8 | 8 | | 2 |
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9 | 9 | | |
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10 | 10 | | 3 |
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11 | 11 | | LONG TITLE |
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12 | 12 | | 4 |
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13 | 13 | | General Description: |
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14 | 14 | | 5 |
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15 | 15 | | This bill amends provisions related to health care practices. |
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16 | 16 | | 6 |
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17 | 17 | | Highlighted Provisions: |
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18 | 18 | | 7 |
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19 | 19 | | This bill: |
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20 | 20 | | 8 |
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21 | 21 | | ▸ amends provisions regarding the use of credit card payments to health care providers; |
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22 | 22 | | 9 |
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23 | 23 | | ▸ amends provisions related to dental claims practices; and |
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24 | 24 | | 10 |
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25 | 25 | | ▸ allows dentists to dispense medications under certain circumstances. |
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26 | 26 | | 11 |
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27 | 27 | | Money Appropriated in this Bill: |
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28 | 28 | | 12 |
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29 | 29 | | None |
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30 | 30 | | 13 |
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31 | 31 | | Other Special Clauses: |
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32 | 32 | | 14 |
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33 | 33 | | None |
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34 | 34 | | 15 |
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35 | 35 | | Utah Code Sections Affected: |
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36 | 36 | | 16 |
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37 | 37 | | AMENDS: |
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38 | 38 | | 17 |
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39 | 39 | | 31A-26-301.6, as last amended by Laws of Utah 2024, Chapter 120 |
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40 | 40 | | 18 |
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41 | 41 | | 31A-26-301.7, as enacted by Laws of Utah 2021, Chapter 288 |
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42 | 42 | | 19 |
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43 | 43 | | 58-88-201, as last amended by Laws of Utah 2023, Chapter 329 |
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44 | 44 | | 20 |
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45 | 45 | | 58-88-202, as last amended by Laws of Utah 2024, Chapter 210 |
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46 | 46 | | 21 |
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47 | 47 | | |
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48 | 48 | | 22 |
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49 | 49 | | Be it enacted by the Legislature of the state of Utah: |
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50 | 50 | | 23 |
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51 | 51 | | Section 1. Section 31A-26-301.6 is amended to read: |
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52 | 52 | | 24 |
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53 | 53 | | 31A-26-301.6 . Health care claims practices. |
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54 | 54 | | 25 |
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55 | 55 | | (1) As used in this section: |
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56 | 56 | | 26 |
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57 | 57 | | (a) "Health care provider" means a person licensed to provide health care under: |
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58 | 58 | | 27 |
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59 | 59 | | (i) Title 26B, Chapter 2, Part 2, Health Care Facility Licensing and Inspection; or |
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60 | 60 | | 28 |
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66 | 67 | | 31 |
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67 | 68 | | (i) a health maintenance organization; and |
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68 | 69 | | 32 |
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69 | 70 | | (ii) a third party administrator that is subject to this title, provided that nothing in this |
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70 | 71 | | 33 |
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71 | 72 | | section may be construed as requiring a third party administrator to use its own |
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72 | 73 | | 34 |
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73 | 74 | | funds to pay claims that have not been funded by the entity for which the third |
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74 | 75 | | 35 |
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75 | 76 | | party administrator is paying claims. |
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76 | 77 | | 36 |
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77 | 78 | | (c) "Provider" means a health care provider to whom an insurer is obligated to pay |
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78 | 79 | | 37 |
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79 | 80 | | directly in connection with a claim by virtue of: |
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80 | 81 | | 38 |
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81 | 82 | | (i) an agreement between the insurer and the provider; |
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82 | 83 | | 39 |
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83 | 84 | | (ii) an accident and health insurance policy or contract of the insurer; or |
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84 | 85 | | 40 |
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85 | 86 | | (iii) state or federal law. |
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86 | 87 | | 41 |
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87 | 88 | | (2) An insurer shall timely pay every valid insurance claim submitted by a provider in |
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88 | 89 | | 42 |
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89 | 90 | | accordance with this section. |
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90 | 91 | | 43 |
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91 | 92 | | (3)(a) Except as provided in Subsection (4), within 30 days of the day on which the |
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92 | 93 | | 44 |
