As Reported by House Health, Retirement and Aging Committee     1            

123rd General Assembly                                             4            

   Regular Session                            Sub. H. B. No. 4     5            

      1999-2000                                                    6            


    REPRESENTATIVES GARDNER-TIBERI-BUCHY-HARRIS-ALLEN-BARNES-      8            

   BARRETT-BENDER-BOYD-BRADING-BRITTON-CALLENDER-CAREY-CATES-      9            

    CORBIN-CORE-COUGHLIN-EVANS-FORD-GOODMAN-GRENDELL-HAINES-       10           

     HOOD-HOOPS-JACOBSON-JOLIVETTE-KILBANE-KREBS-KRUPINSKI-        11           

     MAIER-MEAD-METELSKY-METZGER-MOTTLEY-MYERS-O'BRIEN-OGG-        12           

    OLMAN-OPFER-PADGETT-PATTON-PRINGLE-ROMAN-SALERNO-SCHULER-      13           

  SCHURING-SMITH-TAYLOR-TERWILLEGER-THOMAS-WILLAMOWSKI-WINKLER-    14           

                      WOMER BENJAMIN-YOUNG                         15           


_________________________________________________________________   16           

                          A   B I L L                                           

             To amend sections 1751.11, 1751.19, 1751.33,          18           

                1751.77, 1751.78, 1751.81, 1751.82, 1753.24, and   19           

                5747.01; to amend, for the purpose of adopting                  

                new section numbers as indicated in parentheses,   20           

                sections 1751.83 (1751.821), 1751.84 (1751.822),   21           

                1751.85 (1751.823), and 1753.24 (1751.85); and to               

                enact new sections 1751.83 and 1751.84 and         22           

                sections 1751.811, 1751.831, 1751.87, 1751.88,     23           

                1751.89, 1751.90, 1753.13, and 3923.65 of the                   

                Revised Code to establish procedures for enrollee  25           

                appeals of health care coverage decisions by                    

                health insuring corporations and to make other     26           

                changes in the laws related to health insuring     27           

                corporations.                                                   




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        29           

      Section 1.  That sections 1751.11, 1751.19, 1751.33,         31           

1751.77, 1751.78, 1751.81, 1751.82, 1753.24, and 5747.01 be        32           

amended, sections 1751.83 (1751.821), 1751.84 (1751.822), 1751.85  33           

(1751.823), and 1753.24 (1751.85) be amended for the purpose of    34           

                                                          2      


                                                                 
adopting new section numbers as indicated in parentheses, and new  35           

sections 1751.83 and 1751.84 and sections 1751.811, 1751.831,                   

1751.87, 1751.88, 1751.89, 1751.90, 1753.13, and 3923.65 of the    36           

Revised Code be enacted to read as follows:                        38           

      Sec. 1751.11.  (A)  Every subscriber of a health insuring    48           

corporation is entitled to an evidence of coverage for the health  49           

care plan under which health care benefits are provided.           51           

      (B)  Every subscriber of a health insuring corporation that  53           

offers basic health care services is entitled to an                54           

identification card or similar document that specifies the health  55           

insuring corporation's name as stated in its articles of           56           

incorporation, and any trade or fictitious names used by the       57           

health insuring corporation.  The identification card or document  58           

shall list at least one TOLL-FREE telephone number that provides   59           

the subscriber with access to health care on a                     60           

twenty-four-hours-per-day, seven-days-per-week basis.  THE         61           

IDENTIFICATION CARD OR DOCUMENT SHALL ALSO LIST AT LEAST ONE       62           

TOLL-FREE NUMBER THAT, DURING NORMAL BUSINESS HOURS, PROVIDES THE  63           

SUBSCRIBER WITH ACCESS TO INFORMATION ON THE COVERAGE AVAILABLE                 

UNDER THE SUBSCRIBER'S HEALTH CARE PLAN AND INFORMATION ON THE     64           

HEALTH CARE PLAN'S INTERNAL AND EXTERNAL APPEALS PROCESSES.        65           

      (C)  No evidence of coverage, or amendment to the evidence   67           

of coverage, shall be delivered, issued for delivery, renewed, or  68           

used, until the form of the evidence of coverage or amendment has  69           

been filed by the health insuring corporation with the             70           

superintendent of insurance.  If the superintendent does not       71           

disapprove the evidence of coverage or amendment within sixty      72           

days after it is filed it shall be deemed approved, unless the     73           

superintendent sooner gives approval for the evidence of coverage  74           

or amendment.  With respect to an amendment to an approved         75           

evidence of coverage, the superintendent only may disapprove       76           

provisions amended or added to the evidence of coverage.  If the   77           

superintendent determines within the sixty-day period that any     78           

evidence of coverage or amendment fails to meet the requirements   79           

                                                          3      


                                                                 
of this section, the superintendent shall so notify the health     80           

insuring corporation and it shall be unlawful for the health       81           

insuring corporation to use such evidence of coverage or           82           

amendment.  At any time, the superintendent, upon at least thirty  84           

days' written notice to a health insuring corporation, may         85           

withdraw an approval, deemed or actual, of any evidence of                      

coverage or amendment on any of the grounds stated in this         86           

section.  Such disapproval shall be effected by a written order,   87           

which shall state the grounds for disapproval and shall be issued  89           

in accordance with Chapter 119. of the Revised Code.               91           

      (D)  No evidence of coverage or amendment shall be           93           

delivered, issued for delivery, renewed, or used:                  94           

      (1)  If it contains provisions or statements that are        96           

inequitable, untrue, misleading, or deceptive;                     97           

      (2)  Unless it contains a clear, concise, and complete       99           

statement of the following:                                        100          

      (a)  The health care services and insurance or other         103          

benefits, if any, to which the AN enrollee is entitled under the   105          

health care plan;                                                               

      (b)  Any exclusions or limitations on the health care        108          

services, type of health care services, benefits, or type of       109          

benefits to be provided, including copayments;                     110          

      (c)  The AN enrollee's personal financial obligation for     112          

noncovered services;                                               114          

      (d)  Where and in what manner general information and        117          

information as to how services may be obtained is available,       118          

including the A TOLL-FREE telephone number;                        120          

      (e)  The premium rate with respect to individual and         122          

conversion contracts, and relevant copayment provisions with       123          

respect to all contracts.  The statement of the premium rate,      124          

however, may be contained in a separate insert.                    125          

      (f)  The method utilized by the health insuring corporation  128          

for resolving enrollee complaints;                                 129          

      (g)  THE UTILIZATION REVIEW, INTERNAL REVIEW, AND EXTERNAL   131          

                                                          4      


                                                                 
REVIEW PROCEDURES ESTABLISHED UNDER SECTIONS 1751.77 TO 1751.85    133          

OF THE REVISED CODE.                                               135          

      (3)  Unless it provides for the continuation of an           137          

enrollee's coverage, in the event that the enrollee's coverage     138          

under the group policy, contract, certificate, or agreement        139          

terminates while the enrollee is receiving inpatient care in a     140          

hospital.  This continuation of coverage shall terminate at the    141          

earliest occurrence of any of the following:                       142          

      (a)  The enrollee's discharge from the hospital;             144          

      (b)  The determination by the enrollee's attending           146          

physician that inpatient care is no longer medically indicated     147          

for the enrollee; however, nothing in division (D)(3)(b) of this   150          

section precludes a health insuring corporation from engaging in   151          

utilization review as described in the evidence of coverage.       152          

      (c)  The enrollee's reaching the limit for contractual       154          

benefits;                                                          155          

      (d)  The effective date of any new coverage.                 158          

      (4)  Unless it contains a provision that states, in          160          

substance, that the health insuring corporation is not a member    161          

of any guaranty fund, and that in the event of the health          162          

insuring corporation's insolvency, the AN enrollee is protected    163          

only to the extent that the hold harmless provision required by    164          

section 1751.13 of the Revised Code applies to the health care     166          

services rendered;                                                 167          

      (5)  Unless it contains a provision that states, in          169          

substance, that in the event of the insolvency of the health       170          

insuring corporation, the AN enrollee may be financially           171          

responsible for health care services rendered by a provider or     172          

health care facility that is not under contract to the health      173          

insuring corporation, whether or not the health insuring           174          

corporation authorized the use of the provider or health care      175          

facility.                                                          176          

      (E)  Notwithstanding divisions (C) and (D) of this section,  179          

a health insuring corporation may use an evidence of coverage      180          

                                                          5      


                                                                 
that provides for the coverage of beneficiaries enrolled in Title  182          

XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42        183          

U.S.C.A. 301, as amended, pursuant to a medicare contract, or an   185          

evidence of coverage that provides for the coverage of             186          

beneficiaries enrolled in the federal employees health benefits    187          

program pursuant to 5 U.S.C.A. 8905, or an evidence of coverage    189          

that provides for the coverage of beneficiaries enrolled in Title  191          

XIX of the "Social Security Act," 49 Stat. 620 (1935), 42          192          

U.S.C.A. 301, as amended, known as the medical assistance program  194          

or medicaid, provided by the Ohio department of human services     195          

under Chapter 5111. of the Revised Code, or an evidence of         196          

coverage that provides for the coverage of beneficiaries under     197          

any other federal health care program regulated by a federal       198          

regulatory body, or an evidence of coverage that provides for the  199          

coverage of beneficiaries under any contract covering officers or  200          

employees of the state that has been entered into by the           202          

department of administrative services, if both of the following    204          

apply:                                                             205          

      (1)  The evidence of coverage has been approved by the       207          

United States department of health and human services, the United  209          

States office of personnel management, the Ohio department of      210          

human services, or the department of administrative services.      211          

      (2)  The evidence of coverage is filed with the              213          

superintendent of insurance prior to use and is accompanied by     214          

documentation of approval from the United States department of     216          

health and human services, the United States office of personnel   217          

management, the Ohio department of human services, or the          218          

department of administrative services.                             219          

      Sec. 1751.19.  (A)  A health insuring corporation shall      229          

establish and maintain a complaint system that has been approved   230          

by the superintendent of insurance to provide adequate and         231          

reasonable procedures for the expeditious resolution of written    232          

complaints initiated by subscribers or enrollees concerning any    233          

matter relating to services provided, directly or indirectly, by   234          

                                                          6      


                                                                 
the health insuring corporation, including, but not limited to,    235          

claims COMPLAINTS regarding the scope of coverage for health care  236          

services, and denials, cancellations, or nonrenewals of coverage.  238          

COMPLAINTS REGARDING A HEALTH INSURING CORPORATION'S DECISION TO   240          

DENY, REDUCE, OR TERMINATE COVERAGE FOR HEALTH CARE SERVICES ARE                

SUBJECT TO SECTION 1751.83 OF THE REVISED CODE.                    241          

      (B)  A health insuring corporation shall provide a timely    244          

written response to each written complaint it receives.            245          

Responses to written complaints relating to quality or             246          

appropriateness of care shall set forth a statement informing the  247          

complainant in detail of any rights the complainant may have to    248          

submit such complaint to any professional peer review              249          

organization or health insuring corporation peer review committee  250          

that has been set up to monitor the quality or appropriateness of  251          

provider services rendered.  Such statement shall set forth the    252          

name of the peer review organization or health insuring            253          

corporation peer review committee, its address, telephone number,  254          

and any other pertinent data that will enable the complainant to   255          

seek further independent review of the complaint.  Such appeal     256          

shall not be made to the peer review corporation or health         257          

insuring corporation peer review committee until the complaint     258          

system of the health insuring corporation has been exhausted.      259          

      (C)  Copies of complaints and responses, including medical   262          

records related to those complaints, shall be available to the     263          

superintendent and the director of health for inspection for       264          

three years.  Any document or information provided to the          265          

superintendent pursuant to this division that contains a medical   266          

record is confidential, and is not a public record subject to      267          

section 149.43 of the Revised Code.                                             

      (D)  A health insuring corporation shall establish and       270          

maintain a procedure to accept complaints over the telephone or    271          

in person.  These complaints are not subject to the reporting      272          

requirement under division (C) of section 1751.32 of the Revised   274          

Code.                                                                           

                                                          7      


                                                                 
      (E)  A HEALTH INSURING CORPORATION MAY COMPLY WITH THIS      277          

SECTION AND SECTION 1751.83 OF THE REVISED CODE BY ESTABLISHING    278          

ONE SYSTEM FOR RECEIVING AND REVIEWING COMPLAINTS AND APPEALS      279          

FROM ENROLLEES AND SUBSCRIBERS IF THE SYSTEM MEETS THE                          

REQUIREMENTS OF BOTH SECTIONS.                                     280          

      Sec. 1751.33.  (A)  Each health insuring corporation shall   289          

provide to its subscribers, by mail, a description of the health   290          

insuring corporation, its method of operation, its service area,   291          

its most recent provider list, and its complaint procedure         292          

established pursuant to section 1751.19 of the Revised Code, AND   294          

A DESCRIPTION OF ITS UTILIZATION REVIEW, INTERNAL REVIEW, AND      295          

EXTERNAL REVIEW PROCESSES ESTABLISHED UNDER SECTIONS 1751.77 TO    296          

1751.85 OF THE REVISED CODE.  AT THE REQUEST OF OR WITH THE        297          

APPROVAL OF THE SUBSCRIBER, A HEALTH INSURING CORPORATION MAY      299          

PROVIDE THIS INFORMATION BY ELECTRONIC MEANS RATHER THAN BY MAIL.  300          

A health insuring corporation providing basic health care          302          

services or supplemental health care services shall provide this   303          

information annually.  A health insuring corporation providing                  

only specialty health care services shall provide this             304          

information biennially.                                                         

      (B)  Each health insuring corporation, upon the request of   307          

a subscriber, shall make available its most recent statutory       308          

financial statement.                                                            

      Sec. 1751.77.  As used in sections 1751.77 to 1751.86        317          

1751.90 of the Revised Code, unless otherwise specifically         319          

provided:                                                                       

