Legislation Clerk's Office Members Committees Meetings Home Senate
HB 732 - Patient's Right to Independent Review Act; enact
Smith, Jr., Charlie (175th) Turnquest, Henrietta (73rd) Dukes, Winfred (161st)
Bordeaux, Tom (151st) Graves, David B (125th) Ehrhart, Earl (36th)
Status Summary HC: Judy SC: Judy FR: 02/23/99 LA: 04/20/99 Signed by Governor

First Reader Summary

A BILL to amend Chapter 1 of Title 51 of the Official Code of Georgia Annotated, relating to general provisions regarding torts, so as to establish a standard of care for certain entities which administer benefits or review or adjust claims under a managed care plan and provide for recovery for violations of that standard; and for other purposes.

Page Numbers: 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Code Sections - 51-1-48/ 51-1-49/ 33-20A-30/ 33-20A-31/ 33-20A-32/ 33-20A-33/ 33-20A-34/ 33-20A-35/ 33-20A-36/ 33-20A-37/ 33-20A-38/ 33-20A-39/ 33-20A-40/ 33-20A-41

Recorded Votes
Vote # SV99-340 PASSAGE AS AMENDED 3/18/99
Vote # HV99-1118 PASS 03/09/99

House Action Senate
2/23/99 Read 1st Time 3/10/99
2/24/99 Read 2nd Time 3/17/99
3/3/99 Favorably Reported 3/17/99
Sub Committee Amend/Sub Am
3/9/99 Read 3rd Time 3/18/99
3/9/99 Passed/Adopted 3/18/99
CSFA Comm/Floor Amend/Sub CA
3/22/99 Amend/Sub Agreed To
3/26/99 Sent to Governor
4/20/99 Signed by Governor
281 Act/Veto Number
7/1/99/9 Effective Date
Version by LC Number
HB 732/AP Amend/Sub Agreed To
HB 732/CSFA H - Passed/Adopted (CSFA)
LC 11 9817/6-ECS H - Favorably Reported (Sub)
LC 11 9817-EC As Introduced

HB 732                                              HB 732/AP 
 
      H. B. No. 732 (AS PASSED HOUSE AND SENATE) 
      By:  Representatives Smith of the 175th, Turnquest of the 
      73rd, Dukes of the 161st, Bordeaux of the 151st, Graves of 
      the 125th and others 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Chapter 1 of Title 51 of the Official Code of 
  1- 2  Georgia Annotated, relating to general provisions regarding 
  1- 3  torts, so as to establish a standard of care for certain 
  1- 4  entities which administer benefits or review or adjust 
  1- 5  claims under a managed care plan and provide for recovery 
  1- 6  for violations of that standard; to prohibit waivers, 
  1- 7  modifications, shifting, or delegation of liability; to 
  1- 8  provide conditions for maintaining certain causes of action; 
  1- 9  to provide for court orders and abatement of actions; to 
  1-10  provide that certain other liability is not created; to 
  1-11  amend Chapter 20A of Title 33 of the Official Code of 
  1-12  Georgia Annotated, the "Patient Protection Act of 1996," 
  1-13  relating to managed care plans, so as to provide for a short 
  1-14  title; to provide for definitions; to provide certain 
  1-15  enrollees of managed care plans with an independent review 
  1-16  of plan determinations and provide for standards, 
  1-17  conditions, and procedures relating thereto; to provide for 
  1-18  duties, powers, and functions of the Health Planning Agency 
  1-19  with regard to such reviews and provide for certification of 
  1-20  independent review organizations; to provide for expert 
  1-21  reviewers and decisions thereof; to provide for costs and 
  1-22  expedited reviews; to provide for immunity from liability 
  1-23  and presumptions; to prohibit certain conflicts of interest; 
  1-24  to provide for quality assurance; to provide for 
  1-25  applicability; to provide for effective dates;  to repeal 
  1-26  conflicting laws; and for other purposes. 
 
  1-27       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-28                           SECTION 1. 
 
