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        PRIOR PRINTER'S NO. 4404                      PRINTER'S NO. 4559

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2856 Session of 2004


        INTRODUCED BY MICOZZIE, GODSHALL, BAKER, BARRAR, BROWNE,
           CAPPELLI, CRAHALLA, CURRY, DeWEESE, FAIRCHILD, FLEAGLE,
           HARHAI, LAUGHLIN, McILHINNEY, S. MILLER, SOLOBAY, TRUE,
           WATSON, YUDICHAK, DeLUCA, GEORGE, LEH, MANN, PICKETT,
           GILLESPIE, HARPER, KILLION, STEIL, GINGRICH, ROHRER, BOYD,
           HICKERNELL, WRIGHT, WALKO, BARD, YOUNGBLOOD, SAYLOR,
           E. Z. TAYLOR, STABACK, McCALL AND MACKERETH,
           SEPTEMBER 28, 2004

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           OCTOBER 19, 2004

                                     AN ACT

     1  Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
     2     act to consolidate, editorially revise, and codify the public
     3     welfare laws of the Commonwealth," FURTHER PROVIDING FOR       <--
     4     MEDICAL ASSISTANCE REIMBURSEMENT; including podiatrists to
     5     the health care providers retention program; FURTHER           <--
     6     PROVIDING FOR THE EXPIRATION OF THE HEALTH CARE PROVIDER
     7     RETENTION PROGRAM; and making a related repeal.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Section 1301-A of the act of June 13, 1967         <--
    11  (P.L.31, No.21), known as the Public Welfare Code, added
    12  December 23, 2003 (P.L.237, No.44), is amended to read:
    13  Section 1301-A.  Definitions.
    14     The following words and phrases when used in this article
    15  shall have the meanings given to them in this section unless the
    16  context clearly indicates otherwise:
    17     "Account."  The Health Care Provider Retention Account

     1  established in section 443.7.
     2     "Applicant."  A health care provider who resides in or
     3  practices in this Commonwealth and who applies for an abatement
     4  under section 1304-A[.] or section 1305.1-A.
     5     "Assessment."  The assessment imposed under section 712(d) of
     6  the act of March 20, 2002 (P.L.154, No.13), known as the Medical
     7  Care Availability and Reduction of Error (Mcare) Act.
     8     "Emergency physician."  A physician who is certified by the
     9  American Board of Emergency Medicine and who is either employed
    10  full time by a trauma center or is working under an exclusive
    11  contract with a trauma center.
    12     "Health care provider."  An individual who is all of the
    13  following:
    14         (1)  A physician, licensed podiatrist or certified nurse
    15     midwife.
    16         (2)  A participating health care provider as defined in
    17     section 702 of the act of March 20, 2002 (P.L.154, No.13),
    18     known as the Medical Care Availability and Reduction of Error
    19     (Mcare) Act.
    20     "Mcare Act."  The act of March 20, 2002 (P.L.154, No.13),
    21  known as the Medical Care Availability and Reduction of Error
    22  (Mcare) Act.
    23     "Program."  The Health Care Provider Retention Program
    24  established in section 1302-A.
    25     "Trauma center."  A hospital accredited by the Pennsylvania
    26  Trauma Systems Foundation as a Level I or Level II Trauma
    27  Center.
    28     Section 2.  The act is amended by adding a section to read:
    29  Section 1305.1-A.  Podiatrist Assessment Abatement.
    30     (a)  Application.--A health care provider who is a licensed
    20040H2856B4559                  - 2 -     

