0001| HOUSE BILL 351 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| JOSE R. ABEYTA | 0005| | 0006| | 0007| | 0008| FOR THE HEALTH CARE REFORM COMMITTEE | 0009| | 0010| AN ACT | 0011| RELATING TO HEALTH CARE; ENACTING THE MEDICAID MANAGED CARE | 0012| ACT; | 0013| PROVIDING REQUIREMENTS FOR MEDICAID MANAGED HEALTH CARE PLANS; | 0014| IMPOSING A CIVIL PENALTY. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| Section 1. SHORT TITLE.--This act may be cited as the | 0018| "Medicaid Managed Care Act". | 0019| Section 2. DEFINITIONS.--As used in the Medicaid Managed | 0020| Care Act: | 0021| A. "enrollee", "patient" or "consumer" means an | 0022| individual who is entitled to receive health care benefits from | 0023| a managed health care plan; | 0024| B. "essential community provider" means a person | 0025| that provides a significant portion of its health or | 0001| health-related services to medically needy indigent patients, | 0002| including uninsured, underserved or special needs populations; | 0003| C. "health care facility" means an institution | 0004| providing health care services, including a hospital or other | 0005| licensed inpatient center, an ambulatory surgical or treatment | 0006| center, a skilled nursing center, a residential treatment | 0007| center, a home health agency, a diagnostic, laboratory or | 0008| imaging center and a rehabilitation or other therapeutic health | 0009| setting; | 0010| D. "health care insurer" means a person that has a | 0011| valid certificate of authority in good standing under the New | 0012| Mexico Insurance Code to act as an insurer, a health | 0013| maintenance organization, a nonprofit health care plan or a | 0014| prepaid dental plan; | 0015| E. "health care professional" means a physician or | 0016| other health care practitioner, including a pharmacist, who is | 0017| licensed, certified or otherwise authorized by the state to | 0018| provide health services consistent with state law; | 0019| F. "health care provider" or "provider" means a | 0020| person that is licensed or otherwise authorized by the state to | 0021| furnish health care services and includes health care | 0022| professionals, health care facilities and essential community | 0023| providers; | 0024| G. "health care services" includes physical health | 0025| services or community-based mental health or developmental | 0001| disability services, including services for developmental | 0002| delay; | 0003| H. "managed health care plan" or "plan" means a | 0004| health benefit plan of a health care insurer or a provider | 0005| service network that either requires an enrollee to use, or | 0006| creates incentives, including financial incentives, for an | 0007| enrollee to use health care providers managed, owned, under | 0008| contract with or employed by the health care insurer. "Managed | 0009| health care plan" or "plan" includes a plan that provides | 0010| comprehensive health care services to enrollees on a prepaid, | 0011| capitated basis and includes the health care services offered | 0012| by a health maintenance organization, a preferred provider | 0013| organization, an individual practice organization, a | 0014| competitive medical plan, an exclusive provider organization, | 0015| an integrated delivery system, an independent physician- | 0016| provider organization, a physician hospital-provider | 0017| organization and a managed care services organization. | 0018| "Managed health care plan" or "plan" does not include a | 0019| traditional fee-for-service indemnity plan or a plan that | 0020| covers only short-term travel, accident-only, limited benefit | 0021| or specified disease policies; | 0022| I. "person" means an individual or other legal | 0023| entity; | 0024| J. "primary health care clinic" means a nonprofit | 0025| community-based entity established to provide the first level | 0001| of basic or general health care needs, including diagnostic and | 0002| treatment services, for residents of a health care underserved | 0003| area as that area is defined in regulation adopted by the | 0004| department of health; and | 0005| K. "provider service network" means two or more | 0006| health care providers affiliated for the purpose of providing | 0007| health care services to enrollees on a capitated or similar | 0008| prepaid, flat-rate basis. | 0009| Section 3. MEDICAID MANAGED HEALTH CARE PLAN OPERATIONS-- | 0010| ENROLLMENT RESTRICTIONS--ADMINISTRATIVE ABUSES--PROFITS | 0011| LIMITED.