Assembly Bill No. 585–Committee on Commerce and Labor
March 15, 1999
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Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes concerning managed care organizations. (BDR 57-1485)
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, 5 and 6 of this act.2-6
Sec. 4. 1. A managed care organization shall enter into a contract2-7
with a provider of health care who is not a provider of health care under2-8
its health care plan for the limited purpose of providing health care2-9
services related to the chronic medical condition of an insured or of2-10
providing a continual course of health care to an insured who has a2-11
disability if:2-12
(a) The managed care organization previously had a contract with the2-13
provider of health care to provide services under the health care plan of2-14
the insured;2-15
(b) The insured has been under the care of the provider of health care2-16
for his chronic medical condition or disability pursuant to his health care2-17
plan for at least 1 year;2-18
(c) The provider of health care is qualified under the laws of this state2-19
to provide such care;2-20
(d) The provider of health care agrees to accept the rates, terms and2-21
conditions established for other providers of similar health care services2-22
under the health care plan; and2-23
(e) The insured submits a request in writing to the managed care2-24
organization to have the provider of health care continue to provide the2-25
specific services or course of care.2-26
2. As used in this section, "chronic medical condition" means an2-27
illness or injury that requires continual medical attention.2-28
Sec. 5. 1. A managed care organization shall include in any health2-29
care plan it offers that requires the designation of a primary care2-30
physician a provision authorizing a person covered by the plan to2-31
designate a specialist as the primary care physician if the person2-32
regularly needs services provided by such a specialist.2-33
2. A health care plan subject to the provisions of this section that is2-34
delivered, issued for delivery or renewed on or after October 1, 1999, has2-35
the legal effect of including the coverage required by this section, and2-36
any provision of the health care plan or the renewal which is in conflict2-37
with this section is void.2-38
Sec. 6. 1. A managed care organization shall exercise ordinary2-39
care when making a decision concerning health care services.2-40
2. A managed care organization is liable for damages for harm to an2-41
insured that is proximately caused by:2-42
(a) The failure of the managed care organization to exercise ordinary2-43
care when making a decision concerning health care services.3-1
(b) A decision concerning health care services made by:3-2
(1) An employee of the managed care organization;3-3
(2) An agent or ostensible agent of the managed care organization;3-4
or3-5
(3) A representative who is acting on behalf of the managed care3-6
organization over whom the managed care organization has the right to3-7
exercise influence or control or has actually exercised influence or3-8
control,3-9
that results in the failure to exercise ordinary care.3-10
3. As used in this section, "decision concerning health care services"3-11
means a determination made when health care services are actually3-12
provided pursuant to the benefits offered under the health care plan or a3-13
decision which affects the quality of the diagnosis, care or treatment3-14
provided to an insured.~