2014 -- S 2505

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LC003897

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO INSURANCE

     Introduced By: Senators Pearson, and Picard

     Date Introduced: February 27, 2014

     Referred To: Senate Health & Human Services

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 27-18-70 of the General Laws in Chapter 27-18 entitled "Accident

and Sickness Insurance Policies" is hereby amended to read as follows:

     27-18-70. Enteral nutrition products. -- (a) Every individual or group health insurance

contract, or every individual or group hospital or medical expense insurance policy, plan, or

group policy delivered, issued for delivery, or renewed in this state on or after January 1, 2009,

shall provide coverage for nonprescription enteral formulas for home use for which a physician

has issued a written order and which are medically necessary for the treatment of malabsorption

caused by Crohn's disease, ulcerative colitis, gastroesophageal reflux, chronic intestinal pseudo-

obstruction, and inherited diseases of amino acids and organic acids. Coverage for inherited

diseases of amino acids and organic acids shall include food products modified to be low protein

and shall extend to all recipients regardless of age. Provided, however, that coverage shall not

exceed an amount of two thousand five hundred dollars ($2,500) per covered member per year.

      (b) Benefit plans offered by an insurer may not impose a copayment and/or deductibles

for the benefits mandated by this section, however, in no instance shall the copayment or

deductible amount be greater than the copayment or deductible amount imposed for prescription

enteral formulas or nutritional aids. Benefits for services under this chapter shall be reimbursed in

accordance with the respective principles and mechanisms of reimbursement for each insurer,

hospital, or medical service corporation, or health maintenance organization. Reimbursement

shall be provided according to the respective principles and policies of the accident and sickness

insurer. Nothing contained in this section precludes the accident and sickness insurer from

conducting managed care, medical necessity, or utilization review.

      (c) This section shall not apply to insurance coverage providing benefits for: (1) hospital

confinement indemnity; (2) disability income; (3) accident only; (4) long-term care; (5) Medicare

supplement; (6) limited benefit health; (7) specified disease indemnity; (8) sickness or bodily

injury or death by accident or both; and (9) other limited benefit policies.

     SECTION 2. Section 27-19-61 of the General Laws in Chapter 27-19 entitled "Nonprofit

Hospital Service Corporations" is hereby amended to read as follows:

     27-19-61. Enteral nutrition products. -- (a) Every individual or group health insurance

contract, or every individual or group hospital or medical expense insurance policy, plan, or

group policy delivered, issued for delivery, or renewed in this state on or after January 1, 2009,

shall provide coverage for nonprescription enteral formulas for home use for which a physician

has issued a written order and which are medically necessary for the treatment of malabsorption

caused by Crohn's disease, ulcerative colitis, gastroespphageal reflux, chronic intestinal pseudo-

obstruction, and inherited diseases of amino acids and organic acids. Coverage for inherited

diseases of amino acids and organic acids shall include food products modified to be low protein

and shall extend to all recipients regardless of age. Provided, however, that coverage shall not

exceed an amount of two thousand five hundred dollars ($2,500) per covered member per year.

      (b) Benefit plans offered by a hospital service corporation may not impose a copayment

and/or deductible for the benefits mandated by this section, however, in no instance shall the

copayment or deductible amount be greater than the copayment or deductible amount imposed for

prescription enteral formulas or nutritional aids. Benefits for services under this chapter shall be

reimbursed in accordance with the respective principles and mechanisms of reimbursement for

each insurer, hospital, or medical service corporation, or health maintenance organization.

Reimbursement shall be provided according to the respective principles and policies of the

accident and sickness insurer. Nothing contained in this section precludes the accident and

sickness insurer from conducting managed care, medical necessity, or utilization review.

      (c) This section shall not apply to insurance coverage providing benefits for: (1) hospital

confinement indemnity; (2) disability income; (3) accident only; (4) long-term care; (5) Medicare

supplement; (6) limited benefit health; (7) specified disease indemnity; (8) sickness or bodily

injury or death by accident or both; and (9) other limited benefit policies.

