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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY PAYTON, McGEEHAN, V. BROWN, CALTAGIRONE, MYERS, PASHINSKI, SCHMOTZER, WATERS, WILLIAMS AND YOUNGBLOOD, JULY 17, 2012 |
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| REFERRED TO COMMITTEE ON HEALTH, JULY 17, 2012 |
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| AN ACT |
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1 | Providing for a Statewide comprehensive health care system; |
2 | establishing the Pennsylvania Health Care Plan and providing |
3 | for eligibility, services, coverages, subrogation, |
4 | participating providers, cost containment, reduction of |
5 | errors, tort remedies, administrative remedies and |
6 | procedures, attorney fees, quality assurance, |
7 | nonparticipating providers, transitional support and |
8 | training; and establishing the Pennsylvania Health Care |
9 | Agency, the Employer Health Services Levy, the Individual |
10 | Wellness Tax, the Pennsylvania Health Care Trust Fund and the |
11 | Pennsylvania Health Care Board and providing for their powers |
12 | and duties. |
13 | TABLE OF CONTENTS |
14 | Chapter 1. Preliminary Provisions |
15 | Section 101. Short title. |
16 | Section 102. Definitions. |
17 | Chapter 3. Administration and Oversight of the Pennsylvania |
18 | Health Care Plan |
19 | Subchapter A. Pennsylvania Health Care Board |
20 | Section 301. Organization. |
21 | Section 302. Duties of board. |
22 | Subchapter B. Pennsylvania Health Care Agency |
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1 | Section 321. Pennsylvania Health Care Agency. |
2 | |
3 | Subchapter C. (Reserved). |
4 | Subchapter D. (Reserved). |
5 | Subchapter E. (Reserved). |
6 | Subchapter F. Immunity |
7 | Section 371. Immunity. |
8 | Chapter 5. Pennsylvania Health Care Plan |
9 | Section 501. General provisions. |
10 | Section 502. Universal health care access eligibility. |
11 | Section 503. Covered services. |
12 | Section 504. Excess and collective bargaining agreement health |
13 | insurance coverage. |
14 | Section 505. Duplicate coverage. |
15 | Section 506. Subrogation. |
16 | Section 507. Eligible participating providers and availability |
17 | of services. |
18 | Section 508. Rational cost containment. |
19 | Chapter 9. Pennsylvania Health Care Trust Fund |
20 | Section 901. Pennsylvania Health Care Trust Fund. |
21 | Section 902. Limitation on administrative expense. |
22 | Section 903. Funding sources. |
23 | Chapter 11. Transitional Support and Training for Displaced |
24 | Workers |
25 | Section 1101. Transitional support and training for displaced |
26 | workers. |
27 | Chapter 13. Volunteer Emergency Responder Network |
28 | Section 1301. Preservation of volunteer emergency responder |
29 | network. |
30 | Section 1302. Eligibility certification. |
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1 | Section 1303. Eligibility criteria. |
2 | Section 1304. Amount of tax credit. |
3 | Section 1305. Reimbursement of Department of Revenue. |
4 | Chapter 45. Miscellaneous Provisions |
5 | Section 4501. Effective date. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | CHAPTER 1 |
9 | PRELIMINARY PROVISIONS |
10 | Section 101. Short title. |
11 | This act shall be known and may be cited as the Family and |
12 | Business Healthcare Security Act. |
13 | Section 102. Definitions. |
14 | The following words and phrases when used in this act shall |
15 | have the meanings given to them in this section unless the |
16 | context clearly indicates otherwise: |
17 | "Agency." The Pennsylvania Health Care Agency established |
18 | under this act. |
19 | "Board." The Pennsylvania Health Care Board established |
20 | under this act. |
21 | "Certificate of need." A notice of approval issued by the |
22 | Department of Health under the provisions of the act of July 19, |
23 | 1979 (P.L.130, No.48), known as the Health Care |
24 | Facilities Act, including those notices of approval issued as an |
25 | amendment to an existing certificate of need. |
26 | "Chair." The Chair of the Pennsylvania Health Care Board. |
27 | "Department." The Department of Health of the Commonwealth. |
28 | "Executive director." The Executive Director of the |
29 | Pennsylvania Health Care Agency. |
30 | "Fund." The Pennsylvania Health Care Trust Fund established |
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1 | under this act. |
2 | "Individual Fair Share Health and Wellness Tax." The |
3 | Individual Fair Share Health and Wellness Tax established under |
4 | this act. |
5 | "Ombudsman." The Pennsylvania Health Care Ombudsman |
6 | established under this act. |
7 | "Plan." The Pennsylvania Health Care Plan established under |
8 | this act. |
9 | "Tax." The Employer Fair Share Health and Wellness Tax |
10 | established under this act. |
11 | CHAPTER 3 |
12 | ADMINISTRATION AND OVERSIGHT OF THE |
13 | PENNSYLVANIA HEALTH CARE PLAN |
14 | SUBCHAPTER A |
15 | PENNSYLVANIA HEALTH CARE BOARD |
16 | Section 301. Organization. |
17 | (a) Composition.--The Pennsylvania Health Care Board shall |
18 | be composed of 11 voting members. The chair shall preside over |
19 | the board and shall set the agenda but may vote only in the |
20 | event of a tie vote. |
21 | (b) Appointments.-- |
22 | (1) The board shall consist of 11 members, the Chair of |
23 | which shall be appointed by the Governor. Three of the |
24 | remaining members shall be appointed by the Majority Leader |
25 | of the Senate, three of the remaining members shall be |
26 | appointed by the Majority Leader of the House of |
27 | Representatives, two of the remaining members shall be |
28 | appointed by the Minority Leader of the Senate and two of the |
29 | remaining members shall be appointed by the Minority Leader |
30 | of the House of Representatives. The board shall be composed |
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1 | of individuals representative of each of the following |
2 | constituencies and reflective of the diversity of this |
3 | Commonwealth: |
4 | (i) Two patients or caregivers of patients who |
5 | experience the health care system daily. These members |
6 | must be geographically diverse, knowledgeable about |
7 | health issues and represent the following categories: |
8 | (A) A caregiver of a child with a chronic |
9 | illness or developmental disability. |
10 | (B) An adult with a chronic illness, physical |
11 | disability or mental illness requiring medications. |
12 | (ii) A physician. |
13 | (iii) A hospital representative. |
14 | (iv) A long-term care representative. |
15 | (v) A health care attorney. |
16 | (vi) Health care informatics. |
17 | (vii) A small business representative. |
18 | (viii) A large business representative. |
