Assembly Bill No. 60–Assemblywoman Giunchigliani

Prefiled January 27, 1999

____________

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes concerning health care services related to reproductive health care and Medicaid managed care. (BDR 57-181)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

~

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 health care; requiring health insurers to include in certain policies of health insurance coverage for services and prescriptive drugs related to reproductive health care; prohibiting certain health insurers from committing certain acts concerning services related to reproductive health care; requiring the department of human resources to reimburse providers of health care directly for services related to reproductive health care provided under the state plan for Medicaid; requiring the department of human resources to contract only with health maintenance organizations that have negotiated with certain essential community providers to provide Medicaid managed care; 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. Chapter 689A of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 and 3 of this act.

1-3 Sec. 2. 1. An insurer that offers or issues a policy of health

1-4 insurance that provides coverage for prescription drugs shall include in

1-5 the policy coverage for:

1-6 (a) Any type of contraceptive that is lawfully prescribed or ordered

1-7 which has been approved by the Food and Drug Administration; and

1-8 (b) Any type of hormone replacement therapy that is lawfully

1-9 prescribed or ordered.

1-10 2. An insurer that offers or issues a policy of health insurance that

1-11 provides coverage for prescription drugs shall not:

1-12 (a) Require an insured to pay a higher deductible, copayment or

1-13 coinsurance or require a longer waiting period or other condition for

2-1 coverage for a prescription for a contraceptive or hormone replacement

2-2 therapy than is required for other prescription drugs covered by the

2-3 policy;

2-4 (b) Refuse to issue a policy of health insurance or cancel a policy of

2-5 health insurance solely because the person applying for or covered by the

2-6 policy uses or may use in the future any of the services listed in subsection

2-7 1;

2-8 (c) Offer or pay any type of material inducement or financial incentive

2-9 to an insured to discourage the insured from accessing any of the services

2-10 listed in subsection 1;

2-11 (d) Penalize a provider of health care who provides any of the services

2-12 listed in subsection 1 to an insured, including, without limitation,

2-13 reducing the reimbursement of the provider of health care; or

2-14 (e) Offer or pay any type of material inducement, bonus or other

2-15 financial incentive to a provider of health care to deny, reduce, withhold,

2-16 limit or delay any of the services listed in subsection 1 to an insured.

2-17 3. A policy subject to the provisions of this chapter that is delivered,

2-18 issued for delivery or renewed on or after October 1, 1999, has the legal

2-19 effect of including the coverage required by subsection 1, and any

2-20 provision of the policy or the renewal which is in conflict with this section

2-21 is void.

2-22 4. As used in this section, "provider of health care" has the meaning

2-23 ascribed to it in NRS 629.031.

2-24 Sec. 3. 1. An insurer that offers or issues a policy of health

2-25 insurance that provides coverage for outpatient care shall include in the

2-26 policy coverage for any health care service related to reproductive health

2-27 care that is provided by a provider of health care who is licensed or

2-28 otherwise authorized in this state to furnish the service, including, without

2-29 limitation, a health care service related to contraception, emergency

2-30 contraception or hormone replacement therapy.

2-31 2. An insurer that offers or issues a policy of health insurance that

2-32 provides coverage for outpatient care shall not:

2-33 (a) Require an insured to pay a higher deductible, copayment or

2-34 coinsurance or require a longer waiting period or other condition for

2-35 coverage for outpatient care related to contraceptives or hormone

2-36 replacement therapy than is required for other outpatient care covered by

2-37 the policy;

2-38 (b) Refuse to issue a policy of health insurance or cancel a policy of

2-39 health insurance solely because the person applying for or covered by the

2-40 policy uses or may use in the future any of the services listed in subsection

2-41 1;

3-1 (c) Offer or pay any type of material inducement or financial incentive

3-2 to an insured to discourage the insured from accessing any of the services

3-3 listed in subsection 1;

3-4 (d) Penalize a provider of health care who provides any of the services

3-5 listed in subsection 1 to an insured, including, without limitation,

3-6 reducing the reimbursement of the provider of health care; or

3-7 (e) Offer or pay any type of material inducement, bonus or other

3-8 financial incentive to a provider of health care to deny, reduce, withhold,

3-9 limit or delay any of the services listed in subsection 1 to an insured.

