As Introduced

130th General Assembly
Regular Session
2013-2014
S. B. No. 49


Senator Patton 

Cosponsors: Senators Seitz, Gardner 



A BILL
To enact sections 3959.18, 3964.01 to 3964.09, and 1
5111.0216 of the Revised Code to establish 2
standards for physician designations by health 3
care insurers.4


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

       Section 1.  That sections 3959.18, 3964.01, 3964.02, 3964.03, 5
3964.04, 3964.05, 3964.06, 3964.07, 3964.08, 3964.09, and 6
5111.0216 of the Revised Code be enacted to read as follows:7

       Sec. 3959.18.  Chapter 3964. of the Revised Code applies to 8
an administrator in the same manner that the chapter applies to a 9
health care insurer, as defined in section 3964.01 of the Revised 10
Code.11

       Sec. 3964.01. As used in this chapter:12

       (A) "Health care insurer" means an entity that offers a 13
policy, contract, or plan for covering the cost of health care 14
services for individuals who are beneficiaries of or enrolled in 15
the policy, contract, or plan, to the extent that the entity and 16
the policy, contract, or plan are subject to the laws of this 17
state. "Health care insurer" includes all of the following:18

       (1) A sickness and accident insurance company authorized to 19
do the business of insurance in this state;20

       (2) A health insuring corporation that holds a certificate of 21
authority issued under Chapter 1751. of the Revised Code;22

       (3) An entity that offers a multiple employer welfare 23
arrangement, as defined in section 1739.01 of the Revised Code;24

       (4) The state, a political subdivision, or any other 25
government entity that offers a public employee health benefit 26
plan.27

       (B) "Medicaid managed care organization" means a managed care 28
organization under contract with the department of job and family 29
services under section 5111.17 of the Revised Code to provide, or 30
arrange for the provision of, health care services to medicaid 31
recipients who are required or permitted to obtain health care 32
services through managed care organizations as part of the care 33
management system established under section 5111.16 of the Revised 34
Code.35

       (C) "Patient charter" means either the patient charter for 36
physician performance measurement, reporting, and tiering 37
programs, which is developed by the consumer-purchaser disclosure 38
project, or a substantially similar document developed by a 39
successor organization.40

       (D) "Physician" means an individual authorized under Chapter 41
4731. of the Revised Code to practice medicine and surgery, 42
osteopathic medicine and surgery, or podiatric medicine and 43
surgery.44

       (E) "Physician designation" means a grade, star, tier, or any 45
other rating used by a health care insurer to characterize or 46
represent the insurer's assessment or measurement of a physician's 47
cost efficiency, quality of care, or clinical performance. 48
"Physician designation" does not include either of the following:49

       (1) Information derived solely from satisfaction surveys or 50
other comments provided by individuals who are beneficiaries of or 51
enrolled in a policy, contract, or plan offered by a health care 52
insurer;53

       (2) Information for a program established by a health care 54
insurer to assist individuals with estimating a physician's 55
routine fees for providing services.56

       Sec. 3964.02.  A health care insurer that operates a system 57
for making physician designations shall operate the system in 58
accordance with either of the following:59

       (A) The criteria identified in the version of the patient 60
charter that is most current at the time the system is being 61
operated;62

       (B) The criteria identified in another version of the patient 63
charter that was in effect at any time during the twelve-month 64
period immediately preceding the time at which the system is being 65
operated.66

       Sec. 3964.03. Annually, in accordance with a schedule 67
established by the superintendent of insurance, a health care 68
insurer that operates a system for making physician designations 69
shall submit to the superintendent a certificate from an 70
independent ratings examiner attesting to the examiner's 71
determination that the insurer has been in compliance with section 72
3964.02 of the Revised Code during the twelve-month period 73
immediately preceding the certificate's submission. The 74
independent ratings examiner that issues the certificate shall be 75
one approved by the superintendent of insurance pursuant to the 76
process established under section 3964.04 of the Revised Code.77

       The health care insurer shall pay all charges assessed by the 78
independent ratings examiners for the issuance of the certificate. 79

       Sec. 3964.04.  The superintendent of insurance shall 80
establish a process for approving independent ratings examiners 81
that may issue the certificates described in section 3964.03 of 82
the Revised Code. In establishing the approval process, the 83
superintendent is subject to both of the following:84

