2012 -- S 2888 SUBSTITUTE A

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LC02069/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES

     Introduced By: Senator Rhoda E. Perry

     Date Introduced: April 12, 2012

     Referred To: Senate Health & Human Services

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 40-8.4-14 of the General Laws in Chapter 40-8.4 entitled "Health

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Care For Families" is hereby amended to read as follows:

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     40-8.4-14. Permanent joint committee on health care oversight. -- (a) The legislature

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hereby finds and declares that: (1) access to affordable, quality health and long-term care is of

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concern for all Rhode Islanders; (2) the complexities of the health insurance and health care

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delivery systems result in inefficiencies, confusion and additional costs for consumers and other

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participants in the health care system; (3) reform to the health insurance and health care delivery

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systems is achievable only through an ongoing, focused, directed, and informed effort; and (4)

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steps taken to reduce the numbers of uninsured Rhode Islanders, enhance the quality of care,

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contain costs, assure accessibility to services, and promote healthy lifestyles should be monitored,

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adjusted or expanded as needed. Therefore, there is hereby created a permanent legislative

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committee to monitor, study, report and make recommendations on all areas of health care

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provision, insurance, liability, licensing, cost and delivery of services, and the adequacy, efficacy

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and efficiency of statutes, rules, regulations, guidelines, practices, and programs related to health

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care, long-term care, or health insurance coverage in Rhode Island.

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      (b) The committee consists of twelve (12) members of the general assembly: six (6) of

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whom shall be members of the house of representatives, to include the chair or deputy chair of the

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committee on finance, the chair or vice chair of the committee on corporations, the chair or vice

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chair of the committee on health, education and welfare; and one of whom shall be from the

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minority party, to be appointed by, and to serve at the discretion of, the speaker of the house of

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representatives; and six (6) of whom shall be from the senate, to include the chair or vice chair of

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the committee on finance, the chair or vice chair of the committee on commerce, housing and

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municipal government, the chair or vice chair of the committee on health and human services;

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and one of whom from the minority party, to be appointed by, and to serve at the discretion of,

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the president of the senate.

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      (c) The committee shall have co-chairpersons, one appointed by the speaker of the house

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of representatives and one by the president of the senate.

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      (d) The committee may review or study any matter related to the provision of health care

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services and long-term care that it considers of significance to the citizens of Rhode Island,

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including the availability of health care, the quality of health care, the effectiveness and efficiency

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of managed care systems, the efficiency and the operation of state health care programs, and the

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availability of improved processes or new technologies to achieve more effective and timely

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resolution of disputes, better communication, speedier, more reliable and less costly

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administrative processes, claims, payments, and other matters involving the interaction among

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any or all of government, employers, consumers of health care, providers, health care facilities,

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insurers and others. The committee may request information from any health care provider, health

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care facility, insurer or others. The committee may request and shall receive from any

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instrumentality of the state, including the department of human services, the department of

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business regulation, the department of health, the department of mental health, retardation, and

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hospitals, the department of elderly affairs, and the long-term care coordinating council, or any

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other governmental advisory body or commission, including, but not limited to, the governor's

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advisory council on health, such information and assistance as it deems necessary for the proper

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execution of its powers and duties under this section, including the annual report of the governor's

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advisory council on health. The committee will undertake a comprehensive study of the state's

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regulatory structure for health insurance including the roles, relevance, impact and coordination

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of current state laws and agencies involved in insurance oversight. This study will include any

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necessary recommendations for the restructuring of the state's laws and regulatory bodies. Said

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recommendations will be made to the speaker of the house and the president of the senate on or

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before March 1, 2005.

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      (e) In addition to the notification regarding regulations required under section 40-8.4-

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10(b), the department of human services shall file with the permanent joint committee on health

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care oversight a detailed plan for the implementation of the programs created under this chapter

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by August 1, 2000.

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      (f) The committee shall have the power to hold hearings, shall meet at least quarterly,

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may make recommendations to the general assembly, state agencies, private industry or any other

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entity, and shall report to the general assembly on its findings and recommendations as it

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determines appropriate.

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     (g) The Office of the Health Insurance Commissioner and the Executive Office of Health

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and Human Services shall issue a series of reports to the Joint Committee on or before October 1

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of 2012 on state implementation options related to the US Patient Protection and Affordable Care

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Act of 2010 as amended by the Health Care and Education Reconciliation Act of 2010 and any

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further amendments to or regulations or guidance issued thereunder (“ACA”). These reports shall

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analyze the state options and make recommendations to the Committee for legislative action

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regarding the following topics:

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     (i) The feasibility of instituting a basic health program pursuant to Section 131 of the

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ACA, including a proposed plan for implementation;

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     (ii) The impact of eliminating gender as a rating factor, limiting variation in community

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rates based on age, and limiting waiting periods for coverage, as required under the Act;

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     (iii)The impact of merging the individual and small group insurance markets on rates and

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coverage, including a proposed plan for implementation;

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     (iv) The feasibility of requiring insurance product consistency inside and outside of a

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state health insurance exchange, including an assessment of coverage and rate impacts; and

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     (v) The substantially equivalent utilization coverage limits that the legislature may

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substitute for the current dollar coverage limits on numerous state health insurance mandates, to

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conform with the Act.

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     SECTION 2. This act shall take effect upon passage.

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LC02069/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES

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     This act would require the office of the health insurance commissioner and the executive

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office of health and human services to issue a series of reports to the joint committee on health

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care oversight on state implementation options related to the “US Patient Protection and

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affordable Care Act of 2010, as amended by the Health Care and Education Reconsolidation Act

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of 2010.”

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     This act would take effect upon passage.

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LC02069/SUB A

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