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93 | 94 | | insurer receives a written claim, an insurer shall: |
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94 | 95 | | 45 |
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95 | 96 | | (i) pay the claim; or |
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96 | 97 | | 46 |
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97 | 98 | | (ii) deny the claim and provide a written explanation for the denial. |
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98 | 99 | | 47 |
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99 | 100 | | (b)(i) Subject to Subsection (3)(b)(ii), the time period described in Subsection (3)(a) |
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100 | 101 | | 48 |
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101 | 102 | | may be extended by 15 days if the insurer: |
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102 | 103 | | 49 |
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103 | 104 | | (A) determines that the extension is necessary due to matters beyond the control |
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104 | 105 | | 50 |
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105 | 106 | | of the insurer; and |
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106 | 107 | | 51 |
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107 | 108 | | (B) before the end of the 30-day period described in Subsection (3)(a), notifies the |
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108 | 109 | | 52 |
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109 | 110 | | provider and insured in writing of: |
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110 | 111 | | 53 |
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111 | 112 | | (I) the circumstances requiring the extension of time; and |
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112 | 113 | | 54 |
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113 | 114 | | (II) the date by which the insurer expects to pay the claim or deny the claim |
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114 | 115 | | 55 |
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115 | 116 | | with a written explanation for the denial. |
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116 | 117 | | 56 |
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117 | 118 | | (ii) If an extension is necessary due to a failure of the provider or insured to submit |
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118 | 119 | | 57 |
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119 | 120 | | the information necessary to decide the claim: |
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120 | 121 | | 58 |
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121 | 122 | | (A) the notice of extension required by this Subsection (3)(b) shall specifically |
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122 | 123 | | 59 |
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123 | 124 | | describe the required information; and |
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124 | 125 | | 60 |
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125 | 126 | | (B) the insurer shall give the provider or insured at least 45 days from the day on |
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126 | 127 | | 61 |
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127 | 128 | | which the provider or insured receives the notice before the insurer denies the |
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128 | 129 | | 62 |
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129 | 130 | | claim for failure to provide the information requested in Subsection |
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135 | 136 | | 65 |
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136 | 137 | | on which the insurer receives a written claim, an insurer shall: |
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137 | 138 | | 66 |
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138 | 139 | | (i) pay the claim; or |
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139 | 140 | | 67 |
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140 | 141 | | (ii) deny the claim and provide a written explanation of the denial. |
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141 | 142 | | 68 |
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142 | 143 | | (b) Subject to Subsections (4)(d) and (e), the time period described in Subsection (4)(a) |
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143 | 144 | | 69 |
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144 | 145 | | may be extended for 30 days if the insurer: |
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145 | 146 | | 70 |
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146 | 147 | | (i) determines that the extension is necessary due to matters beyond the control of the |
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147 | 148 | | 71 |
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148 | 149 | | insurer; and |
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149 | 150 | | 72 |
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150 | 151 | | (ii) before the expiration of the 45-day period described in Subsection (4)(a), notifies |
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151 | 152 | | 73 |
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152 | 153 | | the insured of: |
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153 | 154 | | 74 |
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154 | 155 | | (A) the circumstances requiring the extension of time; and |
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155 | 156 | | 75 |
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156 | 157 | | (B) the date by which the insurer expects to pay the claim or deny the claim with a |
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157 | 158 | | 76 |
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158 | 159 | | written explanation for the denial. |
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159 | 160 | | 77 |
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160 | 161 | | (c) Subject to Subsections (4)(d) and (e), the time period for complying with Subsection |
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161 | 162 | | 78 |
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162 | 163 | | (4)(a) may be extended for up to an additional 30 days from the day on which the |
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163 | 164 | | 79 |
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164 | 165 | | 30-day extension period provided in Subsection (4)(b) ends if before the day on |
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165 | 166 | | 80 |
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166 | 167 | | which the 30-day extension period ends, the insurer: |
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167 | 168 | | 81 |
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168 | 169 | | (i) determines that due to matters beyond the control of the insurer a decision cannot |
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169 | 170 | | 82 |
