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
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: 689C.9501-3
695G.090, notwithstanding any specific statute to the contrary, a statute1-4
that requires the coverage of a specific health care service or benefit, or the1-5
reimbursement, utilization or inclusion of a specific category of licensed1-6
health care practitioner, is not applicable to a basic health benefit plan1-7
delivered or issued for delivery to small employers or eligible persons in1-8
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: 695C.055 1. The provisions of NRS 449.465, 679B.158, subsections1-11
2, 4, 18, 19 and 32 of NRS 680B.010, NRS 680B.025 to 680B.060,1-12
inclusive, and1-13
apply to a health maintenance organization.2-1
2. For the purposes of subsection 1, unless the context requires that a2-2
provision apply only to insurers, any reference in those sections to2-3
"insurer" must be replaced by "health maintenance organization."2-4
Sec. 3. Chapter 695G of NRS is hereby amended by adding thereto2-5
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 health2-7
care plan it offers that requires the selection of a primary care physician2-8
a provision authorizing a woman covered by the plan to designate an2-9
obstetrician or gynecologist as her primary care physician.2-10
2. A health care plan subject to the provisions of this section that is2-11
delivered, issued for delivery or renewed on or after October 1, 1999, has2-12
the legal effect of including the coverage required by this section, and2-13
any provision of the health care plan or the renewal which is in conflict2-14
with this section is void.2-15
Sec. 5. 1. A managed care organization shall exercise ordinary2-16
care when making a decision concerning health care services.2-17
2. A managed care organization is liable for damages for harm to an2-18
insured that is proximately caused by:2-19
(a) The failure of the managed care organization to exercise ordinary2-20
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
or2-25
(3) A representative who is acting on behalf of the managed care2-26
organization over whom the managed care organization has the right to2-27
exercise influence or control or has actually exercised influence or2-28
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 actually2-32
provided pursuant to the benefits offered under the health care plan or a2-33
decision which affects the quality of the diagnosis, care or treatment2-34
provided to an insured.~