     1  podiatrist may apply to the Insurance Department for an
     2  assessment abatement for calendar years 2003 and 2004. The
     3  application must be submitted by February 15, 2005, and be on a
     4  form required by the Insurance Department. In addition to a
     5  completed application, an applicant shall submit all of the
     6  supporting information required under section 1304-A.
     7     (b)  Review.--Upon receipt of a completed application, the
     8  Insurance Department shall review the submitted information. If
     9  the applicant self-certifies as eligible under section 1303-A,
    10  the Insurance Department shall notify the department which shall
    11  grant a partial assessment abatement of 50% of the amount of the
    12  assessment imposed on the applicant in calendar years 2003 and
    13  2004, minus the assessment discount provided to the applicant
    14  under section 712(e)(2) of the Mcare Act for those years.
    15     (c)  Other provisions.--All other provisions of this article
    16  shall apply to abatement provided to licensed podiatrists as set
    17  forth under this section.
    18     Section 3.  Section 712(e)(2) of the act of March 20, 2002
    19  (P.L.154, No.13), known as the Medical Care Availability and
    20  Reduction of Error (Mcare) Act, is repealed insofar as it
    21  relates to licensed podiatrists.
    22     Section 4.  This act shall take effect immediately.
    23     SECTION 1.  SECTION 443.6 OF THE ACT OF JUNE 13, 1967          <--
    24  (P.L.31, NO.21), KNOWN AS THE PUBLIC WELFARE CODE, AMENDED JUNE
    25  16, 1994 (P.L.319, NO.49), IS AMENDED TO READ:
    26     SECTION 443.6.  REIMBURSEMENT FOR CERTAIN MEDICAL ASSISTANCE
    27  ITEMS AND SERVICES.--(A)  IN ORDER TO RECEIVE REIMBURSEMENT FOR
    28  ITEMS OR SERVICES ENUMERATED IN SUBSECTION (B), THE PROVIDER
    29  MUST SECURE AUTHORIZATION PRIOR TO ACTUALLY PROVIDING THE ITEMS
    30  OR SERVICES. THE REQUEST FOR PRIOR AUTHORIZATION MUST JUSTIFY TO
    20040H2856B4559                  - 3 -     

     1  THE REASONABLE SATISFACTION OF THE DEPARTMENT THE NEED FOR AN
     2  ITEM OR SERVICE.
     3     (B)  PAYMENT FOR THE FOLLOWING MEDICAL ASSISTANCE ITEMS AND
     4  SERVICES SHALL BE MADE ONLY AFTER PRIOR AUTHORIZATION HAS BEEN
     5  SECURED:
     6     (1)  PROSTHESES AND ORTHOSES.
     7     (2)  PURCHASE OF APPLIANCES OR EQUIPMENT [IF THE APPLIANCE OR
     8  EQUIPMENT COSTS MORE THAN ONE HUNDRED DOLLARS ($100)] AS THE
     9  DEPARTMENT MAY AUTHORIZE BY PUBLICATION OF NOTICE IN THE
    10  PENNSYLVANIA BULLETIN.
    11     (3)  RENTAL OF MEDICAL APPLIANCES OR EQUIPMENT [FOR A PERIOD
    12  IN EXCESS OF THREE MONTHS] AS THE DEPARTMENT MAY AUTHORIZE BY
    13  PUBLICATION OF NOTICE IN THE PENNSYLVANIA BULLETIN.
    14     (4)  OXYGEN AND RELATED EQUIPMENT IN THE HOME UNLESS A
    15  PHYSICIAN STATES THAT THE PHYSICAL SURROUNDINGS IN THE HOME ARE
    16  SUITABLE FOR THE USE OF OXYGEN AND THAT THE RECIPIENT IS
    17  ADEQUATELY PREPARED AND ABLE TO USE THE EQUIPMENT.
    18     (5)  DENTAL SERVICES AS THE DEPARTMENT MAY [PROVIDE,
    19  INCLUDING BUT NOT NECESSARILY LIMITED TO, DENTAL PROSTHESES AND
    20  APPLIANCES, EXTRACTIONS RELATED TO DENTAL PROSTHESES AND
    21  APPLIANCES, AND OTHER EXTRACTIONS AS MAY BE PROVIDED BY
    22  DEPARTMENT REGULATIONS] AUTHORIZE BY PUBLICATION OF NOTICE IN
    23  THE PENNSYLVANIA BULLETIN.
    24     (6)  ORTHOPEDIC SHOES OR OTHER SUPPORTIVE DEVICES FOR THE
    25  FEET WHEN SUCH SHOES OR DEVICES ARE PRESCRIBED BY A PHYSICIAN
    26  FOR THE PURPOSE OF CORRECTING OR OTHERWISE TREATING
    27  ABNORMALITIES OF THE FEET OR LEGS WHICH CAUSE SERIOUS
    28  DETRIMENTAL MEDICAL EFFECTS.
    29     (7)  OTHER ITEMS OR SERVICES AS THE DEPARTMENT MAY AUTHORIZE
    30  BY PUBLICATION OF NOTICE IN THE PENNSYLVANIA BULLETIN.
    20040H2856B4559                  - 4 -     