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170 | 171 | | be rendered within the 30-day extension period; and |
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171 | 172 | | 83 |
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172 | 173 | | (ii) notifies the insured of: |
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173 | 174 | | 84 |
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174 | 175 | | (A) the circumstances requiring the extension; and |
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175 | 176 | | 85 |
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176 | 177 | | (B) the date as of which the insurer expects to pay the claim or deny the claim |
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177 | 178 | | 86 |
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178 | 179 | | with a written explanation for the denial. |
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179 | 180 | | 87 |
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180 | 181 | | (d) A notice of extension under this Subsection (4) shall specifically explain: |
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181 | 182 | | 88 |
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182 | 183 | | (i) the standards on which entitlement to a benefit is based; and |
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183 | 184 | | 89 |
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184 | 185 | | (ii) the unresolved issues that prevent a decision on the claim. |
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185 | 186 | | 90 |
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186 | 187 | | (e) If an extension allowed by Subsection (4)(b) or (c) is necessary due to a failure of the |
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187 | 188 | | 91 |
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188 | 189 | | insured to submit the information necessary to decide the claim: |
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189 | 190 | | 92 |
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190 | 191 | | (i) the notice of extension required by Subsection (4)(b) or (c) shall specifically |
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191 | 192 | | 93 |
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192 | 193 | | describe the necessary information; and |
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193 | 194 | | 94 |
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194 | 195 | | (ii) the insurer shall give the insured at least 45 days from the day on which the |
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195 | 196 | | 95 |
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196 | 197 | | insured receives the notice before the insurer denies the claim for failure to |
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197 | 198 | | 96 |
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198 | 199 | | provide the information requested in Subsection (4)(b) or (c). |
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204 | 205 | | 99 |
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205 | 206 | | the period for making the benefit determination shall be tolled from the date on which |
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206 | 207 | | 100 |
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207 | 208 | | the notification of the extension is sent to the insured or provider until the date on which |
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208 | 209 | | 101 |
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209 | 210 | | the insured or provider responds to the request for additional information. |
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210 | 211 | | 102 |
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211 | 212 | | (6) An insurer shall pay all sums to the provider or insured that the insurer is obligated to |
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212 | 213 | | 103 |
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213 | 214 | | pay on the claim, and provide a written explanation of the insurer's decision regarding |
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214 | 215 | | 104 |
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215 | 216 | | any part of the claim that is denied within 20 days of receiving the information requested |
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216 | 217 | | 105 |
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217 | 218 | | under Subsection (3)(b), (4)(b), or (4)(c). |
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218 | 219 | | 106 |
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219 | 220 | | (7)(a) Whenever an insurer makes a payment to a provider on any part of a claim under |
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220 | 221 | | 107 |
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221 | 222 | | this section, the insurer shall also send to the insured an explanation of benefits paid. |
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222 | 223 | | 108 |
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223 | 224 | | (b) Whenever an insurer denies any part of a claim under this section, the insurer shall |
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224 | 225 | | 109 |
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225 | 226 | | also send to the insured: |
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226 | 227 | | 110 |
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227 | 228 | | (i) a written explanation of the part of the claim that was denied; and |
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228 | 229 | | 111 |
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229 | 230 | | (ii) notice of the adverse benefit determination review process established under |
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230 | 231 | | 112 |
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231 | 232 | | Section 31A-22-629. |
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232 | 233 | | 113 |
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233 | 234 | | (c) This Subsection (7) does not apply to a person receiving benefits under the state |
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234 | 235 | | 114 |
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235 | 236 | | Medicaid program as defined in Section 26B-3-101, unless required by the |
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236 | 237 | | 115 |
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237 | 238 | | Department of Health and Human Services or federal law. |
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238 | 239 | | 116 |
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239 | 240 | | (8)(a) A late fee shall be imposed on: |
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240 | 241 | | 117 |
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241 | 242 | | (i) an insurer that fails to timely pay a claim in accordance with this section; and |
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242 | 243 | | 118 |
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243 | 244 | | (ii) a provider that fails to timely provide information on a claim in accordance with |