3-10 3. A policy subject to the provisions of this chapter that is delivered,

3-11 issued for delivery or renewed on or after October 1, 1999, has the legal

3-12 effect of including the coverage required by subsection 1, and any

3-13 provision of the policy or the renewal which is in conflict with this section

3-14 is void.

3-15 4. As used in this section, "provider of health care" has the meaning

3-16 ascribed to it in NRS 629.031.

3-17 Sec. 4. NRS 689A.330 is hereby amended to read as follows:

3-18 689A.330 If any policy is issued by a domestic insurer for delivery to a

3-19 person residing in another state, and if the insurance commissioner or

3-20 corresponding public officer of that other state has informed the

3-21 commissioner that the policy is not subject to approval or disapproval by

3-22 that officer, the commissioner may by ruling require that the policy meet

3-23 the standards set forth in NRS 689A.030 to 689A.320, inclusive [.] , and

3-24 sections 2 and 3 of this act.

3-25 Sec. 5. Chapter 689B of NRS is hereby amended by adding thereto the

3-26 provisions set forth as sections 6 and 7 of this act.

3-27 Sec. 6. 1. An insurer that offers or issues a policy of group health

3-28 insurance that provides coverage for prescription drugs shall include in

3-29 the policy coverage for:

3-30 (a) Any type of contraceptive that is lawfully prescribed or ordered

3-31 which has been approved by the Food and Drug Administration; and

3-32 (b) Any type of hormone replacement therapy that is lawfully

3-33 prescribed or ordered.

3-34 2. An insurer that offers or issues a policy of group health insurance

3-35 that provides coverage for prescription drugs shall not:

3-36 (a) Require an insured to pay a higher deductible, copayment or

3-37 coinsurance or require a longer waiting period or other condition for

3-38 coverage for a prescription for a contraceptive or hormone replacement

3-39 therapy than is required for other prescription drugs covered by the

3-40 policy;

3-41 (b) Refuse to issue a policy of group health insurance or cancel a

3-42 policy of group health insurance solely because the person applying for or

4-1 covered by the policy uses or may use in the future any of the services

4-2 listed in subsection 1;

4-3 (c) Offer or pay any type of material inducement or financial incentive

4-4 to an insured to discourage the insured from accessing any of the services

4-5 listed in subsection 1;

4-6 (d) Penalize a provider of health care who provides any of the services

4-7 listed in subsection 1 to an insured, including, without limitation,

4-8 reducing the reimbursement of the provider of health care; or

4-9 (e) Offer or pay any type of material inducement, bonus or other

4-10 financial incentive to a provider of health care to deny, reduce, withhold,

4-11 limit or delay any of the services listed in subsection 1 to an insured.

4-12 3. A policy subject to the provisions of this chapter that is delivered,

4-13 issued for delivery or renewed on or after October 1, 1999, has the legal

4-14 effect of including the coverage required by subsection 1, and any

4-15 provision of the policy or the renewal which is in conflict with this section

4-16 is void.

4-17 4. As used in this section, "provider of health care" has the meaning

4-18 ascribed to it in NRS 629.031.

4-19 Sec. 7. 1. An insurer that offers or issues a policy of group health

4-20 insurance that provides coverage for outpatient care shall include in the

4-21 policy coverage for any health care service related to reproductive health

4-22 care that is provided by a provider of health care who is licensed or

4-23 otherwise authorized in this state to furnish the service, including, without

4-24 limitation, a health care service related to contraception, emergency

4-25 contraception or hormone replacement therapy.