      (A)  "Adverse determination" means a determination by a      321          

health insuring corporation or its designee utilization review     322          

organization that an admission, availability of care, continued    324          

stay, or other health care service covered under a policy,         325          

contract, or agreement of the health insuring corporation has      327          

been reviewed and, based upon the information provided, the        328          

health care service does not meet the health insuring              330          

corporation's requirements for benefit payment UNDER THE HEALTH    331          

                                                          8      


                                                                 
INSURING CORPORATION'S POLICY, CONTRACT, OR AGREEMENT, and                      

COVERAGE is therefore denied, reduced, or terminated.              333          

      (B)  "Ambulatory review" means utilization review of health  335          

care services performed or provided in an outpatient setting.      336          

      (C)  "AUTHORIZED PERSON" MEANS A PARENT, GUARDIAN, OR OTHER  338          

PERSON AUTHORIZED TO ACT ON BEHALF OF AN ENROLLEE.                 339          

      (D)  "Case management" means a coordinated set of            341          

activities conducted for individual patient management of          342          

serious, complicated, protracted, or other specified health        343          

conditions.                                                                     

      (D)(E)  "Certification" means a determination by a health    345          

insuring corporation or its designee utilization review            348          

organization that an admission, availability of care, continued    349          

stay, or other health care service covered under a policy,         350          

contract, or agreement of the health insuring corporation has      352          

been reviewed and, based upon the information provided, the        353          

health care service satisfies the health insuring corporation's    354          

requirements for benefit payment UNDER THE HEALTH INSURING         355          

CORPORATION'S POLICY, CONTRACT, OR AGREEMENT.                      356          

      (E)(F)  "Clinical peer" means a physician when an            359          

evaluation is to be made of the clinical appropriateness of        360          

health care services provided by a physician.  If an evaluation    361          

is to be made of the clinical appropriateness of health care       362          

services provided by a provider who is not a physician, "clinical  363          

peer" means either a physician or a provider holding the same      364          

license as the provider who provided the health care services.     365          

      (F)(G)  "Clinical review criteria" means the written         367          

screening procedures, decision abstracts, clinical protocols, and  368          

practice guidelines used by a health insuring corporation to       369          

determine the necessity and appropriateness of health care         371          

services.                                                                       

      (G)(H)  "Concurrent review" means utilization review         373          

conducted during a patient's hospital stay or course of            374          

treatment.                                                                      

                                                          9      


                                                                 
      (H)(I)  "Discharge planning" means the formal process for    376          

determining, prior to a patient's discharge from a health care     377          

facility, the coordination and management of the care that the     379          

patient is to receive following discharge from a health care       380          

facility.                                                                       

      (I)(J)  "Participating provider" means a provider or health  382          

care facility that, under a contract with a health insuring        384          

corporation or with its contractor or subcontractor, has agreed    386          

to provide health care services to enrollees with an expectation                

of receiving payment, other than coinsurance, copayments, or       387          

deductibles, directly or indirectly from the health insuring       388          

corporation.                                                                    

      (J)(K)  "Physician" means a provider authorized WHO HOLDS A  391          

CERTIFICATE ISSUED under chapter CHAPTER 4731. of the Revised      393          

Code to AUTHORIZING THE practice OF medicine and surgery or        395          

osteopathic medicine and surgery OR A COMPARABLE LICENSE OR                     

CERTIFICATE FROM ANOTHER STATE.                                    396          

      (K)(L)  "Prospective review" means utilization review that   398          

is conducted prior to an admission or a course of treatment.       399          

      (L)(M)  "Retrospective review" means utilization review of   401          

medical necessity that is conducted after health care services     403          

have been provided to a patient.  "Retrospective review" does not  405          

include the review of a claim that is limited to an evaluation of  406          

reimbursement levels, veracity of documentation, accuracy of       407          

coding, or adjudication of payment.                                             

      (M)(N)  "Second opinion" means an opportunity or             409          

requirement to obtain a clinical evaluation by a provider other    411          

than the provider originally making a recommendation for proposed  412          

health care services to assess the clinical necessity and          413          

appropriateness of the proposed health care services.              414          

      (N)(O)  "Utilization review" means a process used to         416          

monitor the use of, or evaluate the clinical necessity,            418          

appropriateness, efficacy, or efficiency of, health care           419          

services, procedures, or settings.  Areas of review may include    420          

                                                          10     


                                                                 
ambulatory review, prospective review, second opinion,                          

certification, concurrent review, case management, discharge       421          

planning, or retrospective review.                                 422          

      (O)(P)  "Utilization review organization" means an entity    424          

that conducts utilization review, other than a health insuring     425          

corporation performing a review of its own health care plans.      427          

      Sec. 1751.78.  (A)(1)  Sections 1751.77 to 1751.86 1751.90   437          

of the Revised Code apply to any health insuring corporation that  439          

provides or performs utilization review services in connection     440          

with its policies, contracts, and agreements providing COVERING    441          

basic health care services and to any designee of the health       442          

insuring corporation, or to any utilization review organization    445          

that performs utilization review functions on behalf of the        446          

health insuring corporation in connection with policies,                        

contracts, or agreements of the health insuring corporation        447          

providing COVERING basic health care services.                     449          

      (2)  Nothing in sections 1751.77 to 1751.82 or section       451          

1751.85 1751.823 of the Revised Code shall be construed to         452          

require a health insuring corporation to provide or perform        453          

utilization review services in connection with health care         454          

services provided under a policy, plan, or agreement of            455          

supplemental health care services or specialty health care         456          

services.                                                          457          

      (B)(1)  Each health insuring corporation shall be            460          

responsible for monitoring all utilization review AND INTERNAL     461          

REVIEW activities carried out by, or on behalf of, the health      463          

insuring corporation and for ensuring that all requirements of     464          

sections 1751.77 to 1751.86 1751.90 of the Revised Code, and any   465          

rules adopted thereunder, are met.  The health insuring            467          

corporation shall also ensure that appropriate personnel have      468          

operational responsibility for the conduct of the health insuring  469          

corporation's utilization review program.                          470          

      (2)  If a health insuring corporation contracts to have a    472          

utilization review organization or other entity perform the        473          

                                                          11     


                                                                 
utilization review functions required by sections 1751.77 to       474          

1751.86 1751.90 of the Revised Code, and any rules adopted         476          

thereunder, the superintendent of insurance shall hold the health  478          

insuring corporation responsible for monitoring the activities of               

the utilization review organization or other entity and for        479          

ensuring that the requirements of those sections and rules are     480          

met.                                                               481          

      Sec. 1751.81.  (A)  As used in this section:                 490          

      (1)  "Enrollee" includes the representative of an enrollee.  492          

      (2)  "Necessary, "NECESSARY information" includes the        495          

results of any face-to-face clinical evaluation or second opinion  498          

that may be required.                                                           

      (B)  A health insuring corporation shall maintain written    500          

procedures for DETERMINING WHETHER A REQUESTED SERVICE IS A        501          

SERVICE COVERED UNDER THE TERMS OF AN ENROLLEE'S POLICY,           502          

CONTRACT, OR AGREEMENT, making utilization review determinations,  504          

and for notifying enrollees, and participating providers, and      505          

health care facilities acting on behalf of enrollees, of its       507          

determinations.                                                                 

      (C)  For initial PROSPECTIVE REVIEW determinations, a        510          

health insuring corporation shall make the determination within    512          

two business days after obtaining all necessary information        513          

regarding a proposed admission, procedure, or health care service  514          

requiring a review determination.                                  516          

      (1)  In the case of a determination to certify an            518          

admission, procedure, or health care service, the health insuring  519          

corporation shall notify the provider or health care facility      520          

rendering the health care service by telephone or facsimile        521          

within three business days after making the initial                522          

certification.                                                                  

      (2)  In the case of an adverse determination, the health     524          

insuring corporation shall notify the provider or health care      526          

facility rendering the health care service by telephone within     527          

three business days after making the adverse determination, and    528          

                                                          12     


                                                                 
shall provide written or electronic confirmation of the telephone  529          

notification to the enrollee and the provider or health care       530          

facility within one business day after making the telephone        531          

notification.                                                                   

      (D)  For concurrent review determinations, a health          533          

insuring corporation shall make the determination within one       536          

business day after obtaining all necessary information.            537          

      (1)  In the case of a determination to certify an extended   539          

stay or additional health care services, the health insuring       540          

corporation shall notify the provider or health care facility      541          

rendering the health care service by telephone or facsimile        542          

within one business day after making the certification.            544          

      (2)  In the case of an adverse determination, the health     546          

insuring corporation shall notify the provider or health care      547          

facility rendering the health care service by telephone within     548          

one business day after making the adverse determination, and       549          

shall provide written or electronic confirmation to the enrollee   550          

and the provider or health care facility within one business day   551          

after the telephone notification.  The health care service to the  552          

enrollee shall be continued, with standard copayments and          554          

deductibles, if applicable, until the enrollee has been notified   555          

of the determination.                                              556          

      (E)  For retrospective review determinations, a health       558          

insuring corporation shall make the determination within thirty    562          

business days after receiving all necessary information.           563          

      (1)  In the case of a certification, the health insuring     565          

corporation may notify the enrollee and the provider or health     567          

care facility rendering the health care service in writing.        568          

      (2)  In the case of an adverse determination, the health     570          

insuring corporation shall notify the enrollee and the provider    572          

or health care facility rendering the health care service, in      573          

writing, within five business days after making the adverse        574          

determination.                                                                  

      (F)(1)  The time frames set forth in divisions (C), (D),     577          

                                                          13     


                                                                 
and (E) of this section for determinations and notifications       579          

shall prevail unless the seriousness of the medical condition of                

the enrollee otherwise requires a more timely response from the    580          

health insuring corporation.  The health insuring corporation      581          

shall maintain written procedures for making expedited             583          

utilization review determinations and notifications of enrollees   584          

and providers or health care facilities when warranted by the      585          

medical condition of the enrollee.                                 586          

      (2)  AN ENROLLEE OR AUTHORIZED PERSON MAY PROCEED WITH A     588          

REQUEST FOR AN INTERNAL REVIEW PURSUANT TO SECTION 1751.83 OF THE  590          

REVISED CODE IF A HEALTH INSURING CORPORATION FAILS TO MAKE A      593          

DETERMINATION AND NOTIFICATION WITHIN THE TIME FRAMES SET FORTH    594          

IN DIVISIONS (C), (D), AND (E) OF THIS SECTION.  THE HEALTH        596          

INSURING CORPORATION'S FAILURE TO MAKE A DETERMINATION AND         597          

NOTIFICATION WITHIN THESE TIME FRAMES SHALL BE DEEMED TO BE AN     598          

ADVERSE DETERMINATION BY THE HEALTH INSURING CORPORATION FOR THE   599          

PURPOSE OF INITIATING AN INTERNAL REVIEW.                                       

      (G)  A written notification of an adverse determination      601          

shall include the principal reason or reasons for the              602          

determination, instructions for initiating an appeal or A          604          

reconsideration OR INTERNAL REVIEW of the determination, and       605          

instructions for requesting a written statement of the clinical    606          

rationale used to make the determination.  A health insuring       607          

corporation shall provide the clinical rationale for an adverse    609          

determination in writing to any party who received notice of the   611          

adverse determination and who follows the instructions for a                    

request.                                                           612          

      (H)(1)  A health insuring corporation shall have written     614          

procedures to address the failure or inability of a health care    616          

facility, provider, or enrollee to provide all necessary           617          

information for review.                                                         

      (2)  A HEALTH INSURING CORPORATION SHALL NOT USE             619          

UNREASONABLE REQUESTS FOR INFORMATION TO DELAY MAKING A            620          

DETERMINATION.                                                     621          

                                                          14     


                                                                 
      (3)  If the health care facility, provider, or enrollee      624          

will not release necessary information, the health insuring        625          

corporation may deny certification.  AN ENROLLEE NEED NOT BE       626          

GRANTED AN INTERNAL REVIEW PURSUANT TO SECTION 1751.83 OF THE      627          

REVISED CODE BASED ON A HEALTH INSURING CORPORATION'S FAILURE TO   629          

MAKE A TIMELY DETERMINATION, IF THE HEALTH INSURING CORPORATION'S  630          

DELAY IN MAKING A DETERMINATION AND NOTIFICATION IS CAUSED BY THE  631          

FAILURE OF A HEALTH CARE FACILITY, PROVIDER, OR ENROLLEE TO        632          

RELEASE ALL NECESSARY INFORMATION, IN WHICH CASE THE HEALTH        633          

INSURING CORPORATION SHALL NOTIFY THE ENROLLEE OF THE REASON FOR   634          

THE DELAY.                                                                      

      Sec. 1751.811.  A HEALTH INSURING CORPORATION THAT MAKES AN  636          

ADVERSE DETERMINATION MAY, IN LIEU OF PROVIDING A RECONSIDERATION  637          

UNDER SECTION 1751.82 OF THE REVISED CODE AND AN INTERNAL REVIEW   638          

UNDER SECTION 1751.83 OF THE REVISED CODE, AFFORD AN ENROLLEE AN   639          

OPPORTUNITY FOR AN EXTERNAL REVIEW UNDER SECTION 1751.84 OR        640          

1751.85 OF THE REVISED CODE.                                                    

      Sec. 1751.82.  (A)  In a case involving an initial A         650          

PROSPECTIVE determination or a concurrent review determination, a  652          

health insuring corporation shall give the provider or health                   

care facility rendering the health care service an opportunity to  654          

request in writing on behalf of the enrollee a reconsideration of  655          

an adverse determination by the reviewer making the adverse        656          

determination.  The reconsideration shall occur within three       657          

business days after the health insuring corporation's receipt of   658          

the written request for reconsideration, and shall be conducted    659          

between the provider or health care facility rendering the health  660          

care service and the reviewer who made the adverse determination.  662          

If that reviewer cannot be available within three business days,   663          

the reviewer may designate another reviewer.                                    