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244 | 245 | | 119 |
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245 | 246 | | this section. |
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246 | 247 | | 120 |
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247 | 248 | | (b) The late fee described in Subsection (8)(a) shall be determined by multiplying |
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248 | 249 | | 121 |
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249 | 250 | | together: |
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250 | 251 | | 122 |
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251 | 252 | | (i) the total amount of the claim the insurer is obliged to pay; |
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252 | 253 | | 123 |
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253 | 254 | | (ii) the total number of days the response or the payment is late; and |
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254 | 255 | | 124 |
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255 | 256 | | (iii) 0.033% daily interest rate. |
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256 | 257 | | 125 |
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257 | 258 | | (c) Any late fee paid or collected under this Subsection (8) shall be separately identified |
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258 | 259 | | 126 |
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259 | 260 | | on the documentation used by the insurer to pay the claim. |
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260 | 261 | | 127 |
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261 | 262 | | (d) For purposes of this Subsection (8), "late fee" does not include an amount that is less |
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262 | 263 | | 128 |
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263 | 264 | | than $1. |
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264 | 265 | | 129 |
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265 | 266 | | (9) Each insurer shall establish a review process to resolve claims-related disputes between |
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266 | 267 | | 130 |
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267 | 268 | | the insurer and providers. |
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273 | 274 | | 133 |
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274 | 275 | | (a) knowingly misrepresenting a material fact or the contents of an insurance policy in |
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275 | 276 | | 134 |
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276 | 277 | | connection with a claim; |
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277 | 278 | | 135 |
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278 | 279 | | (b) failing to acknowledge and substantively respond within 15 days to any written |
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279 | 280 | | 136 |
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280 | 281 | | communication from a provider relating to a pending claim; |
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281 | 282 | | 137 |
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282 | 283 | | (c) denying or threatening to deny the payment of a claim for any reason that is not |
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283 | 284 | | 138 |
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284 | 285 | | clearly described in the insured's policy; |
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285 | 286 | | 139 |
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286 | 287 | | (d) failing to maintain a payment process sufficient to comply with this section; |
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287 | 288 | | 140 |
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288 | 289 | | (e) failing to maintain claims documentation sufficient to demonstrate compliance with |
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289 | 290 | | 141 |
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290 | 291 | | this section; |
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291 | 292 | | 142 |
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292 | 293 | | (f) failing, upon request, to give to the provider written information regarding the |
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293 | 294 | | 143 |
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294 | 295 | | specific rate and terms under which the provider will be paid for health care services; |
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295 | 296 | | 144 |
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296 | 297 | | (g) failing to timely pay a valid claim in accordance with this section as a means of |
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297 | 298 | | 145 |
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298 | 299 | | influencing, intimidating, retaliating, or gaining an advantage over the provider with |
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299 | 300 | | 146 |
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300 | 301 | | respect to an unrelated claim, an undisputed part of a pending claim, or some other |
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301 | 302 | | 147 |
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302 | 303 | | aspect of the contractual relationship; |
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303 | 304 | | 148 |
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304 | 305 | | (h) failing to pay the sum when required and as required under Subsection (8) when a |
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305 | 306 | | 149 |
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306 | 307 | | violation has occurred; |
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307 | 308 | | 150 |
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308 | 309 | | (i) threatening to retaliate or actual retaliation against a provider for the provider |
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309 | 310 | | 151 |
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310 | 311 | | applying this section; |
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311 | 312 | | 152 |
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312 | 313 | | (j) any material violation of this section; and |
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313 | 314 | | 153 |
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314 | 315 | | (k) any other unfair claim settlement practice established in rule or law. |
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315 | 316 | | 154 |
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316 | 317 | | (11)(a) The provisions of this section shall apply to each contract between an insurer and |
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317 | 318 | | 155 |
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318 | 319 | | a provider for the duration of the contract. |
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319 | 320 | | 156 |