4-26 2. An insurer that offers or issues a policy of group health insurance

4-27 that provides coverage for outpatient care shall not:

4-28 (a) Require an insured to pay a higher deductible, copayment or

4-29 coinsurance or require a longer waiting period or other condition for

4-30 coverage for outpatient care related to contraceptives or hormone

4-31 replacement therapy than is required for other outpatient care covered by

4-32 the policy;

4-33 (b) Refuse to issue a policy of group health insurance or cancel a

4-34 policy of group health insurance solely because the person applying for or

4-35 covered by the policy uses or may use in the future any of the services

4-36 listed in subsection 1;

4-37 (c) Offer or pay any type of material inducement or financial incentive

4-38 to an insured to discourage the insured from accessing any of the services

4-39 listed in subsection 1;

4-40 (d) Penalize a provider of health care who provides any of the services

4-41 listed in subsection 1 to an insured, including, without limitation,

4-42 reducing the reimbursement of the provider of health care; or

5-1 (e) Offer or pay any type of material inducement, bonus or other

5-2 financial incentive to a provider of health care to deny, reduce, withhold,

5-3 limit or delay any of the services listed in subsection 1 to an insured.

5-4 3. A policy subject to the provisions of this chapter that is delivered,

5-5 issued for delivery or renewed on or after October 1, 1999, has the legal

5-6 effect of including the coverage required by subsection 1, and any

5-7 provision of the policy or the renewal which is in conflict with this section

5-8 is void.

5-9 4. As used in this section, "provider of health care" has the meaning

5-10 ascribed to it in NRS 629.031.

5-11 Sec. 8. Chapter 695B of NRS is hereby amended by adding thereto the

5-12 provisions set forth as sections 9 and 10 of this act.

5-13 Sec. 9. 1. An insurer that offers or issues a contract for hospital or

5-14 medical service that provides coverage for prescription drugs shall

5-15 include in the contract coverage for:

5-16 (a) Any type of contraceptive that is lawfully prescribed or ordered

5-17 which has been approved by the Food and Drug Administration; and

5-18 (b) Any type of hormone replacement therapy that is lawfully

5-19 prescribed or ordered.

5-20 2. An insurer that offers or issues a contract for hospital or medical

5-21 service that provides coverage for prescription drugs shall not:

5-22 (a) Require an insured to pay a higher deductible, copayment or

5-23 coinsurance or require a longer waiting period or other condition for

5-24 coverage for a prescription for a contraceptive or hormone replacement

5-25 therapy than is required for other prescription drugs covered by the

5-26 contract;

5-27 (b) Refuse to issue a contract for hospital or medical service or cancel

5-28 a contract for hospital or medical service solely because the person

5-29 applying for or covered by the contract uses or may use in the future any

5-30 of the services listed in subsection 1;

5-31 (c) Offer or pay any type of material inducement or financial incentive

5-32 to an insured to discourage the insured from accessing any of the services

5-33 listed in subsection 1;

5-34 (d) Penalize a provider of health care who provides any of the services

5-35 listed in subsection 1 to an insured, including, without limitation,

5-36 reducing the reimbursement of the provider of health care; or

5-37 (e) Offer or pay any type of material inducement, bonus or other

5-38 financial incentive to a provider of health care to deny, reduce, withhold,

5-39 limit or delay any of the services listed in subsection 1 to an insured.

5-40 3. A contract subject to the provisions of this chapter that is delivered,

5-41 issued for delivery or renewed on or after October 1, 1999, has the legal

5-42 effect of including the coverage required by subsection 1, and any

6-1 provision of the contract or the renewal which is in conflict with this

6-2 section is void.

6-3 4. As used in this section, "provider of health care" has the meaning

6-4 ascribed to it in NRS 629.031.

6-5 Sec. 10. 1. An insurer that offers or issues a contract for hospital or

6-6 medical service that provides coverage for outpatient care shall include in

6-7 the contract coverage for any health care service related to reproductive

6-8 health care that is provided by a provider of health care who is licensed or

6-9 otherwise authorized in this state to furnish the service, including, without

6-10 limitation, a health care service related to contraception, emergency

6-11 contraception or hormone replacement therapy.

