Bill Text: IA SSB1234 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to Medicaid processes, procedures, and oversight.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-03-05 - Subcommittee: Koelker, Johnson, and Mathis. [SSB1234 Detail]
Download: Iowa-2019-SSB1234-Introduced.html
Senate
Study
Bill
1234
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
CHAPMAN)
A
BILL
FOR
An
Act
relating
to
Medicaid
processes,
procedures,
and
1
oversight.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2752XC
(4)
88
pf/rh
S.F.
_____
DIVISION
I
1
MEDICAID
STREAMLINED
PROCESSES
AND
OVERSIGHT
2
Section
1.
MEDICAID
STREAMLINED
PROCESSES
AND
3
OVERSIGHT.
The
department
of
human
services
shall
provide
4
for
the
streamlining
of
and
consistency
in
Medicaid
program
5
processes
and
procedures
as
follows:
6
1.
That
for
both
fee-for-service
and
managed
care
7
administration,
prior
authorization
requirements
shall
be
8
based
on
those
established
by
the
Iowa
Medicaid
enterprise
9
and
that
resources
shall
be
available
twenty-four
hours
per
10
day,
three
hundred
sixty-five
days
per
year
to
evaluate
prior
11
authorization
requests
and
avoid
delays
in
the
provision
of
12
medically
necessary
care
and
services.
13
2.
That
all
Medicaid
managed
care
organizations
under
14
contract
with
the
state
utilize
uniform
payment
authorization
15
criteria
and
comply
with
contract
provisions
related
to
timely
16
payment.
17
3.
That
all
Medicaid
managed
care
organizations
contracting
18
with
the
state
post
a
complete
and
accurate
roster
of
the
19
managed
care
organization’s
participating
providers
and
update
20
the
roster
in
a
timely
manner
to
ensure
an
accurate
roster
of
21
in-network
providers
to
facilitate
service
and
care
referrals
22
and
appropriate
discharge
of
members.
23
4.
That
all
Medicaid
managed
care
organizations
contracting
24
with
the
state
provide
the
Medicaid
managed
care
organization’s
25
participating
providers
with
the
functionality
to
submit
and
26
track
all
claims,
claim
disputes,
claim
reconsiderations,
and
27
appeals
on
the
Medicaid
managed
care
organization’s
website
to
28
facilitate
participation
in
an
open
and
shared
provider
record.
29
5.
That
all
Medicaid
managed
care
organizations
contracting
30
with
the
state
provide
uniform
benefits
to
eliminate
31
disparities
and
provide
consistent
coverage
to
Medicaid
members
32
across
all
Medicaid
managed
care
organizations.
33
DIVISION
II
34
MEDICAID
CREDENTIALING
PROVISIONS
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_____
Sec.
2.
MEDICAID
PROGRAM
——
USE
OF
UNIFORM
AUTHORIZATION
1
CRITERIA
AND
SINGLE
CREDENTIALING
VERIFICATION
2
ORGANIZATION.
The
department
of
human
services
shall
3
develop
uniform
authorization
criteria
for,
and
shall
4
utilize
a
request
for
proposals
process
to
procure
a
single
5
credentialing
verification
organization
to
be
utilized
by
6
the
state
in
credentialing
and
recredentialing
providers
for
7
both
the
Medicaid
managed
care
and
fee-for-service
payment
and
8
delivery
systems.
The
department
shall
contractually
require
9
all
Medicaid
managed
care
organizations
to
apply
the
uniform
10
authorization
criteria,
to
accept
verified
information
from
the
11
single
credentialing
verification
organization
procured
by
the
12
state,
and
to
approve
or
deny
a
provider’s
credentials
within
13
sixty
days
of
receipt
of
the
request
for
approval,
and
shall
14
contractually
prohibit
Medicaid
managed
care
organizations
15
from
requiring
additional
credentialing
information
from
a
16
provider
in
order
to
participate
in
the
Medicaid
managed
care
17
organization’s
provider
network.
18
DIVISION
III
19
MEDICAID
MANAGED
CARE
APPEALS
——
INTERNAL
AND
EXTERNAL
REVIEW
20
Sec.
3.
MEDICAID
MANAGED
CARE
APPEALS
——
INTERNAL
APPEAL
21
PROCESS
AND
EXTERNAL
REVIEW.