19 | (ix) An organized labor representative from the |
20 | health sector. |
21 | (x) Public health. |
22 | (2) Appointed board members shall take the oath of |
23 | office prior to serving on the board and may be removed only |
24 | for cause under subsection (j). |
25 | (b.1) Quality of care panels.-- |
26 | (1) In addition to the board, there shall be four |
27 | quality of care panels as follows: |
28 | (i) A health professional quality panel. |
29 | (ii) A health institution quality panel. |
30 | (iii) A health supplier quality panel. |
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1 | (iv) The health care ombudsman panel. |
2 | (2) The quality of care panels shall meet regularly as |
3 | needed to create policies and recommendations to deliver |
4 | cost-effective, evidence-based, quality health care to the |
5 | residents of this Commonwealth. |
6 | (3) The quality of care panels shall hire staff who will |
7 | work daily on quality of care recommendations with agency |
8 | staff. The quality of care recommendations shall be presented |
9 | in a formal report at every board meeting. |
10 | (4) The chair shall inform the board on progress or |
11 | explaining the lack of progress in implementing key |
12 | recommendations of the quality of care panels. |
13 | (c) Chairman.--The Governor shall designate one of the board |
14 | members as chairman, who shall serve in that position at the |
15 | pleasure of the Governor. The chairman shall, when present, |
16 | preside at all meetings, and in his absence a member designated |
17 | by the chairman shall preside. |
18 | (d) Midterm vacancies.--Midterm vacancies shall be filled by |
19 | a representative from the same constituent group required under |
20 | subsection (b) and the individual appointed to fill a vacancy |
21 | occurring prior to the expiration of the term for which a member |
22 | is appointed shall hold office for the remainder of the |
23 | predecessor's term. |
24 | (e) Compensation, benefits and expenses.--The chair shall |
25 | receive an annual salary, benefits and expense reimbursement |
26 | established by the board, to be paid from the fund, but the |
27 | salary may not exceed the salary of the Governor. The initial |
28 | board shall establish its own compensation per diem and, for |
29 | travel, reimbursement of expenses incurred on behalf of the |
30 | board and other necessary expenses. No increase or decrease in |
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1 | salary or benefits adopted by the board for the chair or members |
2 | shall become effective within the same three-year term, except |
3 | for the first three initial years of the plan when readjustments |
4 | may be made. |
5 | (f) Meetings.-- |
6 | (1) The chair shall set the time, place and date for the |
7 | initial and subsequent meetings of the board and shall |
8 | preside over its meetings. The initial meeting shall be set |
9 | not sooner than 50 nor later than 100 days after the |
10 | appointment of the chair. Subsequent meetings shall occur as |
11 | determined by the board but not less than six times annually. |
12 | (2) All meetings of the board are open to the public |
13 | unless questions of patient confidentiality arise. The board |
14 | may conduct closed executive session for issues relating to |
15 | confidential patient information, to evaluation of the chair |
16 | or to personnel matters. |
17 | (3) The board shall publish its rulings in the |
18 | Pennsylvania Bulletin with an opportunity for public comment |
19 | as determined by State law. |
20 | (4) The minutes of the board, except for executive |
21 | session deliberations, shall be public information. The media |
22 | shall be allowed access to all final public reports to ensure |
23 | full disclosure of decisions that impact the public. |
24 | (g) Quorum.--Two-thirds of the appointed members of the |
25 | board shall constitute a quorum for the conducting of business |
26 | at meetings of the board. Decisions at ordinary meetings of the |
27 | board shall be reached by majority vote of those actually |
28 | present or, in the event of an emergency meeting, those also |
29 | present by electronic or telephonic means. Where there is a tie |
30 | vote, the chair shall vote to break the tie. Except as otherwise |
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1 | provided in this act, absentee or proxy voting shall not be |
2 | allowed. |
3 | (h) Ethics.--The executive director, the chair and other |
4 | board members and their immediate families are prohibited from |
5 | having any pecuniary interest in any business with a contract or |
6 | in negotiation for a contract with the agency. The board shall |
7 | also adopt rules of ethics and definitions of irreconcilable |
8 | conflicts of interest that will determine under what |
9 | circumstances members must recuse themselves from voting. |
10 | (i) Prohibitions.-- |
11 | (1) No member of the board may receive any additional |
12 | salary or benefits by virtue of serving on the board. |
13 | (2) No member of the board may hold any other salaried |
14 | Commonwealth public position, either elected or appointed, |
15 | during the member's tenure on the board, including, but not |
16 | limited to, the position of State legislator or member of the |
17 | United States Congress. |
18 | (3) The executive director, chair and board members may |
19 | not be a State legislator or member of the United States |
20 | Congress. |
21 | (j) Dismissal.--Board members shall attend all meetings and |
22 | be prepared to discuss and vote on information presented. Board |
23 | members may be dismissed and positions refilled for any of the |
24 | following reasons: |
25 | (1) Failure to attend 75% of the meetings in one year. |
26 | (2) Inability to represent their constituency group. |
27 | (3) Clear conflict of interest. |
28 | (4) Fraud or criminal activity either present or in the |
29 | past. |
30 | Section 302. Duties of board. |
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1 | (a) General duties.--The board is responsible for directing |
2 | the agency in the performance of all duties, the exercise of all |
3 | powers, and the assumption and discharge of all functions vested |
4 | in the agency. The board shall adopt and publish its rules and |
5 | procedures in the Pennsylvania Bulletin no later than 180 days |
6 | after the first meeting of the board. |
7 | (b) Specific duties.--The duties and functions of the board |
8 | include, but are not limited to, the following: |
9 | (1) Implementing statutory eligibility standards for |
10 | benefits. |
11 | (2) Annually adopting a benefits package for |
12 | participants of the plan. |