     SECTION 3. Section 27-20-56 of the General Laws in Chapter 27-20 entitled "Nonprofit

Medical Service Corporations" is hereby amended to read as follows:

     27-20-56. Enteral nutrition products. -- (a) Every individual or group health insurance

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contract, or every individual or group hospital or medical expense insurance policy, plan, or

group policy delivered, issued for delivery, or renewed in this state on or after January 1, 2009,

shall provide coverage for nonprescription enteral formulas for home use for which a physician

has issued a written order and which are medically necessary for the treatment of malabsorption

caused by Crohn's disease, ulcerative colitis, gastroespphageal reflux, chronic intestinal pseudo-

obstruction, and inherited diseases of amino acids and organic acids. Coverage for inherited

diseases of amino acids and organic acids shall include food products modified to be low protein

and shall extend to all recipients regardless of age. Provided, however, that coverage shall not

exceed an amount of two thousand five hundred dollars ($2,500) per covered member per year.

      (b) Benefit plans offered by a medical service corporation may not impose a copayment

and/or deductible for the benefits mandated by this section, however, in no instance shall the

copayment or deductible amount be greater than the copayment of deductible amount imposed for

prescription enteral formulas or nutritional aids. Benefits for services under this chapter shall be

reimbursed in accordance with the respective principles and mechanisms of reimbursement for

each insurer, hospital, or medical service corporation, or health maintenance organization.

Reimbursement shall be provided according to the respective principles and policies of the

accident and sickness insurer. Nothing contained in this section precludes the accident and

sickness insurer from conducting managed care, medical necessity, or utilization review.

      (c) This section shall not apply to insurance coverage providing benefits for: (1) hospital

confinement indemnity; (2) disability income; (3) accident only; (4) long-term care; (5) Medicare

supplement; (6) limited benefit health; (7) specified disease indemnity; (8) sickness or bodily

injury or death by accident or both; and (9) other limited benefit policies.

     SECTION 4. Section 27-41-74 of the General Laws in Chapter 27-41 entitled "Health

Maintenance Organizations" is hereby amended to read as follows:

     27-41-74. Enteral nutrition products. -- (a) Every individual or group health insurance

contract, or every individual or group hospital or medical expense insurance policy, plan, or

group policy delivered, issued for delivery, or renewed in this state on or after January 1, 2009,

shall provide coverage for nonprescription enteral formulas for home use for which a physician

has issued a written order and which are medically necessary for the treatment of malabsorption

caused by Crohn's disease, ulcerative colitis, gastroespphageal reflux, chronic intestinal pseudo-

obstruction, and inherited diseases of amino acids and organic acids. Coverage for inherited

diseases of amino acids and organic acids shall include food products modified to be low protein

and shall extend to all recipients regardless of age. Provided, however, that coverage shall not

exceed an amount of two thousand five hundred dollars ($2,500) per covered member per year.

LC003897 - Page 3 of 7

      (b) Benefit plans offered by a health maintenance organization may not impose a

copayment and/or deductible for the benefits mandated by this section, however, in no instance

shall the copayment or deductible amount be greater than the copayment of deductible amount

imposed for prescription enteral formulas or nutritional aids. Benefits for services under this

chapter shall be reimbursed in accordance with the respective principles and mechanisms of

reimbursement for each insurer, hospital, or medical service corporation, or health maintenance

organization. Reimbursement shall be provided according to the respective principles and policies

of the accident and sickness insurer. Nothing contained in this section precludes the accident and

sickness insurer from conducting managed care, medical necessity, or utilization review.

      (c) This section shall not apply to insurance coverage providing benefits for: (1) hospital

confinement indemnity; (2) disability income; (3) accident only; (4) long-term care; (5) Medicare

supplement; (6) limited benefit health; (7) specified disease indemnity; (8) sickness or bodily

injury or death by accident or both; and (9) other limited benefit policies.

     SECTION 5. Section 40-6-3.12 of the General Laws in Chapter 40-6 entitled "Public

Assistance Act" is hereby amended to read as follows:

     40-6-3.12. Enteral nutrition products. -- (a) As used in this section:

      (1) "Enteral nutrition" means a supplemental feeding that is provided via the

gastrointestinal tract by mouth (orally), or through a tube, catheter, or stoma that delivers

nutrients distal to the oral cavity.

      (2) "Nutritional risk" means actual or potential for developing malnutrition, as evidenced

by clinical indicators, the presence of chronic disease, or increased metabolic requirements due to

impaired ability to ingest or absorb food adequately.

      (b) The department shall provide for vendor payment of enteral nutrition products in

accordance with rules and regulations of the department, when determined to be medically

necessary on an individual, case-by-case basis and ordered by a physician in accordance with

Rhode Island department of health form(s) on enteral nutrition products. Provided, however, that

coverage shall not exceed an amount of two thousand five hundred dollars ($2,500) per individual

per year.

