0001|                           HOUSE BILL 1073
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                          TERRY T. MARQUARDT
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO PUBLIC ASSISTANCE; PROVIDING FOR REVIEW AND
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0012|     REGULATION OF MEDICAID PROVIDERS; PROVIDING ADMINISTRATIVE
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0013|     PENALTIES.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  SHORT TITLE.--This act may be cited as the
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0017|     "Medicaid Provider Act". 
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0018|          Section 2.  DEFINITIONS.--As used in the Medicaid Provider
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0019|     Act:
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0020|               A.  "department" means the human services
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0021|     department;
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0022|               B.  "managed care organization" means a person
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0023|     eligible to enter into risk-based prepaid capitation agreements
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0024|     with the department to provide health care and related
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0025|     services;
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0001|               C.  "medicaid" means the medical assistance program
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0002|     established pursuant to Title 19 of the federal Social
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0003|     Security, Act, as amended from time to time, and regulations
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0004|     issued pursuant to that act;
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0005|               D.  "medicaid provider" means a person, including a
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0006|     managed care organization, operating under contract with the
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0007|     department to provide medicaid-related services to recipients;
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0008|               E.  "person" means an individual or other legal
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0009|     entity;
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0010|               F.  "recipient" means a person whom the department
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0011|     has determined to be eligible to receive medicaid-related
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0012|     services;
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0013|               G.  "secretary" means the secretary of human
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0014|     services; and
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0015|               H.  "subcontractor" means a person that contracts
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0016|     with a medicaid provider to provide medicaid-related services
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0017|     to recipients."
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0018|          Section 3.  REVIEW OF MEDICAID PROVIDERS--CONTRACT
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0019|     REMEDIES--PENALTIES.--
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0020|               A.  The secretary may review the operations of a
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0021|     medicaid provider, and shall have the right of and be afforded
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0022|     full access to the medicaid provider's records, personnel and
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0023|     facilities for that purpose at all times.
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0024|               B.  The secretary may, consistent with the
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0025|     provisions of the Medicaid Provider Act and regulations issued
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0001|     pursuant to that act, carry out an administrative investigation
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0002|     or conduct administrative proceedings to determine whether a
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0003|     medicaid provider has:
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0004|                    (1)  operated in a manner that materially
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0005|     violates its organizational documents;
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0006|                    (2)  materially breached its obligation to
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0007|     furnish medicaid-related services to recipients, or any other
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0008|     duty specified in its contract with the department;
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0009|                    (3)  violated any provision of the Public
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0010|     Assistance Act or the Medicaid Provider Act or any regulations
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0011|     issued pursuant to those acts;
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0012|                    (4)  made any false statement with respect to
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0013|     any report or statement required by the Public Assistance Act,
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0014|     or the Medicaid Provider Act, regulations issued pursuant to
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0015|     either of those acts or a contract with the department;
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0016|                    (5)  advertised or marketed, or attempted to
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0017|     advertise or market, its services to recipients in such a
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0018|     manner as to misrepresent its services or capacity for
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0019|     services, or engaged in any deceptive, misleading or unfair
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0020|     practice with respect to advertising or marketing;
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0021|                    (6)  hindered or prevented the secretary from
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0022|     performing any duty imposed by the Public Assistance Act, the
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0023|     Human Services Department Act or the Medicaid Provider Act or
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0024|     any regulations issued pursuant to those acts; or
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0025|                    (7)  fraudulently procured or attempted to
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0001|     procure any benefit from medicaid.
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0002|               C.  After affording a medicaid provider written
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0003|     notice of hearing not less than ten days before the hearing
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0004|     date and an opportunity to be heard, and upon making
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0005|     appropriate administrative findings, the secretary may take any
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0006|     or any combination of the following actions against the
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0007|     provider:
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0008|                    (1)  impose an administrative penalty of not
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0009|     more than ten thousand dollars ($10,000) for engaging in any
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0010|     practice described in Paragraphs (1) through (7) of Subsection
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0011|     B of this section; provided, that each occurrence of each
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0012|     practice shall constitute a separate offense;
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0013|                    (2)  issue an administrative order requiring
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0014|     the provider to:
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0015|                         (a)  cease or modify any specified
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0016|     conduct or practices engaged in by it, its employees,
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0017|     subcontractors or agents; 
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0018|                         (b)  fulfill its contractual obligations
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0019|     in the manner specified in the order;
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0020|                         (c)  provide any service that has been
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0021|     denied;
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0022|                         (d)  take steps to provide or arrange for
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0023|     any service that it has agreed or is otherwise obligated to
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0024|     make available; or
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0025|                         (e)  enter into and abide by the terms of
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0001|     a binding or non-binding arbitration proceeding, if agreed to
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0002|     by any opposing party, including the secretary; or
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0003|                    (3)  suspend or revoke the contract between the
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0004|     provider and the department, in which case the provider:
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0005|                         (a)  during the period of any suspension,
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0006|     shall not enroll or treat additional recipients, except newborn
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0007|     children or other newly acquired dependents of existing
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0008|     enrolled recipients, and shall not engage in any advertising,
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0009|     marketing or solicitation for enrollment or treatment of
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0010|     additional recipients; and  
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0011|                         (b)  immediately following the effective
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0012|     date of any revocation, shall proceed expeditiously to wind up
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0013|     its affairs under its contract with the department, and shall
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0014|     not conduct further business except as may be essential to the
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0015|     orderly conclusion of its medicaid-related affairs and transfer
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0016|     to other medicaid providers of its recipients and their
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0017|     records; provided, that the secretary may, by written order,
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0018|     permit such further operation of the medicaid provider's
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0019|     medicaid-related services as the secretary finds to be in the
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0020|     best interest of recipients, to the end that they will be
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0021|     afforded the greatest practical opportunity to obtain
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0022|     continuous medicaid-related coverage."