  1-29  Chapter 1 of Title 51 of the Official Code of Georgia 
  1-30  Annotated, relating to general provisions regarding torts, 
  1-31  is amended by adding at the end new Code sections to read as 
  1-32  follows: 
 
 
 
 
 
 
                                 -1- 
 
 
 
  2- 1    "51-1-48. 
 
  2- 2    (a) Any claim administrator, health care advisor, private 
  2- 3    review agent, or other person or entity which administers 
  2- 4    benefits or reviews or adjusts claims under a managed care 
  2- 5    plan shall exercise ordinary diligence to do so in a 
  2- 6    timely and appropriate manner in accordance with the 
  2- 7    practices and standards of the profession of the health 
  2- 8    care provider generally.  Notwithstanding any other 
  2- 9    provision of law to the contrary, any injury or death to 
  2-10    an enrollee resulting from a want of such ordinary 
  2-11    diligence shall be a tort for which a recovery may be had 
  2-12    against the managed care entity offering such plan, but no 
  2-13    recovery shall be had for punitive damages for such tort. 
 
  2-14    (b) The provisions of this Code section may not be waived, 
  2-15    shifted, or modified by contract or agreement and 
  2-16    responsibility therefor shall be a duty which shall not be 
  2-17    delegated.  Any effort to waive, modify, delegate, or 
  2-18    shift liability for a breach of the duty provided by this 
  2-19    Code section, through a contract for indemnification or 
  2-20    otherwise, shall be invalid. 
 
  2-21    (c) This Code section shall not create any liability on 
  2-22    the part of an employer of an enrollee or that employer's 
  2-23    employees, unless the employer is the enrollee's managed 
  2-24    care entity.  This Code section shall not create any 
  2-25    liability on the part of an employee organization, a 
  2-26    voluntary employee beneficiary organization, or a similar 
  2-27    organization, unless such  organization is the enrollee's 
  2-28    managed care entity and makes coverage determinations 
  2-29    under a managed care plan. 
 
  2-30    (d) As used in this Code section and in Code Section 
  2-31    51-1-49, the terms 'claim administrator,' 'enrollee,' 
  2-32    'health care advisor,' and 'private review agent,' shall 
  2-33    be defined as set forth in Chapter 46 of Title 33 except 
  2-34    that 'enrollee' shall include the enrollee's eligible 
  2-35    dependents; 'managed care entity' and 'managed care plan' 
  2-36    shall be defined as set forth in Code Section 33-20A-3; 
  2-37    and 'independent review' means a review pursuant to 
  2-38    Article 2 of Chapter 20A of Title 33, the 'Patient's Right 
  2-39    to Independent Review Act.' 
 
  2-40    51-1-49. 
 
  2-41    (a) No person may maintain a cause of action pursuant to 
  2-42    Code Section 51-1-48 unless the affected enrollee or the 
  2-43    enrollee's representative: 
 
 
                                 -2- 
 
 
 
  3- 1      (1) Has exhausted the grievance procedure provided for 
  3- 2      under Code Section 33-20A-5 and before instituting the 
  3- 3      action: 
 
  3- 4        (A) Gives written notice of intent to file suit to the 
  3- 5        managed care entity; and 
 
  3- 6        (B) Agrees to submit the claim to independent review 
  3- 7        if required under subsection (c) of this Code section; 
  3- 8        or 
 
  3- 9      (2) Has filed a pleading alleging in substance that: 
 
  3-10        (A) Harm to the enrollee has already occurred for 
  3-11        which the managed care entity may be liable; and 
 
  3-12        (B) The grievance procedure or independent review is 
  3-13        not timely or otherwise available or would not make 
  3-14        the enrollee whole, 
 
  3-15      in which case the court, upon motion by the managed care 
  3-16      entity, shall stay the action and order such grievance 
  3-17      procedure or independent review to be conducted and 
  3-18      exhausted. 
 
  3-19    (b) The notice required by paragraph (1) of subsection (a) 
  3-20    of this Code section must be delivered or mailed to the 
  3-21    managed care entity not fewer than 30 days before the 
  3-22    action is filed. 
 
