HOUSE BILL No. 5367

 

December 10, 2003, Introduced by Rep. DeRoche and referred to the Committee on Insurance.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1956 PA 218, entitled                                             

                                                                                

    "The insurance code of 1956,"                                               

                                                                                

    (MCL 500.100 to 500.8302) by adding chapter 21A.                            

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1                       CHAPTER 21A CERTIFIED CARE                              

                                                                                

2       Sec. 2151.  As used in this chapter, "certified care" means                 

                                                                                

3   all monitoring and adjudication of an injured person's care,                

                                                                                

4   including, but not limited to, all of the following:                        

                                                                                

5       (a) First notice of loss/initial intake.                                    

                                                                                

6       (b) Preauthorization.                                                       

                                                                                

7       (c) Treatment plan review.                                                  

                                                                                

8       (d) Telephonic case management.                                             

                                                                                

9       (e) Field case management.                                                  

                                                                                

10      (f) Medical bill review.                                                    

                                                                                

11      (g) Utilization review.                                                     

                                                                                


                                                                                

1       (h) Preferred provider selection and accreditation.                         

                                                                                

2       Sec. 2153.  This chapter applies to all automobile insurance                

                                                                                

3   whether written on an individual, group, franchise, blanket                 

                                                                                

4   policy, or similar basis.                                                   

                                                                                

5       Sec. 2155.  A certified care option for allowable expenses                  

                                                                                

6   consisting of all reasonable charges incurred for reasonably                

                                                                                

7   necessary products, services, and accommodations for an injured             

                                                                                

8   person's care, recovery, or rehabilitation under section 3107 is            

                                                                                

9   subject to all of the following:                                            

                                                                                

10      (a) Shall be uniformly offered to all of an automobile                      

                                                                                

11  insurer's insureds.                                                         

                                                                                

12      (b) Reflects reasonably anticipated reductions in losses or                 

                                                                                

13  expenses.                                                                   

                                                                                

14      (c) Shall only apply to nonurgent care otherwise covered                    

                                                                                

15  under the automobile policy and shall not apply to any injury or            

                                                                                

16  severe condition that under reasonable standards of medical                 

                                                                                

17  practice would be diagnosed and treated within a 24-hour period             

                                                                                

18  and if left untreated could rapidly become a crisis or emergency            

                                                                                

19  situation.                                                                  

                                                                                

20      (d) Shall only apply to a policy that is not coordinated with               

                                                                                

21  other health and accident coverage pursuant to section 3109a.               

                                                                                

22      (e) Is monitored through the precertification process,                      

                                                                                

23  concurrent case management, and retrospective medical bill review           

                                                                                

24  by a third party organization or by the insurer.                            

                                                                                

25      (f) Provides that all disputes related to medical services                  

                                                                                

26  rendered under a certified care program will be administered by a           

                                                                                

27  third party dispute resolution service that meets the standards             


                                                                                

1   and procedures for dispute resolution established by the                    

                                                                                

2   utilization review accreditation council and approved by the                

                                                                                

3   commissioner as providing timely and objective response to appeal           

                                                                                

4   requests.                                                                   

                                                                                

5       Sec. 2157.  Certified care applies only to the insured who                  

                                                                                

6   selects in writing the certified care option, his or her spouse,            

                                                                                

7   and a relative of either domiciled in the same household, who is            

                                                                                

8   claiming personal protection insurance benefits under the policy            

                                                                                

9   with the certified care option.                                             

                                                                                

10      Sec. 2159.  Certified care may be used on all medical                       

                                                                                

11  services provided to an injured insured after the selection of a            

                                                                                

12  certified care option, regardless of the date of the original               

                                                                                

13  claim.                                                                      

                                                                                

14      Sec. 2161.  A third party organization under section 2155(e)                

                                                                                

15  shall have prior experience with medical services                           

                                                                                

16  precertification, concurrent case management, and medical bill              

                                                                                

17  review and shall have full accreditation by the utilization                 

                                                                                

18  review accreditation council.  An insurer may conduct its own               

                                                                                

19  medical service precertification, concurrent case management, and           

                                                                                

20  medical bill review.