LCO No. 3831 1 of 15 General Assembly Raised Bill No. 955 January Session, 2021 LCO No. 3831 Referred to Committee on HUMAN SERVICES Introduced by: (HS) AN ACT CONCERNING OU TDATED DEPARTMENT OF SOCIAL SERVICES STATUTES. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (a) of section 16a-41a of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective July 1, 2 2021): 3 (a) The Commissioner of Social Services shall submit to the joint 4 standing committees of the General Assembly having cognizance of 5 energy planning and activities, appropriations, and human services the 6 following on the implementation of the block grant program authorized 7 under the Low-Income Home Energy Assistance Act of 1981, as 8 amended: 9 (1) Not later than August first, annually, a Connecticut energy 10 assistance program annual plan which establishes guidelines for the use 11 of funds authorized under the Low-Income Home Energy Assistance 12 Act of 1981, as amended, and includes the following: 13 (A) Criteria for determining which households are to receive 14 Raised Bill No. 955 LCO No. 3831 2 of 15 emergency [and weatherization] assistance; 15 (B) A description of systems used to ensure referrals to other energy 16 assistance programs and the taking of simultaneous applications, as 17 required under section 16a-41; 18 (C) A description of outreach efforts; 19 (D) Estimates of the total number of households eligible for assistance 20 under the program and the number of households in which one or more 21 elderly or physically disabled individuals eligible for assistance reside; 22 (E) Design of a basic grant for eligible households that does not 23 discriminate against such households based on the type of energy used 24 for heating; and 25 (F) A payment plan for fuel deliveries beginning November 1, 2018, 26 that ensures a vendor of deliverable fuel who completes deliveries 27 authorized by a community action agency that contracts with the 28 commissioner to administer a fuel assistance program is paid by the 29 community action agency not later than thirty business days after the 30 date the community action agency receives an authorized fuel slip or 31 invoice for payment from the vendor; 32 (2) Not later than January thirtieth, annually, a report covering the 33 preceding months of the program year, including: 34 (A) In each community action agency geographic area [and 35 Department of Social Services region,] the number of fuel assistance 36 applications filed, approved and denied, and the number of emergency 37 assistance requests made, approved and denied; [and the number of 38 households provided weatherization assistance;] 39 (B) In each such area and district, the total amount of fuel [,] and 40 emergency [and weatherization] assistance, itemized by such type of 41 assistance, and total expenditures to date; 42 (C) For each state-wide office of each state agency administering the 43 Raised Bill No. 955 LCO No. 3831 3 of 15 program [,] and each community action agency, [and each Department 44 of Social Services region,] administrative expenses under the program, 45 by line item, and an estimate of outreach expenditures; and 46 (D) A list of community action agencies that failed to make timely 47 payments to vendors of deliverable fuel in the Connecticut energy 48 assistance program and the steps taken by the commissioner to ensure 49 future timely payments by such agencies; and 50 (3) Not later than November first, annually, a report covering the 51 preceding twelve calendar months, including: 52 (A) In each community action agency geographic area [and 53 Department of Social Services region,] (i) seasonal totals for the 54 categories of data submitted under subdivision (1) of this subsection, (ii) 55 the number of households receiving fuel assistance in which elderly or 56 physically disabled individuals reside, and (iii) the average combined 57 benefit level of fuel, emergency and renter assistance; 58 [(B) Types of weatherization assistance provided; 59 (C) Percentage of weatherization assistance provided to tenants;] 60 [(D)] (B) The number of homeowners and tenants whose heat or total 61 energy costs are not included in their rent receiving fuel and emergency 62 assistance under the program by benefit level; 63 [(E)] (C) The number of homeowners and tenants whose heat is 64 included in their rent and who are receiving assistance, by benefit level; 65 and 66 [(F)] (D) The number of households receiving assistance, by energy 67 type and total expenditures for each energy type. 68 Sec. 2. Subsection (c) of section 17a-485d of the general statutes is 69 repealed and the following is substituted in lieu thereof (Effective July 1, 70 2021): 71 Raised Bill No. 955 LCO No. 3831 4 of 15 (c) The Commissioner of Social Services [shall] may take such action 72 [as may be] necessary to amend the Medicaid state plan to provide for 73 coverage of optional adult rehabilitation services supplied by providers 74 of mental health services or substance abuse rehabilitation services for 75 adults with serious and persistent mental illness or who have 76 alcoholism or other substance use disorders, that are certified by the 77 Department