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0023|          Section 4.  RETENTION AND PRODUCTION OF RECORDS.--
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0024|               A.  Medicaid providers and their subcontractors
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0025|     shall retain, for a period of at least five years from the date
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0001|     of creation, all medical and business records relating to: 
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0002|                    (1)  treatment or care of any recipient;
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0003|                    (2)  services or goods provided to any
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0004|     recipient;
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0005|                    (3)  amounts paid by medicaid or the medicaid
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0006|     provider on behalf of any recipient; and
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0007|                    (4)  records required by medicaid or used for
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0008|     its administration.
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0009|               B.  Upon written request by medicaid or the
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0010|     department to a medicaid provider or any subcontractor for
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0011|     copies or inspection of records pursuant to the Public
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0012|     Assistance Act, the medicaid provider or subcontractor shall
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0013|     provide the copies or permit the inspection, as applicable,
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0014|     within five business days after the date of the request.
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0015|               C.  Failure to provide copies or to permit
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0016|     inspection of records requested pursuant to this section shall
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0017|     constitute a violation of the Medicaid Provider Act within the
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0018|     meaning of Paragraph (3) of Subsection B of Section 3 of that
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0019|     act."
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0020|          Section 5.  REGULATIONS.--The secretary shall adopt and
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0021|     promulgate regulations appropriate to administer, carry out and
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0022|     enforce the provisions of the Medicaid Provider Act.
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0023|                                                         State of New Mexico
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0024|                      House of Representatives
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0025|   
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0001|                      FORTY-THIRD LEGISLATURE
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0002|                        FIRST SESSION, 1997
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0003|   
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0004|   
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0005|                                                   March 1, 1997
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0006|   
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0007|   
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0008|   Mr. Speaker:
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0009|   
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0010|        Your CONSUMER AND PUBLIC AFFAIRS COMMITTEE, to
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0011|   whom has been referred
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0012|   
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0013|                       HOUSE BILL 1073
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0014|                               
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0015|   has had it under consideration and reports same with
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0016|   recommendation that it DO PASS, and thence referred to the
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0017|   JUDICIARY COMMITTEE.
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0018|   
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0019|                                 Respectfully submitted,
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0020|   
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0021|   
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0022|   
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0023|                                                                 
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0024|   
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0025|                                                              Gary King, Chairman
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0001|   
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0002|   
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0003|   Adopted                          Not Adopted                     
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0004|    
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0005|             (Chief Clerk)                       (Chief Clerk)
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0006|   
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0007|                        Date             
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0008|   
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0009|   The roll call vote was 6  For 0  Against
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0010|                  Yes:      6    
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0011|             Excused:  Heaton, Rios, Vaughn, Vigil
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0012|             Absent:   None
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0013|   
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0014|   
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0015|   G:\BILLTEXT\BILLW_97\H1073                       State of New Mexico
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0016|                      House of Representatives
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0017|   
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0018|                      FORTY-THIRD LEGISLATURE
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0019|                        FIRST SESSION, 1997
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0020|   
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0021|   
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0022|                                                  March 21, 1997
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0023|   
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0024|   
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0025|   Mr. Speaker:
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0001|   
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0002|        Your JUDICIARY COMMITTEE, to whom has been referred
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0003|   
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0004|                       HOUSE BILL 1073
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0005|   
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0006|   has had it under consideration and reports same with
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0007|   recommendation that it DO PASS, amended as follows:
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0008|   
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0009|        1.   On page 2, line 20, strike "personnel and" and strike
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0010|   line 21 and insert in lieu thereof "as are necessary to fully
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0011|   disclose the extent of services provided to recipients under
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0012|   Title 19 of the federal Social Security Act, including patient
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0013|   and employee records and any information regarding payments
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0014|   claimed by the medicaid provider for furnishing services under
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0015|   the medicaid program.".,
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0016|   
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0017|   and thence referred to the APPROPRIATIONS AND FINANCE
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0018|   COMMITTEE.
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0019|   
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0020|                                 Respectfully submitted,
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0021|   
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0022|   
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0023|   
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0024|                                                                 
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0025|   
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0001|                                                              Thomas P. Foy, Chairman
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0002|   
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0003|   
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0004|   Adopted                          Not Adopted                     
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0005|    
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0006|             (Chief Clerk)                       (Chief Clerk)
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0007|   
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0008|                        Date             
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0009|   
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0010|   The roll call vote was  7  For 2  Against
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0011|   Yes:      7
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0012|             No:       M.P. Garcia, Pederson
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0013|             Excused:  Alwin, Rios, Sanchez, Foy
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0014|             Absent:   None
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0015|   
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0016|   
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0017|   .118792.1
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0018|   G:\BILLTEXT\BILLW_97\H1073
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