6-12 2. An insurer that offers or issues a contract for hospital or medical

6-13 service that provides coverage for outpatient care shall not:

6-14 (a) Require an insured to pay a higher deductible, copayment or

6-15 coinsurance or require a longer waiting period or other condition for

6-16 coverage for outpatient care related to contraceptives or hormone

6-17 replacement therapy than is required for other outpatient care covered by

6-18 the contract;

6-19 (b) Refuse to issue a contract for hospital or medical service or cancel

6-20 a contract for hospital or medical service solely because the person

6-21 applying for or covered by the contract uses or may use in the future any

6-22 of the services listed in subsection 1;

6-23 (c) Offer or pay any type of material inducement or financial incentive

6-24 to an insured to discourage the insured from accessing any of the services

6-25 listed in subsection 1;

6-26 (d) Penalize a provider of health care who provides any of the services

6-27 listed in subsection 1 to an insured, including, without limitation,

6-28 reducing the reimbursement of the provider of health care; or

6-29 (e) Offer or pay any type of material inducement, bonus or other

6-30 financial incentive to a provider of health care to deny, reduce, withhold,

6-31 limit or delay any of the services listed in subsection 1 to an insured.

6-32 3. A contract subject to the provisions of this chapter that is delivered,

6-33 issued for delivery or renewed on or after October 1, 1999, has the legal

6-34 effect of including the coverage required by subsection 1, and any

6-35 provision of the contract or the renewal which is in conflict with this

6-36 section is void.

6-37 4. As used in this section, "provider of health care" has the meaning

6-38 ascribed to it in NRS 629.031.

6-39 Sec. 11. Chapter 695C of NRS is hereby amended by adding thereto

6-40 the provisions set forth as sections 12 and 13 of this act.

6-41 Sec. 12. 1. A health maintenance organization that offers or issues

6-42 a health maintenance plan that provides coverage for prescription drugs

6-43 shall include in the plan coverage for:

7-1 (a) Any type of contraceptive that is lawfully prescribed or ordered

7-2 which has been approved by the Food and Drug Administration; and

7-3 (b) Any type of hormone replacement therapy that is lawfully

7-4 prescribed or ordered.

7-5 2. A health maintenance organization that offers or issues a health

7-6 maintenance plan that provides coverage for prescription drugs shall not:

7-7 (a) Require an enrollee to pay a higher deductible, copayment or

7-8 coinsurance or require a longer waiting period or other condition for

7-9 coverage for a prescription for a contraceptive or hormone replacement

7-10 therapy than is required for other prescription drugs covered by the plan;

7-11 (b) Refuse to issue a health maintenance plan or cancel a health

7-12 maintenance plan solely because the person applying for or covered by

7-13 the plan uses or may use in the future any of the services listed in

7-14 subsection 1;

7-15 (c) Offer or pay any type of material inducement or financial incentive

7-16 to an enrollee to discourage the enrollee from accessing any of the

7-17 services listed in subsection 1;

7-18 (d) Penalize a provider of health care who provides any of the services

7-19 listed in subsection 1 to an enrollee, including, without limitation,

7-20 reducing the reimbursement of the provider of health care; or

7-21 (e) Offer or pay any type of material inducement, bonus or other

7-22 financial incentive to a provider of health care to deny, reduce, withhold,

7-23 limit or delay any of the services listed in subsection 1 to an enrollee.

7-24 3. Evidence of coverage subject to the provisions of this chapter that

7-25 is delivered, issued for delivery or renewed on or after October 1, 1999,

7-26 has the legal effect of including the coverage required by subsection 1,

7-27 and any provision of the evidence of coverage or the renewal which is in

7-28 conflict with this section is void.

7-29 4. As used in this section, "provider of health care" has the meaning

7-30 ascribed to it in NRS 629.031.