  3-23    (c) The managed care entity receiving notice of intent to 
  3-24    file suit may obtain independent review of the claim, if 
  3-25    notice of a request for review is mailed or delivered to 
  3-26    the Health Planning Agency, or its successor agency, and 
  3-27    the affected enrollee within ten days of receipt of the 
  3-28    notice of intent to file suit." 
 
  3-29                           SECTION 2. 
 
  3-30  Chapter 20A of Title 33 of the Official Code of Georgia 
  3-31  Annotated, the "Patient Protection Act of 1996," is amended 
  3-32  by designating Code Sections 33-20A-1 through 33-20A-10 as 
  3-33  Article 1 of said chapter and substituting "this article" 
  3-34  for "this chapter" and "This article" for "This chapter" 
  3-35  wherever such terms appear in the newly designated Article 
  3-36  1. 
 
  3-37                           SECTION 3. 
 
  3-38  Said chapter is further amended by adding at the end thereof 
  3-39  a new article to read as follows: 
 
 
 
                                 -3- 
 
 
 
 
 
  4- 1    33-20A-30. 
 
  4- 2    This article shall be known and may be cited as the 
  4- 3    'Patient's Right to Independent Review Act.' 
 
  4- 4    33-20A-31. 
 
  4- 5    As used in this article: 
 
  4- 6      (1) 'Eligible enrollee' means a person who: 
 
  4- 7        (A) Is an enrollee or an eligible dependent of an 
  4- 8        enrollee of a managed care plan or was an enrollee or 
  4- 9        an eligible dependent of an enrollee of such plan at 
  4-10        the time of the request for treatment; and 
 
  4-11        (B) Seeks a treatment which reasonably appears to be a 
  4-12        covered service or benefit under the enrollee's 
  4-13        evidence of coverage; provided, however, that this 
  4-14        subparagraph shall not apply if the notice from a 
  4-15        managed care plan of the outcome of the grievance 
  4-16        procedure was that a treatment is experimental. 
 
  4-17      (2) 'Grievance procedure' means the grievance procedure 
  4-18      established pursuant to Code Section 33-20A-5. 
 
  4-19      (3) 'Independent review organization' means any 
  4-20      organization certified as such by the planning agency 
  4-21      under Code Section 33-20A-39. 
 
  4-22      (4) 'Medical and scientific evidence' means: 
 
  4-23        (A) Peer reviewed scientific studies published in or 
  4-24        accepted for publication by medical journals that meet 
  4-25        nationally recognized requirements for scientific 
  4-26        manuscripts and that submit most of their published 
  4-27        articles for review by experts who are not part of the 
  4-28        editorial staff; 
 
  4-29        (B) Peer reviewed literature, biomedical compendia, 
  4-30        and other medical literature that meet the criteria of 
  4-31        the National Institutes of Health's National Library 
  4-32        of Medicine for indexing in Index Medicus, Excerpta 
  4-33        Medicus (EMBASE), Medline, and MEDLARS data base or 
  4-34        Health Services Technology Assessment Research 
  4-35        (HSTAR); 
 
  4-36        (C) Medical journals recognized by the United States 
  4-37        secretary of health and human services, under Section 
  4-38        1861(t)(2) of the Social Security Act; 
 
 
 
                                 -4- 
 
 
 
  5- 1        (D) The following standard reference compendia:  the 
  5- 2        American Hospital Formulary Service-Drug Information, 
  5- 3        the American Medical Association Drug Evaluation, the 
  5- 4        American Dental Association Accepted Dental 
  5- 5        Therapeutics, and the United States Pharmacopoeia-Drug 
  5- 6        Information; or 
 
  5- 7        (E) Findings, studies, or research conducted by or 
  5- 8        under the auspices of federal government agencies and 
  5- 9        nationally recognized federal research institutes 
  5-10        including the Federal Agency for Health Care Policy 
  5-11        and Research, National Institutes of Health, National 
  5-12        Cancer Institute, National Academy of Sciences, Health 
  5-13        Care Financing Administration, and any national board 
  5-14        recognized by the National Institutes of Health for 
  5-15        the purpose of evaluating the medical value of health 
  5-16        services. 
 
