South Carolina General Assembly
117th Session, 2007-2008

Download This Version in Microsoft Word format

Bill 3674

Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

Indicates New Matter

COMMITTEE REPORT

February 27, 2008

H. 3674

Introduced by Reps. Cato, Perry, J.H. Neal, Chellis, Harvin, F.N. Smith, Bedingfield, Simrill, Crawford, Leach, W.D. Smith, Alexander, Bales, Bannister, Dantzler, Edge, Gambrell, Hamilton, Haskins, Kennedy, Lowe, Mitchell, Mulvaney, Ott, Pinson, Sandifer, Scarborough, Shoopman, G.R. Smith, Spires, Stewart, Thompson, Toole, White, Young and Brady

S. Printed 2/27/08--H.

Read the first time March 8, 2007.

            

THE COMMITTEE ON

LABOR, COMMERCE AND INDUSTRY

To whom was referred a Bill (H. 3674) to amend the Code of Laws of South Carolina, 1976, by adding Chapter 19 to Title 44 so as to enact the "South Carolina Health Care Financial Recovery and Protection Act", etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass with amendment:

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION    1.    Title 38, Chapter 59 of the 1976 Code is amended by adding:

"Article 2

South Carolina Health Care Financial Recovery and Protection Act

Section 38-59-200.    This article may be cited as the 'South Carolina Health Care Financial Recovery and Protection Act'.

Section 38-59-210.    As used in this article:

(1)    'Insurer' means an insurance company, a health maintenance organization, and any other entity providing health insurance coverage, as defined in Section 38-71-670(6), which is licensed to engage in the business of insurance in this State and which is subject to state insurance regulation.

(2)    'Health care services' means services included in furnishing an individual medical care or hospitalization, or services incident to the furnishing of medical care or hospitalization, and other services to prevent, alleviate, cure, or heal human illness, injury, or physical disability.

(3)    'Health maintenance organization' means an organization as defined in Section 38-33-20(8).

(4)    'Health insurance plan' means a health insurance policy or health benefit plan offered by a health insurer or a health maintenance organization that provides health insurance coverage, as defined in Section 38-71-670(6).

(5)    'Physician' means a doctor of medicine or doctor of osteopathic medicine licensed by the South Carolina Board of Medical Examiners.

(6)    'Provider' means a physician, hospital, or other person properly licensed, certified, or permitted, where required, to furnish health care services.

(7)    'Participating Provider' means a provider who provides covered health care services to an insured or a member pursuant to a contract with an insurer or health insurance plan.

(8)    'Clean claim' means an eligible electronic or paper claim for reimbursement that:

(a)    is received by the insurer within one hundred twenty business days of the date the health care services at issue were performed;

(b)(i)    when submitted via paper has all the elements of the standardized CMS 1500 or UB 04 claim form, or the successor of each as either may be amended from time to time; or

(ii)    when submitted via an electronic transaction, uses only permitted standard code sets and has all the elements of the standard electronic formats as required by the Health Insurance Portability and Accountability Act of 1996 and other federal and state regulatory authority;

(c)    is for health care services covered by the health insurance plan and rendered to an insured person by a provider eligible for reimbursement under the health insurance plan;

(d)    has any corresponding referral that may be required for the applicable claim;

(e)    is a claim for which the insurer is the primary payor, or for which the insurer's responsibility as a secondary payor has been clearly established;

(f)    has no material defect, error or impropriety that would affect the adjudication of the claim;

(g)    includes all required substantiating documentation or coding;

(h)    is not subject to any particular circumstance that the insurer reasonably believes, subject to review by the Department of Insurance, would prevent accurate or timely payment from being made on the claim under the terms of the health insurance plan, the participating provider agreement or the insurer's published filing requirements; and

(i)     is under a health insurance plan for which the insurer has been timely paid all applicable premiums.

(9)    'Force majeure' means any act of God, governmental act, act of terrorism, war, fire, flood, earthquake, hurricane or other natural disaster, explosion or civil commotion.

Section 38-59-220.    (A)    Within six months of the effective date of this article, each insurer, upon written request from a physician who is also a participating provider will provide, by CD-ROM, or electronically at the insurer's option, the fee schedule that is contracted with that physician for up to 100 CPT(r) Codes customarily and routinely used by the specialty type of such physician. Each physician may request from an insurer an updated fee schedule no more than two times annually.