13 | (3) Acting directly or through one or more contractors |
14 | as the single payer administrator for all claims for health |
15 | care services made under the plan. |
16 | (4) At least annually, reviewing the appropriateness and |
17 | sufficiency of reimbursements and considering whether a |
18 | charge is fair and reasonable for its geographic region or |
19 | location. |
20 | (5) Providing for timely payments to participating |
21 | providers through a structure that is well organized and that |
22 | eliminates unnecessary administrative costs. |
23 | (6) Implementing standardized claims and reporting |
24 | methods for use by the plan. |
25 | (7) Developing a system of centralized electronic claims |
26 | and payments accounting. |
27 | (8) Establishing an enrollment system that will ensure |
28 | that those who travel frequently and cannot read or speak |
29 | English are aware of their right to health care and are |
30 | formally enrolled in the plan. |
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1 | (9) Reporting annually to the General Assembly and to |
2 | the Governor, on or before the first day of October, on the |
3 | performance of the plan, the fiscal condition of the plan, |
4 | recommendations for statutory changes, the receipt of |
5 | payments from the Federal Government, whether current year |
6 | goals and priorities were met, future goals and priorities, |
7 | and major new technology or prescription drugs that may |
8 | affect the cost of the health care services provided by the |
9 | plan. |
10 | (10) Administering the revenues of the fund. |
11 | (11) Obtaining appropriate liability and other forms of |
12 | insurance to provide coverage for the plan, the board, the |
13 | agency and their employees and agents. |
14 | (12) Establishing, appointing and funding appropriate |
15 | staff, office space, equipment, training and administrative |
16 | support for the agency throughout this Commonwealth, all to |
17 | be paid from the fund. |
18 | (13) Administering aspects of the agency by taking |
19 | actions that include, but are not limited to, the following: |
20 | (i) Establishing standards and criteria for the |
21 | allocation of operating funds. |
22 | (ii) Meeting regularly to review the performance of |
23 | the agency and to adopt and revise its policies. |
24 | (iii) Establishing goals for the health care system |
25 | established pursuant to the plan in measurable terms. |
26 | (iv) Establishing Statewide health care databases to |
27 | support health care services planning. |
28 | (v) Implementing policies and developing mechanisms |
29 | and incentives to assure culturally and linguistically |
30 | sensitive care. |
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1 | (vi) Establishing rules and procedures for |
2 | implementation and staffing of a no-fault compensation |
3 | system for iatrogenic injuries or complications of care |
4 | whereby a patient's condition is made worse or an |
5 | opportunity for cure or improvement is lost due to the |
6 | health care or medications provided or appropriate care |
7 | not provided by participating providers under the plan. |
8 | (vii) Establishing standards and criteria for the |
9 | determination of appropriate transitional support and |
10 | training for residents of this Commonwealth who are |
11 | displaced from work during the first two years of the |
12 | implementation of the plan. |
13 | (viii) Evaluating the state of the art in proven |
14 | technical innovations, medications and procedures and |
15 | adopting policies to expedite the rapid introduction |
16 | thereof in this Commonwealth. |
17 | (ix) Establishing methods for the recovery of costs |
18 | for health care services provided pursuant to the plan to |
19 | a beneficiary who is also covered under the terms of a |
20 | policy of insurance, a health benefit plan or other |
21 | collateral source available to the participant under |
22 | which the participant has a right of action for |
23 | compensation. Receipt of health care services pursuant to |
24 | the plan shall be deemed an assignment by the participant |
25 | of any right to payment for services from any such |
26 | policy, plan or other source. The other source of health |
27 | care benefits shall pay to the trust all amounts it is |
28 | obligated to pay to, or on behalf of, the participant for |
29 | covered health care services. The board may commence any |
30 | action necessary to recover the amounts due. |
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1 | (14) Establishing the Health Professional Quality Panel, |
2 | Health Institution Quality Panel and Health Supplier Quality |
3 | Panel, which panels shall be comprised of persons who |
4 | represent a cross section of the medical and provider |
5 | community as follows: |
6 | (i) Appointments shall be nominated by the trade |
7 | organizations and in the event of multiple nominations, |
8 | made by the board. Each quality panel shall submit |
9 | recommendations for continual improvement in cost- |
10 | effective, quality health care. |
11 | (ii) The Health Professional Quality Panel shall |
12 | consist of one representative of the following |
13 | constituencies: |
14 | (A) Primary care physicians. |
15 | (B) Specialty care physicians. |
16 | (C) Clinical psychologists. |
17 | (D) Nurses. |
18 | (E) Social workers. |
19 | (F) Midwives. |
20 | (G) Nutritionists. |
21 | (H) Pharmacists. |
22 | (I) Optometrists. |
23 | (J) Podiatrists. |
24 | (K) Hearing specialists. |
25 | (L) Physical or occupational therapists. |
26 | (M) Dentists. |
27 | (N) Chiropractors. |
28 | (O) Health educators. |
29 | (P) Acupuncturists. |
30 | (iii) The Health Institution Quality Panel shall |
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1 | consist of one representative of the following |
2 | constituencies: |
3 | (A) Academic medical centers. |
4 | (B) Community hospitals. |
5 | (C) Rehabilitation centers. |
6 | (D) Trauma systems. |
7 | (E) Convenient care centers. |
8 | (F) Hospice program. |
9 | (G) Substance abuse centers. |
10 | (H) Home health care services. |
11 | (I) Long-term care facilities. |
12 | (iv) The Health Supplier Quality Panel shall consist |
13 | of one representative of the following constituencies: |
14 | (A) Medical imaging. |
15 | (B) Laboratory. |
16 | (C) Durable medical equipment suppliers. |
17 | (D) Pharmaceutical. |
18 | (E) Medical suppliers other than durable medical |
19 | equipment suppliers. |
20 | (v) The members of the quality panels shall be paid |
21 | a per diem rate, established by the board, for attendance |
22 | at meetings and further be reimbursed for actual and |
23 | necessary expenses incurred in the performance of their |
