ARTICLE 11 AS AMENDED

RELATING TO THE CHILDREN'S HEALTH ACCOUNT

SECTION 1. Section 42-12-29 of the General Laws in Chapter 42-12 entitled

“Department of Human Services“ is hereby amended to read as follows:

42-12-29. Children's health account. -- (a) There is created within the general fund a

restricted receipt account to be known as the "children's health account". All money in the

account shall be utilized by the department of human services to effectuate coverage for the

following service categories: (1) home health services, which include pediatric private duty

nursing and certified nursing assistant services; (2) comprehensive, evaluation, diagnosis,

assessment, referral and evaluation (CEDARR) services, which include CEDARR family center

services, home based therapeutic services, personal assistance services and supports (PASS) and

kids connect services and (3) child and adolescent treatment services (CAITS). All money

received pursuant to this section shall be deposited in the children's health account. The general

treasurer is authorized and directed to draw his or her orders on the account upon receipt of

properly authenticated vouchers from the department of human services.

     (b) Beginning in the fiscal year 2007, each insurer licensed or regulated pursuant to the

provisions of chapters 18, 19, 20, and 41 of title 27 shall be assessed for the purposes set forth in

this section. The department of human services shall make available to each insurer, upon its

request, information regarding the department of human services child health program and the

costs related to the program. Further, the department of human services shall submit to the

general assembly an annual report on the program and cost related to the program, on or before

February 1 of each year. Annual assessments shall be based on direct premiums written in the

year prior to the assessment and shall not include any Medicare Supplement Policy (as defined in

§ 27-18-2.1(g)), Medicare managed care, Medicare, Federal Employees Health Plan,

Medicaid/RIte Care or dental premiums. As to accident and sickness insurance, the direct

premium written shall include, but is not limited to, group, blanket, and individual policies. Those

insurers assessed greater than five hundred thousand dollars ($500,000) for the year shall be

assessed four (4) quarterly payments of twenty-five percent (25%) of their total assessment.

Beginning July 1, 2006, the annual rate of assessment shall be determined by the director of

human services in concurrence with the primary payors, those being insurers likely to be assessed

at greater than five hundred thousand dollars ($500,000). The director of the department of

human services shall deposit that amount in the "children's health account". The assessment shall

be used solely for the purposes of the "children's health account" and no other.

     (c) Any funds collected in excess of funds needed to carry out the programs shall be

deducted from the subsequent year's assessment.

     (d) The total annual assessment on all insurers shall be equivalent to the amount paid by

the department of human services for such all services, as listed in subsection (a), but not to

exceed six thousand dollars ($6,000) seven thousand five hundred dollars ($7,500) per child per

service per year.

     (e) The children's health account shall be exempt from the indirect cost recovery

provisions of § 35-4-27 of the general laws.

SECTION 2. Comprehensive analysis.--The office of the health insurance commissioner

is directed to undertake an analysis and study of alternatives to the current assessments levied

upon health insurance premiums, including the child and adult immunization assessments and the

children's health account assessment. Alternatives should include, but not be limited to, a claims

surcharge on hospital services which would be levied on self-insured as well as fully-insured

health plans. The analysis shall evaluate other states' tax structures, evaluate their strengths and

weaknesses, and assess how they may or may not be applicable in Rhode Island.

     All departments and agencies of the state shall furnish advice and information,

documentary or otherwise to the office of the health insurance commissioner and its agents as is

deemed necessary or desirable to facilitate the purposes of the analysis.

     The office shall present a report including findings and recommendations to the

chairpersons of the house and senate finance committees no later than January 1, 2012.

SECTION 3. This Article shall take effect upon passage.