22
1.
A
Medicaid
managed
care
organization
contracting
with
23
the
state
shall
provide
an
internal
appeal
process
for
a
24
Medicaid
provider
who
has
been
denied
a
claim
for
the
provision
25
of
a
service
to
a
Medicaid
member
or
a
claim
for
reimbursement
26
for
a
service
rendered
to
a
Medicaid
member.
All
forms,
27
processes,
and
communications
involved
in
the
internal
appeal
28
process
shall
be
uniform
across
all
Medicaid
managed
care
29
organizations.
The
internal
appeal
process
shall
provide
for
30
all
of
the
following:
31
a.
The
Medicaid
provider’s
written
request
for
an
internal
32
appeal
shall
include
identification
of
the
Medicaid
payment
33
policy
in
support
of
the
provider’s
claim,
each
specific
issue
34
and
dispute
directly
related
to
the
claim,
and
a
statement
of
35
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_____
the
basis
upon
which
the
Medicaid
provider
believes
the
managed
1
care
organization’s
determination
to
be
erroneous.
2
b.
Within
fifteen
days
of
receipt
of
a
written
request
3
from
a
Medicaid
provider
for
an
internal
appeal
of
a
Medicaid
4
managed
care
organization’s
decision,
an
independent
third
5
party
shall
hold
a
hearing
on
the
claim
in
accordance
with
6
Medicaid
program
rules
and
written
policies
and
the
Medicaid
7
state
plan.
The
independent
third
party
shall
render
a
8
decision
within
fifteen
days
of
completion
of
the
hearing.
The
9
department
of
human
services
shall
provide
guidance
to
the
10
Medicaid
provider
and
the
Medicaid
managed
care
organization
11
regarding
any
ambiguity
in
the
rules,
written
policies,
or
12
Medicaid
state
plan
to
facilitate
the
appeal
process.
13
c.
If
the
internal
appeal
process
results
in
a
final
adverse
14
determination
for
the
Medicaid
provider,
the
Medicaid
provider
15
may
request
an
external
independent
third-party
review
as
16
provided
in
this
section.
17
2.
A
Medicaid
managed
care
organization
under
contract
with
18
the
state
shall
include
in
any
written
response
to
a
Medicaid
19
provider
under
contract
with
the
managed
care
organization
that
20
reflects
a
final
adverse
determination
of
the
managed
care
21
organization’s
internal
appeal
process
relative
to
an
appeal
22
filed
by
the
Medicaid
provider,
all
of
the
following:
23
a.
A
statement
that
the
Medicaid
provider’s
internal
24
appeal
rights
within
the
managed
care
organization
have
been
25
exhausted.
26
b.
A
statement
that
the
Medicaid
provider
is
entitled
to
27
an
external
independent
third-party
review
pursuant
to
this
28
section.
29
c.
The
requirements
for
requesting
an
external
independent
30
third-party
review.
31
3.
a.
A
Medicaid
provider
who
has
been
denied
the
provision
32
of
a
service
to
a
Medicaid
member
or
a
claim
for
reimbursement
33
for
a
service
rendered
to
a
Medicaid
member,
and
who
has
34
exhausted
the
internal
appeals
process
of
a
managed
care
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organization,
shall
be
entitled
to
an
external
independent
1
third-party
review
of
the
managed
care
organization’s
final
2
adverse
determination.
3
b.
To
request
an
external
independent
third-party
review
of
4
a
final
adverse
determination
by
a
managed
care
organization,
5
an
aggrieved
Medicaid
provider
shall
submit
a
written
request
6
for
such
review
to
the
managed
care
organization
within
sixty
7
calendar
days
of
receiving
the
final
adverse
determination.
8
c.
A
Medicaid
provider’s
request
for
such
review
shall
9
include
all
of
the
following:
10
(1)
Identification
of
each
specific
issue
and
dispute
11
directly
related
to
the
final
adverse
determination
issued
by
12
the
managed
care
organization.
13
(2)
A
statement
of
the
basis
upon
which
the
Medicaid
14
provider
believes
the
managed
care
organization’s
determination
15
to
be
erroneous.
16
(3)
The
Medicaid
provider’s
designated
contact
information,
17
including
name,
mailing
address,
phone
number,
fax
number,
and
18
email
address.
19
4.
a.
