LRB-4405/1
TJD:emw&cjs
2021 - 2022 LEGISLATURE
March 10, 2022 - Introduced by Representatives S. Rodriguez, Anderson,
Andraca, Sinicki, Haywood, Conley, Hebl, Subeck, Considine and Shelton,
cosponsored by Senators Larson and Johnson. Referred to Committee on
Rules.
AB1185,1,3
1An Act to create 609.045 of the statutes;
relating to: insurance coverage and
2balance billing for certain health care services and granting rule-making
3authority.
Analysis by the Legislative Reference Bureau
This bill requires defined network plans, such as health maintenance
organizations, and certain preferred provider plans and self-insured governmental
plans that cover benefits or services provided in either an emergency department of
a hospital or independent freestanding emergency department to cover emergency
benefits without requiring a prior authorization determination and without regard
to whether or not the health care provider providing the emergency medical services
is a participating provider or facility. If the emergency medical services for which
coverage is required are provided by a nonparticipating provider, the plan must 1)
not impose a prior authorization requirement or other limitation that is more
restrictive than if the service was provided by a participating provider, 2) not impose
cost sharing on the enrollee that is greater than the cost sharing required if the
service was provided by a participating provider, 3) calculate the cost-sharing
amount to be equal to the amount that would have been charged if the service was
provided by a participating provider, 4) provide, within 30 days of the provider's or
facility's bill, an initial payment or denial notice to the provider or facility and then
pay a total amount to the provider or facility that is equal to the amount by which
the provider's or facility's rate exceeds the amount it received in cost sharing from
the enrollee, and 5) count any cost-sharing payment made by the enrollee for the
emergency medical services toward any in-network deductible or out-of-pocket
maximum as if the cost-sharing payment was made for services provided by a
participating provider or facility. The provider or facility may not bill or hold liable
an enrollee of the plan for any amount for the emergency medical service that is more
than the cost-sharing amount that is determined as described in the bill for the
emergency medical service.
For coverage of an item or service that is provided by a nonparticipating
provider in a participating facility, a plan must 1) not impose a cost-sharing
requirement for the item or service that is greater than the cost-sharing
requirement that would have been imposed if the item or service was provided by a
participating provider, 2) calculate the cost-sharing amount to be equal to the
amount that would have been charged if the service was provided by a participating
provider, 3) provide, within 30 days of the provider's bill, an initial payment or denial
notice to the provider and then pay a total amount to the provider that is equal to the
amount by which the provider's rate exceeds the amount it received in cost sharing
from the enrollee, and 4) count any cost-sharing payment made by the enrollee for
the emergency medical services toward any in-network deductible or out-of-pocket
maximum as if the cost-sharing payment was made for services provided by a
participating provider. A nonparticipating provider providing an item or service in
a participating facility may not bill or hold liable an enrollee for more than the
cost-sharing amount unless the provider provides notice and obtains consent as
described in the bill. However, if the nonparticipating provider is providing an
ancillary item or service that is specified in the bill and the commissioner of
insurance has not specifically allowed balance billing for that item or service by rule,
the nonparticipating provider providing the ancillary item or service in a
participating facility may not bill or hold liable an enrollee for more than the
cost-sharing amount.
A provider or facility that is entitled to a payment under the bill for an
emergency medical service or other item or service may initiate open negotiations
with the plan to determine the amount of payment. If the open negotiation period
terminates without determination of the payment amount, the provider, facility, or
plan may initiate the independent dispute resolution process as specified by the
commissioner of insurance. If an enrollee of a plan is a continuing care patient, as
defined in the bill, and is obtaining services from a participating provider or facility
and the contract is terminated or the coverage of benefits is going to be terminated,
the plan must notify an enrollee of the enrollee's right to elect to continue transitional
care, provide the enrollee an opportunity to notify the plan of the need for
transitional care, and allow the enrollee to continue to have the benefits provided
under the plan under the same terms and conditions as would have applied without
the termination until either 90 days after the termination notice date or the date on
which the enrollee is no longer a continuing care patient, whichever is earlier.
