HB75INTRODUCED Page 0 HB75 ZU3MKRW-1 By Representative Clarke RFD: Health First Read: 04-Feb-25 PFD: 06-Jan-25 1 2 3 4 5 6 ZU3MKRW-1 11/26/2024 JC (L)lg 2024-2846 Page 1 PFD: 06-Jan-25 SYNOPSIS: There are no provisions in existing law governing the repair of wheelchairs. This bill would impose a duty on wheelchair dealers to repair wheelchairs in a timely manner, with explicit disciplinary authority given to the Board of Home Medical Equipment for repeated failure to do so. This bill would require Medicaid to cover the cost of a customized wheelchair when medically necessary. This bill would eliminate any requirement for a new prescription or prior authorization for the repair of a wheelchair from Medicaid or private health insurance when the wheelchair is less than seven years old. This bill would also require wheelchair dealers who contract with Medicaid to submit annual reports to the Medicaid Agency concerning wheelchair repairs. A BILL TO BE ENTITLED AN ACT Relating to wheelchairs; to add Section 34-14C-3.1 to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB75 INTRODUCED Page 2 Relating to wheelchairs; to add Section 34-14C-3.1 to the Code of Alabama 1975, and to amend Section 34-14C-6, Code of Alabama 1975, to provide the Board of Home Medical Equipment with authority to discipline licensees who fail to repair wheelchairs in a timely manner; to provide standards for timely repair of wheelchairs; to require Medicaid to cover the cost of customized wheelchairs when medically necessary; to limit the requirement of prior authorization by Medicaid or private health insurance for repair of certain wheelchairs; and to impose a reporting requirement on Medicaid wheelchair contractors. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Section 34-14C-3.1 is added to the Code of Alabama 1975, to read as follows: §34-14C-3.1 (a) For the purposes of this section, the following terms have the following meanings: (1) AUTHORIZED WHEELCHAIR DEALER. A home medical equipment services provider that sells or leases wheelchairs, including customized wheelchairs. (2) CONSUMER. The individual who uses a wheelchair, including a customized wheelchair, in his or her place of residence, regardless of whether the purchase or lease of the wheelchair is funded in whole or in part by the consumer or by private or public health insurance. (3) CUSTOMIZED WHEELCHAIR. A medically necessary manual or motorized wheelchair that is individually configured for the consumer with specialized equipment that requires evaluation, configuration, fitting, adjustment, programming, 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB75 INTRODUCED Page 3 evaluation, configuration, fitting, adjustment, programming, and long-term maintenance and repair services. (4) TIMELY REPAIR. No later than 10 business days after the date of request for repair is received from a consumer, unless any of the following apply: a. The consumer fails to make the wheelchair available for repair. b. Prior authorization required from private or public health insurance is not received. c. Parts necessary for repair of the wheelchair have not been received. (5) WHEELCHAIR. A manual or motorized wheeled device, including a customized wheelchair, that enhances the mobility or positioning of a consumer. (b)(1) An authorized wheelchair dealer who sells or leases a wheelchair, including a customized wheelchair, shall make timely repair of the wheelchair. (2) Upon request, an authorized wheelchair dealer who sells or leases a customized wheelchair shall make timely repair of the wheelchair at the consumer's residence if it is reasonable under the circumstances. (3) An authorized wheelchair dealer shall do all of the following: a. Maintain and advertise an electronic mail address and a phone number so that a consumer may request a repair. b. Respond to a request for wheelchair repair no later than one business day after the date of the request. c. Order parts for a repair no later than three business days after assessing the need for the repair or after 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB75 INTRODUCED Page 4 business days after assessing the need for the repair or after receiving prior authorization from private or publicly funded health insurance. (c)(1) On and after October 1, 2025, the board shall conspicuously post on its website an electronic mail address and phone number to receive complaints regarding timely repair issues. (2) Upon receiving a complaint pursuant to this section, the board may inspect any authorized wheelchair dealer for cause pursuant to Section 34-14C-4. Section 2. Section 34-14C-6, Code of Alabama 1975, is amended to read as follows: "§34-14C-6 (a) The board may deny, suspend, or revoke a license as provided in this section. (b) A license may not be denied, suspended, or revoked except by majority vote of the board and with prior notice and opportunity for hearing in accordance with this chapter and the Alabama Administrative Procedure Act. (c) The board may institute a hearing for denial, suspension, or revocation of a license , or any person may file a written complaint with the board seeking the denial, suspension, or revocation of an application for licensure or license issued by the board or the investigation of any unlicensed person or entity providing home medical equipment services. The complaint shall be in a form prescribed by the board. (d) A copy of the charges, including notice of the time and place of hearing, shall be served by certified mail, 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB75 INTRODUCED Page 5 and place of hearing, shall be served by certified mail, return receipt requested, at least 21 days before the scheduled hearing date to the most recent address of the applicant or licensee on file with the board, or to the last known address of