      (B)  If the reconsideration process described in division    665          

(A) of this section does not resolve the difference of opinion,    667          

the adverse determination may be appealed by the enrollee, AN      668          

AUTHORIZED PERSON, or the provider or health care facility ACTING  669          

                                                          15     


                                                                 
on behalf of the enrollee MAY REQUEST AN INTERNAL REVIEW UNDER     670          

SECTION 1751.83 OF THE REVISED CODE.                               671          

      (C)  Reconsideration is not a prerequisite to a standard AN  673          

INTERNAL or expedited appeal EXTERNAL REVIEW of an adverse         675          

determination.                                                                  

      (D)  The time period allowed by division (A) of this         678          

section for a reconsideration of an adverse determination shall    679          

not apply if the seriousness of the medical condition of the       680          

enrollee requires a more expedited reconsideration.  The health    681          

insuring corporation shall maintain written procedures for making  682          

such an expedited reconsideration.                                 683          

      Sec. 1751.83 1751.821.  A health insuring corporation may    693          

present evidence of compliance with the requirements of sections   694          

1751.77 to 1751.82 of the Revised Code by submitting evidence to   696          

the superintendent of insurance of its accreditation by an                      

independent, private accrediting organization, such as the         697          

national committee on quality assurance, the national quality      698          

health council, the joint commission on accreditation of health    700          

care organizations, or the American accreditation healthcare                    

commission/utilization review accreditation commission.  The       702          

superintendent, upon review of the organization's accreditation    703          

process, may determine that such accreditation constitutes         704          

compliance by the health insuring corporation with the             705          

requirements of these sections.                                                 

      Sec. 1751.84 1751.822.  Each participating provider or       714          

health care facility submitting a claim shall cooperate with the   716          

utilization review program of a health insuring corporation or     717          

utilization review organization and shall provide the health       718          

insuring corporation or its designee access to an enrollee's       719          

medical records during regular business hours, or copies of those  720          

records at a reasonable cost.                                      721          

      Sec. 1751.85 1751.823.  A health insuring corporation shall  730          

annually file a certificate with the superintendent of insurance   732          

certifying its compliance with sections 1751.77 to 1751.82 of the  733          

                                                          16     


                                                                 
Revised Code.                                                      735          

      Sec. 1751.83.  A HEALTH INSURING CORPORATION SHALL           737          

ESTABLISH AND MAINTAIN AN INTERNAL REVIEW SYSTEM THAT HAS BEEN     738          

APPROVED BY THE SUPERINTENDENT OF INSURANCE.  THE SYSTEM SHALL     739          

PROVIDE FOR REVIEW BY A CLINICAL PEER AND INCLUDE ADEQUATE AND     740          

REASONABLE PROCEDURES FOR REVIEW AND RESOLUTION OF APPEALS FROM                 

ENROLLEES CONCERNING ADVERSE DETERMINATIONS MADE UNDER SECTION     743          

1751.81 OF THE REVISED CODE, INCLUDING PROCEDURES FOR VERIFYING    744          

AND REVIEWING APPEALS FROM ENROLLEES WHOSE MEDICAL CONDITIONS                   

REQUIRE EXPEDITED REVIEW.                                          745          

      A HEALTH INSURING CORPORATION SHALL CONSIDER AND PROVIDE A   747          

WRITTEN RESPONSE TO EACH REQUEST FOR AN INTERNAL REVIEW NOT LATER  749          

THAN SIXTY DAYS AFTER RECEIPT OF THE REQUEST, EXCEPT THAT IF THE   750          

SERIOUSNESS OF THE ENROLLEE'S MEDICAL CONDITION REQUIRES AN        751          

EXPEDITED REVIEW, THE HEALTH INSURING CORPORATION SHALL PROVIDE    752          

THE WRITTEN RESPONSE NOT LATER THAN SEVEN DAYS AFTER RECEIPT OF    753          

THE REQUEST. THE RESPONSE SHALL STATE THE REASON FOR THE HEALTH    757          

INSURING CORPORATION'S DECISION, INFORM THE ENROLLEE OF THE RIGHT               

TO PURSUE A FURTHER REVIEW, AND EXPLAIN THE PROCEDURES FOR         759          

INITIATING THE REVIEW.                                                          

      IF THE HEALTH INSURING CORPORATION HAS DENIED, REDUCED, OR   763          

TERMINATED COVERAGE FOR A HEALTH CARE SERVICE ON THE GROUNDS THAT  764          

THE SERVICE IS NOT A SERVICE COVERED UNDER THE TERMS OF THE        765          

ENROLLEE'S POLICY, CONTRACT, OR AGREEMENT, THE RESPONSE SHALL      766          

INFORM THE ENROLLEE OF THE RIGHT TO REQUEST A REVIEW BY THE        767          

SUPERINTENDENT OF INSURANCE UNDER SECTION 1751.831 OF THE REVISED  768          

CODE.  IF THE HEALTH INSURING CORPORATION HAS DENIED, REDUCED, OR  769          

TERMINATED COVERAGE FOR A HEALTH CARE SERVICE ON THE GROUNDS THAT  770          

THE SERVICE IS NOT MEDICALLY NECESSARY, THE RESPONSE SHALL INFORM  772          

THE ENROLLEE OF THE RIGHT TO REQUEST AN EXTERNAL REVIEW UNDER      773          

SECTION 1751.84 OF THE REVISED CODE, EXCEPT THAT IF THE ENROLLEE   775          

MEETS THE CRITERIA SET FORTH IN DIVISION (A) OF SECTION 1751.85    776          

OF THE REVISED CODE, THE RESPONSE SHALL INFORM THE ENROLLEE OF     777          

THE RIGHT TO REQUEST AN EXTERNAL REVIEW UNDER SECTION 1751.85 OF   778          

                                                          17     


                                                                 
THE REVISED CODE.                                                               

      THE HEALTH INSURING CORPORATION SHALL MAKE AVAILABLE TO THE  780          

SUPERINTENDENT FOR INSPECTION COPIES OF ALL DOCUMENTS IN THE       781          

HEALTH INSURING CORPORATION'S POSSESSION RELATED TO REVIEWS        782          

CONDUCTED PURSUANT TO THIS SECTION, INCLUDING MEDICAL RECORDS      783          

RELATED TO THOSE REVIEWS, AND OF RESPONSES, FOR THREE YEARS        784          

FOLLOWING COMPLETION OF THE REVIEW.  ANY DOCUMENT OR INFORMATION   785          

PROVIDED TO THE SUPERINTENDENT UNDER THIS SECTION IS CONFIDENTIAL  786          

AND IS NOT A PUBLIC RECORD UNDER SECTION 149.43 OF THE REVISED     787          

CODE.                                                                           

      Sec. 1751.831.  THE SUPERINTENDENT OF INSURANCE SHALL        789          

ESTABLISH AND MAINTAIN A SYSTEM FOR RECEIVING AND REVIEWING        790          

REQUESTS FOR REVIEW FROM OR ON BEHALF OF ENROLLEES WHO, UNDER      791          

SECTION 1751.83 OF THE REVISED CODE, HAVE BEEN DENIED COVERAGE OF  792          

A HEALTH CARE SERVICE OR HAD COVERAGE REDUCED OR TERMINATED WHEN   793          

THE GROUNDS FOR THE DENIAL, REDUCTION, OR TERMINATION IS THAT THE  794          

SERVICE IS NOT A SERVICE COVERED UNDER THE TERMS OF THE            795          

ENROLLEE'S POLICY, CONTRACT, OR AGREEMENT.                         796          

      ON RECEIPT OF A WRITTEN REQUEST FROM AN ENROLLEE OR          798          

AUTHORIZED PERSON, THE SUPERINTENDENT SHALL CONSIDER WHETHER THE   799          

HEALTH CARE SERVICE IS A SERVICE COVERED UNDER THE TERMS OF THE    801          

ENROLLEE'S POLICY, CONTRACT, OR AGREEMENT, EXCEPT THAT THE         802          

SUPERINTENDENT SHALL NOT CONDUCT A REVIEW UNDER THIS SECTION       803          

UNLESS THE ENROLLEE HAS EXHAUSTED THE HEALTH INSURING              804          

CORPORATION'S INTERNAL REVIEW PROCESS ESTABLISHED PURSUANT TO                   

SECTION 1751.83 OF THE REVISED CODE.  THE HEALTH INSURING          805          

CORPORATION AND THE ENROLLEE OR AUTHORIZED PERSON SHALL PROVIDE    806          

THE SUPERINTENDENT WITH ANY INFORMATION REQUIRED BY THE            807          

SUPERINTENDENT THAT IS IN THEIR POSSESSION AND IS GERMANE TO THE   808          

REVIEW.                                                                         

      UNLESS THE SUPERINTENDENT IS NOT ABLE TO DO SO BECAUSE       810          

MAKING THE DETERMINATION REQUIRES RESOLUTION OF A MEDICAL ISSUE,   811          

THE SUPERINTENDENT SHALL DETERMINE WHETHER THE HEALTH CARE         812          

SERVICE AT ISSUE IS A SERVICE COVERED UNDER THE TERMS OF THE       813          

                                                          18     


                                                                 
ENROLLEE'S CONTRACT, POLICY, OR AGREEMENT.  THE SUPERINTENDENT     814          

SHALL NOTIFY THE ENROLLEE AND THE HEALTH INSURING CORPORATION OF   815          

ITS DETERMINATION OR THAT IT IS NOT ABLE TO MAKE A DETERMINATION.  816          

      IF THE SUPERINTENDENT NOTIFIES THE HEALTH INSURING           818          

CORPORATION THAT MAKING THE DETERMINATION REQUIRES THE RESOLUTION  819          

OF A MEDICAL ISSUE, THE HEALTH INSURING CORPORATION SHALL AFFORD   820          

THE ENROLLEE AN OPPORTUNITY FOR EXTERNAL REVIEW UNDER SECTION      821          

1751.84 OR 1751.85 OF THE REVISED CODE.  IF THE SUPERINTENDENT     822          

NOTIFIES THE HEALTH INSURING CORPORATION THAT THE HEALTH SERVICE   823          

IS A COVERED SERVICE, THE HEALTH INSURING CORPORATION SHALL        824          

EITHER COVER THE SERVICE OR AFFORD THE ENROLLEE AN OPPORTUNITY                  

FOR AN EXTERNAL REVIEW UNDER SECTION 1751.84 OR 1751.85 OF THE     825          

REVISED CODE.  IF THE SUPERINTENDENT NOTIFIES THE HEALTH INSURING  826          

CORPORATION THAT THE HEALTH CARE SERVICE IS NOT A COVERED          827          

SERVICE, THE HEALTH INSURING CORPORATION IS NOT REQUIRED TO COVER  828          

THE SERVICE OR AFFORD THE ENROLLEE AN EXTERNAL REVIEW.             829          

      Sec. 1751.84.  (A)  EXCEPT AS PROVIDED IN DIVISIONS (B) AND  832          

(C) OF  THIS SECTION, A HEALTH INSURING CORPORATION SHALL AFFORD   834          

AN ENROLLEE AN OPPORTUNITY FOR AN EXTERNAL REVIEW IF BOTH OF THE   835          

FOLLOWING ARE THE CASE:                                                         

      (1)  THE HEALTH INSURING CORPORATION HAS DENIED, REDUCED,    837          

OR TERMINATED COVERAGE FOR WHAT WOULD BE A COVERED HEALTH CARE     840          

SERVICE EXCEPT FOR THE FACT THAT THE HEALTH INSURING CORPORATION   841          

HAS DETERMINED THAT THE HEALTH CARE SERVICE IS NOT MEDICALLY       842          

NECESSARY;                                                                      

      (2)  EXCEPT IN THE CASE OF AN EXPEDITED REVIEW, THE          844          

SERVICE, PLUS ANY ANCILLARY SERVICES AND FOLLOW-UP CARE, WILL      846          

COST THE ENROLLEE MORE THAN FIVE HUNDRED DOLLARS IF THE PROPOSED                

SERVICE IS NOT COVERED BY THE HEALTH INSURING CORPORATION.         847          

      EXTERNAL REVIEW SHALL BE CONDUCTED IN ACCORDANCE WITH THIS   849          

SECTION, EXCEPT THAT IF AN ENROLLEE WITH A TERMINAL CONDITION      850          

MEETS ALL OF THE CRITERIA OF DIVISION (A) OF SECTION 1751.85 OF    851          

THE REVISED CODE, AN EXTERNAL REVIEW SHALL BE CONDUCTED UNDER      853          

THAT SECTION.                                                                   

                                                          19     


                                                                 
      (B)  AN ENROLLEE NEED NOT BE AFFORDED A REVIEW UNDER THIS    855          

SECTION IN ANY OF THE FOLLOWING CIRCUMSTANCES:                     856          

      (1)  THE SUPERINTENDENT OF INSURANCE HAS DETERMINED UNDER    858          

SECTION 1751.831 OF THE REVISED CODE THAT THE HEALTH CARE SERVICE  860          

IS NOT A SERVICE COVERED UNDER THE TERMS OF THE ENROLLEE'S         861          

POLICY, CONTRACT, OR AGREEMENT.                                    862          

      (2)  EXCEPT AS PROVIDED IN SECTION 1751.811 OF THE REVISED   864          

CODE, THE ENROLLEE HAS FAILED TO EXHAUST THE HEALTH INSURING       865          

CORPORATION'S INTERNAL REVIEW PROCESS ESTABLISHED PURSUANT TO      866          

SECTION 1751.83 OF THE REVISED CODE.                               867          

      (3)  THE ENROLLEE HAS PREVIOUSLY BEEN AFFORDED AN EXTERNAL   869          

REVIEW FOR THE SAME ADVERSE DETERMINATION AND NO NEW CLINICAL      870          

INFORMATION HAS BEEN SUBMITTED TO THE HEALTH INSURING              871          

CORPORATION.                                                                    

      (C)(1)  A HEALTH INSURING CORPORATION MAY DENY A REQUEST     873          

FOR AN EXTERNAL REVIEW OF AN ADVERSE DETERMINATION IF IT IS        875          

REQUESTED LATER THAN THIRTY DAYS AFTER THE ENROLLEE'S RECEIPT OF   876          

NOTICE OF THE RESULT OF AN INTERNAL REVIEW BROUGHT UNDER SECTION   878          

1751.83 OF THE REVISED CODE.  AN EXTERNAL REVIEW MAY BE REQUESTED  880          

BY THE ENROLLEE, AN AUTHORIZED PERSON, THE ENROLLEE'S PROVIDER,    882          

OR A HEALTH CARE FACILITY RENDERING HEALTH CARE SERVICE TO THE     883          

ENROLLEE.  THE ENROLLEE MAY REQUEST A REVIEW WITHOUT THE APPROVAL  884          

OF THE PROVIDER OR THE HEALTH CARE FACILITY RENDERING THE HEALTH   885          

CARE SERVICE.  THE PROVIDER OR HEALTH CARE FACILITY MAY NOT        886          

REQUEST A REVIEW WITHOUT THE PRIOR CONSENT OF THE ENROLLEE.        887          

      (2)  AN EXTERNAL REVIEW MUST BE REQUESTED IN WRITING,        889          

EXCEPT THAT IF THE ENROLLEE HAS A CONDITION THAT REQUIRES          890          

EXPEDITED REVIEW, THE REVIEW MAY BE REQUESTED ORALLY OR BY         891          

ELECTRONIC MEANS.  AN ENROLLEE WHO MAKES AN ORAL OR ELECTRONIC     892          

REQUEST FOR REVIEW SHALL SUBMIT TO THE HEALTH INSURING             893          

CORPORATION WRITTEN CONFIRMATION OF THE REQUEST NOT LATER THAN     894          

FIVE DAYS AFTER MAKING IT.                                                      