-- | 0012| A. Except as otherwise provided in the Medicaid | 0013| Managed Care Act, the human services department shall monitor | 0014| each managed health care plan offered through the medicaid | 0015| program and take all reasonable steps necessary to ensure that | 0016| each plan operates fairly and efficiently, protects patient | 0017| interests and fulfills the plan's primary obligation to deliver | 0018| good quality health care services. The department of health | 0019| shall be responsible for quality assurance and utilization | 0020| review oversight of medicaid managed health care plans. | 0021| B. No managed health care plan offered through the | 0022| medicaid program may directly recruit new members for | 0023| enrollment into the medicaid program. All recruiting and | 0024| enrollment of eligible persons into the medicaid program shall | 0025| be arranged directly by the human services department. The | 0001| department may provide for enrollment directly at hospitals or | 0002| other health care or government facilities. | 0003| C. The human services department shall regulate the | 0004| marketing activities of managed health care plans offered | 0005| through the medicaid program and prevent administrative abuses | 0006| in the operation of the plans. | 0007| D. No managed health care plan offered through the | 0008| medicaid program shall be allowed to earn profits in excess of | 0009| eight and one-half percent. The human services department | 0010| shall, in cooperation with the department of insurance, adopt | 0011| regulations to administer the provisions of this subsection. | 0012| The human services department shall enforce the provisions of | 0013| this subsection. Any profits earned in excess of eight and | 0014| one-half percent shall be returned to the human services | 0015| department, deposited by the department into an appropriate | 0016| state fund and expended for the purpose of expanding access to | 0017| health care for the uninsured or underinsured. | 0018| Section 4. SPECIALIZED HEALTH CARE PROGRAMS--ESSENTIAL | 0019| COMMUNITY PROVIDERS.--Until January 1, 2000, no managed health | 0020| care plan offered through the medicaid program shall offer | 0021| specialized behavioral or developmental disability health | 0022| services. The provisions of this section apply to the | 0023| specialized health care services needed for a person treated | 0024| for a developmental disability, a developmental delay, a | 0025| seriously disabling mental illness, a serious emotional | 0001| disturbance, physical or sexual abuse or neglect, substance | 0002| abuse or other behavioral health problem as defined in | 0003| regulation adopted by the department of health. Such | 0004| specialized behavioral or developmental disability health | 0005| services shall instead be provided, until January 1, 2000, only | 0006| by providers, including essential community providers, that | 0007| have been determined pursuant to regulation adopted by the | 0008| department of health or the children, youth and families | 0009| department to be qualified to offer specialized behavioral or | 0010| developmental disability health services. | 0011| Section 5. HEALTH CARE PROVIDER PARTICIPATION.--Any | 0012| health care provider that meets a medicaid managed health care | 0013| plan's reasonable qualification requirements and that is | 0014| willing to participate in the plan under its established | 0015| reasonable terms and conditions shall be allowed to participate | 0016| in the plan. | 0017| Section 6. PRIMARY HEALTH CARE CLINICS PARTICIPATION.-- | 0018| A. A managed health care plan offered through the | 0019| medicaid program shall be required to use under reasonable | 0020| terms and conditions any primary health care clinic that elects | 0021| to participate in the plan, if the primary health care clinic | 0022| meets all reasonable quality of care and service payment | 0023| requirements imposed by the plan. The terms shall be no less | 0024| favorable than those offered any other provider, and they shall | 0025| provide payments that are reasonable and adequate to meet costs | 0001| incurred by efficiently and economically operated facilities, | 0002| taking into account the disproportionately greater severity of | 0003| illness and injury experienced by the patient population | 0004| served. | 0005| B. A managed health care plan offered through the | 0006| medicaid program may not limit the number or location of | 0007| primary health care clinics that elect to participate in the | 0008| plan. | 0009| C. In providing payments to a primary health care | 0010| clinic participating in a medicaid managed health care plan, | 0011| the human services department shall administer a program and | 0012| provide direct payments to ensure that a primary health care | 0013| clinic that was a federally qualified health center in 1996 | 0014| under applicable federal law receives for at least the same | 0015| amount and type of services rendered in all subsequent years at | 0016| least the same amount of total payments under the medicaid | 0017| program that the primary care clinic received in the calendar | 0018| year ending December 31, 1996. | 0019| D. The human services department and each managed | 0020| health care plan that contracts with a primary health care | 0021| clinic shall provide timely payments at least quarterly to each | 0022| primary care clinic participating in the plan. | 0023| Section 7. INDIAN HEALTH SERVICE.--A Native American | 0024| eligible to receive health care services from the federal | 0025| Indian health service shall be given the option of | 0001| participating in a managed health care plan offered through the | 0002| medicaid program or receiving services directly from the Indian | 0003| health service. If an eligible Native American chooses to | 0004| participate in a managed health care plan, the Native American | 0005| shall at all times retain the option of receiving services | 0006| directly from the Indian health service. In that event, the | 0007| managed health care plan shall ensure that the Indian health | 0008| service receives the same payment it would have received for | 0009| the services rendered if the patient did not participate in the | 0010| plan. | 0011| Section 8. UNIVERSITY OF NEW MEXICO HEALTH SCIENCES | 0012| CENTER.