This proposal may contain a health insurance mandate requiring a social and
financial impact report under s. 601.423, stats.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1185,1
1Section
1. 609.045 of the statutes is created to read:
AB1185,3,3
2609.045 Balance billing; emergency medical services. (1) Definitions.
3In this section:
AB1185,3,74
(a) “Emergency medical services” means emergency medical services for which
5coverage is required under s. 632.85 (2) and includes emergency medical services
6described under s. 632.85 (2) as if section 1867 of the federal Social Security Act
7applied to an independent freestanding emergency department.
AB1185,3,118
(b) “Preferred provider plan,” notwithstanding s. 609.01 (4), includes only any
9preferred provider plan, as defined under s. 609.01 (4), that has a network of
10participating providers and imposes on enrollees different requirements for using
11providers that are not participating providers.
AB1185,3,1512
(c) “Self-insured governmental plan” means a self-insured health plan of the
13state or a county, city, village, town, or school district that has a network of
14participating providers and imposes on enrollees in the self-insured health plan
15different requirements for using providers that are not participating providers.
AB1185,3,20
16(2) Emergency medical services. A defined network plan, preferred provider
17plan, or self-insured governmental plan that covers any benefits or services provided
18in an emergency department of a hospital or emergency medical services provided
19in an independent freestanding emergency department shall cover emergency
20medical services in accordance with all of the following:
AB1185,3,2121
(a) The plan may not require a prior authorization determination.
AB1185,4,3
1(b) The plan may not deny coverage based on whether or not the health care
2provider providing the services is a participating provider or participating
3emergency facility.
AB1185,4,64
(c) If the emergency medical services are provided to an enrollee by a provider
5or in a facility that is not a participating provider or facility, the plan complies with
6all of the following:
AB1185,4,107
1. The emergency medical services are covered without imposing on an enrollee
8a requirement for prior authorization or any coverage limitation that is more
9restrictive than requirements or limitations that apply to emergency medical
10services provided by participating providers or in participating facilities.
AB1185,4,1411
2. Any cost-sharing requirement imposed on an enrollee for the emergency
12medical service is no greater than the requirements that would apply if the
13emergency medical service were provided by a participating provider or in a
14participating facility.
AB1185,4,1915
3. Any cost-sharing amount imposed on an enrollee for the emergency medical
16service is calculated as if the total amount that would have been charged for the
17emergency medical service if provided by a participating provider or in a
18participating facility is equal to the amount paid to the provider or facility that is not
19a participating provider or facility as determined by the commissioner.
AB1185,4,2020
4. The plan does all of the following:
AB1185,4,2321
a. No later than 30 days after the provider or facility transmits to the plan the
22bill for emergency medical services, sends to the provider or facility an initial
23payment or a notice of denial of payment.
AB1185,5,224
b. Pays to the provider or facility a total amount that, incorporating any initial
25payment under subd. 4. a., is equal to the amount by which the rate for a provider
1or facility that is not a participating provider or facility exceeds the cost-sharing
2amount.
AB1185,5,73
5. The plan counts any cost-sharing payment made by the enrollee for the
4emergency medical services toward any in-network deductible or out-of-pocket
5maximum applied by the plan in the same manner as if the cost-sharing payment
6was made for an emergency medical service provided by a participating provider or
7in a participating facility.
AB1185,5,18
8(3) Provider billing limitation for emergency medical services; ambulance
9services. A provider of emergency medical services or a facility in which emergency
10medical services are provided that is entitled to payment under sub. (2) may not bill
11or hold liable an enrollee for any amount for the emergency medical service that is
12more than the cost-sharing amount determined under sub. (2) (c) 3. for the
13emergency service. A provider of ambulance services that is not a participating
14provider under an enrollee's defined network plan, preferred provider plan, or
15self-insured governmental plan may not bill or hold liable an enrollee for any
16amount of the ambulance service that is more than the cost-sharing amount that the
17enrollee would be charged if the provider of ambulance services was a participating
18provider under the enrollee's plan.