Within
five
business
days
of
receiving
a
Medicaid
20
provider’s
request
for
review
pursuant
to
this
subsection,
the
21
managed
care
organization
shall
do
all
of
the
following:
22
(1)
Confirm
to
the
Medicaid
provider’s
designated
contact,
23
in
writing,
that
the
managed
care
organization
has
received
the
24
request
for
review.
25
(2)
Notify
the
department
of
the
Medicaid
provider’s
26
request
for
review.
27
(3)
Notify
the
affected
Medicaid
member
of
the
Medicaid
28
provider’s
request
for
review,
if
the
review
is
related
to
the
29
denial
of
a
service.
30
b.
If
the
managed
care
organization
fails
to
satisfy
the
31
requirements
of
this
subsection
4,
the
Medicaid
provider
shall
32
automatically
prevail
in
the
review.
33
5.
a.
Within
fifteen
calendar
days
of
receiving
a
Medicaid
34
provider’s
request
for
external
independent
third-party
review,
35
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the
managed
care
organization
shall
do
all
of
the
following:
1
(1)
Submit
to
the
department
all
documentation
submitted
2
by
the
Medicaid
provider
in
the
course
of
the
managed
care
3
organization’s
internal
appeal
process.
4
(2)
Provide
the
managed
care
organization’s
designated
5
contact
information,
including
name,
mailing
address,
phone
6
number,
fax
number,
and
email
address.
7
b.
If
a
managed
care
organization
fails
to
satisfy
the
8
requirements
of
this
subsection
5,
the
Medicaid
provider
shall
9
automatically
prevail
in
the
review.
10
6.
An
external
independent
third-party
review
shall
11
automatically
extend
the
deadline
to
file
an
appeal
for
a
12
contested
case
hearing
under
chapter
17A,
pending
the
outcome
13
of
the
external
independent
third-party
review,
until
thirty
14
calendar
days
following
receipt
of
the
review
decision
by
the
15
Medicaid
provider.
16
7.
Upon
receiving
notification
of
a
request
for
external
17
independent
third-party
review,
the
department
shall
do
all
of
18
the
following:
19
a.
Assign
the
review
to
an
external
independent
third-party
20
reviewer.
21
b.
Notify
the
managed
care
organization
of
the
identity
of
22
the
external
independent
third-party
reviewer.
23
c.
Notify
the
Medicaid
provider’s
designated
contact
of
the
24
identity
of
the
external
independent
third-party
reviewer.
25
8.
The
department
shall
deny
a
request
for
an
external
26
independent
third-party
review
if
the
requesting
Medicaid
27
provider
fails
to
exhaust
the
managed
care
organization’s
28
internal
appeals
process
or
fails
to
submit
a
timely
request
29
for
an
external
independent
third-party
review
pursuant
to
this
30
subsection.
31
9.
a.
Multiple
appeals
through
the
external
independent
32
third-party
review
process
regarding
the
same
Medicaid
33
member,
a
common
question
of
fact,
or
interpretation
of
common
34
applicable
regulations
or
reimbursement
requirements
may
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be
combined
and
determined
in
one
action
upon
request
of
a
1
party
in
accordance
with
rules
and
regulations
adopted
by
the
2
department.
3
b.
The
Medicaid
provider
that
initiated
a
request
for
4
an
external
independent
third-party
review,
or
one
or
more
5
other
Medicaid
providers,
may
add
claims
to
such
an
existing
6
external
independent
third-party
review
following
exhaustion
7
of
any
applicable
managed
care
organization
internal
appeals
8
process,
if
the
claims
involve
a
common
question
of
fact
9
or
interpretation
of
common
applicable
regulations
or
10
reimbursement
requirements.
11
10.
Documentation
reviewed
by
the
external
independent
12
third-party
reviewer
shall
be
limited
to
documentation
13
submitted
pursuant
to
subsection
5.
14
11.
An
external
independent
third-party
reviewer
shall
do
15
all
of
the
following:
16
a.
Conduct
an
external
independent
third-party
review
17
of
any
claim
submitted
to
the
reviewer
pursuant
to
this
18
subsection.
19
b.