-- | 0013| A. A managed health care plan offered through the | 0014| medicaid program shall include participation by the university | 0015| of New Mexico health sciences center. The human services | 0016| department shall administer a program to ensure the | 0017| participation includes delivery of primary care and tertiary | 0018| care services so that the medicaid patient population served by | 0019| the university of New Mexico health sciences center remains at | 0020| least at a level similar to that served by the university of | 0021| New Mexico health sciences center prior to implementation of | 0022| the medicaid managed health care program. | 0023| B. A managed health care plan offered through the | 0024| medicaid program shall provide payments to the university of | 0025| New Mexico health sciences center at rates that are reasonable | 0001| and adequate to meet costs incurred by efficiently and | 0002| economically operated facilities, taking into account the | 0003| disproportionately greater severity of illness and injury | 0004| experienced by the patient population served. | 0005| C. The human services department shall administer a | 0006| program and cooperate with the university of New Mexico health | 0007| sciences center to ensure an adequate and diverse patient | 0008| population necessary to preserve the health sciences center's | 0009| educational programs. The human services department shall also | 0010| assure continuity of general support under the state medicaid | 0011| program to the university of New Mexico health sciences center | 0012| for medical education and for serving a disproportionately | 0013| large indigent patient population. | 0014| Section 9. PUBLIC NONPROFIT HOSPITALS.-- | 0015| A. A managed health care plan offered through the | 0016| medicaid program shall be required to use under reasonable | 0017| terms and conditions any public nonprofit hospital that elects | 0018| to participate in the plan, if the hospital meets all | 0019| reasonable quality of care and service payment requirements | 0020| imposed by the plan. The terms shall be no less favorable than | 0021| those offered by any other provider, and they shall provide | 0022| payments that are reasonable and adequate to meet costs | 0023| incurred by efficiently and economically operated facilities, | 0024| taking into account the disproportionately greater severity of | 0025| illness and injury experienced by the patient population | 0001| served. | 0002| B. A managed health care plan offered through the | 0003| medicaid program may not limit the number or location of public | 0004| nonprofit hospitals that elect to participate in the plan. | 0005| Section 10. LAS VEGAS MEDICAL CENTER.--A managed health | 0006| care plan offered through the medicaid program shall include | 0007| participation by the Las Vegas medical center for hospitalized | 0008| care of mental health patients and other health services the | 0009| center provides. A plan shall provide payments to the Las | 0010| Vegas medical center under reasonable terms and conditions. | 0011| The terms shall be no less favorable than those offered any | 0012| other provider, and they shall provide payments that are | 0013| reasonable and adequate to meet costs incurred by efficiently | 0014| and economically operated facilities, taking into account the | 0015| disproportionately greater severity of illness and injury | 0016| experienced by the patient population served. | 0017| Section 11. AUTHORIZATION FOR MEDICAID MANAGED CARE | 0018| CONTRACTS DIRECTLY WITH PUBLIC AGENCIES, HOSPITALS, ESSENTIAL | 0019| COMMUNITY PROVIDERS AND PROVIDER SERVICE NETWORKS.--In | 0020| administering the medicaid program or a managed health care | 0021| system for the program, the human services department may | 0022| contract directly with a government agency or public body, | 0023| public nonprofit hospital, the university of New Mexico health | 0024| sciences center, an essential community provider or a provider | 0025| service network. In doing so, the human services department is | 0001| not required to contract with any such entity only through | 0002| arrangements with a health care insurer. | 0003| Section 12. ENFORCEMENT OF THE MEDICAID MANAGED CARE | 0004| ACT.