7-31 Sec. 13. 1. A health maintenance organization that offers or issues

7-32 a health maintenance plan that provides coverage for outpatient care

7-33 shall include in the plan coverage for any health care service related to

7-34 reproductive health care that is provided by a provider of health care who

7-35 is licensed or otherwise authorized in this state to furnish the service,

7-36 including, without limitation, a health care service related to

7-37 contraception, emergency contraception or hormone replacement

7-38 therapy.

7-39 2. A health maintenance organization that offers or issues a health

7-40 maintenance plan that provides coverage for outpatient care shall not:

7-41 (a) Require an enrollee to pay a higher deductible, copayment or

7-42 coinsurance or require a longer waiting period or other condition for

7-43 coverage for outpatient care related to contraceptives or hormone

8-1 replacement therapy than is required for other outpatient care covered by

8-2 the plan;

8-3 (b) Refuse to issue a health maintenance plan or cancel a health

8-4 maintenance plan solely because the person applying for or covered by

8-5 the plan uses or may use in the future any of the services listed in

8-6 subsection 1;

8-7 (c) Offer or pay any type of material inducement or financial incentive

8-8 to an enrollee to discourage the enrollee from accessing any of the

8-9 services listed in subsection 1;

8-10 (d) Penalize a provider of health care who provides any of the services

8-11 listed in subsection 1 to an enrollee, including, without limitation,

8-12 reducing the reimbursement of the provider of health care; or

8-13 (e) Offer or pay any type of material inducement, bonus or other

8-14 financial incentive to a provider of health care to deny, reduce, withhold,

8-15 limit or delay any of the services listed in subsection 1 to an enrollee.

8-16 3. Evidence of coverage subject to the provisions of this chapter that

8-17 is delivered, issued for delivery or renewed on or after October 1, 1999,

8-18 has the legal effect of including the coverage required by subsection 1,

8-19 and any provision of the evidence of coverage or the renewal which is in

8-20 conflict with this section is void.

8-21 4. As used in this section, "provider of health care" has the meaning

8-22 ascribed to it in NRS 629.031.

8-23 Sec. 14. NRS 695C.050 is hereby amended to read as follows:

8-24 695C.050 1. Except as otherwise provided in this chapter or in

8-25 specific provisions of this Title, the provisions of this Title are not

8-26 applicable to any health maintenance organization granted a certificate of

8-27 authority under this chapter. This provision does not apply to an insurer

8-28 licensed and regulated pursuant to this Title except with respect to its

8-29 activities as a health maintenance organization authorized and regulated

8-30 pursuant to this chapter.

8-31 2. Solicitation of enrollees by a health maintenance organization

8-32 granted a certificate of authority, or its representatives, must not be

8-33 construed to violate any provision of law relating to solicitation or

8-34 advertising by practitioners of a healing art.

8-35 3. Any health maintenance organization authorized under this chapter

8-36 shall not be deemed to be practicing medicine and is exempt from the

8-37 provisions of chapter 630 of NRS.

8-38 4. The provisions of NRS 695C.110, 695C.170 to 695C.200, inclusive,

8-39 695C.250 and 695C.265 do not apply to a health maintenance organization

8-40 that provides health care services through managed care to recipients of

8-41 Medicaid pursuant to a contract with the welfare division of the department

8-42 of human resources. This subsection does not exempt a health maintenance

9-1 organization from any provision of this chapter for services provided

9-2 pursuant to any other contract.

9-3 5. The provisions of sections 12 and 13 of this act apply to a health

9-4 maintenance organization that provides health care services through

9-5 managed care to recipients of Medicaid pursuant to a contract with the

9-6 welfare division of the department of human resources.