      EXCEPT IN THE CASE OF AN EXPEDITED REVIEW, A REQUEST FOR AN  896          

EXTERNAL REVIEW MUST BE ACCOMPANIED BY WRITTEN CERTIFICATION FROM  898          

                                                          20     


                                                                 
THE ENROLLEE'S PROVIDER OR THE HEALTH CARE FACILITY RENDERING THE  899          

HEALTH CARE SERVICE TO THE ENROLLEE THAT THE PROPOSED SERVICE,                  

PLUS ANY ANCILLARY SERVICES AND FOLLOW-UP CARE, WILL COST THE      900          

ENROLLEE MORE THAN FIVE HUNDRED DOLLARS IF THE PROPOSED SERVICE    901          

IS NOT COVERED BY THE HEALTH INSURING CORPORATION.                 902          

      (3)  FOR AN EXPEDITED REVIEW, THE ENROLLEE'S PROVIDER MUST   904          

CERTIFY THAT THE ENROLLEE'S CONDITION COULD, IN THE ABSENCE OF     905          

IMMEDIATE MEDICAL ATTENTION, RESULT IN ANY OF THE FOLLOWING:       907          

      (a)  PLACING THE HEALTH OF THE ENROLLEE OR, WITH RESPECT TO  909          

A PREGNANT WOMAN, THE HEALTH OF THE ENROLLEE OR THE UNBORN CHILD,  910          

IN SERIOUS JEOPARDY;                                               911          

      (b)  SERIOUS IMPAIRMENT TO BODILY FUNCTIONS;                 913          

      (c)  SERIOUS DYSFUNCTION OF ANY BODILY ORGAN OR PART.        915          

      (D)  THE PROCEDURES USED IN CONDUCTING AN EXTERNAL REVIEW    917          

OF AN ADVERSE DETERMINATION SHALL INCLUDE ALL OF THE FOLLOWING:    918          

      (1)  THE REVIEW SHALL BE CONDUCTED BY AN INDEPENDENT REVIEW  920          

ORGANIZATION ASSIGNED BY THE SUPERINTENDENT OF INSURANCE UNDER     921          

DIVISION (C) OF SECTION 1751.90 OF THE REVISED CODE.  THE          923          

INDEPENDENT REVIEW ORGANIZATION SHALL UTILIZE THE SERVICES OF      924          

MEDICAL EXPERTS AND CLINICAL PEERS WHO HAVE EXPERTISE IN THE       925          

TREATMENT OF THE ENROLLEE'S MEDICAL CONDITION AND CLINICAL         927          

EXPERIENCE IN THE PAST THREE YEARS WITH THE SERVICE REQUESTED OR                

RECOMMENDED BY THE ENROLLEE OR THE ENROLLEE'S PROVIDER.  THE       929          

REVIEW SHALL BE CONDUCTED BY A SINGLE MEDICAL EXPERT OR CLINICAL   930          

PEER, UNLESS THE HEALTH INSURING CORPORATION DETERMINES THAT MORE  931          

THAN ONE MEDICAL EXPERT OR CLINICAL PEER IS NEEDED.  THE MEDICAL   932          

EXPERT OR CLINICAL PEER MUST HOLD A LICENSE THAT IS NOT            933          

RESTRICTED IN ANY MANNER BY THE STATE IN WHICH THE CLINICAL PEER   934          

IS LICENSED.  THE MEDICAL EXPERT OR CLINICAL PEER SHALL NOT HAVE                

BEEN DISCIPLINED OR SANCTIONED BY A HOSPITAL OR GOVERNMENT ENTITY  936          

BASED ON THE QUALITY OF CARE PROVIDED BY THE CLINICAL PEER.  IN    937          

THE CASE OF A PHYSICIAN, THE CLINICAL PEER MUST BE CERTIFIED BY A  938          

NATIONALLY RECOGNIZED MEDICAL SPECIALTY BOARD IN THE AREA THAT IS  939          

THE SUBJECT OF THE REVIEW.                                                      

                                                          21     


                                                                 
      (2)  EXCEPT AS PROVIDED IN DIVISION (D)(3) AND (4) OF THIS   941          

SECTION, NEITHER THE CLINICAL PEER NOR ANY HEALTH CARE FACILITY    943          

WITH WHICH THE CLINICAL PEER IS AFFILIATED SHALL HAVE ANY          945          

PROFESSIONAL, FAMILIAL, OR FINANCIAL AFFILIATION WITH ANY OF THE   946          

FOLLOWING:                                                                      

      (a)  THE HEALTH INSURING CORPORATION OR ANY OFFICER,         948          

DIRECTOR, OR MANAGERIAL EMPLOYEE OF THE HEALTH INSURING            949          

CORPORATION;                                                                    

      (b)  THE ENROLLEE, THE ENROLLEE'S PROVIDER, OR THE PRACTICE  951          

GROUP OF THE ENROLLEE'S PROVIDER;                                  952          

      (c)  THE HEALTH CARE FACILITY AT WHICH THE HEALTH CARE       954          

SERVICE REQUESTED BY THE ENROLLEE WOULD BE PROVIDED;               955          

      (d)  THE DEVELOPMENT OR MANUFACTURE OF THE PRINCIPAL DRUG,   957          

DEVICE, PROCEDURE, OR THERAPY PROPOSED FOR THE ENROLLEE.           958          

      (3)  DIVISION (D)(2) OF THIS SECTION DOES NOT PROHIBIT A     960          

CLINICAL PEER FROM CONDUCTING A REVIEW UNDER ANY OF THE FOLLOWING  961          

CIRCUMSTANCES:                                                                  

      (a)  THE CLINICAL PEER IS AFFILIATED WITH AN ACADEMIC        963          

MEDICAL CENTER THAT PROVIDES HEALTH CARE SERVICES TO ENROLLEES OF  964          

THE HEALTH INSURING CORPORATION.                                   965          

      (b)  THE CLINICAL PEER HAS STAFF PRIVILEGES AT A HEALTH      967          

CARE FACILITY THAT PROVIDES HEALTH CARE SERVICES TO ENROLLEES OF   968          

THE HEALTH INSURING CORPORATION.                                   969          

      (c)  THE CLINICAL PEER IS A PARTICIPATING PROVIDER BUT WAS   971          

NOT INVOLVED WITH THE HEALTH INSURING CORPORATION'S ADVERSE        972          

DETERMINATION.                                                                  

      (4)  DIVISION (D)(2) OF THIS SECTION DOES NOT PROHIBIT THE   974          

HEALTH INSURING CORPORATION FROM PAYING THE INDEPENDENT REVIEW     975          

ORGANIZATION FOR THE CONDUCT OF THE REVIEW.                        976          

      (5)  AN ENROLLEE SHALL NOT BE REQUIRED TO PAY FOR ANY PART   978          

OF THE COST OF THE REVIEW.  THE COST OF THE REVIEW SHALL BE BORNE  979          

BY THE HEALTH INSURING CORPORATION.                                980          

      (6)(a)  THE HEALTH INSURING CORPORATION SHALL PROVIDE TO     983          

THE INDEPENDENT REVIEW ORGANIZATION CONDUCTING THE REVIEW A COPY   984          

                                                          22     


                                                                 
OF THOSE RECORDS IN ITS POSSESSION THAT ARE RELEVANT TO THE        985          

ENROLLEE'S MEDICAL CONDITION AND THE REVIEW.  THE RECORDS SHALL    986          

BE USED SOLELY FOR THE PURPOSE OF THIS DIVISION.  AT THE REQUEST   987          

OF THE INDEPENDENT REVIEW ORGANIZATION, THE HEALTH INSURING        988          

CORPORATION, ENROLLEE, OR THE PROVIDER OR HEALTH CARE FACILITY     990          

RENDERING HEALTH CARE SERVICES TO THE ENROLLEE SHALL PROVIDE ANY   991          

ADDITIONAL INFORMATION THE INDEPENDENT REVIEW ORGANIZATION                      

REQUESTS TO COMPLETE THE REVIEW.                                   992          

      (b)  AN INDEPENDENT REVIEW ORGANIZATION IS NOT REQUIRED TO   994          

MAKE A DECISION IF IT HAS NOT RECEIVED ANY REQUESTED INFORMATION   995          

THAT IT CONSIDERS NECESSARY TO COMPLETE A REVIEW.                  997          

      (7)  ON RECEIPT OF ADDITIONAL INFORMATION ON AN ENROLLEE'S   999          

MEDICAL CONDITION FROM A PROVIDER OR HEALTH CARE FACILITY, THE     1,000        

HEALTH INSURING CORPORATION MAY ELECT TO COVER THE SERVICE         1,001        

REQUESTED AND TERMINATE THE REVIEW.  THE HEALTH INSURING           1,002        

CORPORATION SHALL NOTIFY THE ENROLLEE AND ALL OTHER PARTIES        1,003        

INVOLVED WITH THE DECISION BY MAIL OR, WITH THE CONSENT OR         1,004        

APPROVAL OF THE ENROLLEE, BY ELECTRONIC MEANS.                                  

      (8)  IN MAKING ITS DECISION, AN INDEPENDENT REVIEW           1,006        

ORGANIZATION CONDUCTING THE REVIEW SHALL TAKE INTO ACCOUNT ALL OF  1,007        

THE FOLLOWING:                                                                  

      (a)  INFORMATION SUBMITTED BY THE HEALTH INSURING            1,009        

CORPORATION, THE ENROLLEE, THE ENROLLEE'S PROVIDER, AND THE        1,010        

HEALTH CARE FACILITY RENDERING THE HEALTH CARE SERVICE, INCLUDING  1,012        

THE FOLLOWING:                                                                  

      (i)  THE ENROLLEE'S MEDICAL RECORDS;                         1,014        

      (ii)  THE STANDARDS, CRITERIA, AND CLINICAL RATIONALE USED   1,016        

BY THE HEALTH INSURING CORPORATION TO MAKE ITS DECISION.           1,017        

      (b)  FINDINGS, STUDIES, RESEARCH, AND OTHER RELEVANT         1,018        

DOCUMENTS OF GOVERNMENT AGENCIES AND NATIONALLY RECOGNIZED         1,019        

ORGANIZATIONS, INCLUDING THE NATIONAL INSTITUTES OF HEALTH OR ANY  1,021        

BOARD RECOGNIZED BY THE NATIONAL INSTITUTES OF HEALTH, THE                      

NATIONAL CANCER INSTITUTE, THE NATIONAL ACADEMY OF SCIENCES, THE   1,024        

UNITED STATES FOOD AND DRUG ADMINISTRATION, THE HEALTH CARE        1,025        

                                                          23     


                                                                 
FINANCING ADMINISTRATION OF THE UNITED STATES DEPARTMENT OF        1,026        

HEALTH AND HUMAN SERVICES, AND THE AGENCY FOR HEALTH CARE POLICY   1,027        

AND RESEARCH;                                                      1,028        

      (c)  RELEVANT FINDINGS IN PEER-REVIEWED MEDICAL OR           1,030        

SCIENTIFIC LITERATURE, PUBLISHED OPINIONS OF NATIONALLY            1,031        

RECOGNIZED MEDICAL EXPERTS, AND CLINICAL GUIDELINES ADOPTED BY     1,032        

RELEVANT NATIONAL MEDICAL SOCIETIES.                               1,033        

      (9)(a)  IN THE CASE OF AN EXPEDITED REVIEW, THE INDEPENDENT  1,035        

REVIEW ORGANIZATION SHALL ISSUE A WRITTEN DECISION NOT LATER THAN  1,036        

SEVEN DAYS AFTER THE FILING OF THE REQUEST FOR REVIEW.  IN ALL     1,040        

OTHER CASES, THE INDEPENDENT REVIEW ORGANIZATION SHALL ISSUE A                  

WRITTEN DECISION NOT LATER THAN THIRTY DAYS AFTER THE FILING OF    1,043        

THE REQUEST.  THE INDEPENDENT REVIEW ORGANIZATION SHALL SEND A     1,044        

COPY OF ITS DECISION TO THE HEALTH INSURING CORPORATION AND THE    1,045        

ENROLLEE.  IF THE ENROLLEE'S PROVIDER OR THE HEALTH CARE FACILITY  1,046        

RENDERING HEALTH CARE SERVICES TO THE ENROLLEE REQUESTED THE       1,047        

REVIEW, THE INDEPENDENT REVIEW ORGANIZATION SHALL ALSO SEND A      1,048        

COPY OF ITS DECISION TO THE ENROLLEE'S PROVIDER OR THE HEALTH      1,049        

CARE FACILITY.                                                     1,050        

      (b)  THE INDEPENDENT REVIEW ORGANIZATION'S DECISION SHALL    1,052        

INCLUDE A DESCRIPTION OF THE ENROLLEE'S CONDITION AND THE          1,054        

PRINCIPAL REASONS FOR THE DECISION AND AN EXPLANATION OF THE       1,055        

CLINICAL RATIONALE FOR THE DECISION.                               1,056        

      (E)  THE INDEPENDENT REVIEW ORGANIZATION SHALL BASE ITS      1,058        

DECISION ON THE INFORMATION SUBMITTED UNDER DIVISION (D)(8) OF     1,059        

THIS SECTION.  IN MAKING ITS DECISION, THE INDEPENDENT REVIEW      1,060        

ORGANIZATION SHALL CONSIDER SAFETY, EFFICACY, APPROPRIATENESS,     1,061        

AND COST EFFECTIVENESS.                                                         