-- | 0005| A. The human services department or a person who | 0006| suffers a loss as a result of a violation of a provision in the | 0007| Medicaid Managed Care Act may bring an action to recover actual | 0008| damages or the sum of one hundred dollars ($100), whichever is | 0009| greater. When the trier of fact finds that the party charged | 0010| with the violation acted willfully, the court may award up to | 0011| three times actual damages or three hundred dollars ($300), | 0012| whichever is greater, to the party complaining of the | 0013| violation. | 0014| B. A person likely to be damaged by a denial of a | 0015| right protected in the Medicaid Managed Care Act may be granted | 0016| an injunction under the principles of equity and on terms that | 0017| the court considers reasonable. Proof of monetary damage or | 0018| intent to violate a right is not required. | 0019| C. To protect and enforce an enrollee's or a health | 0020| care provider's rights in a managed health care plan offered | 0021| through the medicaid program, an enrollee and a health care | 0022| provider participating in or eligible to participate in a | 0023| medicaid managed health care plan shall each be treated as a | 0024| third party beneficiary of the managed health care plan | 0025| contract between the health care insurer and the party with | 0001| which the insurer directly contracts. An enrollee or a health | 0002| care provider may sue to enforce the rights provided in the | 0003| contract that governs the managed health care plan. | 0004| D. The court shall award attorney fees and costs to | 0005| the party complaining of a violation of a right protected in | 0006| the Medicaid Managed Care Act if the party prevails | 0007| substantially in the lawsuit. | 0008| E. The relief provided in this section is in | 0009| addition to other remedies available against the same conduct | 0010| under the common law or other statutes of this state. | 0011| | 0012| F. In any class action filed under this section, | 0013| the court may award damages to the named plaintiffs as provided | 0014| in this section and may award members of the class the actual | 0015| damages suffered by each member of the class as a result of the | 0016| unlawful practice. | 0017| G. A person shall not be required to complete | 0018| available grievance procedures or exhaust administrative | 0019| remedies prior to seeking relief in court regarding a complaint | 0020| that may be filed under this section. | 0021| Section 13. PENALTY.--In addition to any other penalties | 0022| provided by law, the secretary of human services may impose a | 0023| civil administrative penalty of up to twenty-five thousand | 0024| dollars ($25,000) for each violation of the Medicaid Managed | 0025| Care Act. An administrative penalty shall be imposed by | 0001| written order of the secretary after holding a hearing as | 0002| provided for in the Administrative Procedures Act. | 0003| Section 14. REGULATIONS.--The human services department | 0004| may adopt regulations it deems necessary or appropriate to | 0005| administer the provisions of the Medicaid Managed Care Act. | 0006| Section 15. EFFECTIVE DATE.--The effective date of the | 0007| provisions of this act is July 1, 1997. | 0008|  State of New Mexico | 0009| House of Representatives | 0010| | 0011| FORTY-THIRD LEGISLATURE | 0012| FIRST SESSION, 1997 | 0013| | 0014| | 0015| February 18, 1997 | 0016| | 0017| | 0018| Mr. Speaker: | 0019| | 0020| Your LABOR AND HUMAN RESOURCES COMMITTEE, to | 0021| whom has been referred | 0022| | 0023| HOUSE BILL 351 | 0024| | 0025| has had it under consideration and reports same with | 0001| recommendation that it DO NOT PASS, but that | 0002| | 0003| HOUSE LABOR AND HUMAN RESOURCES COMMITTEE | 0004| SUBSTITUTE FOR HOUSE BILL 351 | 0005| | 0006| DO PASS, amended as follows: | 0007| | 0008| 1. On page 12, strike lines 10 through 13 in their entirety | 0009| and reletter the succeeding subsection accordingly., | 0010| | 0011| and thence referred to the JUDICIARY COMMITTEE. | 0012| | 0013| Respectfully submitted, | 0014| | 0015| | 0016| | 0017| | 0018| | 0019| Rick Miera, Chairman | 0020| | 0021| | 0022| Adopted Not Adopted | 0023| | 0024| (Chief Clerk) (Chief Clerk) | 0025| | 0001| Date | 0002| | 0003| The roll call vote was 5 For 2 Against | 0004| Yes: 5 | 0005| No: Macko, Roberts | 0006| Excused: Marquardt | 0007| Absent: None | 0008| | 0009| | 0010| | 0011| G:\BILLTEXT\BILLW_97\H0351 | 0012| State of New Mexico | 0013| House of Representatives | 0014| | 0015| FORTY-THIRD LEGISLATURE | 0016| FIRST SESSION, 1997 | 0017| | 0018| | 0019| February 28, 1997 | 0020| | 0021| | 0022| Mr. Speaker: | 0023| | 0024| Your JUDICIARY COMMITTEE, to whom has been referred | 0025| | 0001| HOUSE LABOR AND HUMAN RESOURCES COMMITTEE | 0002| SUBSTITUTE FOR HOUSE BILL 351, as amended | 0003| | 0004| has had it under consideration and reports same | 0005| with recommendation that it DO PASS, amended as | 0006| follows: | 0007| | 0008| 1. On page 5, line 3, after "E." strike the remainder of | 0009| the line, strike all of lines 4 through 13 and insert in lieu | 0010| thereof: | 0011| | 0012| "A managed health care plan offered through the | 0013| medicaid program shall be required to maintain a medical loss | 0014| ratio of at least ninety percent, so that at a minimum ninety | 0015| percent of all premium dollars collected are paid for the direct | 0016| provision of health care services. The department of insurance | 0017| shall adopt regulations to define the "medical loss ratio" | 0018| consistent with the provisions of this subsection.", | 0019| | 0020| and thence referred to the APPROPRIATIONS AND FINANCE | 0021| COMMITTEE. | 0022| | 0023| | 0024| Respectfully submitted, | 0025| | 0001| | 0002| | 0003| | 0004| | 0005| Thomas P. Foy, Chairman | 0006| | 0007| | 0008| Adopted Not Adopted | 0009| | 0010| (Chief Clerk) (Chief Clerk) | 0011| | 0012| Date | 0013| | 0014| The roll call vote was 7 For 0 Against | 0015| Yes: 7 | 0016| Excused: Alwin, King, Larranaga, Mallory, Rios, Sanchez | 0017| Absent: None | 0018| | 0019| | 0020| .117858.1 | 0021| G:\BILLTEXT\BILLW_97\H0351 HOUSE LABOR AND HUMAN RESOURCES COMMITTEE SUBSTITUTE FOR | 0022| HOUSE BILL 351 | 0023| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0024| | 0025| | 0001| | 0002| | 0003| | 0004| | 0005| | 0006| AN ACT | 0007| RELATING TO HEALTH CARE; ENACTING THE MEDICAID MANAGED CARE | 0008| ACT; | 0009| PROVIDING REQUIREMENTS FOR MEDICAID MANAGED HEALTH CARE PLANS; | 0010| IMPOSING A CIVIL PENALTY. | 0011| | 0012| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0013| Section 1. SHORT TITLE.