  5-17      (5) 'Medical necessity,' 'medically necessary care,' or 
  5-18      'medically necessary and appropriate' means care based 
  5-19      upon generally accepted medical practices in light of 
  5-20      conditions at the time of treatment which is: 
 
  5-21        (A) Appropriate and consistent with the diagnosis and 
  5-22        the omission of which could adversely affect or fail 
  5-23        to improve the eligible enrollee's condition; 
 
  5-24        (B) Compatible with the standards of acceptable 
  5-25        medical practice in the United States; 
 
  5-26        (C) Provided in a safe and appropriate setting given 
  5-27        the nature of the diagnosis and the severity of the 
  5-28        symptoms; 
 
  5-29        (D) Not provided solely for the convenience of the 
  5-30        eligible enrollee or the convenience of the health 
  5-31        care provider or hospital; and 
 
  5-32        (E) Not primarily custodial care, unless custodial 
  5-33        care is a covered service or benefit under the 
  5-34        eligible enrollee's evidence of coverage. 
 
  5-35      (6) 'Planning agency' means the Health Planning Agency 
  5-36      established under Chapter 6 of Title 31 or its successor 
  5-37      agency. 
 
  5-38      (7) 'Treatment' means a medical service, diagnosis, 
  5-39      procedure, therapy, drug, or device. 
 
  5-40      (8) Any term defined in Code Section 33-20A-3 shall have 
  5-41      the meaning provided for that term in Code Section 
 
 
                                 -5- 
 
 
 
  6- 1      33-20A-3 except that 'enrollee' shall include the 
  6- 2      enrollee's eligible dependents. 
 
  6- 3    33-20A-32. 
 
  6- 4    An eligible enrollee shall be entitled to appeal to an 
  6- 5    independent review organization when: 
 
  6- 6      (1) The eligible enrollee has received notice of an 
  6- 7      adverse outcome pursuant to a grievance procedure or the 
  6- 8      managed care entity has not complied with the 
  6- 9      requirements of Code Section 33-20A-5 with regard to 
  6-10      such procedure; or 
 
  6-11      (2) A managed care entity determines that a proposed 
  6-12      treatment is excluded as experimental under the managed 
  6-13      care plan, and all of the following criteria are met: 
 
  6-14        (A) The eligible enrollee has a terminal condition 
  6-15        that, according to the treating physician, has a 
  6-16        substantial probability of causing death within two 
  6-17        years from the date of the request for independent 
  6-18        review or the eligible enrollee's ability to regain or 
  6-19        maintain maximum function, as determined by the 
  6-20        treating physician, would be impaired by withholding 
  6-21        the experimental treatment; 
 
  6-22        (B) After exhaustion of standard treatment as provided 
  6-23        by the evidence of coverage or a finding that such 
  6-24        treatment would be of substantially lesser or of no 
  6-25        benefit, the eligible enrollee's treating physician 
  6-26        certifies that the eligible enrollee has a condition 
  6-27        for which standard treatment would not be medically 
  6-28        indicated for the eligible enrollee or for which there 
  6-29        is no standard treatment available under the evidence 
  6-30        of coverage of the eligible enrollee more beneficial 
  6-31        than the treatment proposed; 
 
  6-32        (C) The eligible enrollee's treating physician has 
  6-33        recommended and certified in writing treatment which 
  6-34        is likely to be more beneficial to the eligible 
  6-35        enrollee than any available standard treatment; 
 
  6-36        (D) The eligible enrollee has requested a treatment as 
  6-37        to which the eligible enrollee's treating physician, 
  6-38        who is a licensed, board certified or board eligible 
  6-39        physician qualified to practice in the area of 
  6-40        medicine appropriate to treat the eligible enrollee's 
  6-41        condition, has certified in writing that 
  6-42        scientifically valid studies using accepted protocols, 
 
 
                                 -6- 
 
 
 
  7- 1        such as control group or double-blind testing, 
  7- 2        published in peer reviewed literature, demonstrate 
  7- 3        that the proposed treatment is likely to be more 
  7- 4        beneficial for the eligible enrollee than available 
  7- 5        standard treatment; and 
 
  7- 6        (E) A specific treatment recommended would otherwise 
  7- 7        be included within the eligible enrollee's certificate 
  7- 8        of coverage, except for the determination by the 
  7- 9        managed care entity that such treatment is 
  7-10        experimental for a particular condition. 
 
