PRINTER'S NO. 2167
No. 1758 Session of 1989
INTRODUCED BY MICHLOVIC, McVERRY, KUKOVICH, VAN HORNE, MURPHY, TIGUE, PISTELLA, NAHILL, ITKIN, DeLUCA, PRESTON, KOSINSKI, MARKOSEK, HAGARTY, FREEMAN, SAURMAN, MRKONIC, STEIGHNER, JOSEPHS, J. TAYLOR, BOYES, DISTLER, FLICK, RYBAK, BLAUM, GIGLIOTTI, KENNEY, VROON, ROBINSON, RAYMOND, BILLOW, DURHAM, NOYE, PESCI, BELFANTI, MELIO, HECKLER, McNALLY, E. Z. TAYLOR, JAMES, TANGRETTI, WESTON, HAYDEN, LEVDANSKY, KAISER, COWELL, BOWLEY, DeWEESE, LANGTRY, KONDRICH AND FARMER, JUNE 26, 1989
REFERRED TO COMMITTEE ON INSURANCE, JUNE 26, 1989
AN ACT 1 Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An 2 act relating to insurance; amending, revising, and 3 consolidating the law providing for the incorporation of 4 insurance companies, and the regulation, supervision, and 5 protection of home and foreign insurance companies, Lloyds 6 associations, reciprocal and inter-insurance exchanges, and 7 fire insurance rating bureaus, and the regulation and 8 supervision of insurance carried by such companies, 9 associations, and exchanges, including insurance carried by 10 the State Workmen's Insurance Fund; providing penalties; and 11 repealing existing laws," providing optional benefits from 12 health care benefit plans. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. The act of May 17, 1921 (P.L.682, No.284), known 16 as The Insurance Company Law of 1921, is amended by adding an 17 article to read: 18 ARTICLE VI-B. 19 OPTIONAL BENEFITS FOR THE TREATMENT 20 OF SEVERE MENTAL DISORDERS.
1 Section 601-B. Legislative Intent.--In recognition of the 2 present limitations on flexible treatment of mental disorders 3 under health care benefit plans, the General Assembly declares 4 its intent to encourage the appropriate, individualized, cost- 5 effective treatment of mental disorders. Health care benefits 6 for medically and psychologically necessary therapeutic 7 treatment options shall be available as an alternative to 8 inpatient care to the extent of the dollar and durational limits 9 of the health care benefit plan, so as to assure flexible, 10 effective treatment of mental disorders. To the extent possible, 11 a portion of inpatient benefits shall be preserved, and 12 alternative, less expensive therapeutic services shall be 13 preferred. 14 Section 602-B. Definitions.--As used in this article the 15 following words and phrases shall have the meanings given to 16 them in this section: 17 "Clinical social worker." A licensed social worker who is 18 certified by a national professional organization offering 19 certification of clinical social workers or who meets equivalent 20 standards as prescribed by the State Board of Social Work 21 Examiners and 22 (1) Has at least a master's degree in social work from a 23 graduate school of social work with appropriate accreditation as 24 recognized by the State Board of Social Work Examiners. 25 (2) Has had a minimum of two years, three thousand hours, of 26 post-master's degree supervised clinical social work practice 27 under the supervision of a master's level social worker. 28 "Health care benefit plan." Any health or sickness or 29 accident insurance policy providing hospital or medical or 30 surgical coverage and any subscriber contract or certificate 19890H1758B2167 - 2 -
1 issued by any entity providing hospital or medical/surgical 2 coverage and subject to this act, to 40 Pa.C.S. Ch. 61 (relating 3 to hospital plan corporations) or 63 (relating to professional 4 health services plan corporations), or to the act of December 5 29, 1972 (P.L.1701, No.364), known as the "Health Maintenance 6 Organization Act," or the act of July 29, 1977 (P.L.105, No.38), 7 known as the "Fraternal Benefit Society Code." 8 "Inpatient services." The provision of necessary therapeutic 9 services twenty-four hours a day in a treatment facility 10 according to individualized treatment plans. 11 "Mental disorder." A syndrome of clinically significant 12 behavioral, biological or psychological abnormalities that 13 result in painful symptoms (distress) or impairment, or both, in 14 one or more areas of functioning (disability). In the resulting 15 disability, there is a clinically significant behavioral, 16 biological or psychological dysfunction which is not primarily 17 in the relationship between the individual and society. 18 "Outpatient services." A nonresidential treatment modality 19 which is provided on an ambulatory basis to patients with mental 20 disorders and includes necessary therapeutic services carried 21 out according to an individualized treatment plan. 22 "Partial hospitalization services." The provision of 23 necessary therapeutic services to patients according to an 24 individualized treatment plan. Partial hospitalization patients 25 require less than twenty-four hours care, but more intensive and 26 comprehensive services than are offered in outpatient care. 27 Partial hospitalization is provided on a planned and regularly 28 scheduled basis for a minimum of three hours but less than 29 twenty-four hours in any one day. 30 "Psychiatric nurse." A certified psychiatric mental health 19890H1758B2167 - 3 -