(B)    A physician requesting a fee schedule pursuant to subsection (A) may elect to receive a hard copy of the fee schedule in lieu of the foregoing; however, the insurer may charge the physician a reasonable fee to cover the increased administrative costs of providing the hard copy.

(C)    The physician shall keep all fee schedule information provided pursuant to this section confidential. The physician shall disclose fee schedule information only to those employees of the physician who have a reasonable need to access this information in order to perform their duties for the physician and who have been placed under an obligation to keep this information confidential. Any failure of a physician's office to abide by this subsection shall result in the physician's forfeiture of the right to receive fee schedules pursuant to this section and at the option of the insurer may constitute a breach of contract by the physician.

(D)    Nothing in this section prohibits an insurer from basing actual compensation to the physician on the insurer's maximum allowable amount or other contract adjustments, including those stated in the patient's plan of benefits, or both.

Section 38-59-230(A).    An insurer shall direct the issuance of a check or an electronic funds transfer in payment for a clean claim that is submitted via paper within forty business days following the later of the insurer's receipt of the claim or the date on which the insurer is in receipt of all information needed and in a format required for the claim to constitute a clean claim and is in receipt of all documentation which may be requested by an insurer which is reasonably needed by the insurer:

(1)    to determine that such claim does not contain any material defect, error or impropriety; or

(2)    to make a payment determination.

(B)    An insurer shall direct the issuance of a check or an electronic funds transfer in payment for a clean claim that is submitted electronically within twenty business days following the later of the insurer's receipt of the claim or the date on which the insurer is in receipt of all information needed and in a format required for the claim to constitute a clean claim and is in receipt of all documentation which may be requested by an insurer which is reasonably needed by the insurer:

(1)    to determine that such claim does not contain any material defect, error or impropriety; or

(2)    to make a payment determination.

(C)    An insurer shall affix to or on paper claims, or otherwise maintain a system for determining, the date claims are received by the insurer. An insurer shall send an electronic acknowledgement of claims submitted electronically either to the provider or the provider's designated vendor for the exchange of electronic health care transactions. The acknowledgement must identify the date claims are received by the insurer. If an insurer determines that there is any defect, error, or impropriety in a claim that prevents the claim from entering the insurer's adjudication system, the insurer shall provide notice of the defect or error either to the provider or the provider's designated vendor for the exchange of electronic health care transactions within twenty business days of the submission of the claim if it was submitted electronically or within forty business days of the claim if it was submitted via paper. Nothing contained in this section is intended or may be construed to alter an insurer's ability to request clinical information reasonably necessary for the proper adjudication of the claim or for the purpose of investigating fraudulent or abusive billing practices.

Section 38-59-240.    (A)    For each clean claim with respect to which an insurer has directed the issuance of a check or the electronic funds transfer later than the applicable period specified in Section 38-59-230, the insurer shall pay interest in the same manner and at the same rate set forth in Section 34-31-20 (A) on the balance due on each claim computed from the twenty-first or the forty-first business day, as appropriate based on the circumstances described in Section 38-59-230, up to the date on which the insurer directs the issuance of the check or the electronic funds transfer for payment of the clean claim. At the insurer's election, interest paid pursuant to this section must be included in the claim payment check or wire transfer or must be remitted periodically, but at least quarterly, in a separate check or wire transfer along with a report detailing the claims for which interest is being paid.

(B)    No insurer has an obligation to make any interest payment pursuant to subsection (A):

(1)    with respect to any clean claim if within twenty business days of the submission of an original claim submitted electronically or within forty business days of an original claim submitted via paper, a duplicate claim is submitted while the adjudication of the original claim is still in process;

(2)    to any participating provider who balance bills a plan member in violation of the participating provider's agreement with the insurer;

(3)    with respect to any time period during which a force majeure prevents the adjudication of claims; or

(4)    when payment is made to a plan member.

Section 38-59-250.    (A)(1)    An insurer shall initiate any overpayment recovery efforts by sending a written notice to the provider at least thirty business days prior to engaging in the overpayment recovery efforts, other than for recovery of duplicate payments or other similar adjustments relating to:

(a)    claims where a provider has received payment for the same services from another payor whose obligation is primary; or

(b)    timing or sequence of claims for the same insured that are received by the insurer out of chronological order in which the services were performed.