--This act may be cited as the | 0014| "Medicaid Managed Care Act". | 0015| Section 2. DEFINITIONS.--As used in the Medicaid Managed | 0016| Care Act: | 0017| A. "enrollee", "patient" or "consumer" means an | 0018| individual who is entitled to receive health care benefits from | 0019| a managed health care plan; | 0020| B. "essential community provider" means a person | 0021| that provides a significant portion of its health or | 0022| health-related services to medically needy indigent patients, | 0023| including uninsured, underserved or special needs populations; | 0024| C. "health care facility" means an institution | 0025| providing health care services, including a hospital or other | 0001| licensed inpatient center, an ambulatory surgical or treatment | 0002| center, a skilled nursing center, a residential treatment | 0003| center, a home health agency, a diagnostic, laboratory or | 0004| imaging center and a rehabilitation or other therapeutic health | 0005| setting; | 0006| D. "health care insurer" means a person that has a | 0007| valid certificate of authority in good standing under the New | 0008| Mexico Insurance Code to act as an insurer, a health | 0009| maintenance organization, a nonprofit health care plan or a | 0010| prepaid dental plan; | 0011| E. "health care professional" means a physician or | 0012| other health care practitioner, including a pharmacist, who is | 0013| licensed, certified or otherwise authorized by the state to | 0014| provide health services consistent with state law; | 0015| F. "health care provider" or "provider" means a | 0016| person that is licensed or otherwise authorized by the state to | 0017| furnish health care services and includes health care | 0018| professionals, health care facilities and essential community | 0019| providers; | 0020| G. "health care services" includes physical health | 0021| services or community-based mental health or developmental | 0022| disability services, including services for developmental | 0023| delay; | 0024| H. "managed health care plan" or "plan" means a health | 0025| benefit plan of a health care insurer or a provider service | 0001| network that either requires an enrollee to use, or creates | 0002| incentives, including financial incentives, for an enrollee to use | 0003| health care providers managed, owned, under contract with or | 0004| employed by the health care insurer. "Managed health care plan" | 0005| or "plan" does not include a traditional fee-for-service indemnity | 0006| plan or a plan that covers only short-term travel, accident-only, | 0007| limited benefit, student health plan or specified disease | 0008| policies; | 0009| I. "person" means an individual or other legal entity; | 0010| J. "primary health care clinic" means a nonprofit | 0011| community-based entity established to provide the first level of | 0012| basic or general health care needs, including diagnostic and | 0013| treatment services, for residents of a health care underserved | 0014| area as that area is defined in regulation adopted by the | 0015| department of health; and | 0016| K. "provider service network" means two or more health | 0017| care providers affiliated for the purpose of providing health care | 0018| services to enrollees on a capitated or similar prepaid, flat-rate | 0019| basis. | 0020| Section 3. MEDICAID MANAGED HEALTH CARE PLAN OPERATIONS-- | 0021| ENROLLMENT RESTRICTIONS--ADMINISTRATIVE ABUSES--PROFITS LIMITED.-- | 0022| A. Except as otherwise provided in the Medicaid | 0023| Managed Care Act, the human services department shall monitor each | 0024| managed health care plan offered through the medicaid program and | 0025| take all reasonable steps necessary to ensure that each plan | 0001| operates fairly and efficiently, protects patient interests and | 0002| fulfills the plan's primary obligation to deliver good quality | 0003| health care services. The human services department, in | 0004| cooperation with the department of health, shall be responsible | 0005| for quality assurance and utilization review oversight of medicaid | 0006| managed health care plans. | 0007| B. No managed health care plan offered through the | 0008| medicaid program may directly recruit new members for enrollment | 0009| into the medicaid program. All enrollment of eligible persons | 0010| into the medicaid program shall be arranged directly by the human | 0011| services department. | 0012| C. The human services department, through its own | 0013| offices and employees, joint powers agreements with other state | 0014| agencies