Within
forty-five
calendar
days
from
receiving
the
20
request
for
review
from
the
department
and
the
documentation
21
submitted
pursuant
to
subsection
5,
issue
the
reviewer’s
final
22
decision
to
the
Medicaid
provider’s
designated
contact,
the
23
managed
care
organization’s
designated
contact,
the
department,
24
and
the
affected
Medicaid
member
if
the
decision
involves
a
25
denial
of
service.
The
reviewer
may
extend
the
time
to
issue
a
26
final
decision
by
fourteen
calendar
days
upon
agreement
of
all
27
parties
to
the
review.
28
12.
The
department
shall
enter
into
a
contract
with
29
an
independent
review
organization
that
does
not
have
a
30
conflict
of
interest
with
the
department
or
any
managed
care
31
organization
to
conduct
the
independent
third-party
reviews
32
under
this
section.
33
a.
A
party,
including
the
affected
Medicaid
member
or
34
Medicaid
provider,
may
appeal
a
final
decision
of
the
external
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independent
third-party
reviewer
in
a
contested
case
proceeding
1
in
accordance
with
chapter
17A
within
thirty
calendar
days
from
2
receiving
the
final
decision.
A
final
decision
in
a
contested
3
case
proceeding
is
subject
to
judicial
review.
4
b.
The
final
decision
of
any
external
independent
5
third-party
review
conducted
pursuant
to
this
subsection
shall
6
also
direct
the
nonprevailing
party
to
pay
an
amount
equal
to
7
the
costs
of
the
review
to
the
external
independent
third-party
8
reviewer.
Any
payment
ordered
pursuant
to
this
subsection
9
shall
be
stayed
pending
any
appeal
of
the
review.
If
the
10
final
outcome
of
any
appeal
is
to
reverse
the
decision
of
the
11
external
independent
third-party
review,
the
nonprevailing
12
party
shall
pay
the
costs
of
the
review
to
the
external
13
independent
third-party
reviewer
within
forty-five
calendar
14
days
of
entry
of
the
final
order.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
relates
to
Medicaid
processes,
procedures,
and
19
oversight.
20
Division
I
of
the
bill
provides
for
streamlined
processes
21
and
oversight
under
the
Medicaid
program.
The
bill
requires
22
the
department
of
human
services
(DHS)
to
provide
for
the
23
streamlining
of
and
consistency
in
Medicaid
program
processes
24
and
procedures
relating
to
prior
authorization
requirements;
25
utilization
of
uniform
payment
authorization
criteria
and
26
compliance
with
contract
provisions
related
to
timely
payment;
27
the
posting
and
updating
of
a
complete
and
accurate
roster
of
a
28
Medicaid
managed
care
organization’s
participating
providers;
29
the
submission
and
tracking
of
claims,
claims
disputes,
claims
30
reconsiderations,
and
appeals
on
the
Medicaid
managed
care
31
organization’s
website;
and
the
provision
of
uniform
benefits
32
across
all
Medicaid
managed
care
organizations.
33
Division
II
of
the
bill
requires
DHS
to
develop
uniform
34
authorization
criteria
for,
and
to
utilize
a
request
35
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8
S.F.
_____
for
proposals
process
to
procure
a
single
credentialing
1
verification
organization
to
be
utilized
in
credentialing
and
2
recredentialing
providers
for
the
Medicaid
managed
care
and
3
fee-for-service
payment
and
delivery
systems.
The
division
4
requires
DHS
to
contractually
require
all
Medicaid
managed
care
5
organizations
to
apply
the
uniform
authorization
criteria,
6
to
accept
verified
information
from
the
single
credentialing
7
verification
organization
procured
by
the
state,
to
approve
8
or
deny
a
provider’s
application
for
credentialing
within
9
60
days
of
submission
for
approval,
and
to
contractually
10
prohibit
the
Medicaid
managed
care
organizations
from
requiring
11
additional
credentialing
information
from
a
provider
in
order
12
to
participate
in
the
Medicaid
managed
care
organization’s
13
provider
network.
14
Division
III
of
the
bill
establishes
internal
and
external
15
review
processes
for
Medicaid
providers
for
the
review
of
16
initial
and
final
adverse
determinations
of
the
MCOs’
internal
17
appeal
processes.
The
division
provides
that
a
final
decision
18
of
an
external
reviewer
may
be
reviewed
in
a
contested
case
19
proceeding
pursuant
to
Code
chapter
17A,
and
ultimately
is
20
subject
to
judicial
review.
21
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