(2)    The written notice required by this section shall include:

(a)    the patient's name;

(b)    the service date;

(c)    the payment amount received by the provider; and

(d)    a reasonably specific explanation of the change in payment.

(B)    An insurer may not initiate overpayment recovery efforts more than eighteen months after the initial payment was received by the provider; however, this time limit does not apply to the initiation of overpayment recovery efforts:

(1)    based upon a reasonable belief of fraud or other intentional misconduct;

(2)    required by a self-insured plan; or

(3)    required by a state or federal government program.

Section 38-59-260.    The requirements of this article do not apply to claims that are processed under any national account delivery program in which an insurer participates but is not solely responsible for the processing and payment of the claims or claims for services under a program offered or sponsored by any state or federal governmental entity other than in its capacity as an employer, or both.

Section 38-59-270.    The Department of Insurance shall enforce of the provisions of this article. If, after due notice and hearing, the Director of the Department of Insurance or his designee determines that an insurer has failed to meet the obligations imposed by this article, he shall order the insurer to cease and desist from the practice, to correct any errant business practices and to make any payments due, including applicable interest. If an insurer does not comply with the order within thirty days, the director or his designee may then impose a penalty as provided in Section 38-2-10. Nothing in this article may be construed to create a private right of action to enforce the specific provisions of this article."

SECTION    2.    Section 38-71-230 (B) and (C) of the 1976 Code are amended to read:

"(B)    An organization providing payment or reimbursement for diagnosis and treatment of a condition or a complaint by a licensed physician in South Carolina must accept the standardized HCFA CMS 1500 claim form, or its successor as it may be amended from time to time. An organization providing payment or reimbursement for diagnosis and treatment of a condition or a complaint by a hospital licensed in South Carolina shall accept the standardized UB 82 04 claim form, or its successor as it may be amended from time to time.

(C)    The HCFA CMS 1500 or the UB 82 04 claim form or the successor of each or as either may be amended from time to time may be altered only with a customized logo which must appear in the top portion of the claim form one inch vertical from the top."

SECTION    3.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION    4.    This act takes effect one year after approval by the Governor./

Renumber sections to conform.

Amend title to conform.

HARRY F. CATO for Committee.

            

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 19 TO TITLE 44 SO AS TO ENACT THE "SOUTH CAROLINA HEALTH CARE FINANCIAL RECOVERY AND PROTECTION ACT", TO ESTABLISH PROCEDURES FOR A HEALTH INSURER TO PAY OR REIMBURSE A PROVIDER FOR HEALTH CARE SERVICES FURNISHED BY THE PROVIDER, INCLUDING, AMONG OTHER THINGS, TIMEFRAMES WITHIN WHICH A CLAIM FOR SERVICES RENDERED, WHICH HAS NOT MATERIAL DEFECT OR IMPROPRIETY, MUST BE PAID BY AN INSURER, CONDITIONS WHICH CONSTITUTE A CONTESTED CLAIM, INTEREST RATES AND OTHER FEES THAT MAY BE RECOVERED FOR CLAIMS NOT PAID OR PROPERLY DISPUTED WITHIN THE TIMEFRAMES PROVIDED, THE APPLICABILITY OF UNFAIR TRADE PRACTICES, TIMEFRAMES WITHIN WHICH AN INSURER SEEKING A REFUND OF A PAYMENT MADE FOR HEALTH CARE SERVICES RENDERED MUST REQUEST THE REFUND, AND PROVISIONS LIMITING THE NUMBER OF SERVICES AND SUPPLIES REQUIRING PREAUTHORIZATION BY AN INSURER; AND TO AMEND SECTION 38-71-230, RELATING TO WRITTEN NOTICE WHICH MUST BE PROVIDED BY INSURERS OF CLAIM POLICIES AND PROCEDURES AND THE ADOPTION OF STANDARDIZED CLAIM FORMS, SO AS TO REVISE CERTAIN CLAIM FORM NUMBERS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.    Title 44 of the 1976 Code is amended by adding:

"CHAPTER 19

South Carolina Health Care Financial Recovery and Protection Act

Section 44-19-10.    This chapter may be cited as the 'South Carolina Health Care Financial Recovery and Protection Act'.