AB1185,5,24
19(4) Nonparticipating provider in participating facility. For items or services
20other than emergency medical services that are provided to an enrollee of a defined
21network plan, preferred provider plan, or self-insured governmental plan by a
22provider who is not a participating provider but who is providing services at a
23participating facility, the plan shall provide coverage for the item or service in
24accordance with all of the following:
AB1185,6,3
1(a) The plan may not impose on an enrollee a cost-sharing requirement for the
2item or service that is greater than the cost-sharing requirement that would have
3been imposed if the item or service was provided by a participating provider.
AB1185,6,74
(b) Any cost-sharing amount imposed on an enrollee for the item or service is
5calculated as if the total amount that would have been charged for the item or service
6if provided by a participating provider is equal to the amount paid to the provider
7that is not a participating provider as determined by the commissioner.
AB1185,6,98
(c) No later than 30 days after the provider transmits the bill for services, the
9plan shall send to the provider an initial payment or a notice of denial of payment.
AB1185,6,1310
(d) The plan shall make a total payment directly to the provider that provided
11the item or service to the enrollee that, added to any initial payment described under
12par. (c), is equal to the amount by which the out-of-network rate for the item or
13service exceeds the cost-sharing amount.
AB1185,6,1714
(e) The plan counts any cost-sharing payment made by the enrollee for the item
15or service toward any in-network deductible or out-of-pocket maximum applied by
16the plan in the same manner as if the cost-sharing payment was made for the item
17or service when provided by a participating provider.
AB1185,6,23
18(5) Charging for services by nonparticipating provider; notice and consent. 19(a) Except as provided in par. (c), a provider of an item or service that is entitled to
20payment under sub. (4) may not bill or hold liable an enrollee for any amount for the
21item or service that is more than the cost-sharing amount determined under sub. (4)
22(b) for the item or service unless the nonparticipating provider provides notice and
23obtains consent in accordance with all of the following:
AB1185,7,3
11. The notice states that the provider is not a participating provider in the
2enrollee's defined network plan, preferred provider plan, or self-insured
3governmental plan.
AB1185,7,74
2. The notice provides a good faith estimate of the amount that the provider
5may charge the enrollee for the item or service involved, including notification that
6the estimate does not constitute a contract with respect to the charges estimated for
7the item or service.
AB1185,7,108
3. The notice includes a list of the participating providers at the facility that
9would be able to provide the item or service and notification that the enrollee may
10be referred to one of those participating providers.
AB1185,7,1311
4. The notice includes information about whether or not prior authorization or
12other care management limitations may be required before receiving an item or
13service at the participating facility.
AB1185,7,1814
5. The enrollee provides consent to the provider to be treated by the
15nonparticipating provider, and the consent acknowledges that the enrollee has been
16informed that the charge paid by the enrollee may not meet a limitation that the
17enrollee's defined network plan, preferred provider plan, or self-insured
18governmental plan places on cost sharing, such as an in-network deductible.
AB1185,7,2019
6. A signed copy of the consent described under subd. 5. is provided to the
20enrollee.
AB1185,7,2221
(b) To be considered adequate, the notice and consent under par. (a) shall meet
22one of the following requirements, as applicable:
AB1185,8,223
1. If the enrollee makes an appointment for the item or service at least 72 hours
24before the day on which the item or service is to be provided, any notice under par.
1(a) shall be provided to the enrollee at least 72 hours before the day of the
2appointment at which the item or service is to be provided.
AB1185,8,53
2. If the enrollee makes an appointment for the item or service less than 72
4hours before the day on which the item or service is to be provided, any notice under
5par. (a) shall be provided to the enrollee on the day that the appointment is made.