      (F)  THE HEALTH INSURING CORPORATION SHALL PROVIDE ANY       1,063        

COVERAGE DETERMINED BY THE INDEPENDENT REVIEW ORGANIZATION'S       1,064        

DECISION TO BE MEDICALLY NECESSARY, SUBJECT TO THE OTHER TERMS,    1,065        

LIMITATIONS, AND CONDITIONS OF THE ENROLLEE'S CONTRACT.  THE       1,066        

DECISION SHALL APPLY ONLY TO THE INDIVIDUAL ENROLLEE'S APPEAL.     1,067        

      Sec. 1753.24 1751.85.  (A)  Each health insuring             1,076        

                                                          24     


                                                                 
corporation shall establish a reasonable external, independent     1,079        

review process to examine the health insuring corporation's        1,080        

coverage decisions for enrollees who meet all of the following     1,081        

criteria:                                                                       

      (1)  The enrollee has a terminal condition that, according   1,083        

to the current diagnosis of the enrollee's physician, has a high   1,084        

probability of causing death within two years.                     1,085        

      (2)  THE ENROLLEE REQUESTS A REVIEW NOT LATER THAN SIXTY     1,088        

DAYS AFTER RECEIPT BY THE ENROLLEE OF NOTICE OF THE RESULT OF AN   1,089        

INTERNAL REVIEW UNDER SECTION 1751.83 OF THE REVISED CODE.         1,090        

      (3)  The enrollee's physician certifies that the enrollee    1,092        

has the condition described in division (A)(1) of this section     1,094        

and any of the following situations are applicable:                1,095        

      (a)  Standard therapies have not been effective in           1,097        

improving the condition of the enrollee;                           1,099        

      (b)  Standard therapies are not medically appropriate for    1,102        

the enrollee;                                                                   

      (c)  There is no standard therapy covered by the health      1,105        

insuring corporation that is more beneficial than therapy          1,106        

described in division (A)(3)(4) of this section.                   1,107        

      (3)(4)  The enrollee's physician has recommended a drug,     1,109        

device, procedure, or other therapy that the physician certifies,  1,111        

in writing, is likely to be more beneficial to the enrollee, in    1,112        

the physician's opinion, than standard therapies, or, the          1,114        

enrollee has requested a therapy that has been found in a                       

preponderance of peer-reviewed published studies to be associated  1,115        

with effective clinical outcomes for the same condition.           1,116        

      (4)(5)  The enrollee has been denied coverage by the health  1,118        

insuring corporation for a drug, device, procedure, or other       1,122        

therapy recommended or requested pursuant to division (A)(3)(4)    1,123        

of this section, and has exhausted all internal appeals.           1,124        

      (5)(6)  The drug, device, procedure, or other therapy,       1,126        

recommended or requested pursuant to division (A)(3) of this       1,129        

section, FOR WHICH COVERAGE HAS BEEN DENIED would be a covered     1,130        

                                                          25     


                                                                 
health care service except for the health insuring corporation's   1,132        

determination that the drug, device, procedure, or other therapy   1,134        

is experimental or investigational.                                             

      (B)  A REVIEW SHALL BE REQUESTED IN WRITING, EXCEPT THAT IF  1,136        

THE ENROLLEE'S PHYSICIAN DETERMINES THAT A THERAPY WOULD BE        1,137        

SIGNIFICANTLY LESS EFFECTIVE IF NOT PROMPTLY INITIATED, THE        1,138        

REVIEW MAY BE REQUESTED ORALLY OR BY ELECTRONIC MEANS.  AN         1,139        

ENROLLEE WHO MAKES AN ORAL OR ELECTRONIC REQUEST FOR REVIEW TO A   1,140        

HEALTH INSURING CORPORATION SHALL SUBMIT WRITTEN CONFIRMATION OF   1,141        

THE REQUEST NOT LATER THAN FIVE DAYS AFTER MAKING THE REQUEST.     1,142        

      (C)  The external, independent review process established    1,145        

by a health insuring corporation shall meet all of the following   1,146        

criteria:                                                                       

      (1)  Except as provided in division (C)(E) of this section,  1,148        

the process shall offer AFFORD all enrollees who meet the          1,150        

criteria set forth in division (A) of this section the             1,152        

opportunity to have the health insuring corporation's decision to  1,153        

deny coverage of the recommended or requested therapy reviewed     1,155        

under the process.  Each eligible enrollee shall be notified of    1,157        

that opportunity within five business days after the health        1,158        

insuring corporation denies coverage.                                           

      (2)  The review of the health insuring corporation's         1,160        

decision shall be conducted by experts selected by an independent  1,161        

entity that has been retained by the health insuring corporation   1,163        

for this purpose REVIEW ORGANIZATION ASSIGNED BY THE               1,164        

SUPERINTENDENT OF INSURANCE UNDER DIVISION (C) OF SECTION 1751.90  1,165        

OF THE REVISED CODE.  The independent entity REVIEW ORGANIZATION   1,166        

shall be either an academic medical center or an entity            1,168        

ORGANIZATION that has as its primary function, and that receives   1,170        

a majority of its revenue from, the provision of expert reviews    1,171        

and related services BEEN ACCREDITED IN ACCORDANCE WITH RULES      1,172        

ADOPTED BY THE SUPERINTENDENT OF INSURANCE PURSUANT TO SECTION     1,173        

1751.90 OF THE REVISED CODE.                                                    

      The independent entity REVIEW ORGANIZATION shall select a    1,175        

                                                          26     


                                                                 
panel to conduct the review, which panel shall be composed of at   1,178        

least three physicians or other providers who, THROUGH CLINICAL    1,179        

EXPERIENCE IN THE PAST THREE YEARS, are experts in the treatment   1,180        

of the enrollee's medical condition and knowledgeable about the    1,182        

recommended or requested therapy.  If the independent entity       1,183        

REVIEW ORGANIZATION retained by the health insuring corporation    1,185        

is an academic medical center, the panel may include experts       1,186        

affiliated with or employed by the academic medical center.        1,187        

      In either of the following circumstances, an exception may   1,190        

be made to the requirement that the review be conducted by an      1,191        

expert panel composed of a minimum of three physicians or other    1,192        

providers:                                                                      

      (a)  A review may be conducted by an expert panel composed   1,195        

of only two physicians or other providers if an enrollee has       1,196        

consented in writing to a review by the smaller panel;             1,197        

      (b)  A review may be conducted by a single expert physician  1,200        

or other provider if only one expert physician or other provider   1,201        

is available for the review.                                                    

      (3)  Neither the health insuring corporation nor the         1,203        

enrollee shall choose, or control the choice of, the physician or  1,205        

other provider experts.                                                         

      (4)  Neither the THE SELECTED experts nor, ANY HEALTH CARE   1,208        

FACILITY WITH WHICH AN EXPERT IS AFFILIATED, AND the independent   1,209        

entity REVIEW ORGANIZATION arranging for the experts' review,      1,210        

shall NOT have any professional, familial, or financial            1,211        

affiliation with the ANY OF THE FOLLOWING:                                      

      (a)  THE health insuring corporation, except that OR ANY     1,214        

OFFICER, DIRECTOR, OR MANAGERIAL EMPLOYEE OF THE HEALTH INSURING                

CORPORATION;                                                       1,215        

      (b)  THE ENROLLEE, THE ENROLLEE'S PHYSICIAN, OR THE          1,217        

PRACTICE GROUP OF THE ENROLLEE'S PHYSICIAN;                        1,218        

      (c)  THE HEALTH CARE FACILITY AT WHICH THE RECOMMENDED OR    1,220        

REQUESTED THERAPY WOULD BE PROVIDED;                               1,221        

      (d)  THE DEVELOPMENT OR MANUFACTURE OF THE PRINCIPAL DRUG,   1,223        

                                                          27     


                                                                 
DEVICE, PROCEDURE, OR THERAPY INVOLVED IN THE RECOMMENDED OR       1,224        

REQUESTED THERAPY.                                                 1,225        

      HOWEVER, experts affiliated with academic medical centers    1,228        

who provide healthcare services to enrollees of the health         1,229        

insuring corporation may serve as experts on the review panel.     1,231        

This FURTHER, EXPERTS WITH STAFF PRIVILEGES AT A HEALTH CARE       1,232        

FACILITY THAT PROVIDES HEALTH CARE SERVICES TO ENROLLEES OF THE    1,233        

HEALTH INSURING CORPORATION, AS WELL AS EXPERTS WHO ARE            1,234        

PARTICIPATING PROVIDERS, BUT WHO WERE NOT INVOLVED WITH THE        1,235        

HEALTH INSURING CORPORATION'S DENIAL OF COVERAGE FOR THE THERAPY   1,236        

UNDER REVIEW, MAY SERVE AS EXPERTS ON THE REVIEW PANEL.  THESE     1,237        

nonaffiliation provision does PROVISIONS DO not preclude a health  1,239        

insuring corporation from paying for the experts' review, as                    

specified in division (B)(5) of this section.  The experts shall   1,241        

have no patient-physician relationship or other affiliation with   1,242        

an enrollee whose request for therapy is under review or with a    1,243        

provider whose recommendation for therapy is under review.         1,244        

      (5)  Enrollees shall not be required to pay for ANY PART OF  1,246        

the external, independent COST OF THE review.  The costs COST of   1,248        

the review shall be borne by the health insuring corporation.      1,250        

      (6)  The health insuring corporation shall provide to the    1,252        

independent entity REVIEW ORGANIZATION arranging for the experts'  1,253        

review and to the enrollee and the enrollee's physician a copy of  1,254        

those medical records in the health insuring corporation's         1,255        

possession that are relevant to the enrollee's MEDICAL condition   1,258        

for which therapy has been recommended or requested AND THE        1,259        

REVIEW.  The medical records shall be disclosed solely to the      1,262        

expert reviewers and shall be used solely for the purpose of this               

section.  AT THE REQUEST OF THE EXPERT REVIEWERS, THE HEALTH       1,264        

INSURING CORPORATION OR THE PHYSICIAN RECOMMENDING THE THERAPY     1,265        

SHALL PROVIDE ANY ADDITIONAL INFORMATION THAT THE EXPERT           1,266        

REVIEWERS REQUEST TO COMPLETE THE REVIEW.  AN EXPERT REVIEWER IS   1,267        

NOT REQUIRED TO RENDER AN OPINION IF THE REVIEWER HAS NOT          1,268        

RECEIVED ANY REQUESTED INFORMATION THAT THE REVIEWER CONSIDERS     1,269        

                                                          28     


                                                                 
NECESSARY TO COMPLETE THE REVIEW.                                  1,270        

      (7)  The IN CONDUCTING THE REVIEW, THE EXPERTS ON THE PANEL  1,273        

SHALL TAKE INTO ACCOUNT ALL OF THE FOLLOWING:                      1,274        

      (a)  INFORMATION SUBMITTED BY THE HEALTH INSURING            1,276        

CORPORATION, THE ENROLLEE, AND THE ENROLLEE'S PHYSICIAN,           1,277        

INCLUDING THE ENROLLEE'S MEDICAL RECORDS AND THE STANDARDS,        1,278        

CRITERIA, AND CLINICAL RATIONALE USED BY THE HEALTH INSURING       1,279        

CORPORATION TO REACH ITS COVERAGE DECISION;                        1,280        

      (b)  FINDINGS, STUDIES, RESEARCH, AND OTHER RELEVANT         1,282        

DOCUMENTS OF GOVERNMENT AGENCIES AND NATIONALLY RECOGNIZED         1,283        

ORGANIZATIONS;                                                                  

      (c)  RELEVANT FINDINGS IN PEER-REVIEWED MEDICAL OR           1,285        

SCIENTIFIC LITERATURE AND PUBLISHED OPINIONS OF NATIONALLY         1,286        

RECOGNIZED MEDICAL EXPERTS;                                        1,287        

      (d)  CLINICAL GUIDELINES ADOPTED BY RELEVANT NATIONAL        1,289        

MEDICAL SOCIETIES;                                                 1,290        

      (e)  SAFETY, EFFICACY, APPROPRIATENESS, AND COST             1,292        

EFFECTIVENESS.                                                                  

      THE opinions of the experts on the panel shall be rendered   1,295        

within thirty days after the enrollee's request for review.  If    1,297        

the enrollee's physician determines that a therapy would be        1,299        

significantly less effective if not promptly initiated, the        1,300        

opinions shall be rendered within seven days after the enrollee's  1,301        

request for review.                                                             

      (8)  Each expert on the panel shall provide the independent  1,303        

entity REVIEW ORGANIZATION with a professional opinion as to       1,305        

whether there is sufficient evidence to demonstrate that the       1,306        

recommended or requested therapy is likely to be more beneficial                

to the enrollee than standard therapies.                           1,308        

      (9)  Each expert's opinion shall be presented in written     1,310        

form and shall include the following information:                  1,312        

      (a)  A description of the enrollee's condition;              1,314        

      (b)  A description of the indicators relevant to             1,316        

determining whether there is sufficient evidence to demonstrate    1,317        

                                                          29     


                                                                 
that the recommended or requested therapy is more likely than not  1,319        

to be more beneficial to the enrollee than standard therapies;     1,320        

      (c)  A description and analysis of any relevant findings     1,322        

published in peer-reviewed medical or scientific literature or     1,323        

the published opinions of medical experts or specialty societies;  1,324        

      (d)  A description of the enrollee's suitability to receive  1,326        

the recommended or requested therapy according to a treatment      1,327        

protocol in a clinical trial, if applicable.                       1,329        

      (10)  The independent entity REVIEW ORGANIZATION shall       1,331        

provide the health insuring corporation with the opinions of the   1,333        

experts.  The health insuring corporation shall make the experts'  1,334        

opinions available to the enrollee and the enrollee's physician,   1,336        

upon request.                                                                   

      (11)  The decision OPINION of the majority of the experts    1,338        

on the panel, rendered pursuant to division (B)(C)(8) of this      1,340        

section, is binding on the health insuring corporation with        1,342        

respect to that enrollee.  If the opinions of the experts on the   1,343        

panel are evenly divided as to whether the therapy should be       1,344        

covered, then the health insuring corporation's final decision     1,345        

shall be in favor of coverage.  If less than a majority of the     1,347        

experts on the panel recommend coverage of the therapy, the        1,348        

health insuring corporation may, in its discretion, cover the      1,349        

therapy.  However, any coverage provided pursuant to division      1,350        

(B)(C)(11) of this section is subject to the terms, LIMITATIONS,   1,352        

and conditions of the enrollee's contract with the health          1,354        

insuring corporation.                                                           

