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                                                       PRINTER'S NO. 533

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 515 Session of 2001


        INTRODUCED BY SCHWARTZ, WAGNER, MUSTO, COSTA, TILGHMAN, BODACK,
           TARTAGLIONE, LAVALLE AND MELLOW, FEBRUARY 15, 2001

        REFERRED TO BANKING AND INSURANCE, FEBRUARY 15, 2001

                                     AN ACT

     1  Providing for insurance coverage for routine patient care costs
     2     when an insured, enrollee or subscriber participates in
     3     approved cancer clinical trials; establishing the
     4     Pennsylvania Cancer Clinical Trial Review Board to adjudicate
     5     disputes involving third-party reimbursement for routine
     6     patient care costs incurred in association with approved
     7     cancer clinical trials; and providing for hearings and
     8     appeals.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11  Section 1.  Short title.
    12     This act shall be known and may be cited as the Cancer
    13  Clinical Trials Act.
    14  Section 2.  Statement of purpose.
    15     It is the policy of the General Assembly and the intent and
    16  purpose of this act that the routine patient care expenses of
    17  approved cancer clinical trials be paid or reimbursed by
    18  insurers and other health care providers to promote the health
    19  and welfare of the people of this Commonwealth. Sound health
    20  care practices such as approved cancer clinical trials which