24 | duties, which shall include: |
25 | (A) Making recommendations to the agency on the |
26 | establishment of policy on medical issues, |
27 | population-based public health issues, research |
28 | priorities, scope of services, expansion of access to |
29 | health care services and evaluation of the |
30 | performance of the plan in order to provide high |
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1 | quality care for Pennsylvania residents. |
2 | (B) Investigating proposals for innovative |
3 | approaches to the promotion of health, the prevention |
4 | of disease and injury, patient education, research |
5 | and health care delivery. |
6 | (C) Advising the agency on the establishment of |
7 | standards and criteria to evaluate requests from |
8 | health care facilities for capital improvements. |
9 | (D) Evaluating and advising the board on |
10 | requests from providers or their representatives for |
11 | adjustments to reimbursements reflective of their |
12 | education and responsibilities. |
13 | (E) Coordinating resources in order to minimize |
14 | duplication among providers, institutions and |
15 | suppliers. |
16 | (F) Evaluating or conducting research in order |
17 | to recommend products or services. |
18 | (G) Presenting key recommendations in a report |
19 | to the board on improving quality of care. |
20 | (15) Establishing an Office of the Health Care |
21 | Ombudsman. Acting directly or through one or more |
22 | contractors, the ombudsman and staff shall expeditiously |
23 | resolve issues related to the implementation of the plan |
24 | within 24 hours. The office shall receive questions, |
25 | complaints or problems from the public and work with agency |
26 | staff in order to quickly find a permanent or temporary |
27 | resolution. The staff of the ombudsman shall be hired from |
28 | the funds deposited in the Pennsylvania Health Care Trust |
29 | Fund. The ombudsman shall prepare a report for every board |
30 | meeting summarizing the major issues and recommendations for |
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1 | resolution by the board. |
2 | (16) Establishing a secure and centralized electronic |
3 | health record system wherein a beneficiary's entire health |
4 | record can be readily and reliably accessed by authorized |
5 | persons with the objective of eliminating the errors and |
6 | expense associated with paper records and diagnostic films. |
7 | The system shall ensure the privacy of all health records it |
8 | contains. |
9 | (17) Establishing, from the revenues received, a reserve |
10 | fund sufficient to provide a continuation of services during |
11 | periods of reduced or insufficient revenue due to economic |
12 | conditions or unforeseen emergency major health care needs. |
13 | SUBCHAPTER B |
14 | PENNSYLVANIA HEALTH CARE AGENCY |
15 | Section 321. Pennsylvania Health Care Agency. |
16 | (a) Establishment.--The Pennsylvania Health Care Agency is |
17 | established. The agency shall administer the plan and is the |
18 | sole agency authorized to accept applicable grants-in-aid from |
19 | the Federal Government and State government. It shall use such |
20 | funds in order to secure full compliance with provisions of |
21 | Federal and State law and to carry out the purposes established |
22 | under this act. All grants-in-aid accepted by the agency shall |
23 | be deposited into the Pennsylvania Health Care Trust Fund |
24 | established under this act, together with other revenues raised |
25 | within this Commonwealth to fund the plan. |
26 | (b) Appointment of executive director.--The executive |
27 | director of the agency shall be appointed by the board and shall |
28 | be the chief administrator of the plan. The executive director |
29 | shall implement the plan and serve at the pleasure of the board. |
30 | The salary of the executive director shall not exceed the |
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1 | statutory salary of the Governor. |
2 | (c) Personnel and employees.--The board shall employ and fix |
3 | the compensation of agency personnel as needed by the agency to |
4 | properly discharge the agency's duties. The employment of |
5 | personnel by the board is subject to the civil service laws of |
6 | this Commonwealth. The executive director shall oversee the |
7 | operation of the agency and the agency's performance of any |
8 | duties assigned by the board. |
9 | SUBCHAPTER C |
10 | (Reserved) |
11 | SUBCHAPTER D |
12 | (Reserved) |
13 | SUBCHAPTER E |
14 | (Reserved) |
15 | SUBCHAPTER F |
16 | IMMUNITY |
17 | Section 371. Immunity. |
18 | In the absence of fraud or bad faith, the health quality |
19 | panels, the board and agency and their respective members and |
20 | employees shall incur no liability in relation to the |
21 | performance of their duties and responsibilities under this act. |
22 | The Commonwealth shall incur no liability in relation to the |
23 | implementation and operation of the plan. |
24 | CHAPTER 5 |
25 | PENNSYLVANIA HEALTH CARE PLAN |
26 | Section 501. General provisions. |
27 | (a) Establishment of plan.--There is hereby established the |
28 | Pennsylvania Health Care Plan that shall be administered by the |
29 | independent Pennsylvania Health Care Agency under the direction |
30 | of the Pennsylvania Health Care Board. |
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1 | (b) Coverage.--The plan shall provide health care coverage |
2 | for all citizens of this Commonwealth. The agency shall work |
3 | simultaneously to control health care costs, achieve measurable |
4 | improvement in health care outcomes, promote a culture of health |
5 | awareness and develop an integrated health care database to |
6 | support health care planning and quality assurance. |
7 | (c) Reforms.--The board shall implement the reforms adopted |
8 | by the General Assembly hereby within one year of the effective |
9 | date of the plan. |
10 | Section 502. Universal health care access eligibility. |
11 | (a) Eligibility.--All Pennsylvania residents, including |
12 | aliens or immigrants lawfully given admission to the United |
13 | States under the Immigration and Nationality Act (66 Stat. 163, |
14 | 8 U.S.C. § 1101 et seq.), homeless persons and migrant |
15 | agricultural workers and their accompanying families who reside |
16 | in this Commonwealth and are required to pay personal income tax |
17 | to the Commonwealth are eligible beneficiaries under the plan. |
18 | Health benefits shall be covered for the period when the |
19 | individual resided in Pennsylvania for tax purposes. When in |
20 | doubt, the definition of residency status shall follow the |
21 | definitions used by the Department of Revenue for paying |