      (12)  The health insuring corporation shall have written     1,356        

policies describing the external, independent review process.      1,358        

The health insuring corporation shall disclose the availability    1,359        

of the external, independent review process in the health          1,360        

insuring corporation's evidence of coverage and disclosure forms.  1,362        

      (C)(D)  AT ANY TIME DURING THE EXTERNAL, INDEPENDENT REVIEW  1,365        

PROCESS, THE HEALTH INSURING CORPORATION MAY ELECT TO COVER THE    1,366        

RECOMMENDED OR REQUESTED HEALTH CARE SERVICE AND TERMINATE THE     1,367        

                                                          30     


                                                                 
REVIEW.  THE HEALTH INSURING CORPORATION SHALL NOTIFY THE          1,368        

ENROLLEE AND ALL OTHER PARTIES INVOLVED BY MAIL OR, WITH THE       1,369        

CONSENT OR APPROVAL OF THE ENROLLEE, BY ELECTRONIC MEANS.          1,370        

      (E)  If a health insuring corporation's initial denial of    1,372        

coverage for a therapy recommended or requested pursuant to        1,373        

division (A)(3)(4) of this section is based upon an external,      1,374        

independent review of that therapy meeting the requirements of     1,375        

division (B)(C) of this section, this section shall not be a       1,376        

basis for requiring a second external, independent review of the   1,377        

recommended or requested therapy.                                  1,378        

      (D)(F)  The health insuring corporation shall annually file  1,380        

a certificate with the superintendent of insurance certifying its  1,381        

compliance with the requirements of this section.                  1,382        

      Sec. 1751.87.  NOTHING IN SECTIONS 1751.77 TO 1751.85 OF     1,384        

THE REVISED CODE SHALL BE CONSTRUED TO CREATE A CAUSE OF ACTION    1,385        

AGAINST ANY OF THE FOLLOWING:                                                   

      AN EMPLOYER THAT PROVIDES HEALTH CARE BENEFITS TO EMPLOYEES  1,388        

THROUGH A HEALTH INSURING CORPORATION; A CLINICAL PEER OR          1,389        

INDEPENDENT REVIEW ORGANIZATION THAT PARTICIPATES IN AN EXTERNAL   1,390        

REVIEW UNDER SECTION 1751.84 OR 1751.85 OF THE REVISED CODE; OR A               

HEALTH INSURING CORPORATION THAT PROVIDES COVERAGE FOR BENEFITS    1,391        

IN ACCORDANCE WITH DIVISION (F) OF SECTION 1751.84 OR DIVISION     1,392        

(C)(11) OF SECTION 1751.85 OF THE REVISED CODE.                    1,394        

      Sec. 1751.88.  CONSISTENT WITH THE RULES OF EVIDENCE, A      1,397        

WRITTEN DECISION OR OPINION PREPARED BY OR FOR AN INDEPENDENT      1,398        

REVIEW ORGANIZATION UNDER SECTION 1751.84 OR 1751.85 OF THE        1,400        

REVISED CODE SHALL BE ADMISSIBLE IN ANY CIVIL ACTION RELATED TO    1,401        

THE COVERAGE DECISION THAT WAS THE SUBJECT OF THE DECISION OR      1,402        

OPINION.  THE INDEPENDENT REVIEW ORGANIZATION'S DECISION OR        1,403        

OPINION SHALL BE PRESUMED TO BE A SCIENTIFICALLY VALID AND         1,406        

ACCURATE DESCRIPTION OF THE STATE OF MEDICAL KNOWLEDGE AT THE                   

TIME IT WAS WRITTEN.                                               1,407        

      CONSISTENT WITH THE RULES OF EVIDENCE, ANY PARTY TO A CIVIL  1,409        

ACTION RELATED TO A HEALTH INSURING CORPORATION'S COVERAGE         1,410        

                                                          31     


                                                                 
DECISION INVOLVING AN INVESTIGATIONAL OR EXPERIMENTAL DRUG,        1,412        

DEVICE, OR TREATMENT MAY INTRODUCE INTO EVIDENCE ANY APPLICABLE    1,413        

MEDICARE REIMBURSEMENT STANDARDS ESTABLISHED UNDER TITLE XVIII OF  1,414        

THE "SOCIAL SECURITY ACT," 49 STAT. 620(1935), 42 U.S.C.A. 301,    1,416        

AS AMENDED.                                                        1,417        

      Sec. 1751.89.  (A)  AN INDEPENDENT REVIEW ORGANIZATION       1,419        

RETAINED BY A HEALTH INSURING CORPORATION TO CONDUCT EXTERNAL      1,421        

REVIEWS UNDER SECTION 1751.84 OR 1751.85 OF THE REVISED CODE       1,423        

SHALL ANNUALLY REPORT THE FOLLOWING INFORMATION TO THE             1,425        

SUPERINTENDENT OF INSURANCE IN A FORMAT PRESCRIBED BY THE                       

SUPERINTENDENT:                                                    1,426        

      (1)  THE NUMBER OF REVIEWS CONDUCTED;                        1,428        

      (2)  THE NUMBER OF REVIEWS DECIDED IN FAVOR OF ENROLLEES     1,430        

AND THE NUMBER DECIDED IN FAVOR OF THE HEALTH INSURING             1,431        

CORPORATION;                                                                    

      (3)  THE AVERAGE TIME REQUIRED TO CONDUCT A REVIEW;          1,433        

      (4)  THE NUMBER AND PERCENTAGE OF REVIEWS IN WHICH A         1,435        

DECISION WAS NOT REACHED IN THE TIME REQUIRED UNDER DIVISION (D)   1,436        

OF SECTION 1751.84 OR DIVISION (C) OF SECTION 1751.85 OF THE       1,437        

REVISED CODE;                                                      1,438        

      (5)  ANY ADDITIONAL INFORMATION REQUIRED BY THE              1,440        

SUPERINTENDENT BY RULE ADOPTED PURSUANT TO DIVISION (C) OF THIS    1,441        

SECTION;                                                                        

      (6)  A SUMMARY OF THE DIAGNOSES, DRUGS, DEVICES, SERVICES,   1,443        

PROCEDURES, AND THERAPIES THAT HAVE BEEN THE SUBJECT OF EXTERNAL   1,444        

REVIEW.                                                                         

      (B)  THE SUPERINTENDENT OF INSURANCE SHALL COMPLY WITH       1,446        

APPLICABLE STATE AND FEDERAL LAWS RELATED TO THE CONFIDENTIALITY   1,447        

OF MEDICAL RECORDS.                                                             

      (C)  THE SUPERINTENDENT MAY, IN ACCORDANCE WITH CHAPTER      1,449        

119. OF THE REVISED CODE, ADOPT RULES REQUIRING INDEPENDENT        1,452        

REVIEW ORGANIZATIONS TO PROVIDE ADDITIONAL INFORMATION ON THE      1,454        

CONSIDERATION AND DISPOSITION OF EXTERNAL REVIEWS BROUGHT UNDER    1,457        

SECTION 1751.84 OR 1751.85 OF THE REVISED CODE.                    1,458        

                                                          32     


                                                                 
      (D)  THE SUPERINTENDENT SHALL COMPILE AND ANNUALLY PUBLISH   1,460        

THE INFORMATION COLLECTED UNDER THIS SECTION AND REPORT THE        1,463        

INFORMATION TO THE GOVERNOR, THE SPEAKER OF THE HOUSE OF           1,464        

REPRESENTATIVES, THE PRESIDENT OF THE SENATE, AND THE CHAIRS OF    1,465        

THE HOUSE AND SENATE COMMITTEES WITH JURISDICTION OVER HEALTH AND  1,467        

INSURANCE ISSUES.                                                               

      Sec. 1751.90.  (A)  THE SUPERINTENDENT OF INSURANCE SHALL    1,469        

ACCREDIT INDEPENDENT REVIEW ORGANIZATIONS.  THE SUPERINTENDENT     1,472        

MAY, IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE AND IN                 

CONSULTATION WITH THE DIRECTOR OF HEALTH, ADOPT RULES GOVERNING    1,473        

THE ACCREDITATION OF INDEPENDENT REVIEW ORGANIZATIONS.  IN         1,474        

DEVELOPING THE RULES, THE SUPERINTENDENT MAY TAKE INTO             1,475        

CONSIDERATION THE STANDARDS ESTABLISHED BY NATIONAL ORGANIZATIONS  1,476        

THAT ACCREDIT ORGANIZATIONS PROVIDING EXPERT REVIEWS AND RELATED   1,478        

SERVICES.  THE SUPERINTENDENT SHALL ACCEPT ACCREDITATION BY A      1,479        

NATIONAL ORGANIZATION RECOGNIZED BY THE SUPERINTENDENT AS                       

ACCREDITATION BY THE SUPERINTENDENT.  THE SUPERINTENDENT SHALL     1,480        

NOT ACCREDIT ANY INDEPENDENT REVIEW ORGANIZATION THAT IS OPERATED  1,481        

BY A NATIONAL, STATE, OR LOCAL TRADE ASSOCIATION OF HEALTH         1,482        

BENEFIT PLANS OR HEALTH CARE PROVIDERS.                                         

      (B)  EACH INDEPENDENT REVIEW ORGANIZATION SHALL USE THE      1,484        

SERVICES OF MEDICAL EXPERTS OR CLINICAL PEERS OUTSIDE THE STAFF    1,486        

OF THE INDEPENDENT REVIEW ORGANIZATION TO CONDUCT EXTERNAL         1,487        

REVIEWS.  NEITHER THE HEALTH INSURING CORPORATION NOR THE                       

ENROLLEE SHALL CHOOSE, OR CONTROL THE CHOICE OF, THE CLINICAL      1,488        

PEER PHYSICIAN OR OTHER MEDICAL EXPERTS.                           1,489        

      (C)  THE SUPERINTENDENT SHALL MAINTAIN A RANDOMLY ORGANIZED  1,491        

ROSTER OF EXTERNAL REVIEW ORGANIZATIONS ACCREDITED UNDER THIS      1,492        

SECTION FOR PURPOSES OF SELECTING EXTERNAL REVIEW ORGANIZATIONS    1,493        

TO CONDUCT EXTERNAL REVIEWS.                                       1,494        

      ON RECEIPT OF A REQUEST BY A HEALTH INSURING CORPORATION,    1,496        

THE SUPERINTENDENT MUST RANDOMLY ASSIGN TWO EXTERNAL REVIEW        1,497        

ORGANIZATIONS THAT ARE ACCREDITED UNDER DIVISION (A) OF THIS       1,499        

SECTION AND ARE QUALIFIED UNDER DIVISION (D)(1) OF SECTION         1,500        

                                                          33     


                                                                 
1751.84 OF THE REVISED CODE TO CONDUCT THE REVIEW.  AFTER RECEIPT  1,502        

OF THE NAMES OF THE TWO EXTERNAL REVIEW ORGANIZATIONS, THE HEALTH  1,503        

INSURING CORPORATION SHALL SELECT ONE OF THE ASSIGNED EXTERNAL     1,504        

REVIEW ORGANIZATIONS TO CONDUCT THE EXTERNAL REVIEW.                            

      NO HEALTH INSURING CORPORATION SHALL ENGAGE IN A PATTERN OF  1,506        

EXCLUDING A PARTICULAR REVIEW ORGANIZATION BASED ON PREVIOUS       1,507        

FINDINGS ON BEHALF OF ENROLLEES.  IF THE SUPERINTENDENT MAKES      1,508        

SUCH A FINDING, IT IS AN UNFAIR TRADE PRACTICE.                    1,509        

      Sec. 1753.13.  EVERY INDIVIDUAL OR GROUP HEALTH INSURING     1,511        

CORPORATION POLICY, CONTRACT, OR AGREEMENT THAT PROVIDES BASIC     1,512        

HEALTH CARE SERVICES BUT DOES NOT ALLOW DIRECT ACCESS TO           1,513        

OBSTETRICIANS OR GYNECOLOGISTS SHALL PERMIT A FEMALE ENROLLEE TO   1,514        

OBTAIN COVERED OBSTETRIC AND GYNECOLOGICAL SERVICES FROM A         1,515        

PARTICIPATING OBSTETRICIAN OR GYNECOLOGIST WITHOUT OBTAINING A     1,517        

REFERRAL FROM THE ENROLLEE'S PRIMARY CARE PROVIDER.                1,518        

      NO INDIVIDUAL OR GROUP HEALTH INSURING CORPORATION POLICY,   1,520        

CONTRACT, OR AGREEMENT MAY LIMIT THE NUMBER OF ALLOWABLE VISITS    1,521        

TO A PARTICIPATING OBSTETRICIAN OR GYNECOLOGIST.  A HEALTH         1,522        

INSURING CORPORATION MAY REQUIRE A PARTICIPATING OBSTETRICIAN OR   1,523        

GYNECOLOGIST TO COMPLY WITH THE HEALTH INSURING CORPORATION'S      1,524        

COVERAGE PROTOCOLS AND PROCEDURES, INCLUDING UTILIZATION REVIEW,   1,525        

FOR OBSTETRIC AND GYNECOLOGICAL SERVICES.                          1,526        

      A HEALTH INSURING CORPORATION POLICY, CONTRACT, OR           1,528        

AGREEMENT MAY NOT IMPOSE ADDITIONAL COPAYMENTS FOR DIRECTLY        1,530        

ACCESSED OBSTETRIC AND GYNECOLOGICAL SERVICES, UNLESS THE POLICY,  1,531        

CONTRACT, OR AGREEMENT IMPOSES ADDITIONAL COPAYMENTS FOR DIRECT                 

ACCESS TO ANY PARTICIPATING PROVIDER OTHER THAN A PRIMARY CARE     1,532        

PROVIDER.                                                                       

