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HOUSE BILL No. 1436

Citations Affected: IC 27-1-3-30.

Synopsis: Review of mandated benefits. Requires the department of insurance to report to the legislative council an analysis of information filed by accident and sickness insurers and health maintenance organizations related to the effect of implementation of mandated benefits.

Effective: July 1, 2003.

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Welch, Behning

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    January 14, 2003, read first time and referred to Committee on Insurance, Corporations and Small Business.

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PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

SOURCE: IC 27-1-3-30; (03)IN1436.1.1. -->     SECTION 1. IC 27-1-3-30 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 30. (a) As used in this section, "health maintenance organization" has the meaning set forth in IC 27-13-1-19.
    (b) As used in this section, "mandated benefit" means a condition or treatment for which coverage is required under this title under a:
        (1) policy of accident and sickness insurance; or
        (2) contract with a health maintenance organization.
    (c) As used in this section, "policy of accident and sickness insurance" has the meaning set forth in IC 27-8-5-1.
    (d) An insurer that issues a policy of accident and sickness insurance and a health maintenance organization shall, not later than March 1 of each year, provide to the department information related to the implementation of a mandated benefit, including:
        (1) specific financial costs and benefits to the insurer, health maintenance organization, consumers, or other parties

resulting from implementation of the mandated benefit;
        (2) other costs and benefits to the insurer, health maintenance organization, consumers, or other parties resulting from implementation of the mandated benefit, including the effect of the mandated benefit on:
            (A) premium rates;
            (B) the number of individuals covered under a policy or contract; and
            (C) costs related to other health care services covered under a policy or contract that may be affected by the implementation of the mandated benefit;
        before and after implementation of the mandate; and
        (3) other information requested by the department.
    (e) The department shall:
        (1) analyze the information provided under subsection (d), including an analysis of:
            (A) possible reasons for changes in the information with implementation of a mandated benefit; and
            (B) other analyses requested by the legislative council; and
        (2) not later than June 30 of each year, report to the legislative council the results of the analysis.
    (f) Information provided to the department under this section is confidential. The report to the legislative council under subsection (e) may not identify an individual insurer or health maintenance organization.