22 | personal income taxes. The board shall establish standards and a |
23 | simple procedure to demonstrate proof of eligibility. Out-of- |
24 | State students who are not independent of their parents or |
25 | guardian attending school in this Commonwealth must obtain |
26 | health insurance. Part-year residents must obtain health |
27 | insurance for the period of time that they are not in State. |
28 | (b) Enrollment.--Enrollment in the plan shall be established |
29 | by the board and beneficiaries shall be provided with access |
30 | cards with appropriate proof of identity technology and privacy |
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1 | protection. |
2 | (c) Outreach to eligible residents.--Pennsylvania residents |
3 | who are unable to pay their taxes because of physical or mental |
4 | disabilities may obtain assistance through county assistance |
5 | offices and other agencies identified by the board. |
6 | (d) Waivers.--If waivers are not obtained from the medical |
7 | assistance and/or Medicare programs operated under Title XVIII |
8 | or XIX of the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 |
9 | et seq.), the medical assistance and Medicare nonwaived programs |
10 | shall act as the primary insurers for those eligible for such |
11 | coverage, and the plan shall serve as the secondary or |
12 | supplemental plan of health coverage. Until such time as waivers |
13 | are obtained, the plan will not pay for services for persons |
14 | otherwise eligible for the same benefits under Medicare or |
15 | Medicaid. The plan shall also be secondary to benefits provided |
16 | to military veterans except where reasonable and timely access, |
17 | as defined by the board, is denied or unavailable through the |
18 | United States Veterans' Administration, in which instance the |
19 | plan will be primary and will seek reasonable reimbursement from |
20 | the United States Veterans' Administration for the services |
21 | provided to veterans. |
22 | (e) Priority of plans.--A plan of employee health coverage |
23 | provided by an out-of-State employer to a Pennsylvania resident |
24 | working outside of this Commonwealth shall serve as the |
25 | employee's primary plan of health coverage, and the plan shall |
26 | serve as the employee's secondary plan of health coverage. |
27 | (f) Reimbursement.--The plan shall reimburse providers |
28 | practicing outside of this Commonwealth at plan rates, or the |
29 | reasonable prevailing rate of the locale where the service is |
30 | provided, not to exceed 115% of the amount physicians in this |
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1 | Commonwealth would have been paid for health care services |
2 | rendered to a beneficiary while the beneficiary is out of this |
3 | Commonwealth. Services provided to a beneficiary out of this |
4 | Commonwealth by other than a participating provider shall be |
5 | reimbursed to the beneficiary or to the provider at a fair and |
6 | reasonable rate for that location. The plan may suggest |
7 | Pennsylvania providers for those who consistently use out-of- |
8 | State providers. |
9 | (g) Presumption of eligibility.--Any individual who arrives |
10 | at a health care facility unconscious or otherwise unable due to |
11 | their mental or physical condition to document eligibility for |
12 | coverage shall be presumed to be eligible, and emergency care |
13 | shall be provided without delay occasioned over issues of |
14 | ability to pay. |
15 | (h) Rules.--The board shall adopt rules assuring that any |
16 | participating provider who renders humanitarian emergency care, |
17 | urgent care or prevention or treatment for a communicable |
18 | disease or prenatal and delivery care within this Commonwealth |
19 | to a not actually eligible recipient shall nevertheless be |
20 | reimbursed for such care from the plan subject to such rules as |
21 | will reasonably limit the frequency of such events to protect |
22 | the fiscal integrity of the plan. It shall be the agency's |
23 | responsibility to secure reimbursement for the costs paid for |
24 | such care from any appropriate third party funding source, or |
25 | from the individual to whom the services were rendered. |
26 | Section 503. Covered services. |
27 | (a) Benefits package.--The board shall establish a single |
28 | health benefits package within the plan that shall include, but |
29 | not be limited to, all of the following: |
30 | (1) All medically necessary inpatient and outpatient |
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1 | care and treatment, both primary and secondary. |
2 | (2) Emergency services. |
3 | (3) Emergency and other medically necessary transport to |
4 | covered health services. |
5 | (4) Rehabilitation services, including speech, |
6 | occupational, physical and massage therapy. |
7 | (5) Inpatient and outpatient mental health services and |
8 | substance abuse treatment. |
9 | (6) Hospice care. |
10 | (7) Prescription drugs and prescribed medical nutrition. |
11 | (8) Vision care, aids and equipment. |
12 | (9) Hearing care, hearing aids and equipment. |
13 | (10) Diagnostic medical tests, including laboratory |
14 | tests and imaging procedures. |
15 | (11) Medical supplies and prescribed medical equipment. |
16 | (12) Immunizations, preventive care, health maintenance |
17 | care and screening. |
18 | (13) Dental care. |
19 | (14) Home health care services. |
20 | (15) Chiropractic and massage therapy. |
21 | (16) Complementary and alternative modalities that have |
22 | been shown by the National Institute of Health's Division of |
23 | Complementary and Alternative Medicine to be safe and |
24 | effective for possible inclusion as covered benefits. |
25 | (17) Long-term care for those unable to care for |
26 | themselves independently and including assisted and skilled |
27 | care. |
28 | (b) Exclusions for preexisting conditions.--The plan shall |
29 | not exclude or limit coverage due to preexisting conditions. |
30 | (c) Copayments, deductibles, etc.--Beneficiaries of the plan |
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1 | are not subject to copayments, deductibles, point-of-service |
2 | charges or any other fee or charge for a service within the |
3 | package and shall not be directly billed nor balance billed by |
4 | participating providers for covered benefits provided to the |
5 | beneficiary. Where a beneficiary has directly paid for |
6 | nonemergency services of a nonparticipating provider, the |
7 | beneficiary may submit a claim for reimbursement from the plan |
8 | for the amount the plan would have paid a participating provider |
9 | for the same service. Where emergency services are rendered by a |