of Mental Health and Addiction Services. The 78 Commissioner of Social Services [shall] may adopt regulations, in 79 accordance with the provisions of chapter 54, as the commissioner 80 deems necessary, to implement optional rehabilitation services under 81 the Medicaid program. The commissioner [shall] may implement 82 policies and procedures to administer such services while in the process 83 of adopting such policies or procedures in regulation form, provided 84 [notice of intention to adopt the regulations is printed in the Connecticut 85 Law Journal within forty-five days of implementation, and any] the 86 commissioner posts the policies and procedures on the eRegulations 87 System prior to adopting the policies and procedures. Any such policies 88 or procedures shall be valid until the time final regulations are effective. 89 Sec. 3. Subsection (d) of section 17b-8 of the general statutes is 90 repealed and the following is substituted in lieu thereof (Effective July 1, 91 2021): 92 (d) The commissioner shall include with any waiver application or 93 proposed amendment submitted to the federal government pursuant to 94 this section: (1) Any written comments received pursuant to subsection 95 (c) of this section; and (2) [a complete transcript of the joint standing 96 committee proceedings held pursuant to subsection (a) of this section, 97 including] any additional written comments submitted to the joint 98 standing committees at such proceedings. The joint standing 99 committees shall transmit any such materials to the commissioner for 100 inclusion with any such waiver application or proposed amendment. 101 Sec. 4. Subsection (b) of section 17b-59a of the general statutes is 102 repealed and the following is substituted in lieu thereof (Effective July 1, 103 2021): 104 Raised Bill No. 955 LCO No. 3831 5 of 15 (b) The Commissioner of Social Services, in consultation with the 105 executive director of the Office of Health Strategy, established under 106 section 19a-754a, shall (1) develop, throughout the Departments of 107 Developmental Services, Public Health, Correction, Children and 108 Families, Veterans Affairs and Mental Health and Addiction Services, 109 uniform management information, uniform statistical information, 110 uniform terminology for similar facilities, and uniform electronic health 111 information technology standards, [and uniform regulations for the 112 licensing of human services facilities,] (2) plan for increased 113 participation of the private sector in the delivery of human services, (3) 114 provide direction and coordination to federally funded programs in the 115 human services agencies and recommend uniform system 116 improvements and reallocation of physical resources and designation of 117 a single responsibility across human services agencies lines to facilitate 118 shared services and eliminate duplication. 119 Sec. 5. Section 17b-306a of the general statutes is repealed and the 120 following is substituted in lieu thereof (Effective July 1, 2021): 121 (a) The Commissioner of Social Services, in collaboration with the 122 Commissioners of Public Health and Children and Families, shall 123 establish a child health quality improvement program for the purpose 124 of promoting the implementation of evidence-based strategies by 125 providers participating in the HUSKY Health program to improve the 126 delivery of and access to children's health services. Such strategies shall 127 focus on physical, dental and mental health services and shall include, 128 but need not be limited to: (1) Methods for early identification of 129 children with special health care needs; (2) integration of care 130 coordination and care planning into children's health services; (3) 131 implementation of standardized data collection to measure 132 performance improvement; and (4) implementation of family-centered 133 services in patient care, including, but not limited to, the development 134 of parent-provider partnerships. The Commissioner of Social Services 135 shall seek the participation of public and private entities that are 136 dedicated to improving the delivery of health services, including 137 medical, dental and mental health providers, academic professionals 138 Raised Bill No. 955 LCO No. 3831 6 of 15 with experience in health services research and performance 139 measurement and improvement, and any other entity deemed 140 appropriate by the Commissioner of Social Services, to promote such 141 strategies. The commissioner shall ensure that such strategies reflect 142 new developments and best practices in the field of children's health 143 services. As used in this section, "evidence-based strategies" means 144 policies, procedures and tools that are informed by research and 145 supported by empirical evidence, including, but not limited to, research 146 developed by organizations such as the American Academy of 147 Pediatrics, the American Academy of Family Physicians, the National 148 Association of Pediatric Nurse Practitioners and the Institute of 149 Medicine. 