9-7 Sec. 15. NRS 695C.330 is hereby amended to read as follows:

9-8 695C.330 1. The commissioner may suspend or revoke any

9-9 certificate of authority issued to a health maintenance organization pursuant

9-10 to the provisions of this chapter if he finds that any of the following

9-11 conditions exist:

9-12 (a) The health maintenance organization is operating significantly in

9-13 contravention of its basic organizational document, its health care plan or in

9-14 a manner contrary to that described in and reasonably inferred from any

9-15 other information submitted pursuant to NRS 695C.060, 695C.070 and

9-16 695C.140, unless any amendments to those submissions have been filed

9-17 with and approved by the commissioner;

9-18 (b) The health maintenance organization issues evidence of coverage or

9-19 uses a schedule of charges for health care services which do not comply

9-20 with the requirements of NRS 695C.170 to 695C.200, inclusive, or

9-21 695C.207 [;] or section 12 or 13 of this act;

9-22 (c) The health care plan does not furnish comprehensive health care

9-23 services as provided for in NRS 695C.060;

9-24 (d) The state board of health certifies to the commissioner that:

9-25 (1) The health maintenance organization does not meet the

9-26 requirements of subsection 2 of NRS 695C.080; or

9-27 (2) The health maintenance organization is unable to fulfill its

9-28 obligations to furnish health care services as required under its health care

9-29 plan;

9-30 (e) The health maintenance organization is no longer financially

9-31 responsible and may reasonably be expected to be unable to meet its

9-32 obligations to enrollees or prospective enrollees;

9-33 (f) The health maintenance organization has failed to put into effect a

9-34 mechanism affording the enrollees an opportunity to participate in matters

9-35 relating to the content of programs pursuant to NRS 695C.110;

9-36 (g) The health maintenance organization has failed to put into effect the

9-37 system for complaints required by NRS 695C.260 in a manner reasonably

9-38 to dispose of valid complaints;

9-39 (h) The health maintenance organization or any person on its behalf has

9-40 advertised or merchandised its services in an untrue, misrepresentative,

9-41 misleading, deceptive or unfair manner;

9-42 (i) The continued operation of the health maintenance organization

9-43 would be hazardous to its enrollees; or

10-1 (j) The health maintenance organization has otherwise failed to comply

10-2 substantially with the provisions of this chapter.

10-3 2. A certificate of authority must be suspended or revoked only after

10-4 compliance with the requirements of NRS 695C.340.

10-5 3. If the certificate of authority of a health maintenance organization is

10-6 suspended, the health maintenance organization shall not, during the period

10-7 of that suspension, enroll any additional groups or new individual contracts,

10-8 unless those groups or persons were contracted for before the date of

10-9 suspension.

10-10 4. If the certificate of authority of a health maintenance organization is

10-11 revoked, the organization shall proceed, immediately following the

10-12 effective date of the order of revocation, to wind up its affairs and shall

10-13 conduct no further business except as may be essential to the orderly

10-14 conclusion of the affairs of the organization. It shall engage in no further

10-15 advertising or solicitation of any kind. The commissioner may by written

10-16 order permit such further operation of the organization as he may find to be

10-17 in the best interest of enrollees to the end that enrollees are afforded the

10-18 greatest practical opportunity to obtain continuing coverage for health care.

10-19 Sec. 16. NRS 232.320 is hereby amended to read as follows:

10-20 232.320 1. Except as otherwise provided in subsection 2, the director:

10-21 (a) Shall appoint, with the consent of the governor, chiefs of the

10-22 divisions of the department, who are respectively designated as follows:

10-23 (1) The administrator of the aging services division;

10-24 (2) The administrator of the health division;

10-25 (3) The state welfare administrator; and

10-26 (4) The administrator of the division of child and family services.

10-27 (b) Shall administer, through the divisions of the department, the

10-28 provisions of chapters 210, 423, 424, 425, 427A, 432A to 442, inclusive,

10-29 446, 447, 449 and 450 of NRS, NRS 127.220 to 127.310, inclusive,

10-30 422.070 to 422.410, inclusive, and section 18 of this act, NRS 432.010 to

10-31 432.139, inclusive, 444.003 to 444.430, inclusive, and 445A.010 to

10-32 445A.050, inclusive, and all other provisions of law relating to the

10-33 functions of the divisions of the department, but is not responsible for the

10-34 clinical activities of the health division or the professional line activities of

10-35 the other divisions.