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320 | 321 | | (b) Notwithstanding Subsection (11)(a), this section may not be the basis for a bad faith |
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321 | 322 | | 157 |
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322 | 323 | | insurance claim. |
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323 | 324 | | 158 |
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324 | 325 | | (c) Nothing in Subsection (11)(a) may be construed as limiting the ability of an insurer |
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325 | 326 | | 159 |
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326 | 327 | | and a provider from including provisions in their contract that are more stringent than |
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327 | 328 | | 160 |
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328 | 329 | | the provisions of this section. |
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329 | 330 | | 161 |
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330 | 331 | | (12)(a) Pursuant to Chapter 2, Part 2, Duties and Powers of Commissioner, the |
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331 | 332 | | 162 |
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332 | 333 | | commissioner may conduct examinations to determine an insurer's level of |
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333 | 334 | | 163 |
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334 | 335 | | compliance with this section and impose sanctions for each violation. |
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335 | 336 | | 164 |
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336 | 337 | | (b) The commissioner may adopt rules only as necessary to implement this section. |
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342 | 343 | | 167 |
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343 | 344 | | (d) Notwithstanding Subsection (12)(b), the commissioner may not adopt rules |
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344 | 345 | | 168 |
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345 | 346 | | regarding the review process required by Subsection (9). |
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346 | 347 | | 169 |
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347 | 348 | | (13) Nothing in this section may be construed as limiting the collection rights of a provider |
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348 | 349 | | 170 |
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349 | 350 | | under Section 31A-26-301.5. |
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350 | 351 | | 171 |
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351 | 352 | | (14) Nothing in this section may be construed as limiting the ability of an insurer to: |
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352 | 353 | | 172 |
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353 | 354 | | (a) recover any amount improperly paid to a provider or an insured: |
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354 | 355 | | 173 |
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355 | 356 | | (i) in accordance with Section 31A-31-103 or any other provision of state or federal |
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356 | 357 | | 174 |
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357 | 358 | | law; |
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358 | 359 | | 175 |
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359 | 360 | | (ii) within 24 months of the amount improperly paid for a coordination of benefits |
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360 | 361 | | 176 |
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361 | 362 | | error; |
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362 | 363 | | 177 |
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363 | 364 | | (iii) within 12 months of the amount improperly paid for any other reason not |
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364 | 365 | | 178 |
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365 | 366 | | identified in Subsection (14)(a)(i) or (ii); or |
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366 | 367 | | 179 |
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367 | 368 | | (iv) within 36 months of the amount improperly paid when the improper payment |
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368 | 369 | | 180 |
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369 | 370 | | was due to a recovery by Medicaid, Medicare, the Children's Health Insurance |
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370 | 371 | | 181 |
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371 | 372 | | Program, or any other state or federal health care program; |
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372 | 373 | | 182 |
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373 | 374 | | (b) take any action against a provider that is permitted under the terms of the provider |
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374 | 375 | | 183 |
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375 | 376 | | contract and not prohibited by this section; |
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376 | 377 | | 184 |
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377 | 378 | | (c) report the provider to a state or federal agency with regulatory authority over the |
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378 | 379 | | 185 |
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379 | 380 | | provider for unprofessional, unlawful, or fraudulent conduct; or |
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380 | 381 | | 186 |
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381 | 382 | | (d) enter into a mutual agreement with a provider to resolve alleged violations of this |
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382 | 383 | | 187 |
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383 | 384 | | section through mediation or binding arbitration. |
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384 | 385 | | 188 |
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385 | 386 | | (15) A provider may only seek recovery from the insurer for an amount improperly paid by |
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386 | 387 | | 189 |
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387 | 388 | | the insurer within the same time frames as Subsections (14)(a) and (b). |
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388 | 389 | | 190 |
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389 | 390 | | (16)(a) An insurer may offer the remittance of payment through a credit card or other |
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390 | 391 | | 191 |
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391 | 392 | | similar arrangement. |
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392 | 393 | | 192 |
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393 | 394 | | (b)(i) A provider may elect not to receive remittance through a credit card or other |
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394 | 395 | | 193 |