150 (b) Not later than July 1, 2008, and annually thereafter, the 151 Commissioner of Social Services shall report, in accordance with section 152 11-4a, to the joint standing committees of the General Assembly having 153 cognizance of matters relating to human services, public health and 154 appropriations, and to the Council on Medical Assistance Program 155 Oversight on (1) the implementation of any strategies developed 156 pursuant to subsection (a) of this section, and (2) the efficacy of such 157 strategies in improving the delivery of and access to health services for 158 children enrolled in the HUSKY Health program. 159 [(c) The Commissioner of Social Services, in collaboration with the 160 Council on Medical Assistance Program Oversight, shall, subject to 161 available appropriations, prepare, annually, a report concerning health 162 care choices under HUSKY A. Such report shall include, but not be 163 limited to, a comparison of the performance of each managed care 164 organization, the primary care case management program and other 165 member service delivery choices. The commissioner shall provide a 166 copy of each report to all HUSKY A members ] 167 Sec. 6. Subsection (a) of section 17b-349 of the general statutes is 168 repealed and the following is substituted in lieu thereof (Effective July 1, 169 2021): 170 Raised Bill No. 955 LCO No. 3831 7 of 15 (a) The rates paid by the state to community health centers [and 171 freestanding medical clinics] participating in the Medicaid program 172 may be adjusted annually on the basis of the cost reports submitted to 173 the Commissioner of Social Services. [, except that rates effective July 1, 174 1989, shall remain in effect through June 30, 1990.] The Department of 175 Social Services may develop an alternative payment methodology to 176 replace the encounter-based reimbursement system. Such methodology 177 shall be approved by the joint standing committees of the General 178 Assembly having cognizance of matters relating to human services and 179 appropriations and the budgets of state agencies. Until such 180 methodology is implemented, the Department of Social Services shall 181 distribute supplemental funding, within available appropriations, to 182 federally qualified health centers based on cost, volume and quality 183 measures as determined by the Commissioner of Social Services. (1) 184 Beginning with the one-year rate period commencing on October 1, 185 2012, and annually thereafter, the Commissioner of Social Services may 186 add to a community health center's rates, if applicable, a capital cost rate 187 adjustment that is equivalent to the center's actual or projected year-to-188 year increase in total allowable depreciation and interest expenses 189 associated with major capital projects divided by the projected service 190 visit volume. For the purposes of this subsection, "capital costs" means 191 expenditures for land or building purchases, fixed assets, movable 192 equipment, capitalized financing fees and capitalized construction 193 period interest and "major capital projects" means projects with costs 194 exceeding two million dollars. The commissioner may revise such 195 capital cost rate adjustment retroactively based on actual allowable 196 depreciation and interest expenses or actual service visit volume for the 197 rate period. (2) The commissioner shall establish separate capital cost 198 rate adjustments for each Medicaid service provided by a center. (3) The 199 commissioner shall not grant a capital cost rate adjustment to a 200 community health center for any depreciation or interest expenses 201 associated with capital costs that were disapproved by the federal 202 Department of Health and Human Services or another federal or state 203 government agency with capital expenditure approval authority related 204 to health care services. (4) The commissioner may allow actual debt 205 Raised Bill No. 955 LCO No. 3831 8 of 15 service in lieu of allowable depreciation and interest expenses 206 associated with capital items funded with a debt obligation, provided 207 debt service amounts are deemed reasonable in consideration of the 208 interest rate and other loan terms. (5) The commissioner shall 209 implement policies and procedures necessary to carry out the 210 provisions of this subsection while in the process of adopting such 211 policies and procedures in regulation form, provided notice of intent to 212 adopt such regulations is [published in the Connecticut Law Journal not 213 later than twenty days after implementation] posted on the 214 eRegulations System prior to adopting the policies and procedures. 215 Such policies and procedures shall be valid until the time final 216 regulations are effective. 