10 | nonparticipating provider, the beneficiary shall receive |
11 | reimbursement of the full amount paid to such nonparticipating |
12 | provider not to exceed 115% of the amount the plan would have |
13 | paid a participating provider for the same service. |
14 | (d) Exclusions of coverage.-- |
15 | (1) The board shall remove or exclude procedures and |
16 | treatments, equipment and prescription drugs from the plan |
17 | benefit package that the Food and Drug Administration or a |
18 | health quality panel finds unsafe or that add no therapeutic |
19 | value. |
20 | (2) The board shall exclude coverage for any surgical, |
21 | orthodontic or other procedure or drug that the board |
22 | determines was or will be provided primarily for cosmetic |
23 | purposes unless required to correct a congenital defect, to |
24 | restore or correct disfigurements resulting from injury or |
25 | disease or that is certified to be medically necessary by a |
26 | qualified, licensed provider. |
27 | (e) Choice by beneficiary.--Beneficiaries shall normally be |
28 | granted free choice of the participating providers, including |
29 | specialists, without preapprovals or referrals. However, the |
30 | board shall adopt procedures to restrict such free choice for |
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1 | those individuals who engage in patterns of wasteful or abusive |
2 | self-referrals to specialists. Specialists who provide primary |
3 | care to a self-referred beneficiary will be reimbursed at the |
4 | board-approved primary care rate established for the service in |
5 | that community. |
6 | (f) Practice patterns.--Practice patterns of participating |
7 | providers shall be monitored. Outliers in terms of |
8 | overutilization or underutilization shall be reviewed by a panel |
9 | of peers and, if necessary, constructive feedback given. The |
10 | board may set outlier policies after reviewing practice patterns |
11 | and recommendations from the health quality panels. |
12 | (g) Service.--No participating provider shall be compelled |
13 | to offer any particular service so long as the refusal is |
14 | consistent with the provider's practice. |
15 | (h) Discrimination.--The plan and participating providers |
16 | shall not discriminate on the basis of race, ethnicity, national |
17 | origin, gender, age, religion, sexual orientation, health |
18 | status, mental or physical disability, employment status, |
19 | veteran status or occupation. |
20 | Section 504. Excess and collective bargaining agreement health |
21 | insurance coverage. |
22 | Subject to the regulations of the Insurance Commissioner and |
23 | all applicable laws, private health insurers shall be authorized |
24 | to offer coverage supplemental to the package approved and |
25 | provided automatically under this act. |
26 | Section 505. Duplicate coverage. |
27 | The agency is subrogated to and shall be deemed an assignee |
28 | of all rights of a beneficiary who has received duplicate health |
29 | care benefits, or who has a right to such benefits, under any |
30 | other policy or contract of health care or under any government |
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1 | program. |
2 | Section 506. Subrogation. |
3 | The agency shall have no right of subrogation against a |
4 | beneficiary's third-party claims for harm or losses not covered |
5 | under this act. Nor shall any beneficiary under this act have a |
6 | claim against a third-party tortfeasor for the services provided |
7 | or available to the beneficiary under this act. In all personal |
8 | injury actions accruing and prosecuted by a beneficiary on or |
9 | after January 1, 2008, the presiding judge shall advise any jury |
10 | that all health care expenses have been or will be paid under |
11 | the plan, and, therefore, no claim for past or future health |
12 | care benefits is pending before the court. |
13 | Section 507. Eligible participating providers and availability |
14 | of services. |
15 | (a) General rule.--All licensed health care providers and |
16 | facilities are eligible to become a participating provider in |
17 | the plan in which instance they shall enjoy the rights and have |
18 | the duties as set forth in the plan as stated in this section or |
19 | as adopted by the board from time to time. Nonparticipating |
20 | providers shall not enjoy the rights nor bear the duties of |
21 | participating providers. |
22 | (b) Required notice.--In advance of initially providing |
23 | services to a beneficiary, nonparticipating providers shall |
24 | advise the beneficiary at the time the appointment is made that |
25 | the person or entity is a nonparticipating provider and that the |
26 | recipient of the service will be initially personally |
27 | responsible for the entire cost of the service and ultimately |
28 | responsible for the cost in excess of the reimbursement approved |
29 | by the board for participating providers. A sign at the point of |
30 | entry or reminder by the office staff disclosing whether the |
|
1 | provider accepts or does not accept the plan card and who covers |
2 | the cost of care shall be deemed sufficient notice. Failure to |
3 | make such financial disclosure will be deemed a fraud on the |
4 | beneficiary and entitle the beneficiary to a refund from the |
5 | provider equal to 200% of the amount paid to the |
6 | nonparticipating provider in excess of the board-approved |
7 | reimbursement for the services rendered, plus all reasonable |
8 | fees for collection. The burden of proof that such disclosure |
9 | was made shall be on the nonparticipating provider. |
10 | (c) Plan by board.--The board shall assess the number of |
11 | primary and specialty providers needed to supply adequate health |
12 | care services in this Commonwealth generally and in all |
13 | geographic areas and shall develop a plan to meet that need. The |
14 | board shall develop financial incentives for participating |
15 | providers in order to maintain and increase access to health |
16 | care services in underserved areas of this Commonwealth. |
17 | (d) Reimbursements.--Reimbursements shall be determined by |
18 | the board in such a fashion as to assure that a participating |
19 | provider receives compensation for services that fairly and |
20 | fully reflect the skill, training, operating overhead included |
21 | in the costs of providing the service, capital costs of |
22 | facilities and equipment, cost of consumables and the expense of |
23 | safely discarding medical waste, plus a reasonable profit |
24 | sufficient to encourage talented individuals to enter the field |
25 | and for investors to make capital available for the construction |
26 | of state-of-the-art health care facilities in this Commonwealth. |
