HOUSE BILL No. 5317

 

November 13, 2003, Introduced by Reps. Richardville and Julian and referred to the Committee on Insurance.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1956 PA 218, entitled                                             

                                                                                

    "The insurance code of 1956,"                                               

                                                                                

    by amending section 3157 (MCL 500.3157).                                    

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3157.  (1) A physician, hospital, clinic, or other                     

                                                                                

2   person or institution lawfully rendering treatment to an injured            

                                                                                

3   person for an accidental bodily injury covered by personal                  

                                                                                

4   protection insurance, and a person or institution providing                 

                                                                                

5   rehabilitative occupational training following the injury, may              

                                                                                

6   charge a reasonable amount for the products, services, and                  

                                                                                

7   accommodations rendered.  The charge shall not exceed the amount            

                                                                                

8   the person or institution customarily charges for like products,            

                                                                                

9   services, and accommodations in cases not involving insurance.              

                                                                                

10      (2) All charges under subsection (1) that are billed by paper               

                                                                                

11  shall use the same claim forms and coding policies required for             

                                                                                


                                                                                

1   seeking payment under title XVIII of the social security act, 42            

                                                                                

2   USC 1395 to 1395ggg, and the same code sets required under the              

                                                                                

3   standards for electronic transactions, 45 CFR parts 160 and 162,            

                                                                                

4   adopted pursuant to sections 1320d to 1320d-8 of the health                 

                                                                                

5   insurance portability and accountability act of 1996, 42 USC                

                                                                                

6   1320d to 1320d-8.  If an insurer establishes an electronic claims           

                                                                                

7   submission process and the charges under subsection (1) are                 

                                                                                

8   billed electronically, those charges shall be billed in                     

                                                                                

9   accordance with the standards for electronic transactions, 45 CFR           

                                                                                

10  parts 160 and 162, adopted pursuant to sections 1320d to 1320d-8            

                                                                                

11  of the health insurance portability and accountability act of               

                                                                                

12  1996, 42 USC 1320d to 1320d-8, and shall be submitted using the             

                                                                                

13  same coding policies required for seeking payment under title               

                                                                                

14  XVIII of the social security act, 42 USC 1395 to 1395ggg.                   

                                                                                

15      (3) If claim forms, coding policies, or standards for                       

                                                                                

16  electronic transactions under subsection (2) are amended after              

                                                                                

17  the effective date of the amendatory act that added this                    

                                                                                

18  subsection, the commissioner shall determine whether those                  

                                                                                

19  changes shall apply to charges submitted under subsection (1).              

                                                                                

20  In making this determination, the commissioner shall consider               

                                                                                

21  whether the amendments further the goal of uniform submission of            

                                                                                

22  charges under subsection (1).                                               

                                                                                

23      (4) All charges under subsection (1) shall be billed to the                 

                                                                                

24  appropriate insurer within 60 days after each product or service            

                                                                                

25  is rendered or within 60 days after the date that the person or             

                                                                                

26  institution knew or should have known the identity of the                   

                                                                                

27  appropriate insurer, whichever period is later.                             


                                                                                

1       (5) All initial and subsequent charges billed to an insurer                 

                                                                                

2   or the injured person shall be accompanied by updated treatment             

                                                                                

3   notes indicating diagnosis and further treatment plans.  These              

                                                                                

4   updated treatment notes and plans shall be provided at no cost to           

                                                                                

5   the insurer or the injured person.                                          

                                                                                

6       (6) A physician, hospital, clinic, or other person or                       

                                                                                

7   institution lawfully rendering treatment in this state to an                

                                                                                

8   injured person for an accidental bodily injury covered by                   

                                                                                

9   personal protection insurance, and a person or institution                  

                                                                                

10  providing rehabilitative occupational training in this state                

                                                                                

11  following the injury, shall be fully licensed or registered as              

                                                                                

12  required by this state to render such treatment or training.                

                                                                                

13      (7) Charges submitted that are not in compliance with this                  

                                                                                

14  section are not payable by the insurer or the injured person and            

                                                                                

15  are not considered received or overdue under this chapter.