SB392 (2010) Detail

(New Title) requiring public hearings concerning health insurance cost increases in health care services.


CHAPTER 240

SB 392-FN – FINAL VERSION

03/24/10 0915s

03/24/10 1179s

12May2010… 1586h

2010 SESSION

10-2776

01/04

SENATE BILL 392-FN

AN ACT requiring public hearings concerning health insurance cost increases in health care services.

SPONSORS: Sen. Fuller Clark, Dist 24; Sen. Hassan, Dist 23; Rep. Rosenwald, Hills 22

COMMITTEE: Commerce, Labor and Consumer Protection

AMENDED ANALYSIS

This bill requires the insurance commissioner to hold an annual public hearing concerning health insurance costs to identify and quantify the factors contributing to cost increases in health care services in New Hampshire. The commissioner shall prepare an annual report to be submitted to the governor, the president of the senate, and the speaker of the house of representatives. The requirement for public hearings is repealed on July 1, 2014.

This bill also requires hospitals, when billing self-pay patients, to accept as payment in full an amount no greater than the amount generally billed and received by the hospital for that service.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/24/10 0915s

03/24/10 1179s

12May2010… 1586h

10-2776

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT requiring public hearings concerning health insurance cost increases in health care services.

Be it Enacted by the Senate and House of Representatives in General Court convened:

240:1 New Paragraph; Insurance; Requested Information. Amend RSA 420-G:14-a by inserting after paragraph IV the following new paragraphs:

V. The commissioner shall hold an annual public hearing concerning premium rates in the health insurance market and the factors, including health care costs and cost trends, that have contributed to rate increases during the prior year. The commissioner shall evaluate claims costs, administrative loads, and health carrier profits. The commissioner shall identify the factors that contribute to cost increases affecting health insurance premiums and health care services in New Hampshire. The commissioner shall identify variations in the price that health carriers pay for health care services and shall undertake further analysis to determine whether the observed price variations correlate to the sickness or the complexity of the population served, the relative proportion of patients on Medicare or Medicaid that are served by the health care provider, the cost to the health care provider of delivering the service, or the relative proportion of free or reduced care provided to the uninsured. In advance of holding the public hearing, the commissioner may require any health insurer or third party administrator to produce documents and information deemed necessary and relevant to evaluate the factors that contribute to cost growth in health care services, increased utilization of health care, and health insurance premium costs. The commissioner shall keep confidential all nonpublic documents and shall not disclose those documents without the consent of the health care provider or health care payer that produced the information or documents. The commissioner may compel a health insurance carrier or third party administrator to testify at the annual public hearing. The commissioner may also invite representatives of health care providers to provide relevant information.

VI. The commissioner shall prepare an annual report concerning premium rates in the health insurance market and the factors that have contributed to rate increases during the prior year. The annual report shall be designed to provide information which identifies and quantifies health care spending trends and the underlying factors that contributed to increases in health insurance premiums. The report shall include recommendations and strategies for increasing the efficiency of New Hampshire’s health care financing and delivery system. The report shall be based on the commissioner’s analysis of information and data available to the commissioner, the testimony at the public hearing, and any other information or documents submitted in connection with the public hearing. The commissioner shall submit the annual report to the governor, the president of the senate, and the speaker of the house of representatives. The report shall be submitted by November 1 of each year.

VII. In conjunction with the annual public hearing required under paragraph V and the report and recommendations required under paragraph VI, the commissioner shall consider any pertinent work of other legislative commissions and inquires focused on related matters.

240:2 New Section; Hospital Rates for Self-Pay Patients. Amend RSA 151 by inserting after section 12-a the following new section:

151:12-b Hospital Rates for Self-Pay Patients. When billing self-pay patients for a service rendered, a hospital, as defined in RSA 151-C:2, shall accept as payment in full an amount no greater than the amount generally billed and received by the hospital for that service for patients covered by health insurance. A hospital shall determine the amount generally billed to health carriers in a manner consistent with Section 9007 of the Patient Protection and Affordable Care Act of 2009. A hospital shall provide written notice to a self-pay patient in advance of providing a service and at the time the service is billed regarding the requirements under this section.

240:3 Repeal. RSA 420-G:14-a, V-VII, relative to an annual public hearing and report on health insurance costs and trends, are hereby repealed.

240:4 Effective Date.

I. Section 1 of this act shall take effect 60 days after its passage.

II. Section 3 of this act shall take effect July 1, 2014.

III. The remainder of this act shall take effect July 1, 2010.

Approved: July 1, 2010

Effective Date: I. Section 1 shall take effect August 30, 2010.

II. Section 3 shall take effect July 1, 2014.

III. Remainder shall take effect July 1, 2010