Section 44-19-20.    The provisions of this chapter apply to all insurers, insurance companies, provider networks, provider organizations, managed care organizations, managed care plans, health maintenance organizations, third party payors, payment administrators, and other agents, contractors, and subcontractors in the administration of programs of health, hospital, dental, and medical insurance. The provisions of this chapter are remedial and must be liberally construed to effectuate their purpose and apply in addition to other remedies available at law or equity.

Section 44-19-30.    As used in this chapter:

(1)    'Accident and health insurance' means insurance of human beings against death or personal injury by accident and insurance of human beings against sickness, ailment, and any type of physical disability resulting from accident or disease, and prepaid dental service, including coverages required by the workers' compensation law of this State, under the terms of any hospital, medical, dental policy or certificate, major medical expense insurance, hospital or medical service plan, contract, or health maintenance organization subscriber contract which provides benefits consisting of medical care provided directly, through insurance or reimbursement, or otherwise, and including items and services paid for as medical care or health care services. 'Accident and health insurance' includes the entire contract between the insurer and the insured, including the policy, riders, endorsements, and the application, if attached.

(2)    'Clean claim' means an eligible electronic or paper claim for reimbursement submitted as required on a standardized CMS 1500 or UB 92 claim form, or the successor of each or as either may be amended from time to time, or other forms or formats as may be required under the Health Insurance Portability and Accountability Act of 1996, for health care services rendered by an eligible provider to an insured person that has no material defect or impropriety including, but not limited to, any lack of required substantiating documentation or coding, or particular circumstance requiring special treatment that prevents timely payment from being made on the claim under the terms of the policy or the insurer's published filing requirements.

(3)    'Health care services' means services included in furnishing an individual medical or dental care or hospitalization, or services incident to the furnishing of medical or dental care or hospitalization, and other services to prevent, alleviate, cure, or heal human illness, injury, or physical disability.

(4)    'Health maintenance organization' means an entity, group, or person who undertakes to provide or arrange for basic health care services to enrollees in exchange for a fixed prepaid premium.

(5)    'Insured' means an individual resident of this State who is eligible to receive benefits from an insurer.

(6)    'Insurer' includes an entity, corporation, fraternal organization, burial association, health maintenance organization, managed care organization, managed care plan, other association, partnership, society, order, individual, or aggregation of individuals engaging or proposing or attempting to engage as principals in any kind of insurance or surety business, including the exchanging of reciprocal or interinsurance contracts between individuals, partnerships, and corporations. For purposes of this chapter, an insurer is an entity, person, or group providing health insurance or reimbursement for health care services whether for profit or otherwise, which is licensed to engage in the business of insurance in this State and which is subject to state insurance regulation, including multiple employer self-insured health plans licensed pursuant to Chapter 41 of Title 38.

(7)    'Managed care organization' means a licensed insurance company, a hospital or medical services plan contract, a health maintenance organization, or any other entity which is subject to state insurance regulation and which operates a managed care plan.

(8)    'Managed care plan' means a plan operated by a managed care organization which provides for the financing and delivery of health care and treatment services to individuals enrolled in the plan through its own employed health care providers or contracting with selected specific providers that conform to explicit selection standards, or both. A managed care plan also customarily has a formal organizational structure for continual quality assurance, a certified utilization review program, dispute resolution, and financial incentives for individual enrollees to use the plan's participating providers and procedures.

(9)    'Participating provider agreement' means a contract, agreement, arrangement, or other instrument executed between a provider and insurer that requires or permits the provider to furnish or arrange for health care services to the insurer or the insurer's insured on a fee for service, capitation, or other contractually specified payment method.

(10)    'Provider' means a physician, dentist, hospital, or other person properly licensed, certified, or permitted, where required, to furnish health care services.

Section 44-19-40.    (A)    All correspondence, both paper and electronic, between insurers, insureds, and providers regarding claims and matters of reimbursement must bear the date of its origination at the time it is transmitted or delivered. Correspondence not dated in accordance with this subsection has no legal effect or evidentiary value for the purposes of enforcing or defending against enforcement of this chapter.