10-36 (c) Shall, after considering advice from agencies of local governments

10-37 and nonprofit organizations which provide social services, adopt a master

10-38 plan for the provision of human services in this state. The director shall

10-39 revise the plan biennially and deliver a copy of the plan to the governor and

10-40 the legislature at the beginning of each regular session. The plan must:

10-41 (1) Identify and assess the plans and programs of the department for

10-42 the provision of human services, and any duplication of those services by

10-43 federal, state and local agencies;

11-1 (2) Set forth priorities for the provision of those services;

11-2 (3) Provide for communication and the coordination of those services

11-3 among nonprofit organizations, agencies of local government, the state and

11-4 the Federal Government;

11-5 (4) Identify the sources of funding for services provided by the

11-6 department and the allocation of that funding;

11-7 (5) Set forth sufficient information to assist the department in

11-8 providing those services and in the planning and budgeting for the future

11-9 provision of those services; and

11-10 (6) Contain any other information necessary for the department to

11-11 communicate effectively with the Federal Government concerning

11-12 demographic trends, formulas for the distribution of federal money and any

11-13 need for the modification of programs administered by the department.

11-14 (d) May, by regulation, require nonprofit organizations and state and

11-15 local governmental agencies to provide information to him regarding the

11-16 programs of those organizations and agencies, excluding detailed

11-17 information relating to their budgets and payrolls, which he deems

11-18 necessary for his performance of the duties imposed upon him pursuant to

11-19 this section.

11-20 (e) Has such other powers and duties as are provided by law.

11-21 2. The governor shall appoint the administrator of the mental hygiene

11-22 and mental retardation division.

11-23 Sec. 17. NRS 287.010 is hereby amended to read as follows:

11-24 287.010 1. The governing body of any county, school district,

11-25 municipal corporation, political subdivision, public corporation or other

11-26 public agency of the State of Nevada may:

11-27 (a) Adopt and carry into effect a system of group life, accident or health

11-28 insurance, or any combination thereof, for the benefit of its officers and

11-29 employees, and the dependents of officers and employees who elect to

11-30 accept the insurance and who, where necessary, have authorized the

11-31 governing body to make deductions from their compensation for the

11-32 payment of premiums on the insurance.

11-33 (b) Purchase group policies of life, accident or health insurance, or any

11-34 combination thereof, for the benefit of such officers and employees, and the

11-35 dependents of such officers and employees, as have authorized the

11-36 purchase, from insurance companies authorized to transact the business of

11-37 such insurance in the State of Nevada, and, where necessary, deduct from

11-38 the compensation of officers and employees the premiums upon insurance

11-39 and pay the deductions upon the premiums.

11-40 (c) Provide group life, accident or health coverage through a self-

11-41 insurance reserve fund and, where necessary, deduct contributions to the

11-42 maintenance of the fund from the compensation of officers and employees

11-43 and pay the deductions into the fund. The money accumulated for this

12-1 purpose through deductions from the compensation of officers and

12-2 employees and contributions of the governing body must be maintained as

12-3 an internal service fund as defined by NRS 354.543. The money must be

12-4 deposited in a state or national bank authorized to transact business in the

12-5 State of Nevada. Any independent administrator of a fund created under

12-6 this section is subject to the licensing requirements of chapter 683A of

12-7 NRS, and must be a resident of this state. Any contract with an independent

12-8 administrator must be approved by the commissioner of insurance as to the

12-9 reasonableness of administrative charges in relation to contributions

12-10 collected and benefits provided. The provisions of NRS 689B.030 to

12-11 689B.050, inclusive, and sections 6 and 7 of this act apply to coverage

12-12 provided pursuant to this paragraph.

12-13 (d) Defray part or all of the cost of maintenance of a self-insurance fund

12-14 or of the premiums upon insurance. The money for contributions must be

12-15 budgeted for in accordance with the laws governing the county, school

12-16 district, municipal corporation, political subdivision, public corporation or

12-17 other public agency of the State of Nevada.