     1     (C)  THE PRIOR AUTHORIZATION REQUIREMENTS SET FORTH IN THIS
     2  SECTION SHALL BE APPLICABLE ONLY TO THE EXTENT THAT THE ITEMS
     3  AND SERVICES ENUMERATED IN SUBSECTION (B) ARE PROVIDED UNDER THE
     4  PENNSYLVANIA MEDICAL ASSISTANCE PLAN. THIS SECTION SHALL NOT BE
     5  CONSTRUED AS MANDATING THE PROVISION OF ANY ITEM OR SERVICE
     6  ENUMERATED IN THIS SECTION.
     7     (D)  THE REQUIREMENTS OF THIS SECTION SHALL NOT APPLY IN AN
     8  EMERGENCY SITUATION.
     9     (E)  THE DEPARTMENT SHALL PROMULGATE REGULATIONS TO IMPLEMENT
    10  THIS SECTION AND SHALL ESTABLISH A PROCEDURE FOR PRIOR
    11  AUTHORIZATION. SUCH REGULATIONS MAY ESTABLISH PROCEDURES FOR
    12  ISSUING PRIOR AUTHORIZATION AT WHATEVER ADMINISTRATIVE LEVEL THE
    13  DEPARTMENT THROUGH THE SECRETARY DEEMS APPROPRIATE.
    14  APPROPRIATENESS SHALL BE DETERMINED BY THE SECRETARY AFTER
    15  HEARINGS HAVE BEEN HELD AND PUBLIC INPUT IS RECEIVED.
    16  PROCEDURES ADOPTED IN ACCORDANCE WITH THIS SECTION SHALL PROVIDE
    17  AUTHORIZATION WHEN APPROPRIATE, WITHOUT UNDUE DELAY. WHEN NO
    18  DECISION IS MADE ON A REQUEST TO THE DEPARTMENT FOR COVERED
    19  SERVICES WITHIN TWENTY-ONE DAYS OF THE DATE THAT THE REQUEST IS
    20  RECEIVED BY THE DEPARTMENT, THE AUTHORIZATION SHALL BE DEEMED
    21  APPROVED. THE DEPARTMENT SHALL KEEP A RECORD OF THOSE CASES IN
    22  WHICH NO DECISION IS MADE WITHIN TWENTY-ONE DAYS. THE
    23  REQUIREMENTS OF THIS SECTION SHALL NOT APPLY IN A MEDICAL
    24  EMERGENCY SITUATION AS DEFINED BY THE DEPARTMENT.
    25     (F)  UNDER NO CIRCUMSTANCES SHALL THE DEPARTMENT REIMBURSE A
    26  PROVIDER FOR ANY MEDICAL SERVICES, PROCEDURES OR DRUGS RELATED
    27  TO INFERTILITY THERAPY.
    28     SECTION 2.  SECTIONS 1301-A AND 1302-A OF THE ACT, ADDED
    29  DECEMBER 23, 2003 (P.L.237, NO.44), ARE AMENDED TO READ:
    30  SECTION 1301-A.  DEFINITIONS.
    20040H2856B4559                  - 5 -     

     1     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
     2  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
     3  CONTEXT CLEARLY INDICATES OTHERWISE:
     4     "ACCOUNT."  THE HEALTH CARE PROVIDER RETENTION ACCOUNT
     5  ESTABLISHED IN SECTION 443.7.
     6     "APPLICANT."  A HEALTH CARE PROVIDER WHO RESIDES IN OR
     7  PRACTICES IN THIS COMMONWEALTH AND WHO APPLIES FOR AN ABATEMENT
     8  UNDER SECTION 1304-A[.] OR SECTION 1305.1-A.
     9     "ASSESSMENT."  THE ASSESSMENT IMPOSED UNDER SECTION 712(D) OF
    10  THE ACT OF MARCH 20, 2002 (P.L.154, NO.13), KNOWN AS THE MEDICAL
    11  CARE AVAILABILITY AND REDUCTION OF ERROR (MCARE) ACT.
    12     "EMERGENCY PHYSICIAN."  A PHYSICIAN WHO IS CERTIFIED BY THE
    13  AMERICAN BOARD OF EMERGENCY MEDICINE AND WHO IS EITHER EMPLOYED
    14  FULL TIME BY A TRAUMA CENTER OR IS WORKING UNDER AN EXCLUSIVE
    15  CONTRACT WITH A TRAUMA CENTER.
    16     "HEALTH CARE PROVIDER."  AN INDIVIDUAL WHO IS ALL OF THE
    17  FOLLOWING:
    18         (1)  A PHYSICIAN, LICENSED PODIATRIST OR CERTIFIED NURSE
    19     MIDWIFE.
    20         (2)  A PARTICIPATING HEALTH CARE PROVIDER AS DEFINED IN
    21     SECTION 702 OF THE ACT OF MARCH 20, 2002 (P.L.154, NO.13),
    22     KNOWN AS THE MEDICAL CARE AVAILABILITY AND REDUCTION OF ERROR
    23     (MCARE) ACT.
    24     "MCARE ACT."  THE ACT OF MARCH 20, 2002 (P.L.154, NO.13),
    25  KNOWN AS THE MEDICAL CARE AVAILABILITY AND REDUCTION OF ERROR
    26  (MCARE) ACT.
    27     "PROGRAM."  THE HEALTH CARE PROVIDER RETENTION PROGRAM
    28  ESTABLISHED IN SECTION 1302-A.
    29     "TRAUMA CENTER."  A HOSPITAL ACCREDITED BY THE PENNSYLVANIA
    30  TRAUMA SYSTEMS FOUNDATION AS A LEVEL I OR LEVEL II TRAUMA
    20040H2856B4559                  - 6 -     