(B)    An insurer providing payment or reimbursement for health care services furnished by a provider in this State shall accept the standardized CMS 1500 claim form, or its successor or as it may be amended from time to time. An insurer providing payment or reimbursement for health care services furnished by a hospital licensed in this State shall accept the standardized UB 92 claim form, or its successor or as it may be amended from time to time. The CMS 1500 or the UB 92 claim form, or the successor of each, or as either may be amended from time to time, may be altered only with a customized logo which must appear in the top portion of the claim form one inch vertical from the top.

Section 44-19-50.    (A)    A clean claim submitted electronically is due and payable within fifteen days from the date received by the insurer.

(B)    A clean claim submitted on paper is due and payable within thirty days from the date received by the insurer.

(C)    An insurer shall, within fifteen calendar days after receipt of an electronic claim, or within thirty calendar days after receipt of a paper claim, that is not a clean claim, mail to the person claiming payment or benefits a letter or notice, dated as specified in Section 44-19-40, which disputes the claim and states the reasons the insurer may have for failing to pay the claim, either in whole or in part, and which also gives the person notified a written itemization of any documents or other information needed to process the claim or any portions of the claim which are being disputed. Failure to provide this notice is deemed a waiver as to any defect in the claim, and the claim must be processed, paid, and enforced as if it were a clean claim.

(D)    Any portion of a disputed claim that meets the criteria established for a clean claim must be paid in accordance with the applicable time limits as set forth in this section.

(E)    A resubmitted claim or portion of a resubmitted claim that was not a clean claim when originally filed and was properly disputed by the insurer must be processed upon resubmission in strict accordance with the time limits in the same manner as specified in this section for original clean claims.

(F)    An insurer that pays or reimburses health care providers through capitation methods shall make or transmit payments to providers within fifteen calendar days from the date the provider becomes legally responsible for furnishing health care services to the insured, or within fifteen calendar days from the date health care services are rendered, whichever is earlier.

(G)    For purposes of this chapter, a claim, or portion of a claim, is reasonably contested where the insurer has not received the completed claim and all information necessary to determine payer liability for the claim, or has not been granted reasonable access to information concerning provider services. Information necessary to determine payer liability for the claim includes, but is not limited to, reports of investigations concerning fraud and misrepresentation, necessary consents, releases, and assignments, a claim on appeal, or other information necessary for the plan to determine the medical necessity for the health care services provided.

Section 44-19-60.    (A)    A clean claim not paid or properly disputed and capitation payments not paid within the time limits set forth in Section 44-19-50 are considered overdue and automatically accrue interest in the same manner and at the same rate set forth in Section 34-31-20 for money decrees and court judgments. Interest continues to accrue until payment in full is mailed or otherwise transmitted and becomes a just debt due and immediately payable upon accrual.

(B)    Providers, insureds, and their agents or assignees may recover, in any court of competent jurisdiction, the amount of overdue claims plus reasonable court costs, attorney's fees, and additional compensatory damages as the court may award in its discretion for electronic claims or portions of electronic claims and paper claims or portions of paper claims that remain unpaid after ninety calendar days from receipt by the insurer or receipt of resubmission.

(C)    Providers, insureds, and their agents or assignees may recover, in any court of competent jurisdiction, the amount of overdue capitation payments plus reasonable court costs, attorney's fees, and additional compensatory damages as the court may award for payments or portions of payments that remain unpaid after thirty calendar days from the date the provider becomes legally responsible for furnishing health care services to the insured, or thirty calendar days after the date health care services were rendered, whichever is earlier.

(D)    The civil remedies in subsections (A) and (B) are in addition to any administrative and criminal penalties or any other remedies provided by law. The remedies in subsections (A) and (B) do not preclude administrative or criminal proceedings from taking place at any time. A violation by an insurer of any provision of this chapter constitutes an improper claim practice punishable under the insurance laws of this State and is an unfair trade practice actionable under both Section 38-57-30 and Chapter 5, Title 39. However, no portion of this section may be construed to prohibit parties to a provider contract from agreeing to submit their disputes to mediation or arbitration.

(E)    It is unlawful to terminate or deselect a provider in retaliation for attempts to enforce this chapter or the insurance law of this State, and any single instance of retaliatory termination or deselection is an unfair trade practice actionable under both Section 38-57-30 and Chapter 5 of Title 39.

