Assembly Bill No. 559–Committee on Government Affairs

 

(On Behalf of Department of Administration—Budget Division)

 

March 26, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Transfers office for hospital patients from department of business and industry to office of the governor. (BDR 18‑1440)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to the office of the governor; transferring the office for hospital patients from the department of business and industry to the office of the governor; creating the bureau for hospital patients within the office for consumer health assistance in the office of the governor; 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 223 of NRS is hereby amended by adding thereto a

1-2  new section to read as follows:

1-3    1.  The bureau for hospital patients is hereby created within the office

1-4  for consumer health assistance in the office of the governor.

1-5    2.  The director:

1-6    (a) Is responsible for the operation of the bureau, which must be

1-7  easily accessible to the clientele of the bureau.

1-8    (b) Shall appoint and supervise such additional employees as are

1-9  necessary to carry out the duties of the bureau. The employees of the

1-10  bureau are in the unclassified service of the state.

1-11    (c) Shall submit a written report quarterly to the governor and the

1-12  legislative committee on health care concerning the activities of the

1-13  bureau, including, without limitation, the number of complaints received

1-14  by the bureau, the number and type of disputes heard, mediated,

1-15  arbitrated or resolved through alternative means of dispute resolution by

1-16  the director and the outcome of the mediation, arbitration or alternative

1-17  means of dispute resolution.

1-18    3.  The director may, upon request made by either party, hear,

1-19  mediate, arbitrate or resolve by alternative means of dispute resolution

2-1  disputes between patients and hospitals. The director may decline to hear

2-2  a case that in his opinion is trivial, without merit or beyond the scope of

2-3  his jurisdiction. The director may hear, mediate, arbitrate or resolve

2-4  through alternative means of dispute resolution disputes regarding:

2-5    (a) The accuracy or amount of charges billed to a patient;

2-6    (b) The reasonableness of arrangements made pursuant to
paragraph (c) of subsection 1 of NRS 439B.260; and

2-7    (c) Such other matters related to the charges for care provided to a

2-8  patient as the director determines appropriate for arbitration, mediation

2-9  or other alternative means of dispute resolution.

2-10    4.  The decision of the director is a final decision for the purpose of

2-11  judicial review.

2-12    5.  Each hospital, other than federal and state hospitals, with 49 or

2-13  more licensed or approved hospital beds shall pay an annual assessment

2-14  for the support of the bureau. On or before July 15 of each year, the

2-15  director shall notify each hospital of its assessment for the fiscal year.

2-16  Payment of the assessment is due on or before September 15. Late

2-17  payments bear interest at the rate of 1 percent per month or fraction

2-18  thereof.

2-19    6.  The total amount assessed pursuant to subsection 5 for a fiscal

2-20  year must be $100,000 adjusted by the percentage change between

2-21  January 1, 1991, and January 1 of the year in which the fees are

2-22  assessed, in the Consumer Price Index (All Items) published by the

2-23  United States Department of Labor.

2-24    7.  The total amount assessed must be divided by the total number of

2-25  patient days of care provided in the previous calendar year by the

2-26  hospitals subject to the assessment. For each hospital, the assessment

2-27  must be the result of this calculation multiplied by its number of patient

2-28  days of care for the preceding calendar year.

2-29    Sec. 2.  NRS 223.500 is hereby amended to read as follows:

2-30    223.500  As used in NRS 223.500 to 223.580, inclusive, and section 1

2-31  of this act unless the context otherwise requires, the words and terms

2-32  defined in NRS 223.510, 223.520 and 223.530 have the meanings ascribed

2-33  to them in those sections.

2-34    Sec. 3.  NRS 223.540 is hereby amended to read as follows:

2-35    223.540  The provisions of NRS 223.085 do not apply to the provisions

2-36  of NRS 223.500 to 223.580, inclusive[.] , and section 1 of this act.

2-37    Sec. 4.  NRS 223.560 is hereby amended to read as follows:

2-38    223.560  [The] In addition to the duties prescribed in section 1 of this

2-39  act, the director shall:

2-40    1.  Respond to written and telephonic inquiries received from

2-41  consumers and injured employees regarding concerns and problems related

2-42  to health care and workers’ compensation;

2-43    2.  Assist consumers and injured employees in understanding their

2-44  rights and responsibilities under health care plans and policies of industrial

2-45  insurance;

2-46    3.  Identify and investigate complaints of consumers and injured

2-47  employees regarding their health care plans and policies of industrial

3-1  insurance and assist those consumers and injured employees to resolve

3-2  their complaints, including, without limitation:

3-3    (a) Referring consumers and injured employees to the appropriate

3-4  agency, department or other entity that is responsible for addressing the

3-5  specific complaint of the consumer or injured employee; and

3-6    (b) Providing counseling and assistance to consumers and injured

3-7  employees concerning health care plans and policies of industrial

3-8  insurance;

3-9    4.  Provide information to consumers and injured employees

3-10  concerning health care plans and policies of industrial insurance in this

3-11  state;

3-12    5.  Establish and maintain a system to collect and maintain information

3-13  pertaining to the written and telephonic inquiries received by the office;

3-14    6.  Take such actions as are necessary to ensure public awareness of the

3-15  existence and purpose of the services provided by the director pursuant to

3-16  this section; and

3-17    7.  In appropriate cases and pursuant to the direction of the governor,

3-18  refer a complaint or the results of an investigation to the attorney general

3-19  for further action.