     1  meet the requirements of this act should be available to all of
     2  the residents of this Commonwealth notwithstanding the practices
     3  and the discretion of insurers and other health care providers.
     4  Scientists believe that higher participation in cancer clinical
     5  trials will lead to faster development of therapies for those in
     6  need. For decades well over 50% of pediatric cancer patients
     7  were enrolled in clinical trials, and today, 75% of cancers in
     8  children are curable. About 600 cancer clinical trials are in
     9  progress, but only 45,000 cancer patients are enrolled. If more
    10  health care providers covered these trials, more people would
    11  participate. Coverage for clinical trials would lead to new
    12  therapies and treatments as well as help cancer patients in this
    13  Commonwealth.
    14  Section 3.  Definitions.
    15     The following words and phrases when used in this act shall
    16  have the meanings given to them in this section unless the
    17  context clearly indicates otherwise:
    18     "Approved cancer clinical trial."  A scientific study of a
    19  new therapy for the treatment of cancer in human beings that
    20  meets the requirements set forth in section 5. An "approved
    21  cancer clinical trial" consists of a scientific plan of
    22  treatment that includes specified goals, a rationale and
    23  background for the plan, criteria for patient selection,
    24  specific directions for administering therapy and monitoring
    25  patients, a definition of quantitative measures for determining
    26  treatment response and methods for documenting and treating
    27  adverse reactions.
    28     "Board."  The Pennsylvania Cancer Clinical Trial Review Board
    29  established in section 6.
    30     "Institutional review board" or "IRB."  A board, committee or
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     1  other group formally designated by an institution and approved
     2  by the National Institutes of Health Office for Protection from
     3  Research Risks to review, approve the initiation of and conduct
     4  periodic review of biomedical research involving human subjects.
     5  The primary purpose of such review is to assure the protection
     6  of the rights and welfare of the human subjects. The term has
     7  the same meaning as the phrase "Institutional Review Committee"
     8  as used in section 520(g) of the Federal Food, Drug, and
     9  Cosmetic Act (52 Stat. 1040, 21 U.S.C. § 301 et seq.).
    10     "Routine patient care costs."  Physician fees, laboratory
    11  expenses and expenses associated with the hospitalization,
    12  administering of treatment and evaluation of the patient during
    13  the course of treatment which are consistent with usual and
    14  customary patterns and standards of care incurred whenever an
    15  enrollee, subscriber or insured receives medical care associated
    16  with an approved cancer clinical trial, and which would be
    17  covered if such items and services were provided other than in
    18  connection with an approved cancer clinical trial.
    19     "Therapeutic intent."  A treatment must be aimed at improving
    20  patient outcome relative to either survival or quality of life.
    21  Section 4.  Mandated coverage.
    22     Any other provision of law to the contrary notwithstanding,
    23  any health, sickness or accident policy, contract or certificate
    24  which is delivered, issued for delivery, renewed, extended or
    25  modified in this Commonwealth shall provide that benefits
    26  applicable under the policy include coverage for routine patient
    27  care costs incurred in association with approved cancer clinical
    28  trials for the treatment of cancer in the same manner any other
    29  sickness, injury, disease or condition is covered under the
    30  policy, contract or certificate if the insured, enrollee or
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     1  subscriber upon informed consent has been referred for such
     2  treatment by two physicians who specialize in oncology and such
     3  approved cancer clinical trials meet the requirements set forth
     4  in section 5. Routine patient care costs for services furnished
     5  by the sponsor of an approved cancer clinical trial without any
     6  charge to any participant in the approved cancer clinical trial
     7  shall not be subject to coverage under this section.
     8  Section 5.  Criteria.
     9     Routine patient care costs for approved cancer clinical
    10  trials for cancer treatment shall be reimbursed when all of the
    11  following requirements are met:
    12         (1)  The treatment is provided with a therapeutic intent
    13     and is being provided pursuant to an approved cancer clinical
    14     trial that has been authorized or approved by one of the
    15     following:
    16             (i)  The National Institutes of Health.
    17             (ii)  The United States Food and Drug Administration.
    18             (iii)  The United States Department of Defense.
    19             (iv)  The United States Department of Veterans
    20         Affairs.
    21         (2)  The proposed therapy has been reviewed and approved
    22     by the applicable qualified institutional review board.
    23         (3)  The available clinical or preclinical data indicate
    24     that the treatment provided pursuant to the approved cancer
    25     clinical trial will be at least as effective as the standard
    26     therapy and is anticipated to constitute an improvement in
    27     the therapeutic effectiveness for the treatment of the
    28     disease in question.
    29  Section 6.  Cancer Clinical Trial Review Board.
    30     (a)  Establishment.--There is hereby established in the
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     1  Department of Health the Pennsylvania Cancer Clinical Trial
     2  Review Board.
     3     (b)  Membership.--The board shall consist of nine members
     4  appointed by the Governor with the advice and consent of the
     5  Senate, as follows:
     6         (1)  One member shall be a physician licensed to practice
     7     medicine and surgery in this Commonwealth who specializes in
     8     oncology and is a member of a community medical oncology
     9     practice and who is not on the staff of a comprehensive or
    10     clinical cancer center designated by the National Cancer
    11     Institute.
    12         (2)  One member shall be a physician licensed to practice
    13     medicine and surgery in this Commonwealth who specializes in
    14     oncology and who is on the staff of a comprehensive or
    15     clinical cancer center designated by the National Cancer
    16     Institute.
    17         (3)  One member shall be a medical ethicist recognized
    18     for his or her expertise in evaluating ethical implications
    19     of health care practices and procedures.
    20         (4)  One member shall be a medical economist recognized
    21     for his or her expertise in evaluating economic implications
    22     of health care practices and procedures.
    23         (5)  One member shall be a physician licensed to practice
    24     medicine and surgery in this Commonwealth who is employed by
    25     or who represents an insurer.
    26         (6)  One member shall be a physician licensed to practice
    27     medicine and surgery in this Commonwealth who is employed by
    28     or represents a nonprofit health care service plan.
    29         (7)  One member shall be a physician licensed to practice
    30     medicine and surgery in this Commonwealth who is employed by
    20010S0515B0533                  - 5 -