  7-11    33-20A-33. 
 
  7-12    Except where required pursuant to Code Section 51-1-49, a 
  7-13    proposed treatment must require the expenditure of a 
  7-14    minimum of $500.00 to qualify for independent review. 
 
  7-15    33-20A-34. 
 
  7-16    (a) The parent or guardian of a minor who is an eligible 
  7-17    enrollee may act on behalf of the minor in requesting 
  7-18    independent review.  The legal guardian or representative 
  7-19    of an incapacitated eligible enrollee shall be authorized 
  7-20    to act on behalf of the eligible enrollee in requesting 
  7-21    independent review.  Except as provided in Code Section 
  7-22    51-1-49, independent review may not be requested by 
  7-23    persons other than the eligible enrollee or a person 
  7-24    acting on behalf of the eligible enrollee as provided in 
  7-25    this Code section. 
 
  7-26    (b) A managed care entity shall be required to pay the 
  7-27    full cost of applying for and obtaining the independent 
  7-28    review. 
 
  7-29    (c) The eligible enrollee and the managed care entity 
  7-30    shall cooperate with the independent review organization 
  7-31    to provide the information and documentation, including 
  7-32    executing necessary releases for medical records, which 
  7-33    are necessary for the independent review organization to 
  7-34    make a determination of the claim. 
 
  7-35    33-20A-35. 
 
  7-36    (a) In the event that the outcome of the grievance 
  7-37    procedure under Code Section 33-20A-5 is adverse to the 
  7-38    eligible enrollee, the managed care entity shall include 
  7-39    with the written notice of the outcome of the grievance 
  7-40    procedure a statement specifying that any request for 
  7-41    independent review must be made to the planning agency on 
 
 
 
                                 -7- 
 
 
 
  8- 1    forms developed by the planning agency, and such forms 
  8- 2    shall be included with the notification.  Such statement 
  8- 3    shall be in simple, clear language in boldface type which 
  8- 4    is larger and bolder than any other typeface which is in 
  8- 5    the notice and in at least 14 point typeface. 
 
  8- 6    (b) An eligible enrollee must submit the written request 
  8- 7    for independent review to the planning agency. 
  8- 8    Instructions on how to request independent review shall be 
  8- 9    given to all eligible enrollees with the written notice 
  8-10    required under this Code section together with 
  8-11    instructions in simple, clear language as to what 
  8-12    information, documentation, and procedure are required for 
  8-13    independent review. 
 
  8-14    (c) Upon receipt of a completed form requesting 
  8-15    independent review as required by subsection (a) of this 
  8-16    Code section, the planning agency shall notify the 
  8-17    eligible enrollee of receipt and assign the request to an 
  8-18    independent review organization on a rotating basis 
  8-19    according to the date the request is received. 
 
  8-20    (d) Upon assigning a request for independent review to an 
  8-21    independent review organization, the planning agency shall 
  8-22    provide written notification of the name and address of 
  8-23    the assigned organization to both the requesting eligible 
  8-24    enrollee and the managed care entity. 
 
  8-25    (e) No managed care entity may be certified by the 
  8-26    Commissioner under Article 1 of this chapter unless the 
  8-27    entity agrees to pay the costs of independent review to 
  8-28    the independent review organization assigned by the 
  8-29    planning agency to conduct each review involving such 
  8-30    entity's eligible enrollees. 
 
  8-31    33-20A-36. 
 