Section 44-19-70.    (A)    If a participating provider agreement offered by an insurer to a provider contains an all-products clause, the agreement also must contain a clear, conspicuous opt-out provision allowing the provider to refuse participation in any product, service, plan, or provider network owned, operated, administered, or participated in by the insurer at the time the contract is executed, or to terminate, suspend, or discontinue participation in any product, service, plan, or provider network owned, operated, administered, or participated in by that insurer, without terminating the entire contract or affecting the provider's status or eligibility as a provider in any existing or new product, service, plan, or provider network owned, operated, administered, or participated in by that insurer.

(B)    It is unlawful in this State for an insurer to offer a contract to a provider without the opt-out provisions required pursuant to subsection (A). Such a contract is unlawful product tying arrangements in restraint of trade, enforceable and actionable under the antitrust laws. A single instance of an insurer, agent, or broker offering such a contract to a provider after June 30, 2007, constitutes an unfair method of competition and an unfair or deceptive act or practice in the conduct of trade or commerce. A pattern of conduct need not be demonstrated. A participating provider agreement existing in effect on July 1, 2007, that contains an all-products clause is, and must be, amended to conform to the requirements of this chapter.

(C)    It is unlawful in this State for an insurer to offer a contract containing or incorporating an exclusive dealing arrangement or a most favored nation clause to any provider. Such a contract is an unlawful agreement in restraint of trade. A single instance of an insurer, agent, or broker offering such a contract to a provider after June 30, 2007, constitutes an unfair method of competition and an unfair or deceptive act or practice in the conduct of trade or commerce. A pattern of conduct need not be demonstrated. A participating provider agreement existing in effect on July 1, 2007, that contains an all products clause is, and must be, amended to conform to the requirements of this chapter.

(D)    An insurer may not unfairly discriminate, by payment scale differential, methodology, or otherwise, against providers who initially refuse or subsequently terminate participation in any product, service, plan, or provider network owned, operated, administered, or participated in by the insurer. However, nothing in this section may be construed to prevent providers and insurers from otherwise lawfully negotiating and contracting for reimbursement rates or methodologies in individual products, services, plans, or provider networks owned, operated, administered, or participated in by that insurer.

Section 44-19-80.    (A)    An insurer offering health insurance in this State may have no more than twelve months after making payment to a provider for a claim or bill for medical services rendered to request a refund or partial refund of the payment, unless fraudulent or materially incorrect information was provided at the time of the submission of the claim. If an insurer requests a refund or a partial refund, the insurer shall provide written notice to the provider of the reasons for the refund or partial refund request, identify each previously paid claim for which a refund or partial refund is sought and describe the reason that the refund or partial refund is being sought. An insurer may not attempt to recover the requested refund or partial refund by withholding or reducing another payment that is owed by the insurer.

Section 44-19-90.    (A)    An insurer shall limit the number of services and supplies requiring precertification or preauthorization, and shall standardize the services and supplies for which precertification is required within each market, line of business, or product.

(B)    Subsection (A) does not make it unlawful for an insurer to require precertification or preauthorization for services and supplies. However, an insurer's precertification or preauthorization process must be based on response to market conditions, medical technology, or utilization patterns, or a combination of these, and such process must not be based purely on financial considerations.

(C)    An insurer's precertification or preauthorization of services or supplies must guarantee payment for such services or supplies.

(D)    An insurer shall furnish, upon request, a current list of services and supplies requiring precertification or preauthorization.

(E)    An insurer shall post a current list of services and supplies requiring precertification or preauthorization to the insurer's web site."

SECTION    2.    Section 38-71-230 (B) and (C) of the 1976 Code are amended to read:

"(B)    An organization providing payment or reimbursement for diagnosis and treatment of a condition or a complaint by a licensed physician in South Carolina must accept the standardized HCFA CMS 1500 claim form, or its successor as it may be amended from time to time. An organization providing payment or reimbursement for diagnosis and treatment of a condition or a complaint by a hospital licensed in South Carolina shall accept the standardized UB 82 92 claim form, or its successor as it may be amended from time to time.

(C)    The HCFA CMS 1500 or the UB 82 92 claim form or the successor of each or as either may be amended from time to time may be altered only with a customized logo which must appear in the top portion of the claim form one inch vertical from the top."

SECTION    3.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

SECTION    4.    This act takes effect June 30, 2007.

----XX----

This web page was last updated on Monday, June 22, 2009 at 2:42 P.M.