General Assembly Raised Bill No. 5529 February Session, 2014 LCO No. 2272 *02272_______PH_* Referred to Committee on PUBLIC HEALTH Introduced by: (PH) General Assembly Raised Bill No. 5529 February Session, 2014 LCO No. 2272 *02272_______PH_* Referred to Committee on PUBLIC HEALTH Introduced by: (PH) AN ACT CONCERNING THE DEFINITIONS OF MEDICAL NECESSITY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (a) of section 17b-259b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014): (a) For purposes of the administration of the medical assistance programs by the Department of Social Services, "medically necessary" and "medical necessity" mean those health services required to prevent, identify, diagnose, treat, rehabilitate or ameliorate an individual's medical condition, including mental illness, or its effects, in order to attain or maintain the individual's achievable health and independent functioning provided such services are: (1) Consistent with generally-accepted standards of medical practice that are defined as standards that are based on [(A) credible scientific evidence published in peer-reviewed medical literature that is generally recognized by the relevant medical community, (B)] (A) recommendations of a physician-specialty society, [(C)] (B) the views of physicians practicing in relevant clinical areas, and [(D)] (C) any other relevant factors; (2) clinically appropriate in terms of type, frequency, timing, site, extent and duration and considered effective for the individual's illness, injury or disease; (3) not primarily for the convenience of the individual, the individual's health care provider or other health care providers; (4) not more costly than an alternative service or sequence of services at least as likely to produce equivalent therapeutic or diagnostic results as to the diagnosis or treatment of the individual's illness, injury or disease; and (5) based on an assessment of the individual and his or her medical condition. Sec. 2. Section 38a-482a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014): (a) No insurer, health care center, hospital service corporation, medical service corporation or other entity delivering, issuing for delivery, renewing, continuing or amending any individual health insurance policy providing coverage of the type specified in subdivisions (1), (2), (4), (6), (10), (11) and (12) of section 38a-469 in this state shall deliver or issue for delivery in this state any such policy unless such policy contains a definition of "medically necessary" or "medical necessity" as follows: "Medically necessary" or "medical necessity" means health care services that a physician, exercising prudent clinical judgment, would provide to a patient for the purpose of preventing, evaluating, diagnosing or treating an illness, including mental illness or its effects, injury, disease or its symptoms, and that are: (1) In accordance with generally accepted standards of medical practice; (2) clinically appropriate, in terms of type, frequency, extent, site and duration and considered effective for the patient's illness, injury or disease; [and] (3) not primarily for the convenience of the patient, physician or other health care provider and not more costly than an alternative service or sequence of services at least as likely to produce equivalent therapeutic or diagnostic results as to the diagnosis or treatment of that patient's illness, injury or disease; and (4) based on an assessment of the individual and his or her medical condition. For the purposes of this subsection, "generally accepted standards of medical practice" means standards that are [based on credible scientific evidence published in peer-reviewed medical literature] generally recognized by the relevant medical community or otherwise consistent with the standards set forth in policy issues involving clinical judgment. (b) The provisions of subsection (a) of this section shall not apply to any insurer, health care center, hospital service corporation, medical service corporation or other entity that has entered into any national settlement agreement until the expiration of any such agreement. Sec. 3. Section 38a-513c of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2014): (a) No insurer, health care center, hospital service corporation, medical service corporation or other entity delivering, issuing for delivery, renewing, continuing or amending any group health insurance policy providing coverage of the type specified in subdivisions (1), (2), (4), (6), (10), (11) and (12) of section 38a-469 in this state shall deliver or issue for delivery in this state any such policy unless such policy contains a definition of "medically necessary" or "medical necessity" as follows: "Medically necessary" or "medical necessity" means health care services that a physician, exercising prudent clinical judgment, would provide to a patient for the purpose of preventing, evaluating, diagnosing or treating an illness, including mental illness or its effects, injury, disease or its symptoms, and that are: (1) In accordance with generally accepted standards of medical practice; (2) clinically appropriate, in terms of type, frequency, extent, site and duration and considered effective for the patient's illness, injury or disease; [and] (3) not primarily for the convenience of the patient, physician or other health care provider and not more costly than an alternative service or sequence of services at least as likely to produce equivalent therapeutic or diagnostic results as to the diagnosis or treatment of that patient's illness, injury or disease; and (4) based on an assessment of the individual and his or her medical condition. For the purposes of this subsection, "generally accepted standards of medical practice" means standards that are [based on credible scientific evidence published in peer-reviewed medical literature] generally recognized by the relevant medical community or otherwise consistent with the standards set forth in policy issues involving clinical judgment. (b) The provisions of subsection (a) of this section shall not apply to any insurer, health care center, hospital service corporation, medical service corporation or other entity that has entered into any national settlement agreement until the expiration of any such agreement. This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2014 17b-259b(a) Sec. 2 October 1, 2014 38a-482a Sec. 3 October 1, 2014 38a-513c This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2014 17b-259b(a) Sec. 2 October 1, 2014 38a-482a Sec. 3 October 1, 2014 38a-513c Statement of Purpose: To amend the definitions of medical necessity. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]