       (A) The superintendent may approve only independent rating 85
examiners that are members of at least one nationally recognized, 86
independent, health care quality standard-setting organization.87

       (B) The superintendent shall approve all entities determined 88
to be eligible by the consumer-purchaser disclosure project or its 89
successor to monitor compliance with the patient charter.90

       Sec. 3964.05. (A)(1) Subject to division (A)(2) of this 91
section, no health care insurer shall fail to comply with section 92
3964.02 or 3964.03 of the Revised Code.93

       (2) Division (A)(1) of this section does not apply to a 94
medicaid managed care organization if the department of job and 95
family services, pursuant to section 5111.0216 of the Revised 96
Code, has extended to the organization the department's operation 97
of a system for making physician designations.98

       (B) In the case of a health care insurer that is regulated by 99
the department of insurance, a series of violations of this 100
section that, taken together, constitutes a pattern or practice of 101
violating this section shall be considered an unfair and deceptive 102
act or practice in the business of insurance under sections 103
3901.19 to 3901.26 of the Revised Code.104

       Sec. 3964.06. Nothing in this chapter shall be construed to 105
deprive any person of any private right of action otherwise 106
available under the law.107

       Sec. 3964.07. If a provision of a contractual arrangement 108
between a physician and a health care insurer that operates a 109
system for making physician designations does either of the 110
following, the provision is unenforceable:111

       (A) Limits a right the physician has pursuant to this chapter 112
or the patient charter under which the health care insurer is 113
operating its system pursuant to section 3964.02 of the Revised 114
Code;115

       (B) Requires the physician or health care insurer to act in a 116
manner that is otherwise contrary to the provisions of this 117
chapter or the applicable patient charter.118

       Sec. 3964.08.  Neither sections 1333.61 to 1333.69 of the 119
Revised Code nor any other provision of the Revised Code 120
pertaining to trade secrets excuses a health care insurer that is 121
operating a system for making physician designations from 122
complying with any disclosures of information that are required by 123
the patient charter under which the health care insurer is 124
operating its system pursuant to section 3964.02 of the Revised 125
Code.126

       Sec. 3964.09.  The superintendent of insurance may adopt 127
rules as the superintendent considers necessary to carry out the 128
purposes of this chapter. The rules shall be adopted in accordance 129
with Chapter 119. of the Revised Code.130

       Sec. 5111.0216. (A) As used in this section:131

       (1) "Patient charter" and "physician" have the same meanings 132
as in section 3964.01 of the Revised Code.133

       (2) "Physician designation" means a grade, star, tier, or any 134
other rating to characterize or represent an assessment or 135
measurement of a physician's cost efficiency, quality of care, or 136
clinical performance. "Physician designation" does not include 137
either of the following:138

       (a) Information derived solely from satisfaction surveys or 139
other comments provided by medicaid recipients;140

       (b) Information established for the medicaid program to 141
assist medicaid recipients with estimating a physician's routine 142
fees for providing services.143

       (B) The department of job and family services may operate a 144
system for making physician designations for purposes of the 145
medicaid program. If such a system is operated, the department 146
shall extend the system to managed care organizations when 147
contracting with the organizations pursuant to section 5111.17 of 148
the Revised Code.149

       (C) In operating a system for making physician designations, 150
the department shall operate the system in accordance with either 151
of the following:152

       (1) The criteria identified in the version of the patient 153
charter that is most current at the time the system is being 154
operated;155

       (2) The criteria identified in another version of the patient 156
charter that was in effect at any time during the twelve-month 157
period immediately preceding the time at which the system is being 158
operated.159

       (D) Compliance with division (C) of this section shall be 160
determined by a nationally recognized, independent, health care 161
quality standard-setting organization that is selected by the 162
department.163

       (E) The department of insurance has no authority over the 164
department of job and family services in the operation of a system 165
for making physician designations.166

       Section 2. (A) As used in this section, "health care insurer" 167
and "physician designation" have the same meanings as in section 168
3964.01 of the Revised Code, as enacted by this act.169

       (B) If, on the effective date of this section, a health care 170
insurer is operating a system for making physician designations 171
and the system has been in operation for at least three months, 172
the first certificate that is required to be submitted under 173
section 3964.03 of the Revised Code, as enacted by this act, is 174
due not later than six months after the effective date of this 175
section. Thereafter, the health care insurer shall annually submit 176
certificates in accordance with the schedule established by the 177
Superintendent of Insurance.178