AB1185,8,116
(c) A provider of an item or service that is entitled to payment under sub. (4)
7may not bill or hold liable an enrollee for any amount for the ancillary item or service
8that is more than the cost-sharing amount determined under sub. (4) (b) for the item
9or service, unless the commissioner specifies by rule that the provider may balance
10bill for the specified item or service, if the ancillary item or service is any of the
11following:
AB1185,8,1212
1. Related to an emergency medical service.
AB1185,8,1313
2. Anesthesiology.
AB1185,8,1414
3. Pathology.
AB1185,8,1515
4. Radiology.
AB1185,8,1616
5. Neonatology.
AB1185,8,1717
6. A item or service provided by an assistant surgeon, hospitalist, or intensivist.
AB1185,8,1818
7. Diagnostic service, including a radiology or laboratory service.
AB1185,8,2019
8. An item or service provided by a specialty practitioner that the commissioner
20specifies by rule.
AB1185,8,2321
9. An item or service provided by a nonparticipating provider when there is no
22participating provider who can furnish the item or service at the participating
23facility.
AB1185,9,8
24(6) Notice by provider or facility. Beginning no later than January 1, 2022,
25a health care provider or health care facility shall make available, including posting
1on an Internet site, to enrollees in defined network plans, preferred provider plans,
2and self-insured governmental plans notice of the requirements on a provider or
3facility under subs. (3) and (5), of any other applicable state law requirements on the
4provider or facility with respect to charging an enrollee for an item or service if the
5provider or facility does not have a contractual relationship with the plan, and of
6information on contacting appropriate state or federal agencies in the event the
7enrollee believes the provider or facility violates any of the requirements under this
8section or other applicable law.
AB1185,9,25
9(7) Negotiation; dispute resolution. A provider or facility that is entitled to
10receive an initial payment or notice of denial under sub. (2) (c) 4. a. or (4) (c) may
11initiate, within 30 days of receiving the initial payment or notice of denial, open
12negotiations with the defined network plan, preferred provider plan, or self-insured
13governmental plan to determine a payment amount for the emergency medical
14service or other item or service for a period that terminates 30 days after initiating
15open negotiations. If the open negotiation period under this subsection terminates
16without determination of a payment amount, the provider, facility, defined network
17plan, preferred provider plan, or self-insured governmental plan may initiate,
18within the 4 days beginning on the day after the open negotiation period ends, the
19independent dispute resolution process as specified by the commissioner. If the
20independent dispute resolution decision maker determines the payment amount,
21the party to the independent dispute resolution process whose amount was not
22selected shall pay the fees for the independent dispute resolution. If the parties to
23the independent dispute resolution reach a settlement on the payment amount, the
24parties to the independent dispute resolution shall equally divide the payment for
25the fees for the independent dispute resolution.
AB1185,10,1
1(8) Continuity of care. (a) In this subsection:
AB1185,10,22
1. “Continuing care patient” means an individual who is any of the following:
AB1185,10,43
a. Undergoing a course of treatment for a serious and complex condition from
4a provider or facility.
AB1185,10,65
b. Undergoing a course of institutional or inpatient care from a provider or
6facility.
AB1185,10,87
c. Scheduled to undergo nonelective surgery, including receipt of postoperative
8care, from a provider or facility.
AB1185,10,109
d. Pregnant and undergoing a course of treatment for the pregnancy from a
10provider or facility.
AB1185,10,1211
e. Terminally ill and receiving treatment for the illness from a provider or
12facility.
AB1185,10,1313
2. “Serious and complex condition” means any of the following:
AB1185,10,1614
a. In the case of an acute illness, a condition that is serious enough to require
15specialized medical treatment to avoid the reasonable possibility of death or
16permanent harm.
AB1185,10,1917
b. In the case of a chronic illness or condition, a condition that is
18life-threatening, degenerative, potentially disabling, or congenital and requires
19specialized medical care over a prolonged period of time.
AB1185,10,2520
(b) If an enrollee is a continuing care patient and is obtaining items or services
21from a participating provider or facility and the contract between the defined
22network plan, preferred provider plan, or self-insured governmental plan and the
23participating provider or facility is terminated or the coverage of benefits that
24include the items or services provided by the participating provider or facility are
25terminated by the plan, the plan shall do all of the following: