PRINTER'S NO. 409 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.440 Session of 2025 INTRODUCED BY SCIALABBA, GROVE AND ROWE, JANUARY 31, 2025 REFERRED TO COMMITTEE ON HUMAN SERVICES, JANUARY 31, 2025 AN ACT Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An act to consolidate, editorially revise, and codify the public welfare laws of the Commonwealth," in public assistance, providing for prohibition on medical assistance managed care payment for provider-preventable conditions. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. The act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, is amended by adding a section to read: Section 449.3. Prohibition on Medical Assistance Managed Care Payment for Provider-Preventable Conditions.--(a) A medical assistance managed care organization may not pay for provider-preventable conditions. (b) As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Medical assistance managed care organization" means a Medicaid managed care organization as defined under 42 U.S.C. ยง 1396b(m)(1)(A) (relating to payment to states) that is a party to a Medicaid managed care agreement with the department to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 provide physical or behavioral health services on a capitated basis. "Provider-preventable conditions" shall: (1) Include the term as defined in 42 CFR 447.26 (relating to prohibition on payment for provider-preventable conditions). (2) Mean any conditions occurring in a health care setting that meet the following criteria: (i) is identified in the State plan in line with the fee- for-service program; (ii) has been found by the Commonwealth, based upon a review of medical literature by qualified professionals, to be reasonably preventable through the application of procedures supported by evidence-based guidelines; (iii) has a negative consequence for the patient; (iv) is auditable; and (v) includes, at a minimum, any of the following: (A) a wrong surgical or other invasive procedure performed on a patient; (B) a surgical or other invasive procedure performed on the wrong body part; or (C) a surgical or other invasive procedure performed on the wrong patient. Section 2. This act shall take effect in 60 days. 20250HB0440PN0409 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23