217 Sec. 7. Section 38a-479aa of the general statutes is repealed and the 218 following is substituted in lieu thereof (Effective July 1, 2021): 219 (a) As used in this part and subsection (b) of section 20-138b: 220 (1) "Covered benefits" means health care services to which an enrollee 221 is entitled under the terms of a managed care plan; 222 (2) "Enrollee" means an individual who is eligible to receive health 223 care services through a preferred provider network; 224 (3) "Health care services" means health care related services or 225 products rendered or sold by a provider within the scope of the 226 provider's license or legal authorization, and includes hospital, medical, 227 surgical, dental, vision and pharmaceutical services or products; 228 (4) "Managed care organization" means (A) a managed care 229 organization, as defined in section 38a-478, (B) any other health insurer, 230 or (C) a reinsurer with respect to health insurance; 231 (5) "Managed care plan" has the same meaning as provided in section 232 38a-478; 233 (6) "Person" means an individual, agency, political subdivision, 234 partnership, corporation, limited liability company, association or any 235 Raised Bill No. 955 LCO No. 3831 9 of 15 other entity; 236 (7) "Preferred provider network" means a person that is not a 237 managed care organization, but that pays claims for the delivery of 238 health care services, accepts financial risk for the delivery of health care 239 services and establishes, operates or maintains an arrangement or 240 contract with providers relating to (A) the health care services rendered 241 by the providers, and (B) the amounts to be paid to the providers for 242 such services. "Preferred provider network" does not include (i) a 243 workers' compensation preferred provider organization established 244 pursuant to section 31-279-10 of the regulations of Connecticut state 245 agencies, (ii) an independent practice association or physician hospital 246 organization whose primary function is to contract with insurers and 247 provide services to providers, (iii) a clinical laboratory, licensed 248 pursuant to section 19a-30, whose primary payments for any contracted 249 or referred services are made to other licensed clinical laboratories or for 250 associated pathology services, or (iv) a pharmacy benefits manager 251 responsible for administering pharmacy claims whose primary function 252 is to administer the pharmacy benefit on behalf of a health benefit plan; 253 (8) "Provider" means an individual or entity duly licensed or legally 254 authorized to provide health care services; and 255 (9) "Commissioner" means the Insurance Commissioner. 256 (b) No preferred provider network may enter into or renew a 257 contractual relationship with a managed care organization or conduct 258 business in this state unless the preferred provider network is licensed 259 by the commissioner. Any person seeking to obtain or renew a license 260 shall submit an application to the commissioner, on such form as the 261 commissioner may prescribe, and shall include the filing described in 262 this subsection, except that a person seeking to renew a license may 263 submit only the information necessary to update its previous filing. 264 Such license shall be issued or renewed annually on July first and 265 applications shall be submitted by May first of each year in order to 266 qualify for the license issue or renewal date. The filing required from 267 Raised Bill No. 955 LCO No. 3831 10 of 15 such preferred provider network shall include the following 268 information: (1) The identity of the preferred provider network and any 269 company or organization controlling the operation of the preferred 270 provider network, including the name, business address, contact 271 person, a description of the controlling company or organization and, 272 where applicable, the following: (A) A certificate from the Secretary of 273 the State regarding the preferred provider network's and the controlling 274 company's or organization's good standing to do business in the state; 275 (B) a copy of the preferred provider network's and the controlling 276 company's or organization's financial statement completed in 277 accordance with sections 38a-53 and 38a-54, as applicable, for the end of 278 its most recently concluded fiscal year, along with the name and address 279 of any public accounting firm or internal accountant which prepared or 280 assisted in the preparation of such financial statement; (C) a list of the 281 names, official positions and occupations of members of the preferred 282 provider network's and the controlling company's or organization's 283 board of directors or other policy-making body and of those executive 284 officers who are responsible for the preferred provider network's and 285 controlling company's or organization's activities with respect to the 286 health care services network; (D) a list of the preferred provider 287 network's and the controlling company's or organization's principal 288 owners; (E) in the case of an out-of-state preferred provider network, 289 controlling company or organization, a certificate that such preferred 290 provider network, company or organization is in good standing in its 291 state of organization; (F) in the case of a Connecticut or out-of-state 292 preferred provider network, controlling company or organization, a 293 report of the details of any suspension, sanction or other disciplinary 294 action relating to such preferred provider network, or controlling 295 company or organization in this state or in any other state; and (G) the 296 identity, address and current relationship of any related or predecessor 297 controlling