Assembly Bill No. 516–Assemblymen Freeman, Koivisto, Parnell, Bache, McClain, Anderson, Arberry, Ohrenschall, Williams, Parks, Manendo, Gibbons and Price

March 12, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes concerning managed care organizations. (BDR 57-837)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to insurance; requiring a managed care organization to authorize a woman to select an obstetrician or gynecologist as her primary care physician; providing that a managed care organization is liable for damages for harm to an insured under certain circumstances; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 689C.950 is hereby amended to read as follows:

1-2 689C.950 [Notwithstanding] Except as otherwise provided in NRS

1-3 695G.090, notwithstanding any specific statute to the contrary, a statute

1-4 that requires the coverage of a specific health care service or benefit, or the

1-5 reimbursement, utilization or inclusion of a specific category of licensed

1-6 health care practitioner, is not applicable to a basic health benefit plan

1-7 delivered or issued for delivery to small employers or eligible persons in

1-8 this state pursuant to this chapter or chapter 689A of NRS.

1-9 Sec. 2. NRS 695C.055 is hereby amended to read as follows:

1-10 695C.055 1. The provisions of NRS 449.465, 679B.158, subsections

1-11 2, 4, 18, 19 and 32 of NRS 680B.010, NRS 680B.025 to 680B.060,

1-12 inclusive, and [695G.010 to 695G.260, inclusive,] chapter 695G of NRS

1-13 apply to a health maintenance organization.

2-1 2. For the purposes of subsection 1, unless the context requires that a

2-2 provision apply only to insurers, any reference in those sections to

2-3 "insurer" must be replaced by "health maintenance organization."

2-4 Sec. 3. Chapter 695G of NRS is hereby amended by adding thereto

2-5 the provisions set forth as sections 4 and 5 of this act.

2-6 Sec. 4. 1. A managed care organization shall include in any health

2-7 care plan it offers that requires the selection of a primary care physician

2-8 a provision authorizing a woman covered by the plan to designate an

2-9 obstetrician or gynecologist as her primary care physician.

2-10 2. A health care plan subject to the provisions of this section that is

2-11 delivered, issued for delivery or renewed on or after October 1, 1999, has

2-12 the legal effect of including the coverage required by this section, and

2-13 any provision of the health care plan or the renewal which is in conflict

2-14 with this section is void.

2-15 Sec. 5. 1. A managed care organization shall exercise ordinary

2-16 care when making a decision concerning health care services.

2-17 2. A managed care organization is liable for damages for harm to an

2-18 insured that is proximately caused by:

2-19 (a) The failure of the managed care organization to exercise ordinary

2-20 care when making a decision concerning health care services.

2-21 (b) A decision concerning health care services made by:

2-22 (1) An employee of the managed care organization;

2-23 (2) An agent or ostensible agent of the managed care organization;

2-24 or

2-25 (3) A representative who is acting on behalf of the managed care

2-26 organization over whom the managed care organization has the right to

2-27 exercise influence or control or has actually exercised influence or

2-28 control,

2-29 that results in the failure to exercise ordinary care.

2-30 3. As used in this section, "decision concerning health care services"

2-31 means a determination made when health care services are actually

2-32 provided pursuant to the benefits offered under the health care plan or a

2-33 decision which affects the quality of the diagnosis, care or treatment

2-34 provided to an insured.

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