      Sec. 3923.65.  (A)  AS USED IN THIS SECTION:                 1,534        

      (1)  "EMERGENCY MEDICAL CONDITION" MEANS A MEDICAL           1,536        

CONDITION THAT MANIFESTS ITSELF BY SUCH ACUTE SYMPTOMS OF          1,537        

SUFFICIENT SEVERITY, INCLUDING SEVERE PAIN, THAT A PRUDENT         1,538        

LAYPERSON WITH AVERAGE KNOWLEDGE OF HEALTH AND MEDICINE COULD      1,539        

REASONABLY EXPECT THE ABSENCE OF IMMEDIATE MEDICAL ATTENTION TO    1,540        

                                                          34     


                                                                 
RESULT IN ANY OF THE FOLLOWING:                                    1,541        

      (a)  PLACING THE HEALTH OF THE INDIVIDUAL OR, WITH RESPECT   1,543        

TO A PREGNANT WOMAN, THE HEALTH OF THE WOMAN OR HER UNBORN CHILD,  1,544        

IN SERIOUS JEOPARDY;                                               1,545        

      (b)  SERIOUS IMPAIRMENT TO BODILY FUNCTIONS;                 1,547        

      (c)  SERIOUS DYSFUNCTION OF ANY BODILY ORGAN OR PART.        1,549        

      (2)  "EMERGENCY SERVICES" MEANS THE FOLLOWING:               1,551        

      (a)  A MEDICAL SCREENING EXAMINATION, AS REQUIRED BY         1,553        

FEDERAL LAW, THAT IS WITHIN THE CAPABILITY OF THE EMERGENCY        1,554        

DEPARTMENT OF A HOSPITAL, INCLUDING ANCILLARY SERVICES ROUTINELY   1,556        

AVAILABLE TO THE EMERGENCY DEPARTMENT, TO EVALUATE AN EMERGENCY    1,557        

MEDICAL CONDITION;                                                 1,558        

      (b)  SUCH FURTHER MEDICAL EXAMINATION AND TREATMENT THAT     1,560        

ARE REQUIRED BY FEDERAL LAW TO STABILIZE AN EMERGENCY MEDICAL      1,561        

CONDITION AND ARE WITHIN THE CAPABILITIES OF THE STAFF AND         1,563        

FACILITIES AVAILABLE AT THE HOSPITAL, INCLUDING ANY TRAUMA AND     1,564        

BURN CENTER OF THE HOSPITAL.                                                    

      (B)  EVERY INDIVIDUAL OR GROUP POLICY OF SICKNESS AND        1,566        

ACCIDENT INSURANCE THAT PROVIDES HOSPITAL, SURGICAL, OR MEDICAL    1,567        

EXPENSE COVERAGE SHALL COVER EMERGENCY SERVICES WITHOUT REGARD TO  1,568        

THE DAY OR TIME THE EMERGENCY SERVICES ARE RENDERED OR TO WHETHER  1,569        

THE POLICYHOLDER, THE HOSPITAL'S EMERGENCY DEPARTMENT WHERE THE    1,570        

SERVICES ARE RENDERED, OR AN EMERGENCY PHYSICIAN TREATING THE      1,571        

POLICYHOLDER, OBTAINED PRIOR AUTHORIZATION FOR THE EMERGENCY       1,572        

SERVICES.                                                                       

      (C)  EVERY INDIVIDUAL POLICY OR CERTIFICATE FURNISHED BY AN  1,574        

INSURER IN CONNECTION WITH ANY SICKNESS AND ACCIDENT INSURANCE     1,576        

POLICY SHALL PROVIDE INFORMATION REGARDING THE FOLLOWING:          1,577        

      (1)  THE SCOPE OF COVERAGE FOR EMERGENCY SERVICES;           1,579        

      (2)  THE APPROPRIATE USE OF EMERGENCY SERVICES, INCLUDING    1,581        

THE USE OF THE 9-1-1 SYSTEM AND ANY OTHER TELEPHONE ACCESS         1,582        

SYSTEMS UTILIZED TO ACCESS PREHOSPITAL EMERGENCY SERVICES;         1,583        

      (3)  ANY COPAYMENTS FOR EMERGENCY SERVICES.                  1,585        

      (D)  THIS SECTION DOES NOT APPLY TO ANY INDIVIDUAL OR GROUP  1,587        

                                                          35     


                                                                 
POLICY OF SICKNESS AND ACCIDENT INSURANCE COVERING ONLY ACCIDENT,  1,588        

CREDIT, DENTAL, DISABILITY INCOME, LONG-TERM CARE, HOSPITAL        1,589        

INDEMNITY, MEDICARE SUPPLEMENT, MEDICARE, TRICARE, SPECIFIED       1,590        

DISEASE, OR VISION CARE; COVERAGE UNDER A ONE-TIME LIMITED         1,591        

DURATION POLICY OF NO LONGER THAN SIX MONTHS; COVERAGE ISSUED AS   1,592        

A SUPPLEMENT TO LIABILITY INSURANCE; INSURANCE ARISING OUT OF      1,593        

WORKERS' COMPENSATION OR SIMILAR LAW; AUTOMOBILE MEDICAL PAYMENT   1,594        

INSURANCE; OR INSURANCE UNDER WHICH BENEFITS ARE PAYABLE WITH OR   1,595        

WITHOUT REGARD TO FAULT AND WHICH IS STATUTORILY REQUIRED TO BE    1,596        

CONTAINED IN ANY LIABILITY INSURANCE POLICY OR EQUIVALENT          1,597        

SELF-INSURANCE.                                                                 

      Sec. 5747.01.  Except as otherwise expressly provided or     1,606        

clearly appearing from the context, any term used in this chapter  1,607        

has the same meaning as when used in a comparable context in the   1,608        

Internal Revenue Code, and all other statutes of the United        1,609        

States relating to federal income taxes.                           1,610        

      As used in this chapter:                                     1,612        

      (A)  "Adjusted gross income" or "Ohio adjusted gross         1,614        

income" means adjusted gross income as defined and used in the     1,615        

Internal Revenue Code, adjusted as provided in divisions (A)(1)    1,617        

to (17) of this section:                                                        

      (1)  Add interest or dividends on obligations or securities  1,619        

of any state or of any political subdivision or authority of any   1,620        

state, other than this state and its subdivisions and              1,621        

authorities.                                                                    

      (2)  Add interest or dividends on obligations of any         1,623        

authority, commission, instrumentality, territory, or possession   1,624        

of the United States that are exempt from federal income taxes     1,625        

but not from state income taxes.                                   1,626        

      (3)  Deduct interest or dividends on obligations of the      1,628        

United States and its territories and possessions or of any        1,629        

authority, commission, or instrumentality of the United States to  1,630        

the extent included in federal adjusted gross income but exempt    1,631        

from state income taxes under the laws of the United States.       1,632        

                                                          36     


                                                                 
      (4)  Deduct disability and survivor's benefits to the        1,634        

extent included in federal adjusted gross income.                  1,635        

      (5)  Deduct benefits under Title II of the Social Security   1,637        

Act and tier 1 railroad retirement benefits to the extent          1,638        

included in federal adjusted gross income under section 86 of the  1,639        

Internal Revenue Code.                                             1,640        

      (6)  Add, in the case of a taxpayer who is a beneficiary of  1,642        

a trust that makes an accumulation distribution as defined in      1,643        

section 665 of the Internal Revenue Code, the portion, if any, of  1,644        

such distribution that does not exceed the undistributed net       1,645        

income of the trust for the three taxable years preceding the      1,646        

taxable year in which the distribution is made.  "Undistributed    1,647        

net income of a trust" means the taxable income of the trust       1,648        

increased by (a)(i) the additions to adjusted gross income         1,649        

required under division (A) of this section and (ii) the personal  1,650        

exemptions allowed to the trust pursuant to section 642(b) of the  1,651        

Internal Revenue Code, and decreased by (b)(i) the deductions to   1,652        

adjusted gross income required under division (A) of this          1,653        

section, (ii) the amount of federal income taxes attributable to   1,654        

such income, and (iii) the amount of taxable income that has been  1,655        

included in the adjusted gross income of a beneficiary by reason   1,656        

of a prior accumulation distribution.  Any undistributed net       1,657        

income included in the adjusted gross income of a beneficiary      1,658        

shall reduce the undistributed net income of the trust commencing  1,659        

with the earliest years of the accumulation period.                1,660        

      (7)  Deduct the amount of wages and salaries, if any, not    1,662        

otherwise allowable as a deduction but that would have been        1,663        

allowable as a deduction in computing federal adjusted gross       1,664        

income for the taxable year, had the targeted jobs credit allowed  1,665        

and determined under sections 38, 51, and 52 of the Internal       1,666        

Revenue Code not been in effect.                                   1,667        

      (8)  Deduct any interest or interest equivalent on public    1,669        

obligations and purchase obligations to the extent included in     1,670        

federal adjusted gross income.                                     1,671        

                                                          37     


                                                                 
      (9)  Add any loss or deduct any gain resulting from the      1,673        

sale, exchange, or other disposition of public obligations to the  1,674        

extent included in federal adjusted gross income.                  1,675        

      (10)  Regarding tuition credits purchased under Chapter      1,677        

3334. of the Revised Code:                                         1,678        

      (a)  Deduct the following:                                   1,680        

      (i)  For credits that as of the end of the taxable year      1,683        

have not been refunded pursuant to the termination of a tuition                 

payment contract under section 3334.10 of the Revised Code, the    1,685        

amount of income related to the credits, to the extent included    1,686        

in federal adjusted gross income;                                               

      (ii)  For credits that during the taxable year have been     1,689        

refunded pursuant to the termination of a tuition payment                       

contract under section 3334.10 of the Revised Code, the excess of  1,690        

the total purchase price of the tuition credits refunded over the  1,691        

amount of refund, to the extent the amount of the excess was not   1,692        

deducted in determining federal adjusted gross income;.            1,693        

      (b)  Add the following:                                      1,695        

      (i)  For credits that as of the end of the taxable year      1,698        

have not been refunded pursuant to the termination of a tuition                 

payment contract under section 3334.10 of the Revised Code, the    1,699        

amount of loss related to the credits, to the extent the amount    1,700        

of the loss was deducted in determining federal adjusted gross     1,701        

income;                                                                         

      (ii)  For credits that during the taxable year have been     1,704        

refunded pursuant to the termination of a tuition payment                       

contract under section 3334.10 of the Revised Code, the excess of  1,706        

the amount of refund over the purchase price of each tuition       1,707        

credit refunded, to the extent not included in federal adjusted    1,708        

gross income.                                                                   

      (11)(a)  Deduct, in the case of a self-employed individual   1,710        

as defined in section 401(c)(1) of the Internal Revenue Code and   1,711        

to the extent not otherwise allowable as a deduction OR EXCLUSION  1,712        

in computing federal OR OHIO adjusted gross income for the         1,714        

                                                          38     


                                                                 
taxable year, the amount THE TAXPAYER paid during the taxable      1,716        

year for insurance that constitutes medical care INSURANCE AND     1,717        

QUALIFIED LONG-TERM CARE INSURANCE for the taxpayer, the           1,718        

taxpayer's spouse, and dependents.  No deduction FOR MEDICAL CARE  1,720        

INSURANCE under division (A)(11) of this section shall be allowed  1,721        

EITHER to any taxpayer who is eligible to participate in any       1,722        

subsidized health plan maintained by any employer of the taxpayer  1,723        

or of the TAXPAYER'S spouse of the taxpayer.  No deduction under   1,725        

division (A)(11) of this section shall be allowed to the extent    1,727        

that the sum of such deduction and any related deduction           1,728        

allowable in computing federal adjusted gross income for the       1,729        

taxable year exceeds the taxpayer's earned income, within the      1,730        

meaning of section 401(c) of the Internal Revenue Code, derived    1,731        

by the taxpayer from the trade or business with respect to which   1,732        

the plan providing the medical coverage is established., OR TO     1,735        

ANY TAXPAYER WHO IS ENTITLED TO, OR ON APPLICATION WOULD BE                     

ENTITLED TO, BENEFITS UNDER PART A OF TITLE XVIII OF THE "SOCIAL   1,737        

SECURITY ACT," 49 STAT. 620 (1935), 42 U.S.C. 301, AS AMENDED.     1,738        

FOR THE PURPOSES OF DIVISION (A)(11)(a) OF THIS SECTION,           1,739        

"SUBSIDIZED HEALTH PLAN" MEANS A HEALTH PLAN FOR WHICH THE         1,741        

EMPLOYER PAYS ANY PORTION OF THE PLAN'S COST.  THE DEDUCTION       1,742        

ALLOWED UNDER DIVISION (A)(11)(a) OF THIS SECTION SHALL BE THE     1,745        

NET OF ANY RELATED PREMIUM REFUNDS, RELATED PREMIUM                             

REIMBURSEMENTS, OR RELATED INSURANCE PREMIUM DIVIDENDS RECEIVED    1,748        

DURING THE TAXABLE YEAR.                                           1,749        

      (b)  DEDUCT, TO THE EXTENT NOT OTHERWISE DEDUCTED OR         1,751        

EXCLUDED IN COMPUTING FEDERAL OR OHIO ADJUSTED GROSS INCOME        1,752        

DURING THE TAXABLE YEAR, THE AMOUNT THE TAXPAYER PAID DURING THE   1,753        

TAXABLE YEAR, NOT COMPENSATED FOR BY ANY INSURANCE OR OTHERWISE,   1,754        

FOR MEDICAL CARE OF THE TAXPAYER, THE TAXPAYER'S SPOUSE, AND       1,755        

DEPENDENTS, TO THE EXTENT THE EXPENSES EXCEED SEVEN AND ONE-HALF   1,756        

PER CENT OF THE TAXPAYER'S FEDERAL ADJUSTED GROSS INCOME.          1,757        

      (c)  FOR PURPOSES OF DIVISION (A)(11) OF THIS SECTION,       1,759        

"MEDICAL CARE" HAS THE MEANING GIVEN IN SECTION 213 OF THE         1,761        

                                                          39     


                                                                 
INTERNAL REVENUE CODE, SUBJECT TO THE SPECIAL RULES, LIMITATIONS,  1,762        

AND EXCLUSIONS SET FORTH THEREIN, AND "QUALIFIED LONG-TERM CARE"   1,763        

HAS THE SAME MEANING GIVEN IN SECTION 7702(B)(b) OF THE INTERNAL   1,764        

REVENUE CODE.                                                      1,765        

      (12)(a)  Deduct any amount included in federal adjusted      1,767        

gross income solely because the amount represents a reimbursement  1,768        

or refund of expenses that in a previous ANY year the taxpayer     1,769        

had deducted as an itemized deduction pursuant to section 63 of    1,770        

the Internal Revenue Code and applicable United States department  1,772        

of the treasury regulations.  THE DEDUCTION OTHERWISE ALLOWED      1,773        

UNDER DIVISION (A)(12)(a) OF THIS SECTION SHALL BE REDUCED TO THE  1,775        

EXTENT THE REIMBURSEMENT IS ATTRIBUTABLE TO AN AMOUNT THE          1,776        

TAXPAYER DEDUCTED UNDER THIS SECTION IN ANY TAXABLE YEAR.          1,777        

      (b)  ADD ANY AMOUNT NOT OTHERWISE INCLUDED IN OHIO ADJUSTED  1,779        

GROSS INCOME FOR ANY TAXABLE YEAR TO THE EXTENT THAT THE AMOUNT    1,782        

IS ATTRIBUTABLE TO THE RECOVERY DURING THE TAXABLE YEAR OF ANY     1,784        

AMOUNT DEDUCTED OR EXCLUDED IN COMPUTING FEDERAL OR OHIO ADJUSTED  1,785        

GROSS INCOME IN ANY TAXABLE YEAR.                                               