12-18 2. If a school district offers group insurance to its officers and

12-19 employees pursuant to this section, members of the board of trustees of the

12-20 school district must not be excluded from participating in the group

12-21 insurance. If the amount of the deductions from compensation required to

12-22 pay for the group insurance exceeds the compensation to which a trustee is

12-23 entitled, the difference must be paid by the trustee.

12-24 Sec. 18. Chapter 422 of NRS is hereby amended by adding thereto a

12-25 new section to read as follows:

12-26 1. To the extent authorized by federal law, the department shall

12-27 reimburse directly, under the state plan for Medicaid, any provider of

12-28 health care for any health care service related to reproductive health care

12-29 if the provider is licensed or otherwise authorized in this state to furnish

12-30 the service, including, without limitation, a health care service related to

12-31 contraception, emergency contraception or hormone replacement

12-32 therapy.

12-33 2. As used in this section, "provider of health care" has the meaning

12-34 ascribed to it in NRS 629.031.

12-35 Sec. 19. NRS 422.222 is hereby amended to read as follows:

12-36 422.222 1. The administrator may adopt such regulations as are

12-37 necessary for the administration of NRS 422.070 to 422.410, inclusive, and

12-38 section 18 of this act and any program of the welfare division.

12-39 2. A regulation adopted by the administrator becomes effective upon

12-40 adoption or such other date as the administrator specifies in the regulation.

13-1 Sec. 20. NRS 422.273 is hereby amended to read as follows:

13-2 422.273 1. For any Medicaid managed care program established in

13-3 the State of Nevada, the department shall contract only with a health

13-4 maintenance organization that has:

13-5 (a) Negotiated in good faith with a federally-qualified health center to

13-6 provide health care services for the health maintenance organization;

13-7 (b) Negotiated in good faith with each essential community provider in

13-8 the area of this state in which the health maintenance organization

13-9 provides services to provide health care services for the health

13-10 maintenance organization;

13-11 (c) Negotiated in good faith with the University Medical Center of

13-12 Southern Nevada to provide inpatient and ambulatory services to recipients

13-13 of Medicaid; and

13-14 [(c)] (d) Negotiated in good faith with the University of Nevada School

13-15 of Medicine to provide health care services to recipients of Medicaid.

13-16 Nothing in this section shall be construed as exempting a federally-

13-17 qualified health center, an essential community provider, the University

13-18 Medical Center of Southern Nevada or the University of Nevada School of

13-19 Medicine from the requirements for contracting with the health

13-20 maintenance organization.

13-21 2. During the development and implementation of any Medicaid

13-22 managed care program, the department shall cooperate with the University

13-23 of Nevada School of Medicine by assisting in the provision of an adequate

13-24 and diverse group of patients upon which the school may base its

13-25 educational programs.

13-26 3. The University of Nevada School of Medicine may establish a

13-27 nonprofit organization to assist in any research necessary for the

13-28 development of a Medicaid managed care program, receive and accept

13-29 gifts, grants and donations to support such a program and assist in

13-30 establishing educational services about the program for recipients of

13-31 Medicaid.

13-32 4. For the purposes of this section:

13-33 (a) "Essential community provider" means a provider of health care

13-34 that provides services at no charge or for a fee for services based upon a

13-35 sliding scale which is determined based on the income of a patient, that

13-36 does not restrict access or services because of the financial limitations of

13-37 a patient, and that:

13-38 (1) Historically has served medically needy or medically indigent

13-39 patients and has demonstrated a commitment to serve such patients by

13-40 dedicating a significant portion of its business to such patients; or

13-41 (2) Is the only provider of health care in its community and to the

13-42 best of its ability has served the medically indigent patients in its

13-43 community.

14-1 (b) "Federally-qualified health center" has the meaning ascribed to it in

14-2 42 U.S.C. § 1396d(l)(2)(B).

14-3 [(b)] (c) "Health maintenance organization" has the meaning ascribed to

14-4 it in NRS 695C.030.

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