company or organization. For purposes of this 298 subparagraph, "related" means that a substantial number of the board 299 or policy-making body members, executive officers or principal owners 300 of both companies are the same; (2) a general description of the 301 preferred provider network and participation in the preferred provider 302 Raised Bill No. 955 LCO No. 3831 11 of 15 network, including: (A) The geographical service area of and the names 303 of the hospitals included in the preferred provider network; (B) the 304 primary care physicians, the specialty physicians, any other contracting 305 providers and the number and percentage of each group's capacity to 306 accept new patients; (C) a list of all entities on whose behalf the 307 preferred provider network has contracts or agreements to provide 308 health care services; (D) a table listing all major categories of health care 309 services provided by the preferred provider network; (E) an 310 approximate number of total enrollees served in all of the preferred 311 provider network's contracts or agreements; (F) a list of subcontractors 312 of the preferred provider network, not including individual 313 participating providers, that assume financial risk from the preferred 314 provider network and to what extent each subcontractor assumes 315 financial risk; (G) a contingency plan describing how contracted health 316 care services will be provided in the event of insolvency; and (H) any 317 other information requested by the commissioner; and (3) the name and 318 address of the person to whom applications may be made for 319 participation. 320 (c) Any person developing a preferred provider network, or 321 expanding a preferred provider network into a new county, pursuant to 322 this section and subsection (b) of section 20-138b, shall publish a notice, 323 in at least one newspaper having a substantial circulation in the service 324 area in which the preferred provider network operates or will operate, 325 indicating such planned development or expansion. Such notice shall 326 include the medical specialties included in the preferred provider 327 network, the name and address of the person to whom applications may 328 be made for participation and a time frame for making application. The 329 preferred provider network shall provide the applicant with written 330 acknowledgment of receipt of the application. Each complete 331 application shall be considered by the preferred provider network in a 332 timely manner. 333 (d) (1) Each preferred provider network shall file with the 334 commissioner and make available upon request from a provider the 335 general criteria for its selection or termination of providers. Disclosure 336 Raised Bill No. 955 LCO No. 3831 12 of 15 shall not be required of criteria deemed by the preferred provider 337 network to be of a proprietary or competitive nature that would hurt the 338 preferred provider network's ability to compete or to manage health 339 care services. For purposes of this section, criteria is of a proprietary or 340 competitive nature if it has the tendency to cause providers to alter their 341 practice pattern in a manner that would circumvent efforts to contain 342 health care costs and criteria is of a proprietary nature if revealing the 343 criteria would cause the preferred provider network's competitors to 344 obtain valuable business information. 345 (2) If a preferred provider network uses criteria that have not been 346 filed pursuant to subdivision (1) of this subsection to judge the quality 347 and cost-effectiveness of a provider's practice under any specific 348 program within the preferred provider network, the preferred provider 349 network may not reject or terminate the provider participating in that 350 program based upon such criteria until the provider has been informed 351 of the criteria that the provider's practice fails to meet. 352 (e) Each preferred provider network shall permit the Insurance 353 Commissioner to inspect its books and records. 354 (f) Each preferred provider network shall permit the commissioner to 355 examine, under oath, any officer or agent of the preferred provider 356 network or controlling company or organization with respect to the use 357 of the funds of the preferred provider network, company or 358 organization, and compliance with (1) the provisions of this part, and 359 (2) the terms and conditions of its contracts to provide health care 360 services. 361 (g) Each preferred provider network shall file with the commissioner 362 a notice of any material modification of any matter or document 363 furnished pursuant to this part, and shall include such supporting 364 documents as are necessary to explain the modification. 365 (h) Each preferred provider network shall maintain a minimum net 366 worth of either (1) the greater of (A) five hundred thousand dollars, or 367 (B) an amount equal to eight per cent of its annual expenditures as 368 Raised Bill No. 955 LCO No. 3831 13 of 15 reported on its most recent financial statement completed and filed with 369 the commissioner in accordance with sections 38a-53 and 38a-54, as 370 applicable, or (2) another amount determined by the commissioner. 