      (13)  Deduct any portion of the deduction described in       1,787        

section 1341(a)(2) of the Internal Revenue Code, for repaying      1,788        

previously reported income received under a claim of right, that   1,789        

meets both of the following requirements:                          1,790        

      (a)  It is allowable for repayment of an item that was       1,792        

included in the taxpayer's adjusted gross income for a prior       1,793        

taxable year and did not qualify for a credit under division (A)   1,794        

or (B) of section 5747.05 of the Revised Code for that year;       1,795        

      (b)  It does not otherwise reduce the taxpayer's adjusted    1,797        

gross income for the current or any other taxable year.            1,798        

      (14)  Deduct an amount equal to the deposits made to, and    1,800        

net investment earnings of, a medical savings account during the   1,801        

taxable year, in accordance with section 3924.66 of the Revised    1,802        

Code.  The deduction allowed by division (A)(14) of this section   1,803        

does not apply to medical savings account deposits and earnings    1,804        

otherwise deducted or excluded for the current or any other        1,805        

                                                          40     


                                                                 
taxable year from the taxpayer's federal adjusted gross income.    1,806        

      (15)(a)  Add an amount equal to the funds withdrawn from a   1,808        

medical savings account during the taxable year, and the net       1,809        

investment earnings on those funds, when the funds withdrawn were  1,810        

used for any purpose other than to reimburse an account holder     1,811        

for, or to pay, eligible medical expenses, in accordance with      1,812        

section 3924.66 of the Revised Code;                                            

      (b)  Add the amounts distributed from a medical savings      1,814        

account under division (A)(2) of section 3924.68 of the Revised    1,815        

Code during the taxable year.                                      1,816        

      (16)  Add any amount claimed as a credit under section       1,818        

5747.059 of the Revised Code to the extent that such amount        1,819        

satisfies either of the following:                                              

      (a)  The amount was deducted or excluded from the            1,821        

computation of the taxpayer's federal adjusted gross income as     1,822        

required to be reported for the taxpayer's taxable year under the  1,823        

Internal Revenue Code;                                                          

      (b)  The amount resulted in a reduction of the taxpayer's    1,825        

federal adjusted gross income as required to be reported for any   1,826        

of the taxpayer's taxable years under the Internal Revenue Code.   1,827        

      (17)  Deduct the amount contributed by the taxpayer to an    1,829        

individual development account program established by a county     1,830        

department of human services pursuant to sections 329.11 to        1,831        

329.14 of the Revised Code for the purpose of matching funds       1,832        

deposited by program participants.  On request of the tax          1,833        

commissioner, the taxpayer shall provide any information that, in               

the tax commissioner's opinion, is necessary to establish the      1,834        

amount deducted under division (A)(17) of this section.            1,835        

      (B)  "Business income" means income arising from             1,837        

transactions, activities, and sources in the regular course of a   1,838        

trade or business and includes income from tangible and            1,839        

intangible property if the acquisition, rental, management, and    1,840        

disposition of the property constitute integral parts of the       1,841        

regular course of a trade or business operation.                   1,842        

                                                          41     


                                                                 
      (C)  "Nonbusiness income" means all income other than        1,844        

business income and may include, but is not limited to,            1,845        

compensation, rents and royalties from real or tangible personal   1,846        

property, capital gains, interest, dividends and distributions,    1,847        

patent or copyright royalties, or lottery winnings, prizes, and    1,848        

awards.                                                            1,849        

      (D)  "Compensation" means any form of remuneration paid to   1,851        

an employee for personal services.                                 1,852        

      (E)  "Fiduciary" means a guardian, trustee, executor,        1,854        

administrator, receiver, conservator, or any other person acting   1,855        

in any fiduciary capacity for any individual, trust, or estate.    1,856        

      (F)  "Fiscal year" means an accounting period of twelve      1,858        

months ending on the last day of any month other than December.    1,859        

      (G)  "Individual" means any natural person.                  1,861        

      (H)  "Internal Revenue Code" means the "Internal Revenue     1,863        

Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.          1,864        

      (I)  "Resident" means:                                       1,866        

      (1)  An individual who is domiciled in this state, subject   1,868        

to section 5747.24 of the Revised Code;                            1,869        

      (2)  The estate of a decedent who at the time of death was   1,872        

domiciled in this state.  The domicile tests of section 5747.24    1,873        

of the Revised Code and any election under section 5747.25 of the  1,874        

Revised Code are not controlling for purposes of division (I)(2)   1,875        

of this section.                                                                

      (J)  "Nonresident" means an individual or estate that is     1,877        

not a resident.  An individual who is a resident for only part of  1,878        

a taxable year is a nonresident for the remainder of that taxable  1,879        

year.                                                              1,880        

      (K)  "Pass-through entity" has the same meaning as in        1,882        

section 5733.04 of the Revised Code.                               1,883        

      (L)  "Return" means the notifications and reports required   1,885        

to be filed pursuant to this chapter for the purpose of reporting  1,886        

the tax due and includes declarations of estimated tax when so     1,887        

required.                                                          1,888        

                                                          42     


                                                                 
      (M)  "Taxable year" means the calendar year or the           1,890        

taxpayer's fiscal year ending during the calendar year, or         1,891        

fractional part thereof, upon which the adjusted gross income is   1,892        

calculated pursuant to this chapter.                               1,893        

      (N)  "Taxpayer" means any person subject to the tax imposed  1,895        

by section 5747.02 of the Revised Code or any pass-through entity  1,896        

that makes the election under division (D) of section 5747.08 of   1,897        

the Revised Code.                                                               

      (O)  "Dependents" means dependents as defined in the         1,899        

Internal Revenue Code and as claimed in the taxpayer's federal     1,900        

income tax return for the taxable year or which the taxpayer       1,901        

would have been permitted to claim had the taxpayer filed a        1,902        

federal income tax return.                                         1,904        

      (P)  "Principal county of employment" means, in the case of  1,906        

a nonresident, the county within the state in which a taxpayer     1,907        

performs services for an employer or, if those services are        1,908        

performed in more than one county, the county in which the major   1,909        

portion of the services are performed.                             1,910        

      (Q)  As used in sections 5747.50 to 5747.55 of the Revised   1,912        

Code:                                                                           

      (1)  "Subdivision" means any county, municipal corporation,  1,914        

park district, or township.                                        1,915        

      (2)  "Essential local government purposes" includes all      1,917        

functions that any subdivision is required by general law to       1,918        

exercise, including like functions that are exercised under a      1,919        

charter adopted pursuant to the Ohio Constitution.                 1,920        

      (R)  "Overpayment" means any amount already paid that        1,922        

exceeds the figure determined to be the correct amount of the      1,923        

tax.                                                               1,924        

      (S)  "Taxable income" applies to estates only and means      1,926        

taxable income as defined and used in the Internal Revenue Code    1,927        

adjusted as follows:                                               1,928        

      (1)  Add interest or dividends on obligations or securities  1,930        

of any state or of any political subdivision or authority of any   1,931        

                                                          43     


                                                                 
state, other than this state and its subdivisions and              1,932        

authorities;                                                       1,933        

      (2)  Add interest or dividends on obligations of any         1,935        

authority, commission, instrumentality, territory, or possession   1,936        

of the United States that are exempt from federal income taxes     1,937        

but not from state income taxes;                                   1,938        

      (3)  Add the amount of personal exemption allowed to the     1,940        

estate pursuant to section 642(b) of the Internal Revenue Code;    1,941        

      (4)  Deduct interest or dividends on obligations of the      1,943        

United States and its territories and possessions or of any        1,944        

authority, commission, or instrumentality of the United States     1,945        

that are exempt from state taxes under the laws of the United      1,946        

States;                                                            1,947        

      (5)  Deduct the amount of wages and salaries, if any, not    1,949        

otherwise allowable as a deduction but that would have been        1,950        

allowable as a deduction in computing federal taxable income for   1,951        

the taxable year, had the targeted jobs credit allowed under       1,952        

sections 38, 51, and 52 of the Internal Revenue Code not been in   1,953        

effect;                                                            1,954        

      (6)  Deduct any interest or interest equivalent on public    1,956        

obligations and purchase obligations to the extent included in     1,957        

federal taxable income;                                            1,958        

      (7)  Add any loss or deduct any gain resulting from sale,    1,960        

exchange, or other disposition of public obligations to the        1,961        

extent included in federal taxable income;                         1,962        

      (8)  Except in the case of the final return of an estate,    1,964        

add any amount deducted by the taxpayer on both its Ohio estate    1,965        

tax return pursuant to section 5731.14 of the Revised Code, and    1,966        

on its federal income tax return in determining either federal     1,967        

adjusted gross income or federal taxable income;                   1,968        

      (9)(a)  Deduct any amount included in federal taxable        1,970        

income solely because the amount represents a reimbursement or     1,971        

refund of expenses that in a previous year the decedent had        1,972        

deducted as an itemized deduction pursuant to section 63 of the    1,973        

                                                          44     


                                                                 
Internal Revenue Code and applicable treasury regulations;.  THE   1,975        

DEDUCTION OTHERWISE ALLOWED UNDER DIVISION (S)(9)(a) OF THIS       1,977        

SECTION SHALL BE REDUCED TO THE EXTENT THE REIMBURSEMENT IS                     

ATTRIBUTABLE TO AN AMOUNT THE TAXPAYER OR DECEDENT DEDUCTED UNDER  1,978        

THIS SECTION IN ANY TAXABLE YEAR.                                  1,979        

      (b)  ADD ANY AMOUNT NOT OTHERWISE INCLUDED IN OHIO TAXABLE   1,982        

INCOME FOR ANY TAXABLE YEAR TO THE EXTENT THAT THE AMOUNT IS       1,983        

ATTRIBUTABLE TO THE RECOVERY DURING THE TAXABLE YEAR OF ANY        1,984        

AMOUNT DEDUCTED OR EXCLUDED IN COMPUTING FEDERAL OR OHIO TAXABLE   1,985        

INCOME IN ANY TAXABLE YEAR.                                                     

      (10)  Deduct any portion of the deduction described in       1,987        

section 1341(a)(2) of the Internal Revenue Code, for repaying      1,988        

previously reported income received under a claim of right, that   1,989        

meets both of the following requirements:                          1,990        

      (a)  It is allowable for repayment of an item that was       1,992        

included in the taxpayer's taxable income or the decedent's        1,993        

adjusted gross income for a prior taxable year and did not         1,994        

qualify for a credit under division (A) or (B) of section 5747.05  1,995        

of the Revised Code for that year.                                 1,996        

      (b)  It does not otherwise reduce the taxpayer's taxable     1,998        

income or the decedent's adjusted gross income for the current or  1,999        

any other taxable year.                                            2,000        

      (11)  Add any amount claimed as a credit under section       2,002        

5747.059 of the Revised Code to the extent that the amount         2,003        

satisfies either of the following:                                 2,004        

      (a)  The amount was deducted or excluded from the            2,006        

computation of the taxpayer's federal taxable income as required   2,007        

to be reported for the taxpayer's taxable year under the Internal  2,008        

Revenue Code;                                                                   

      (b)  The amount resulted in a reduction in the taxpayer's    2,010        

federal taxable income as required to be reported for any of the   2,011        

taxpayer's taxable years under the Internal Revenue Code.          2,012        

      (T)  "School district income" and "school district income    2,014        

tax" have the same meanings as in section 5748.01 of the Revised   2,015        

                                                          45     


                                                                 
Code.                                                              2,016        

      (U)  As used in divisions (A)(8), (A)(9), (S)(6), and        2,018        

(S)(7) of this section, "public obligations," "purchase            2,019        

obligations," and "interest or interest equivalent" have the same  2,020        

meanings as in section 5709.76 of the Revised Code.                2,021        

      (V)  "Limited liability company" means any limited           2,023        

liability company formed under Chapter 1705. of the Revised Code   2,024        

or under the laws of any other state.                              2,025        

      (W)  "Pass-through entity investor" means any person who,    2,027        

during any portion of a taxable year of a pass-through entity, is  2,028        

a partner, member, shareholder, or investor in that pass-through   2,029        

entity.                                                                         

      (X)  "Banking day" has the same meaning as in section        2,031        

1304.01 of the Revised Code.                                       2,032        

      (Y)  "Month" means a calendar month.                         2,034        

      (Z)  "Quarter" means the first three months, the second      2,036        

three months, the third three months, or the last three months of  2,037        

the taxpayer's taxable year.                                                    

      (AA)  Any term used in this chapter that is not otherwise    2,039        

defined in this section and that is not used in a comparable       2,040        

context in the Internal Revenue Code and other statutes of the     2,041        

United States relating to federal income taxes has the same        2,042        

meaning as in section 5733.40 of the Revised Code.                 2,043        

      Section 2.  That existing sections 1751.11, 1751.19,         2,045        

1751.33, 1751.77, 1751.78, 1751.81, 1751.82, 1751.83, 1751.84,     2,046        

1751.85, 1753.24, and 5747.01 of the Revised Code are hereby       2,047        

repealed.                                                                       

      Section 3.  Section 3923.65 of the Revised Code applies      2,049        

only to policies issued, issued for delivery, or renewed in this   2,050        

state on or after the effective date of this section.              2,051        

      Section 4.  The amendment by this act of section 5747.01 of  2,053        

the Revised Code applies to taxable years beginning on or after    2,054        

January 1, 1999.                                                                

      Section 5.  It is the intent of the General Assembly that    2,056        

                                                          46     


                                                                 
sections 1751.84 and 1751.85 of the Revised Code, as enacted or    2,057        

amendment by this act, provide health insuring corporation         2,058        

enrollees with a means for resolving health care coverage          2,059        

disputes expeditiously and avoid the need for lengthy and                       

expensive litigation.                                              2,060