or by contract with one or more brokering agencies | 0015| independent of any managed health care provider, shall fully | 0016| inform medicaid eligible persons of their choices for enrollment | 0017| into a managed health care plan. The department shall ensure that | 0018| the enrollment process includes adequate time and information for | 0019| enrollees to make informed choices about a plan. No managed | 0020| health care plan offered through the medicaid program shall enroll | 0021| medicaid recipients into its managed health care plan unless the | 0022| enrollment is in accordance with arrangements approved by the | 0023| department. | 0024| D. The human services department shall regulate the | 0025| marketing activities of managed health care plans offered through | 0001| the medicaid program and prevent administrative abuses in the | 0002| operation of the plans. | 0003| E. No managed health care plan offered through the | 0004| medicaid program shall be allowed to earn profits in excess of | 0005| eight and one-half percent. The human services department shall, | 0006| in cooperation with the department of insurance, adopt regulations | 0007| to administer the provisions of this subsection. The human | 0008| services department shall enforce the provisions of this | 0009| subsection. Any profits earned in excess of eight and one-half | 0010| percent shall be returned to the human services department, | 0011| deposited by the department into an appropriate state fund and | 0012| expended for the purpose of expanding access to health care for | 0013| the uninsured or underinsured. | 0014| Section 4. SPECIALIZED HEALTH CARE PROGRAMS--ESSENTIAL | 0015| COMMUNITY PROVIDERS.--Except as otherwise provided in the Medicaid | 0016| Managed Care Act, until January 1, 2000, no managed health care | 0017| plan offered through the medicaid program shall offer specialized | 0018| behavioral or developmental disability health services. The | 0019| provisions of this section apply to the specialized health care | 0020| services needed for a person treated for a developmental | 0021| disability, a developmental delay, a seriously disabling mental | 0022| illness, a serious emotional disturbance, physical or sexual abuse | 0023| or neglect, substance abuse or other behavioral health problem as | 0024| defined in regulation adopted by the department of health. Such | 0025| specialized behavioral or developmental disability health services | 0001| shall instead be provided, until January 1, 2000, only by | 0002| providers, including essential community providers, that have been | 0003| determined pursuant to regulation adopted by the department of | 0004| health or the children, youth and families department to be | 0005| qualified to offer specialized behavioral or developmental | 0006| disability health services. | 0007| Section 5. HEALTH CARE PROVIDER PARTICIPATION.--Any health | 0008| care provider that meets a medicaid managed health care plan's | 0009| reasonable qualification requirements and that is willing to | 0010| participate in the plan under its established reasonable terms and | 0011| conditions shall be allowed to participate in the plan. | 0012| Section 6. PRIMARY HEALTH CARE CLINICS PARTICIPATION.-- | 0013| A. A managed health care plan offered through the | 0014| medicaid program shall be required to use under reasonable terms | 0015| and conditions any primary health care clinic that elects to | 0016| participate in the plan, if the primary health care clinic meets | 0017| all reasonable quality of care and service payment requirements | 0018| imposed by the plan. The terms shall be no less favorable than | 0019| those offered any other provider, and they shall provide payments | 0020| that are reasonable and adequate to meet costs incurred by | 0021| efficiently and economically operated facilities, taking into | 0022| account the disproportionately greater severity of illness and | 0023| injury experienced by the patient population served. | 0024| B. A managed health care plan offered through the | 0025| medicaid program may not limit the number or location of primary | 0001| health care clinics that elect to participate in the plan. | 0002| C. In providing payments under the medicaid program, | 0003| the human services department shall ensure that a primary health | 0004| care clinic that was or would have qualified as a federally | 0005| qualified health center in 1996 under the federal act, as defined | 0006| in 42 U.S.C. Section 1396d(l)(2), shall receive one hundred | 0007| percent reasonable cost-based reimbursement for services, as was | 0008| provided in the federal act during 1996 for the centers pursuant | 0009| to the provisions of 42 U.S.C. Section 1396a(a)(13)(E). | 0010| D. In administering the medicaid program, the human | 0011| services department shall ensure that any managed care program for | 0012| medicaid, whether implemented through a federal waiver, block | 0013| grant or otherwise, shall require each health plan participating | 0014| in the medicaid managed care program to contract with each primary | 0015| health care clinic in its service area that was or would have | 0016| qualified as a federally qualified health center in 1996 under the | 0017| federal act, as defined in 42 U.S.C. Section 1396d(l)(2), for | 0018| delivery of covered services at terms no less favorable than those | 0019| offered to other providers in the plan for equivalent services. | 0020| The department shall provide timely payments at least quarterly to | 0021| federally qualified health centers to cover the difference between | 0022| their one hundred percent reasonable costs, as was provided in the | 0023| federal act during 1996 for the centers pursuant to the provisions | 0024| of 42 U.S.C. Section 1396a(a)(13)(E), and the payments under | 0025| medicaid managed care that are received by the federally qualified | 0001| health centers. | 0002| Section 7. INDIAN HEALTH SERVICE.