1 nurse certified by the State Board of Nursing or a national 2 nursing organization recognized by the State Board of Nursing. 3 "Severe mental disorders." Acute, chronic or recurrent 4 mental disorders exclusively identified as organic mental 5 disorders, schizophrenic disorders, paranoid disorders, other 6 psychotic disorders, affective disorders (bipolar disorders and 7 recurrent major depression), as described in the current edition 8 of the Diagnostic and Statistical Manual of Mental Disorders of 9 the American Psychiatric Association and for which the provision 10 of inpatient services may be appropriate. 11 "Treatment facility." A facility licensed by the Department 12 of Health or the Department of Public Welfare. 13 "Qualifying individual." An individual who has utilized less 14 than fifty percent of the total dollar value of coverage for 15 inpatient services provided for the treatment of mental 16 disorders by a health care benefit plan. 17 Section 603-B. Optional Benefits.--Any qualifying individual 18 diagnosed as suffering from a severe mental disorder and covered 19 by a health care benefit plan shall be provided an option to 20 ensure the cost-effective and efficient provision of benefits 21 available from the health care benefit plan. The option shall be 22 devised by the health care benefit plan to allow a qualifying 23 individual to substitute, for whatever benefits and benefit 24 limitations are otherwise available pursuant to the plan for the 25 treatment of a severe mental disorder, an alternative benefit 26 plan which has an equivalent total dollar value but which will 27 substitute alternative benefit limitations including the use of 28 outpatient services, partial hospitalization, non-hospital 29 inpatient services and other types of services not otherwise 30 covered by the health care benefit plan. Benefits management 19890H1758B2167 - 4 -
1 decisions will reflect the health care plan's financial 2 considerations and will not substitute for therapeutic 3 decisions. 4 Section 604-B. Administrative Costs.--Any administrative 5 costs associated with preparing and supervising the 6 implementation of an alternative benefit plan shall be deducted 7 from the total dollar value of the alternative benefit plan. 8 Administrative costs shall be consistent with the administrative 9 costs for the management of comparable benefit plans for the 10 treatment of physical illness. 11 Section 605-B. Lifetime Maximum Benefits.--Any qualifying 12 individual electing an alternative benefit plan for the 13 treatment of severe mental disorders pursuant to this article 14 shall be eligible for renewability of any lifetime limit imposed 15 by the health care benefit plan for the treatment of mental 16 disorders in the same manner in which benefit limitations are 17 renewed for medical disorders other than mental disorders. 18 Section 606-B. Eligibility to Receive Reimbursement.--Those 19 eligible to receive reimbursement for services provided during 20 treatment of the conditions defined above are limited to: 21 (1) Treatment facilities licensed by the Department of 22 Health or the Department of Public Welfare. 23 (2) Individuals who are licensed physicians, psychologists, 24 clinical social workers or psychiatric nurses. 25 Section 607-B. Rules and Regulations.--The Insurance 26 Commissioner and the Secretary of Public Welfare, in 27 consultation with the Commissioner of Professional and 28 Occupational Affairs, shall jointly promulgate those rules and 29 regulations as are deemed necessary for the effective 30 implementation and operation of this article, including 19890H1758B2167 - 5 -
1 information regarding health care benefit plan limitations and 2 their use. 3 Section 608-B. Preservation of Certain Benefits.--(a) No 4 policy, contract or benefit plan of health insurance shall 5 reduce or eliminate the amount, duration or level of health care 6 insurance issued or in effect on January 1, 1989, unless any 7 such reduction or other change is equally applicable to all 8 conditions covered under the policy. 9 (b) Nothing in this article shall prevent a health care 10 benefit plan from offering optional benefits for conditions 11 other than severe mental disorders. 12 Section 2. This act shall apply to all policies, contracts 13 and certificates delivered or issued for delivery more than 120 14 days after the effective date of this act. The requirements of 15 this act shall also apply to all renewals of policies, contracts 16 or certificates on any renewal date which is more than 120 days 17 after the effective date of this act. 18 Section 3. This act shall take effect immediately. F8L40JS/19890H1758B2167 - 6 -