     1  CENTER.
     2  SECTION 1302-A.  ABATEMENT PROGRAM.
     3     THERE IS HEREBY ESTABLISHED WITHIN THE INSURANCE DEPARTMENT A
     4  PROGRAM TO BE KNOWN AS THE HEALTH CARE PROVIDER RETENTION
     5  PROGRAM. THE INSURANCE DEPARTMENT, IN CONJUNCTION WITH THE
     6  DEPARTMENT, SHALL ADMINISTER THE PROGRAM. THE PROGRAM SHALL
     7  PROVIDE ASSISTANCE IN THE FORM OF ASSESSMENT ABATEMENTS TO
     8  HEALTH CARE PROVIDERS FOR CALENDAR YEARS 2003 [AND], 2004, 2005
     9  AND 2006.
    10     SECTION 3.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    11  SECTION 1305.1-A.  PODIATRIST ASSESSMENT ABATEMENT.
    12     (A)  APPLICATION.--A HEALTH CARE PROVIDER WHO IS A LICENSED
    13  PODIATRIST MAY APPLY TO THE INSURANCE DEPARTMENT FOR AN
    14  ASSESSMENT ABATEMENT FOR CALENDAR YEARS 2003 AND 2004. THE
    15  APPLICATION MUST BE SUBMITTED BY FEBRUARY 15, 2005, AND BE ON A
    16  FORM REQUIRED BY THE INSURANCE DEPARTMENT. IN ADDITION TO A
    17  COMPLETED APPLICATION, AN APPLICANT SHALL SUBMIT ALL OF THE
    18  SUPPORTING INFORMATION REQUIRED UNDER SECTION 1304-A.
    19     (B)  REVIEW.--UPON RECEIPT OF A COMPLETED APPLICATION, THE
    20  INSURANCE DEPARTMENT SHALL REVIEW THE SUBMITTED INFORMATION. IF
    21  THE APPLICANT SELF-CERTIFIES AS ELIGIBLE UNDER SECTION 1303-A,
    22  THE INSURANCE DEPARTMENT SHALL NOTIFY THE DEPARTMENT WHICH SHALL
    23  GRANT A PARTIAL ASSESSMENT ABATEMENT OF 50% OF THE AMOUNT OF THE
    24  ASSESSMENT IMPOSED ON THE APPLICANT IN CALENDAR YEARS 2003 AND
    25  2004, MINUS THE ASSESSMENT DISCOUNT PROVIDED TO THE APPLICANT
    26  UNDER SECTION 712(E)(2) OF THE MCARE ACT FOR THOSE YEARS.
    27     (C)  OTHER PROVISIONS.--ALL OTHER PROVISIONS OF THIS ARTICLE
    28  SHALL APPLY TO ABATEMENT PROVIDED TO LICENSED PODIATRISTS AS SET
    29  FORTH UNDER THIS SECTION.
    30     SECTION 4.  SECTION 1310-A OF THE ACT, ADDED DECEMBER 23,
    20040H2856B4559                  - 7 -     

     1  2003, (P.L.237, NO.44), IS AMENDED TO READ:
     2  SECTION 1310-A.  EXPIRATION.
     3     THE HEALTH CARE PROVIDER RETENTION PROGRAM ESTABLISHED UNDER
     4  THIS ARTICLE SHALL EXPIRE DECEMBER 31, [2005] 2007.
     5     SECTION 5.  SECTION 712(E)(2) OF THE ACT OF MARCH 20, 2002
     6  (P.L.154, NO.13), KNOWN AS THE MEDICAL CARE AVAILABILITY AND
     7  REDUCTION OF ERROR (MCARE) ACT, IS REPEALED INSOFAR AS IT
     8  RELATES TO LICENSED PODIATRISTS.
     9     SECTION 6.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.














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