any unlicensed person or entity providing home medical equipment services. If the notice and opportunity for hearing is refused or the return receipt has not been received by the board within 10 days before the scheduled hearing, the applicant, licensee, or unlicensed person or entity may be served by mailing the charges and notice by first class mail, at least seven days before the hearing date, to the most recent address on file with the board, or to the last known address of the unlicensed person or entity providing home medical equipment services. (e) The board may invoke disciplinary action as outlined in subsection (f) whenever it is established to the satisfaction of the board, after a hearing held in accordance with this chapter and the Alabama Administrative Procedure Act, that any person is guilty of any of the following acts: (1) Violation of this chapter or a rule of the board. (2) Making a material misrepresentation in furnishing information to the board. (3) Making a misrepresentation to obtain licensure or to otherwise violate this chapter. (4) Conviction of or entry of a plea of guilty or nolo contendere to any crime that is a felony under the laws of the United States, or any state or territory of the United States, or to any crime that is a misdemeanor, if an essential element of the crime is dishonesty or is directly related to providing 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB75 INTRODUCED Page 6 of the crime is dishonesty or is directly related to providing home medical equipment services. (5) Gross negligence or gross misconduct in providing home medical equipment services. (6) Aiding, assisting, or willingly permitting another person to violate any provision of this chapter or rule of the board. (7) Failing, within 30 days, to provide information in response to a written request of the board. (8) Failing to cooperate with an inspection or with an investigation conducted by the board. (9) Engaging in dishonorable, unethical, or unprofessional conduct of a character likely to deceive, defraud, or harm the public. (10) Denial, revocation, suspension, or restriction of a license in another state or jurisdiction to provide home medical equipment services for a reason other than failure to renew the license. (11) Directly or indirectly giving to or receiving from any person, partnership, corporation, or other legal entity any fee, commission, rebate, or other form of compensation for services not actually or personally rendered. (12) A finding that a licensee on probationary status has violated the terms of the probation. (13) Willfully making or filing false records, reports, or billings in the course of providing home medical equipment services including, but not limited to, false records, reports, or billings filed with state or federal agencies or departments. 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB75 INTRODUCED Page 7 departments. (14) The use of any words, abbreviations, figures, or letters with the intention of indicating practice as a home medical equipment services provider without having first obtained a license from the board. (15) Failure to comply with state or federal laws and regulations concerning home medical equipment services providers. (16) Solicitation of home medical equipment services using false or misleading advertising. (17) Failure to display a license in accordance with this chapter. (18) Failure to report a change of name, address, control, ownership, or administration to the board within 30 days after the date of change. (19) Repeated failure to make timely repair of a wheelchair as provided in Section 34-14C-3.1. (f) When the board finds any person guilty of any of the grounds set forth in subsection (e), the board may enter an order imposing one or more of the following penalties: (l) A letter of reprimand. (2) Imposition of probation for a period of time and subject to such conditions as may be prescribed by the board. (3) Denial of an application for an initial or renewal license. (4) Suspension of a license for a period of time established by the board, with or without automatic reinstatement. (5) Revocation of a license. 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB75 INTRODUCED Page 8 (5) Revocation of a license. (6) Payment of restitution to each consumer negatively affected by the prohibited act. Proof of such restitution shall be a signed and notarized release executed by the consumer or the estate of the consumer. (7) Assessment of the costs of the disciplinary proceedings. (g) Failure to comply with any final order of the board is also cause for suspension or revocation of a license. The board may suspend or revoke any license which has been issued based on false or fraudulent representations. (h) The board may informally resolve any alleged violation of this chapter or rule of the board by stipulation, agreed settlement, or consent order, in lieu of an administrative hearing. (i) Any entity or person found to be providing home medical equipment services without a license as required by this chapter shall be subject to an administrative fine of up to one thousand dollars ($1,000) per day that services were provided without a license. Funds collected pursuant to this chapter shall be allocated to the administration of the program. (j) Any entity or person found to be providing home medical equipment services without a license as required by this chapter may be administratively enjoined by the board from providing services until such time as the entity or person complies with this chapter. (k) In addition to any other disciplinary action authorized by this chapter, the board may levy and collect 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB75 INTRODUCED Page 9 authorized by this chapter, the board may levy and collect administrative fines for