371 (i) Each preferred provider network shall maintain or arrange for a 372 letter of credit, bond, surety, reinsurance, reserve or other financial 373 security acceptable to the commissioner for the exclusive use of paying 374 any outstanding amounts owed participating providers in the event of 375 insolvency or nonpayment except that any remaining security may be 376 used for the purpose of reimbursing managed care organizations in 377 accordance with subsection (b) of section 38a-479bb. Such outstanding 378 amount shall be at least an amount equal to the greater of (1) an amount 379 sufficient to make payments to participating providers for four months 380 determined on the basis of the four months within the past year with the 381 greatest amounts owed by the preferred provider network to 382 participating providers, (2) the actual outstanding amount owed by the 383 preferred provider network to participating providers, or (3) another 384 amount determined by the commissioner. Such amount may be credited 385 against the preferred provider network's minimum net worth 386 requirements set forth in subsection (h) of this section. The 387 commissioner shall review such security amount and calculation on a 388 quarterly basis. 389 (j) Each preferred provider network shall pay the applicable license 390 or renewal fee specified in section 38a-11. The commissioner shall use 391 the amount of such fees solely for the purpose of regulating preferred 392 provider networks. 393 (k) In no event, including, but not limited to, nonpayment by the 394 managed care organization, insolvency of the managed care 395 organization, or breach of contract between the managed care 396 organization and the preferred provider network, shall a preferred 397 provider network bill, charge, collect a deposit from, seek 398 compensation, remuneration or reimbursement from, or have any 399 recourse against an enrollee or an enrollee's designee, other than the 400 managed care organization, for covered benefits provided, except that 401 Raised Bill No. 955 LCO No. 3831 14 of 15 the preferred provider network may collect any copayments, 402 deductibles or other out-of-pocket expenses that the enrollee is required 403 to pay pursuant to the managed care plan. 404 (l) Each contract or agreement between a preferred provider network 405 and a participating provider shall contain a provision that if the 406 preferred provider network fails to pay for health care services as set 407 forth in the contract, the enrollee shall not be liable to the participating 408 provider for any sums owed by the preferred provider network or any 409 sums owed by the managed care organization because of nonpayment 410 by the managed care organization, insolvency of the managed care 411 organization or breach of contract between the managed care 412 organization and the preferred provider network. 413 (m) Each utilization review determination made by or on behalf of a 414 preferred provider network shall be made in accordance with section 415 38a-591d. 416 [(n) The requirements of subsections (h) and (i) of this section shall 417 not apply to a consortium of federally qualified health centers funded 418 by the state, providing services only to recipients of programs 419 administered by the Department of Social Services. The Commissioner 420 of Social Services shall adopt regulations, in accordance with chapter 54, 421 to establish criteria to certify any such federally qualified health center, 422 including, but not limited to, minimum reserve fund requirements.] 423 Sec. 8. Section 17b-608 of the general statutes is repealed and the 424 following is substituted in lieu thereof (Effective July 1, 2021): 425 For the purposes of [sections 17b-609 and 17b-610] section 17b-609, 426 "persons with disabilities" means persons having disabilities which (1) 427 are attributable to a mental or physical impairment or a combination of 428 mental and physical impairments; (2) are likely to continue indefinitely; 429 (3) result in functional limitations in one or more of the following areas 430 of major life activity: Self care, receptive and expressive language, 431 learning, mobility, self-direction, capacity for independent living or 432 economic self-sufficiency; and (4) reflect the person's need for a 433 Raised Bill No. 955 LCO No. 3831 15 of 15 combination and sequence of special, interdisciplinary or generic care, 434 treatment or other services which are of lifelong or extended duration 435 and individually planned and coordinated. 436 Sec. 9. Sections 17b-184, 17b-274a and 17b-610 of the general statutes 437 are repealed. (Effective July 1, 2021) 438 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2021 16a-41a(a) Sec. 2 July 1, 2021 17a-485d(c) Sec. 3 July 1, 2021 17b-8(d) Sec. 4 July 1, 2021 17b-59a(b) Sec. 5 July 1, 2021 17b-306a Sec. 6 July 1, 2021 17b-349(a) Sec. 7 July 1, 2021 38a-479aa Sec. 8 July 1, 2021 17b-608 Sec. 9 July 1, 2021 Repealer section Statement of Purpose: To delete outdated or obsolete provisions of statutes concerning the Department of Social Services. [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.]