27 | The plan shall review fee schedules and may offer alternative |
28 | reimbursement mechanisms, including capitation, salary and |
29 | bonuses. |
30 | (e) Adjustments to reimbursements.--Participating providers |
|
1 | shall have the right alone or collectively to petition the board |
2 | for adjustments to reimbursements believed to be too low. Such |
3 | petitions shall be initially evaluated by the administrator of |
4 | provider services, with input from the Health Professional |
5 | Quality Panel, who shall submit a report to the chair within 30 |
6 | days. The chair shall then submit a recommendation to the board |
7 | for action at the next scheduled board meeting. Participating |
8 | providers who remain dissatisfied after the board has ruled may |
9 | appeal the board's determination to Commonwealth Court, which |
10 | shall review the action of the board on an abuse of discretion |
11 | standard. |
12 | (f) Evaluation of access to care.--The board annually shall |
13 | evaluate access to trauma care, diagnostic imaging technology, |
14 | emergency transport and other vital urgent care requirements and |
15 | shall establish measures to assure beneficiaries have equitable |
16 | and ready access to such resources regardless of where in this |
17 | Commonwealth they may be. |
18 | (g) Health care delivery models.--The board, with the |
19 | assistance of the health quality panels, shall review best |
20 | community practices in delivering high quality care. Those |
21 | wellness practices that can be adopted will be funded with an |
22 | increasing emphasis on prevention and community-based care in |
23 | order to reduce the need for hospitalization and nursing home |
24 | care in the future. |
25 | (h) Performance reports.--The board, with the assistance of |
26 | the Health Advisory Panel, shall define performance criteria and |
27 | goals for the plan and shall make a written report to the |
28 | General Assembly at least annually on the plan's performance. |
29 | All such reports, including the survey results obtained, shall |
30 | be made publicly available with the goal of total transparency |
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1 | and open self-analysis as a defining quality of the agency. The |
2 | board shall establish a system to monitor the quality of health |
3 | care and patient and provider satisfaction and to adopt a system |
4 | to devise improvements and efficiencies to the provision of |
5 | health care services. |
6 | (i) Data reporting.--All participating providers shall, in a |
7 | prompt and timely manner, provide existing and ongoing data to |
8 | the agency upon its request. |
9 | (j) Coordination of services.--The agency shall coordinate |
10 | the provision of health care services with any other |
11 | Commonwealth and local agencies that provide health care |
12 | services directly to their charges or residents. |
13 | Section 508. Rational cost containment. |
14 | (a) Approval of expenditures.--As part of its cost |
15 | containment mission and based on the certificate of need, the |
16 | board, with the assistance of the Health Institution Quality |
17 | Panel, shall screen and approve or disapprove private or public |
18 | expenditures for new health care facilities and other capital |
19 | investments that may lead to redundant and inefficient health |
20 | care provider capacity. Procedures shall be adopted for this |
21 | purpose with an emphasis upon efficiency, quality of delivery |
22 | and a fair and open consideration of all applications. |
23 | (b) Capital investments.--Based on the certificate of need |
24 | all capital investments valued at $1,000,000 or greater, |
25 | including the costs of studies, surveys, design plans and |
26 | working drawing specifications, and other activities essential |
27 | to planning and execution of capital investment and all capital |
28 | investments that change the bed capacity of a health care |
29 | facility by more than 10% over a 24-month period or that add a |
30 | new service or license category shall require the approval of |
|
1 | the board. When a facility, an individual acting on behalf of a |
2 | facility or any other purchaser obtains by lease or comparable |
3 | arrangement any facility or part of a facility, or any equipment |
4 | for a facility, the market value of which would have been a |
5 | capital expenditure, the lease or arrangement shall be |
6 | considered a capital expenditure for purposes of this section. |
7 | (c) Study.--Those intending to make capital investments or |
8 | acquisitions shall prepare a business case for making each |
9 | investment and acquisition. It shall include the full-life-cycle |
10 | costs of the investment or acquisition, an environment impact |
11 | report that meets existing State standards and a demonstration |
12 | of how the investment or acquisition meets the health care needs |
13 | of the population it is intended to serve. Acquisitions may |
14 | include, but not be limited to, acquisitions of land, |
15 | operational property or administrative office space. |
16 | (d) Deemed approval.--Capital investment programs submitted |
17 | for approval shall be deemed approved by the board within 60 |
18 | days from the date the submissions are received by the chair. A |
19 | 60-day extension may apply if the board requires additional |
20 | information. |
21 | (e) Recommendations.--Recommendations of the Pennsylvania |
22 | Heath Cost Containment Council and such other public and private |
23 | authoritative bodies as shall be identified from time to time by |
24 | the board shall be received by the chair and submitted to the |
25 | board with the chair's recommendation regarding implementation |
26 | of the recommended reforms. The board shall receive input from |
27 | all interested parties and then shall vote upon all such |
28 | recommendations within 60 days. Where procedural or protocol |
29 | reforms are adopted, participating providers will be required to |
30 | implement such designated best practices within the next 60 |
|
1 | days. |
2 | (f) Appeal.--A decision of the board may be appealed through |
3 | a uniform dispute resolution process that has been established |
4 | by unanimous approval of the board. |
5 | (g) Required investments.--The board, with the |
6 | recommendations of the Health Institution Quality Panel, may |
7 | adopt programs to assist participating providers in making |
8 | capital investments responsive to best practice recommendations. |
9 | (h) Decertification.--Participating providers refusing to |
10 | adopt recommended reforms shall, after a reasonable opportunity |
11 | to be heard, be subject to such sanctions as the board shall |