violations of this chapter or the rules or standards of the board in an amount of up to one thousand dollars ($1,000) for each violation. (l) Any person or entity violating this chapter, upon conviction, shall be guilty of a Class A misdemeanor, and subject to fine or imprisonment, or both. (m) Any entity or person subject to the penalties prescribed by subsections (i) and (j) may pursue an appeal through the board according to rules promulgatedadopted by the board. (n) Any hearings related to matters before the board shall be conducted in Montgomery County. (o) In addition to any other penalty or disciplinary action authorized by this chapter, the board may seek an injunction against any person or entity found in violation of this chapter. In an action for an injunction, the board may demand and recover a civil penalty of fifty dollars ($50) per day for each violation, reasonable attorney fees, and court costs. No civil penalty shall be awarded to the board if an administrative fine is assessed pursuant to subsection (i). (p) Upon the revocation or suspension of a license, the licensee shall immediately surrender the license to the board, and if the licensee fails to do so, the board may seize the license. (q) Any person aggrieved by an adverse action of the board may appeal the action to the Circuit Court of Montgomery County in accordance with the Alabama Administrative Procedure Act." 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 HB75 INTRODUCED Page 10 Act." Section 3. (a) As used in this section, the following words have the following meanings: (1) AGENCY. The Alabama Medicaid Agency. (2) AUTHORIZED WHEELCHAIR DEALER. As defined in Section 34-14C-3.1, Code of Alabama 1975. (3) COMMISSIONER. The Commissioner of the Alabama Medicaid Agency. (4) CUSTOMIZED WHEELCHAIR. As defined in Section 34-14C-3.1, Code of Alabama 1975, for a Medicaid recipient with a disability who is unable to achieve maximum mobility with a standard wheelchair. (5) TIMELY REPAIR. As defined in Section 34-14C-3.1, Code of Alabama 1975. (6) WHEELCHAIR. As defined in Section 34-14C-3.1, Code of Alabama 1975. (b) A customized wheelchair shall be covered under Medicaid only if it is medically necessary, and a standard wheelchair does not meet the recipient's needs as determined by the agency. (c) The commissioner shall not require a new prescription or prior authorization for the medically necessary repair of a customized wheelchair unless the original prescription or authorization for the customized wheelchair is more than: (i) five years old in the case of a Medicaid recipient who is under 21 years of age; or (ii) seven years old in the case of a Medicaid recipient who is 21 years of age or older. (d) No later than September 30, 2026, and annually 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 HB75 INTRODUCED Page 11 (d) No later than September 30, 2026, and annually thereafter, an authorized wheelchair dealer that contracts with the agency to sell or lease wheelchairs to Medicaid recipients shall submit a report concerning timely repair to the commissioner that includes for each repair request all of the following information: (1) The number of days to initially respond to the request. (2) The number of days to conduct a repair assessment. (3) Whether the repair assessment was made at the recipient's residence, the repair facility, remotely, or another location. (4) If prior authorization to make the repair was necessary, the number of days to receive the agency determination. (5) The number of days from the repair assessment to order a replacement part. (6) The number of days from the repair assessment to complete repair of the wheelchair, including the number of days to receive any replacement part ordered. (7) Whether the repair was completed at the recipient's residence, the repair facility, or another location. (e) The commissioner shall seek any federal approval necessary, including amendment of the state Medicaid plan or application for a waiver, to implement this section. (f) The commissioner shall adopt any rules or forms to implement this section. Section 4. (a) As used in this section, the following words have the following meanings: 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 HB75 INTRODUCED Page 12 words have the following meanings: (1) CUSTOMIZED WHEELCHAIR. As defined in Section 34-14C-3.1, Code of Alabama 1975. (2) HEALTH BENEFIT PLAN. a. Any plan, policy, or contract issued, delivered, or renewed in this state that provides health coverage that includes payment for hospitalization, physician care, treatment, surgery, therapy, drugs, equipment, and any other medical expense, regardless of the following: 1. Whether the plan, policy, or contract is provided by a health care insurer, health maintenance organization established under Chapter 21A of Title 27, Code of Alabama 1975, health care services plan established under Chapter 20 of Title 10A, Code of Alabama 1975, or any other entity that pays for, purchases, or reimburses for health care services. 2. Whether the plan is for a group or an individual. b. The term does not include accident-only, specified disease, individual hospital indemnity, credit, dental-only, Medicare supplement, long-term care, disability income, or other limited benefit health insurance policies, or coverage issued as supplemental to liability insurance, workers' compensation, or automobile medical payment insurance. (b) Every health benefit plan issued, delivered, or renewed on and after January 1, 2026, may not require a new prescription or prior authorization for the medically necessary repair or replacement of a customized wheelchair unless the original prescription is more than five years old. Section 5. This act shall become effective on October 1, 2025. 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336