  8-32    (a) Within three business days of receipt of notice from 
  8-33    the planning agency of assignment of the application for 
  8-34    determination to an independent review organization, the 
  8-35    managed care entity shall submit to that organization the 
  8-36    following: 
 
  8-37      (1) Any information submitted to the managed care entity 
  8-38      by the eligible enrollee in support of the eligible 
  8-39      enrollee's grievance procedure filing; 
 
  8-40      (2) A copy of the contract provisions or evidence of 
  8-41      coverage of the managed care plan; and 
 
 
 
                                 -8- 
 
 
 
  9- 1      (3) Any other relevant documents or information used by 
  9- 2      the managed care entity in determining the outcome of 
  9- 3      the eligible enrollee's grievance. 
 
  9- 4    Upon request, the managed care entity shall provide a copy 
  9- 5    of all documents required by this subsection, except for 
  9- 6    any proprietary or privileged information, to the eligible 
  9- 7    enrollee.  The eligible enrollee may provide the 
  9- 8    independent review organization with any additional 
  9- 9    information the eligible enrollee deems relevant. 
 
  9-10    (b) The independent review organization shall request any 
  9-11    additional information required for the review from the 
  9-12    managed care entity and the eligible enrollee within five 
  9-13    business days of receipt of the documentation required 
  9-14    under this Code section.  Any additional information 
  9-15    requested by the independent review organization shall be 
  9-16    submitted within five business days of receipt of the 
  9-17    request, or an explanation of why the additional 
  9-18    information is not being submitted shall be provided. 
 
  9-19    (c) Additional information obtained from the eligible 
  9-20    enrollee shall be transmitted to the managed care entity, 
  9-21    which may determine that such additional information 
  9-22    justifies a reconsideration of the outcome of the 
  9-23    grievance procedure.  A decision by the managed care 
  9-24    entity to cover fully the treatment in question upon 
  9-25    reconsideration using such additional information shall 
  9-26    terminate independent review. 
 
  9-27    (d) The expert reviewer of the independent review 
  9-28    organization shall make a determination within 15 business 
  9-29    days after expiration of all time limits set forth in this 
  9-30    Code section, but such time limits may be extended or 
  9-31    shortened by mutual agreement between the eligible 
  9-32    enrollee and the managed care entity. The determination 
  9-33    shall be in writing and state the basis of the reviewer's 
  9-34    decision.  A copy of the decision shall be delivered to 
  9-35    the managed care entity, the eligible enrollee, and the 
  9-36    planning agency by at least first-class mail. 
 
  9-37    (e) The independent review organization's decision shall 
  9-38    be based upon a review of the information and 
  9-39    documentation submitted to it. 
 
  9-40    (f) Information required or authorized to be provided 
  9-41    pursuant to this Code section may be provided by facsimile 
  9-42    transmission or other electronic transmission. 
 
 
 
                                 -9- 
 
 
 
 10- 1    33-20A-37. 
 
 10- 2    (a) A decision of the independent review organization in 
 10- 3    favor of the eligible enrollee shall be final and binding 
 10- 4    on the managed care entity and the appropriate relief 
 10- 5    shall be provided without delay.  A managed care entity 
 10- 6    bound by such decision of an independent review 
 10- 7    organization shall not be liable pursuant to Code Section 
 10- 8    51-1-48 for abiding by such decision. Nothing in this Code 
 10- 9    section shall relieve the managed care entity from 
 10-10    liability for damages proximately caused by its 
 10-11    determination of the proposed treatment prior to such 
 10-12    decision. 
 
 10-13    (b) A determination by the independent review organization 
 10-14    in favor of a managed care entity shall create a 
 10-15    rebuttable presumption in any subsequent action that the 
 10-16    managed care entity's prior determination was appropriate 
 10-17    and shall constitute a medical record for purposes of Code 
 10-18    Section 24-7-8. 
 
 10-19    (c) In the event that, in the judgment of the treating 
 10-20    health care provider, the health condition of the enrollee 
 10-21    is such that following the provisions of Code Section 
 10-22    33-20A-36 would jeopardize the life or health of the 
 10-23    eligible enrollee or the eligible enrollee's ability to 
 10-24    regain maximum function, as determined by the treating 
 10-25    health care provider, an expedited review shall be 
 10-26    available.  The expedited review process shall encompass 
 10-27    all elements enumerated in Code Sections 33-20A-36 and 
 10-28    33-20A-40; provided, however, that a decision by the 
 10-29    expert reviewer shall be rendered within 72 hours after 
 10-30    the expert reviewer's receipt of all available requested 
 10-31    documents. 
 