3-20    Sec. 5.  NRS 439B.260 is hereby amended to read as follows:

3-21    439B.260  1.  A major hospital shall reduce or discount the total billed

3-22  charge by at least 30 percent for hospital services provided to an inpatient

3-23  who:

3-24    (a) Has no insurance or other contractual provision for the payment of

3-25  the charge by a third party;

3-26    (b) Is not eligible for coverage by a state or federal program of public

3-27  assistance that would provide for the payment of the charge; and

3-28    (c) Makes reasonable arrangements within 30 days after discharge to

3-29  pay his hospital bill.

3-30    2.  A major hospital or patient who disputes the reasonableness of

3-31  arrangements made pursuant to paragraph (c) of subsection 1 may submit

3-32  the dispute to the [office] bureau for hospital patients for resolution as

3-33  provided in [NRS 232.543.] section 1 of this act.

3-34    3.  A major hospital shall reduce or discount the total billed charge of

3-35  its outpatient pharmacy by at least 30 percent to a patient who is eligible

3-36  for Medicare.

3-37    Sec. 6.  NRS 232.543 is hereby repealed.

3-38    Sec. 7.  This act becomes effective on July 1, 2001.

 

3-39  TEXT OF REPEALED SECTION

 

3-40    232.543  Office for hospital patients: Creation within consumer

3-41   affairs division; appointment, classification, powers and duties of

3-42   administrator; annual assessment of hospitals.

3-43    1.  There is hereby created within the consumer affairs division of the

3-44   department an office for hospital patients.

4-1    2.  The administrator of the office:

4-2    (a) Is responsible for the operation of the office, which must be easily

4-3   accessible to the clientele of the office.

4-4    (b) Must be appointed by the director.

4-5    (c) Is in the unclassified service of the state.

4-6    (d) Shall appoint and supervise such additional employees as are

4-7   necessary to carry out the duties of the office. The employees of the office

4-8   are in the classified service of the state.

4-9    (e) Shall submit a written report quarterly to the department of human

4-10   resources and the legislative committee on health care concerning the

4-11   activities of the office, including, but not limited to, the number of

4-12   complaints received by the office, the number and type of disputes heard,

4-13   mediated, arbitrated or resolved through alternative means of dispute

4-14   resolution by the administrator and the outcome of the mediation,

4-15   arbitration or alternative means of dispute resolution.

4-16    3.  The administrator of the office may, upon request made by either

4-17   party, hear, mediate, arbitrate or resolve by alternative means of dispute

4-18   resolution disputes between patients and hospitals. The administrator may

4-19   decline to hear a case which in his opinion is trivial, without merit or

4-20   beyond the scope of his jurisdiction. The administrator may hear, mediate,

4-21   arbitrate or resolve through alternative means of dispute resolution

4-22   disputes regarding:

4-23    (a) The accuracy or amount of charges billed to the patient;

4-24    (b) The reasonableness of arrangements made pursuant to paragraph (c)

4-25   of subsection 1 of NRS 439B.260; and

4-26    (c) Such other matters related to the charges for care provided to a

4-27   patient as the administrator determines appropriate for arbitration,

4-28   mediation or other alternative means of dispute resolution.

4-29    4.  The decision of the administrator is a final decision for the purpose

4-30   of judicial review.

4-31    5.  Each hospital, other than federal and state hospitals, with 49 or more

4-32   licensed or approved hospital beds shall pay an annual assessment for the

4-33   support of the office. On or before July 15 of each year, the director of the

4-34   department of human resources shall notify each hospital of its assessment

4-35   for the fiscal year. Payment of the assessment is due on or before

4-36   September 15. Late payments bear interest at the rate of 1 percent per

4-37   month or fraction thereof.

4-38    6.  The total amount assessed pursuant to subsection 5 for a fiscal year

4-39   must be $100,000 adjusted by the percentage change between January 1,

4-40   1991, and January 1 of the year in which the fees are assessed, in the

4-41   Consumer Price Index (All Items) published by the United States

4-42   Department of Labor.

4-43    7.  The total amount assessed must be divided by the total number of

4-44   patient days of care provided in the previous calendar year by the hospitals

4-45   subject to the assessment. For each hospital, the assessment must be the

4-46   result of this calculation multiplied by its number of patient days of care

4-47   for the preceding calendar year.

 

4-48  H