--A Native American | 0003| enrolled in a managed health care plan offered through the | 0004| medicaid program shall be given the option of leaving that plan | 0005| and receiving services directly from the Indian health service or | 0006| health services provided by tribes under the federal Indian Self- | 0007| Determination and Education Assistance Act, the federal urban | 0008| Indian health program or the federal Indian children's program. | 0009| If an eligible Native American chooses to participate in a managed | 0010| health care plan, the Native American shall at all times retain | 0011| the option of receiving services directly from the Indian health | 0012| service or health services provided by tribes under the federal | 0013| Indian Self-Determination and Education Assistance Act, the | 0014| federal urban Indian health program or the federal Indian | 0015| children's program. In that event, the managed health care plan | 0016| shall ensure that the Indian health service receives the same | 0017| payment it would have received for the services rendered if the | 0018| patient did not participate in the plan. | 0019| Section 8. UNIVERSITY OF NEW MEXICO HEALTH SCIENCES | 0020| CENTER.-- | 0021| A. A managed health care plan offered through the | 0022| medicaid program shall include participation by the university of | 0023| New Mexico health sciences center. The human services department | 0024| shall administer a program to ensure the participation includes | 0025| delivery of primary care and tertiary care services and to attempt | 0001| to ensure, to the extent permitted by federal law, that the | 0002| medicaid patient population served by the university of New Mexico | 0003| health sciences center remains at least at a level similar to that | 0004| served by the university of New Mexico health sciences center | 0005| prior to implementation of the medicaid managed health care | 0006| program. | 0007| B. A managed health care plan offered through the | 0008| medicaid program shall provide payments to the university of New | 0009| Mexico health sciences center at rates that are reasonable and | 0010| adequate to meet costs incurred by efficiently and economically | 0011| operated facilities, taking into account the disproportionately | 0012| greater severity of illness and injury experienced by the patient | 0013| population served. | 0014| C. The human services department shall administer a | 0015| program and cooperate with the university of New Mexico health | 0016| sciences center to ensure an adequate and diverse patient | 0017| population necessary to preserve the health sciences center's | 0018| educational programs. The human services department shall also | 0019| assure continuity of general support under the state medicaid | 0020| program to the university of New Mexico health sciences center for | 0021| medical education and for serving a disproportionately large | 0022| indigent patient population. | 0023| Section 9. PUBLIC NONPROFIT HOSPITALS.-- | 0024| A. A managed health care plan offered through the | 0025| medicaid program shall be required to use under reasonable terms | 0001| and conditions any public nonprofit hospital that elects to | 0002| participate in the plan, if the hospital meets all reasonable | 0003| quality of care and service payment requirements imposed by the | 0004| plan. The terms shall be no less favorable than those offered by | 0005| any other provider, and they shall provide payments that are | 0006| reasonable and adequate to meet costs incurred by efficiently and | 0007| economically operated facilities, taking into account the | 0008| disproportionately greater severity of illness and injury | 0009| experienced by the patient population served. | 0010| B. A managed health care plan offered through the | 0011| medicaid program may not limit the number or location of public | 0012| nonprofit hospitals that elect to participate in the plan. | 0013| Section 10. LAS VEGAS MEDICAL CENTER.--A managed health | 0014| care plan offered through the medicaid program that offers mental | 0015| health services shall include participation by the Las Vegas | 0016| medical center for hospitalized care of mental health patients and | 0017| other health services the center provides. A plan shall provide | 0018| payments to the Las Vegas medical center under reasonable terms | 0019| and conditions. For medicaid eligible populations, the terms | 0020| shall be no less favorable than those offered any other provider, | 0021| and they shall provide payments that are reasonable and adequate | 0022| to meet costs incurred by efficiently and economically operated | 0023| facilities, taking into account the disproportionately greater | 0024| severity of illness and injury experienced by the patient | 0025| population served. | 0001| Section 11. AUTHORIZATION FOR MEDICAID MANAGED CARE | 0002| CONTRACTS DIRECTLY WITH PUBLIC AGENCIES, HOSPITALS, ESSENTIAL | 0003| COMMUNITY PROVIDERS AND PROVIDER SERVICE NETWORKS.