 10-32    33-20A-38. 
 
 10-33    Neither independent review organization nor its employees, 
 10-34    agents, or contractors shall be liable for damages arising 
 10-35    from determinations made pursuant to this article, unless 
 10-36    an act or omission thereof is made in bad faith or through 
 10-37    gross negligence, constitutes fraud or willful misconduct, 
 10-38    or demonstrates malice, wantonness, oppression, or that 
 10-39    entire want of care which would raise the presumption of 
 10-40    conscious indifference to the consequences. 
 
 
 
 
 
 
                                 -10- 
 
 
 
 11- 1    33-20A-39. 
 
 11- 2    (a) The planning agency shall certify independent review 
 11- 3    organizations that meet the requirements of this Code 
 11- 4    section and any regulations promulgated by the planning 
 11- 5    agency consistent with this article.  The planning agency 
 11- 6    shall deem certified any independent review organization 
 11- 7    meeting standards developed for this purpose by an 
 11- 8    independent national accrediting organization.  To qualify 
 11- 9    for certification, an independent review organization must 
 11-10    show the following: 
 
 11-11      (1) Expert reviewers assigned by the independent review 
 11-12      organization must be physicians or other appropriate 
 11-13      providers who meet the following minimum requirements: 
 
 11-14        (A) Are expert in the treatment of the medical 
 11-15        condition at issue and are knowledgeable about the 
 11-16        recommended treatment through actual clinical 
 11-17        experience; 
 
 11-18        (B) Hold a nonrestricted license issued by a state of 
 11-19        the United States and, for physicians, a current 
 11-20        certification by a recognized American medical 
 11-21        specialty board in the area or areas appropriate to 
 11-22        the subject of review; and 
 
 11-23        (C) Have no history of disciplinary action or 
 11-24        sanctions, including, but not limited to, loss of 
 11-25        staff privileges or participation restriction, taken 
 11-26        or pending by any hospital, government, or regulatory 
 11-27        body; 
 
 11-28      (2) The independent review organization shall not be a 
 11-29      subsidiary of, nor in any way owned or controlled by, a 
 11-30      health plan, a trade association of health plans, a 
 11-31      managed care entity, or a professional association of 
 11-32      health care providers; and 
 
 11-33      (3) The independent review organization shall submit to 
 11-34      the planning agency the following information upon 
 11-35      initial application for certification, and thereafter 
 11-36      within 30 days of any change to any of the following 
 11-37      information: 
 
 11-38        (A) The names of all owners of more than 5 percent of 
 11-39        any stock or options, if a publicly held organization; 
 
 11-40        (B) The names of all holders of bonds or notes in 
 11-41        excess of $100,000.00, if any; 
 
 
 
                                 -11- 
 
 
 
 12- 1        (C) The names of all corporations and organizations 
 12- 2        that the independent review organization controls or 
 12- 3        is affiliated with, and the nature and extent of any 
 12- 4        ownership or control, including the affiliated 
 12- 5        organization's type of business; and 
 
 12- 6        (D) The names of all directors, officers, and 
 12- 7        executives of the independent review organization, as 
 12- 8        well as a statement regarding any relationships the 
 12- 9        directors, officers, and executives may have with any 
 12-10        health care service plan, disability insurer, managed 
 12-11        care entity or organization, provider group, or board 
 12-12        or committee. 
 
 12-13    (b) Neither the independent review organization nor any 
 12-14    expert reviewer of the independent review organization may 
 12-15    have any material professional, familial, or financial 
 12-16    conflict of interest with any of the following: 
 
 12-17      (1) A managed care plan or entity being reviewed; 
 
 12-18      (2) Any officer, director, or management employee of a 
 12-19      managed care plan which is being reviewed; 
 
 12-20      (3) The physician, the physician's medical group, health 
 12-21      care provider, or the independent practice association 
 12-22      proposing a treatment under review; 
 
 12-23      (4) The institution at which a proposed treatment would 
 12-24      be provided; 
 
 12-25      (5) The eligible enrollee or the eligible enrollee's 
 12-26      representative; or 
 
 12-27      (6) The development or manufacture of the treatment 
 12-28      proposed for the eligible enrollee whose treatment is 
 12-29      under review. 
 