12 | deem appropriate and necessary up to and including a |
13 | recommendation by the board to the Bureau of Professional and |
14 | Occupational Affairs or the Department of Health for the |
15 | suspension or permanent decertification of the participating |
16 | provider. |
17 | CHAPTER 9 |
18 | PENNSYLVANIA HEALTH CARE TRUST FUND |
19 | Section 901. Pennsylvania Health Care Trust Fund. |
20 | (a) Establishment.--The Pennsylvania Health Care Trust Fund |
21 | is hereby established within the State Treasury. All moneys |
22 | collected and received by the plan shall be transmitted to the |
23 | State Treasurer for deposit into the fund, to be used |
24 | exclusively to finance the plan. |
25 | (b) State Treasurer.--The State Treasurer may invest the |
26 | principal and interest earned by the fund in any manner |
27 | authorized under law for the investment of Commonwealth moneys. |
28 | Any revenue or interest earned from the investments shall be |
29 | credited to the fund. |
30 | Section 902. Limitation on administrative expense. |
|
1 | The system budget referred to in this chapter shall comprise |
2 | the cost of the agency, services and benefits provided, |
3 | administration, data gathering, planning and other activities |
4 | and revenues deposited with the system account of the fund. The |
5 | board shall limit ongoing administrative costs, excluding start- |
6 | up costs, to 5% of the agency budget and shall annually evaluate |
7 | methods to reduce administrative costs and publicly report the |
8 | results of that evaluation. |
9 | Section 903. Funding sources. |
10 | Funding of the plan shall be obtained from the following |
11 | dedicated sources: |
12 | (1) Funds obtained from existing or future Federal |
13 | health care programs. |
14 | (2) Funds from dedicated sources specified by the |
15 | General Assembly. |
16 | (3) Receipts from the tax of 10% of gross payroll, |
17 | including self-employment profits. One percent of the tax |
18 | shall become effective the date that shall be the first day |
19 | of a calendar month no less than 32 days after the effective |
20 | date of this act, and the tax shall become fully effective 60 |
21 | days before the plan takes effect. Employers who are part of |
22 | a collective bargaining agreement whereby the health care |
23 | benefits are no less generous than those provided under the |
24 | plan shall be excused from paying 90% of the tax. |
25 | (4) Receipts from the Individual Fair Share Health and |
26 | Wellness Tax of 3% on income as defined in sections 301 and |
27 | 303 of the act of March 4, 1971 (P.L.6, No.2), known as the |
28 | Tax Reform Code of 1971. One-half of one percent of the |
29 | Individual Fair Share Health and Wellness Tax shall become |
30 | effective the date that shall be the first day of a calendar |
|
1 | month no less than 32 days after the effective date of this |
2 | act, and the Individual Fair Share Health and Wellness tax |
3 | shall become fully effective 60 days before the plan takes |
4 | effect. |
5 | CHAPTER 11 |
6 | TRANSITIONAL SUPPORT AND TRAINING FOR DISPLACED WORKERS |
7 | Section 1101. Transitional support and training for displaced |
8 | workers. |
9 | (a) Determination of eligibility.--The plan shall determine |
10 | which citizens of this Commonwealth employed by a health care |
11 | insurer, health insuring corporation or other health care- |
12 | related business have lost their employment as a result of the |
13 | implementation and operation of the plan, including the amount |
14 | of monthly wages that the individual has lost due to the plan's |
15 | implementation. The plan shall attempt to position these |
16 | displaced workers in comparable positions of employment or |
17 | assist in the retraining and placement of such displaced |
18 | employees elsewhere. |
19 | (b) Compensation.--The plan shall forward the information on |
20 | the amount of monthly wages lost by Commonwealth residents due |
21 | to the implementation of the plan to the board. Compensation |
22 | shall be up to $5,000 each month but may not exceed the monthly |
23 | wages of the individual when he was displaced. Compensation will |
24 | cease upon reemployment or after two years, whichever comes |
25 | first. A displaced worker shall be eligible to receive |
26 | compensation, training assistance, or both, from the fund. |
27 | Training assistance may not exceed $20,000. |
28 | (c) Coordination of services.--The plan shall fully |
29 | coordinate activity with public and private services also |
30 | available or actually participating in the assistance to the |
|
1 | affected individuals. |
2 | (d) Appeals.--Persons dissatisfied with the level of |
3 | assistance they are receiving may appeal to the office of the |
4 | executive director whose determination shall be final and not |
5 | subject to appeal. |
6 | CHAPTER 13 |
7 | VOLUNTEER EMERGENCY RESPONDER NETWORK |
8 | Section 1301. Preservation of volunteer emergency responder |
9 | network. |
10 | Because this Commonwealth is dependent upon the volunteered |
11 | services of firefighters, emergency medical technicians and |
12 | search and rescue workers, the board is further charged with |
13 | administering a Commonwealth income tax credit program for such |
14 | volunteers. |
15 | Section 1302. Eligibility certification. |
16 | Annually, in January, administrators of volunteer |
17 | firefighting and rescue departments, emergency medical |
18 | technicians and paramedics stations and similar volunteer |
19 | emergency entities shall certify the identity of Commonwealth |
20 | residents providing active services during the prior calendar |
21 | year. |
22 | Section 1303. Eligibility criteria. |
23 | Active status shall require a minimum of 200 hours of service |
24 | during the preceding year and response to no less than 50% of |
25 | the emergency calls during at least three of the four calendar |
26 | quarters. |
27 | Section 1304. Amount of tax credit. |
28 | Each volunteer certified as active shall be granted a credit |
29 | equal to $1,000 toward the volunteer's State income tax |
30 | obligation under Article III of the act of March 4, 1971 (P.L.6, |
|
1 | No.2), known as the Tax Reform Code of 1971. Any eligible |
2 | volunteer who does not incur $1,000 in annual State income tax |
3 | liability shall nevertheless be eligible for a refund equal to |
4 | the amount the credit exceeds that volunteer's tax obligation. |
5 | Section 1305. Reimbursement. |
6 | The State Treasury shall be reimbursed the value of such |
7 | volunteer credits from the fund. |
8 | CHAPTER 45 |
9 | MISCELLANEOUS PROVISIONS |
10 | Section 4501. Effective date. |
11 | This act shall take effect immediately. |
|