--In | 0004| administering the medicaid program or a managed health care system | 0005| for the program, the human services department may contract | 0006| directly with a government agency or public body, public nonprofit | 0007| hospital, the university of New Mexico health sciences center, an | 0008| essential community provider or a provider service network. In | 0009| doing so, the human services department is not required to | 0010| contract with any such entity only through arrangements with a | 0011| health care insurer. | 0012| Section 12. ENFORCEMENT OF THE MEDICAID MANAGED CARE | 0013| ACT.-- | 0014| A. The human services department or a person who | 0015| suffers a loss as a result of a violation of a provision in the | 0016| Medicaid Managed Care Act may bring an action to recover actual | 0017| damages or the sum of one hundred dollars ($100), whichever is | 0018| greater. When the trier of fact finds that the party charged with | 0019| the violation acted willfully, the court may award up to three | 0020| times actual damages or three hundred dollars ($300), whichever is | 0021| greater, to the party complaining of the violation. | 0022| B. A person likely to be damaged by a denial of a | 0023| right protected in the Medicaid Managed Care Act may be granted an | 0024| injunction under the principles of equity and on terms that the | 0025| court considers reasonable. Proof of monetary damage or intent to | 0001| violate a right is not required. | 0002| C. To protect and enforce an enrollee's or a health | 0003| care provider's rights in a managed health care plan offered | 0004| through the medicaid program, an enrollee and a health care | 0005| provider participating in or eligible to participate in a medicaid | 0006| managed health care plan shall each be treated as a third party | 0007| beneficiary of the managed health care plan contract between the | 0008| health care insurer and the party with which the insurer directly | 0009| contracts. An enrollee or a health care provider may sue to | 0010| enforce the rights provided in the contract that governs the | 0011| managed health care plan. | 0012| D. The court shall award attorney fees and costs to | 0013| the party complaining of a violation of a right protected in the | 0014| Medicaid Managed Care Act if the party prevails substantially in | 0015| the lawsuit. | 0016| E. The relief provided in this section is in addition | 0017| to other remedies available against the same conduct under the | 0018| common law or other statutes of this state. | 0019| F. In any class action filed under this section, the | 0020| court may award damages to the named plaintiffs as provided in | 0021| this section and may award members of the class the actual damages | 0022| suffered by each member of the class as a result of the unlawful | 0023| practice. | 0024| G. A person shall not be required to complete | 0025| available grievance procedures or exhaust administrative remedies | 0001| prior to seeking relief in court regarding a complaint that may be | 0002| filed under this section. | 0003| Section 13. PENALTY.--In addition to any other penalties | 0004| provided by law, the secretary of human services may impose a | 0005| civil administrative penalty of up to twenty-five thousand dollars | 0006| ($25,000) for each violation of the Medicaid Managed Care Act. An | 0007| administrative penalty shall be imposed by written order of the | 0008| secretary after holding a hearing as provided for in the Public | 0009| Assistance Appeals Act. | 0010| Section 14. REGULATIONS.--The human services department may | 0011| adopt regulations it deems necessary or appropriate to administer | 0012| the provisions of the Medicaid Managed Care Act. | 0013| Section 15. EFFECTIVE DATE.--The effective date of the | 0014| provisions of this act is July 1, 1997. | 0015|  | 0016| | 0017| FORTY-THIRD LEGISLATURE | 0018| FIRST SESSION, 1997 | 0019| | 0020| | 0021| March 16, 1997 | 0022| | 0023| Mr. President: | 0024| | 0025| Your PUBLIC AFFAIRS COMMITTEE, to whom has been referred | 0001| | 0002| HOUSE LABOR AND HUMAN RESOURCES | 0003| COMMITTEE SUBSTITUTE FOR | 0004| HOUSE BILL 351, as amended | 0005| | 0006| has had it under consideration and reports same with recommendation | 0007| that it DO PASS. | 0008| | 0009| Respectfully submitted, | 0010| | 0011| | 0012| | 0013| __________________________________ | 0014| Shannon Robinson, Chairman | 0015| | 0016| | 0017| | 0018| Adopted_______________________ Not Adopted_______________________ | 0019| (Chief Clerk) (Chief Clerk) | 0020| | 0021| | 0022| | 0023| Date ________________________ | 0024| | 0025| | 0001| The roll call vote was 5 For 0 Against | 0002| Yes: 5 | 0003| No: 0 | 0004| Excused: Boitano, Garcia, Ingle, Rodarte | 0005| Absent: None | 0006| | 0007| | 0008| H0351PA1 |