICAID."  THE PROGRAM ESTABLISHED UNDER TITLE XIX OF THE
    27  SOCIAL SECURITY ACT (49 STAT. 620, 42 U.S.C. § 1396 ET SEQ.).
    28     "MEDICAL ASSISTANCE."  MEDICAL TREATMENT WHICH IS SUBSIDIZED
    29  OR COMPLETELY PAID FOR BY THE COMMONWEALTH UNDER ARTICLE IV OF
    30  THE ACT OF JUNE 13, 1967 (P.L.31, NO.21), KNOWN AS THE PUBLIC
    20070H2028B3230                 - 19 -     

     1  WELFARE CODE.
     2     "MEDICARE."  THE PROGRAM ESTABLISHED UNDER TITLE XVIII OF THE
     3  SOCIAL SECURITY ACT (49 STAT. 620, 42 U.S.C. § 1395 ET SEQ.).
     4     "OTHER LICENSED HEALTH CARE PROVIDER."  ANY OF THE FOLLOWING:
     5         (1)  A LICENSEE;
     6         (2)  A HEALTH CARE FACILITY; OR
     7         (3)  AN OFFICER, EMPLOYEE OR ENTITY OF A LICENSEE OR
     8     HEALTH CARE FACILITY ACTING IN THE COURSE AND SCOPE OF
     9     EMPLOYMENT.
    10     "PHYSICIAN."  AN INDIVIDUAL LICENSED UNDER THE LAWS OF THIS
    11  COMMONWEALTH TO PRACTICE MEDICINE OR SURGERY WITHIN THE SCOPE OF
    12  THE ACT OF OCTOBER 5, 1978 (P.L.1109, NO.261), KNOWN AS THE
    13  OSTEOPATHIC MEDICAL PRACTICE ACT, OR THE ACT OF DECEMBER 20,
    14  1985 (P.L.457, NO.112), KNOWN AS THE MEDICAL PRACTICE ACT OF
    15  1985. THE TERM INCLUDES OTHER LICENSED HEALTH CARE PROVIDERS.
    16     "PROVIDER."  A HOSPITAL, AN AMBULATORY SERVICE FACILITY OR A
    17  PHYSICIAN OR A DATA SOURCE, A BIRTHING CENTER OR OTHER LICENSED
    18  HEALTH CARE PROVIDER.
    19     SECTION 5.  SECTION 19 OF THE ACT IS AMENDED TO READ:
    20  Section 19.  Sunset.
    21     This act shall expire [June 30, 2008] June 30, 2011 2015,      <--
    22  unless reenacted prior to that date. By September 1, [2007,]      <--
    23  2008, 2007, a written report by the Legislative Budget and        <--
    24  Finance Committee evaluating the management, visibility,
    25  awareness and performance of the council shall be provided to
    26  the Public Health and Welfare Committee of the Senate and the
    27  Health and Human Services Committee of the House of
    28  Representatives. The report shall include a review of the
    29  council's procedures and policies, the availability and quality
    30  of data for completing reports to hospitals and outside vendor
    20070H2028B3230                 - 20 -     

     1  purchasers, the ability of the council to become self-sufficient
     2  by selling data to outside purchasers, whether there is a more
     3  cost-efficient way of accomplishing the objectives of the
     4  council and the need for reauthorization of the council.
     5     Section 4 6.  This act shall take effect in 60 days.           <--

















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