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395 | 396 | | similar arrangement. |
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396 | 397 | | 194 |
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397 | 398 | | (ii) An insurer: |
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398 | 399 | | 195 |
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399 | 400 | | (A) shall permit a provider's election described in Subsection (16)(b)(i) to apply to |
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400 | 401 | | 196 |
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401 | 402 | | the provider's entire practice; [and] |
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402 | 403 | | 197 |
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403 | 404 | | (B) may not require a provider's election described in Subsection (16)(b)(i) to be |
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404 | 405 | | 198 |
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405 | 406 | | made on a patient-by-patient basis[.] ; and |
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429 | 432 | | 210 |
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430 | 433 | | Section 2. Section 31A-26-301.7 is amended to read: |
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431 | 434 | | 211 |
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432 | 435 | | 31A-26-301.7 . Dental claim transparency and practices. |
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433 | 436 | | 212 |
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434 | 437 | | (1) As used in this section: |
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435 | 438 | | 213 |
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436 | 439 | | (a) "Bundling" means the practice of combining distinct dental procedures into one |
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437 | 440 | | 214 |
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438 | 441 | | procedure for billing purposes. |
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439 | 442 | | 215 |
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440 | 443 | | (b) "Dental plan" means the same as that term is defined in Section 31A-22-646. |
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441 | 444 | | 216 |
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442 | 445 | | (c) "Downcoding" means the adjustment of a claim submitted to a dental plan to a less |
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443 | 446 | | 217 |
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444 | 447 | | complex or lower cost procedure code. |
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445 | 448 | | 218 |
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446 | 449 | | (d) "Covered services" means the same as that term is defined in Section 31A-22-646. |
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447 | 450 | | 219 |
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448 | 451 | | (e) "Material change" means a change to: |
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449 | 452 | | 220 |
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450 | 453 | | (i) a dental plan's rules, guidelines, policies, or procedures concerning payment for |
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451 | 454 | | 221 |
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452 | 455 | | dental services; |
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453 | 456 | | 222 |
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454 | 457 | | (ii) the general policies of the dental plan that affect a reimbursement paid to |
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455 | 458 | | 223 |
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456 | 459 | | providers; or |
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457 | 460 | | 224 |
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458 | 461 | | (iii) the manner by which a dental plan adjudicates and pays a claim for services. |
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459 | 462 | | 225 |
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460 | 463 | | (2) An insurer that contracts or renews a contract with a dental provider shall: |
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461 | 464 | | 226 |
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462 | 465 | | (a) make a copy of the insurer's current dental plan policies available online; and |
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463 | 466 | | 227 |
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464 | 467 | | (b) if requested by a provider, send a copy of the policies to the provider through mail or |
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465 | 468 | | 228 |
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466 | 469 | | electronic mail. |
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467 | 470 | | 229 |
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468 | 471 | | (3) Dental policies described in Subsection (2) shall include: |
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469 | 472 | | 230 |
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470 | 473 | | (a) a summary of all material changes made to a dental plan since the policies were last |
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471 | 474 | | 231 |
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472 | 475 | | updated; |
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473 | 476 | | 232 |
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474 | 477 | | (b) the downcoding and bundling policies that the insurer reasonably expects to be |
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478 | 481 | | 234 |
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479 | 482 | | (c) a description of the dental plan's utilization review procedures, including: |
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480 | 483 | | 235 |
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481 | 484 | | (i) a procedure for an enrollee of the dental plan to obtain review of an adverse |
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482 | 485 | | 236 |
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483 | 486 | | determination in accordance with Section 31A-22-629; and |
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484 | 487 | | 237 |
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485 | 488 | | (ii) a statement of a provider's rights and responsibilities regarding the procedures |
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486 | 489 | | 238 |
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487 | 490 | | described in Subsection (3)(c)(i). |
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488 | 491 | | 239 |
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489 | 492 | | (4) An insurer may not maintain a dental plan that: |
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490 | 493 | | 240 |
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491 | 494 | | (a) based on the provider's contracted fee for covered services, uses downcoding in a |
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492 | 495 | | 241 |
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