 12-30    (c) As used in subsection (b) of this Code section, the 
 12-31    term 'conflict of interest' shall not be interpreted to 
 12-32    include a contract under which an academic medical center 
 12-33    or other similar medical research center provides health 
 12-34    care services to eligible enrollees of a managed care 
 12-35    plan, except as subject to the requirement of paragraph 
 12-36    (4) of subsection (b) of this Code section; affiliations 
 12-37    which are limited to staff privileges at a health care 
 12-38    facility; or an expert reviewer's participation as a 
 12-39    contracting plan provider where the expert is affiliated 
 12-40    with an academic medical center or other similar medical 
 12-41    research center that is acting as an independent review 
 
 
 
                                 -12- 
 
 
 
 13- 1    organization under this article.  An agreement to provide 
 13- 2    independent review for an eligible enrollee or managed 
 13- 3    care entity is not a conflict of interest under subsection 
 13- 4    (b) of this Code section. 
 
 13- 5    (d) The independent review organization shall have a 
 13- 6    quality assurance mechanism in place that ensures the 
 13- 7    timeliness and quality of the reviews, the qualifications 
 13- 8    and independence of the experts, and the confidentiality 
 13- 9    of medical records and review materials. 
 
 13-10    (e) The planning agency shall provide upon the request of 
 13-11    any interested person a copy of all nonproprietary 
 13-12    information filed with it pursuant to this article.  The 
 13-13    planning agency shall provide at least quarterly a current 
 13-14    list of certified independent review organizations to all 
 13-15    managed care entities and to any interested persons. 
 
 13-16    33-20A-40. 
 
 13-17    (a) For the purposes of this article, in making a 
 13-18    determination as to whether a treatment is medically 
 13-19    necessary and appropriate, the expert reviewer shall use 
 13-20    the definition provided in paragraph (5) of Code Section 
 13-21    33-20A-31. 
 
 13-22    (b) For the purposes of this article, in making a 
 13-23    determination as to whether a treatment is experimental, 
 13-24    the expert reviewer shall determine: 
 
 13-25      (1) Whether such treatment has been approved by the 
 13-26      federal Food and Drug Administration; or 
 
 13-27      (2) Whether medical and scientific evidence demonstrates 
 13-28      that the expected benefits of the proposed treatment 
 13-29      would be greater than the benefits of any available 
 13-30      standard treatment and that the adverse risks of the 
 13-31      proposed treatment will not be substantially increased 
 13-32      over those of standard treatments. 
 
 13-33    For either determination, the expert reviewer shall apply 
 13-34    prudent professional practices and shall assure that at 
 13-35    least two documents of medical and scientific evidence 
 13-36    support the decision. 
 
 13-37    33-20A-41. 
 
 13-38    The planning agency shall provide necessary rules and 
 13-39    regulations for the implementation and operation of this 
 13-40    article." 
 
 
 
                                 -13- 
 
 
 
 14- 1                           SECTION 4. 
 
 14- 2  For purposes of certifying independent review organizations 
 14- 3  by the Health Planning Agency, or its successor agency, this 
 14- 4  Act shall become effective upon its approval by the Governor 
 14- 5  or upon its becoming law without such approval.  For all 
 14- 6  other purposes, this Act shall become effective on July 1, 
 14- 7  1999, and shall be applicable to any contract, policy, or 
 14- 8  other agreement of a managed care plan or health maintenance 
 14- 9  organization if such contract, policy, or agreement provides 
 14-10  for health care services or reimbursement therefor and is 
 14-11  issued, issued for delivery, delivered, or renewed on or 
 14-12  after July 1, 1999. 
 
 14-13                           SECTION 5. 
 
 14-14  All laws and parts of laws in conflict with this Act are 
 14-15  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -14- 

Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 05/05/99