      (c) The determination of medical necessity for enteral nutrition products shall be based

upon a combination of clinical data and the presence of indicators that would affect the relative

risks and benefits of the products including, but not limited to:

      (1) Enteral nutrition, whether orally or by tube feeding, is used as a therapeutic regimen

to prevent serious disability or death in a person with a medically diagnosed condition that

precludes the full use of regular food.

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      (2) The person presents clinical signs and symptoms of impaired digestion

malabsorption, or nutritional risk, as indicated by the following anthropometric measures:

      (i) Weight loss that presents actual or potential for developing, malnutrition as follows:

      (A) In adults, showing involuntary or acute weight loss of greater than or equal to ten

percent (10%) of usual body weight during a three (3) to six (6) month period, or body mass

index (bmi) below 18.5 kg/m2;

      (B) In neonates, infants and children, showing:

      (I) Very low birth weight (lbw) even in the absence of gastrointestinal, pulmonary or

cardiac disorders;

      (II) A lack of weight gain, or weight gain less than two (2) standard deviations below the

age appropriate mean in a one month period for children under six (6) months, or two (2) month

period for children aged six (6) to twelve (12) months;

      (III) No weight gain or abnormally slow rate of gain for three (3) months for children

older than one year, or documented weight loss that does not reverse promptly with instruction in

appropriate diet for age; or

      (IV) Weight for height less than the tenth (10th) percentile; and

      (ii) Abnormal laboratory test pertinent to the diagnosis.

      (3) The risk factors for actual or potential malnutrition have been identified and

documented. Such risk factors include, but are not limited to, the following:

      (i) Anatomic structures of the gastrointestinal tract that impair digestion and absorption;

      (ii) Neurological disorders that impair swallowing or chewing;

      (iii) Diagnosis of inborn errors of metabolism that require medically necessary formula

used for specific metabolic conditions and food products modified low in protein (for example,

phenylketonuria (pku) tyrosinemia, homocystinuria, maple syrup urine disease, propionic aciduria

and methylmalonic aciduria);

      (iv) Prolonged nutrient losses due to malabsorption syndromes or short-bowel

syndromes, diabetes, celiac disease, chronic pancreatitis, renal dialysis, draining abscess or

wounds, etc.;

      (v) Treatment with anti-nutrient or catabolic properties (for example, anti-tumor

treatments, corticosteroids, immunosuppressant, etc.);

      (vi) Increased metabolic and/or caloric needs due to excessive burns, infection, trauma,

prolonged fever, hyperthyroidism, or illnesses that impair caloric intake and/or retention; or

      (vii) A failure-to-thrive diagnosis that increases caloric needs while impairing caloric

intake and/or retention.

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      (4) A comprehensive medical history and a physical examination have been conducted to

detect factors contributing to nutritional risk.

      (5) Enteral nutrition is indicated as the primary source of nutritional support essential for

the management of risk factors that impair digestion or malabsorption, and for the management of

surgical preparation or postoperative care.

      (6) A written plan of care has been developed for regular monitoring of signs and

symptoms to detect improvement in the person's condition. Nutritional status should be monitored

regularly;

      (i) For improvements in anthropometric measures;

      (ii) For improvements in laboratory test indicators; and

      (iii) In children, to assess growth and weight for height.

      (d) Enteral nutrition products shall not be considered medically necessary under certain

circumstances including, but not limited to, the following:

      (1) A medical history and physical examination have been performed and other possible

alternatives have been identified to minimize nutritional risk.

      (2) The person is underweight, but has the ability to meet nutritional needs through the

use of regular food consumption.

      (3) Enteral products are used as supplements to a normal or regular diet in a person

showing no clinical indicators of nutritional risk.

      (4) The person has food allergies, lactose intolerance or dental problems, but has the

ability to meet his or her nutritional requirements through an alternative food source.

      (5) Enteral products are to be used for dieting or a weight-loss program.

      (6) No medical history or physical examination has been taken and there is no

documentation that supports the need for enteral nutrition products.

     SECTION 6. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE

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     This act would require insurance coverage of formula and other prescribed food for all

patients regardless of age, and would also abolish the mandated cap on coverage and any co-

payments or deductibles in connection with such benefits.

     This act would take effect upon passage.

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LC003897

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