     1     or who represents a health maintenance organization.
     2         (8)  One member who is a resident of this Commonwealth
     3     shall be a representative of Commonwealth residents with
     4     health insurance who are consumers of oncology services.
     5         (9)  One member shall be a representative of the
     6     Pennsylvania Cancer Control, Prevention and Research Advisory
     7     Board.
     8     (c)  Chairman.--A chairman will be selected by a majority
     9  vote of the board members.
    10     (d)  Meetings.--The board shall meet no less than four times
    11  annually at the call of the chairman.
    12     (e)  Terms.--Members shall be appointed for four-year terms.
    13  Any vacancy occurring in the membership of the board shall be
    14  filled by a qualified person appointed by the Governor for the
    15  unexpired term of the member.
    16     (f)  Hearings and appeals.--The board has the power and duty
    17  to hold hearings and issue adjudications under 2 Pa.C.S. Ch. 5
    18  Subch. A (relating to practice and procedure of Commonwealth
    19  agencies) of disputes involving third-party reimbursement for
    20  patient care costs incurred in association with cancer clinical
    21  trials, subject to review and appeal in accordance with 2
    22  Pa.C.S. Ch. 7, Subch. A (relating to judicial review of
    23  Commonwealth agency action).
    24     (g)  Compensation and staff.--Members of the board shall
    25  receive no compensation for their services. Each member shall
    26  receive reimbursement for actual traveling expenses and other
    27  necessary expenses. Administrative staffing needs will be
    28  provided by the Department of Health. Any additional staffing
    29  needs that the board has shall be provided by the institution
    30  that provides or seeks to provide the therapeutic treatment that
    20010S0515B0533                  - 6 -

     1  is under review.
     2  Section 7.  Construction of act.
     3     Provisions of the Employee Retirement Income Security Act of
     4  1974 (Public Law 93-406, 88 Stat. 829), referred to as ERISA,
     5  currently prohibit the application of this act to certain types
     6  of health care benefit plans and health care payers. It is the
     7  intent of the General Assembly that this act be given the
     8  broadest possible application and that its scope include
     9  applications permitted by future legislative amendments and
    10  judicial interpretations of ERISA.
    11  Section 8.  Applicability.
    12     This act shall apply to every group or individual policy,
    13  contract or certificate issued under a policy or contract of
    14  health, sickness or accident insurance delivered or issued for
    15  delivery, renewed, extended or modified in this Commonwealth,
    16  including, but not limited to, policies, contracts or
    17  certificates issued by:
    18         (1)  Any stock insurance company as defined in section
    19     202(c)(4) and (11) of the act of May 17, 1921 (P.L.682,
    20     No.284), known as The Insurance Company Law of 1921.
    21         (2)  Any mutual insurance company as defined in section
    22     202(d)(1) of The Insurance Company Law of 1921.
    23         (3)  A health insurance policy or contract issued by a
    24     nonprofit corporation subject to 40 Pa.C.S. Chs. 61 (relating
    25     to hospital plan corporations) or 63 (relating to
    26     professional health services plan corporations).
    27         (4)  A health service plan operating under the act of
    28     December 29, 1972 (P.L.1701, No.364), known as the Health
    29     Maintenance Organization Act.
    30         (5)  An employee welfare benefit plan as defined in
    20010S0515B0533                  - 7 -

     1     section 3 of the Employee Retirement Income Security Act of
     2     1974 (Public Law 93-406, 88 Stat. 829).
     3         (6)  Any fraternal benefit societies as defined in the
     4     act of December 14, 1992 (P.L.835, No.134), known as the
     5     Fraternal Benefit Societies Code.
     6         (7)  Any voluntary nonprofit health services plan as
     7     defined in the Health Maintenance Organization Act.
     8         (8)  Any preferred provider organization as defined in
     9     section 630 of The Insurance Company Law of 1921.
    10         (9)  Any agreement by a self-insured employer or self-
    11     insured multiple employer trust to provide health care
    12     benefits to employees and their dependents.
    13         (10)  Any person who sells or issues contracts or
    14     certificates of insurance which meet the requirements of this
    15     act.
    16  Section 9.  Expiration.
    17     This act shall expire June 30, 2008.
    18  Section 10.  Effective date.
    19     This act shall take effect in 180 days.








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