Attorneys for Petitioner Deborah Farrell: COLORADO SUPREME COURT Colorado State Judicial Building Two East 14th Avenue Denver, CO 80203

Transcription

1 COLORADO SUPREME COURT Colorado State Judicial Building Two East 14th Avenue Denver, CO DATE FILED: February 28, :21 PM Original Proceeding Pursuant to C.R.S (2) Appeal from the Colorado Ballot Title Setting Board In the Matter of the Title, Ballot Title, and Submission Clause for Proposed Initiative #119 Petitioner: Deborah Farrell COURT USE ONLY Case No.: v. Respondents: David Silverstein and Andrew Graham and Colorado Ballot Title Setting Board: Suzanne Staiert, Jason Gelender, and Glenn Roper Attorneys for Petitioner Deborah Farrell: Thomas M. Rogers III, #28809 Dietrich C. Hoefner, #46304 LEWIS ROCA ROTHGERBER CHRISTIE LLP 1200 Seventeenth Street, Suite 3000 Denver, CO Phone: Fax: PETITION FOR REVIEW OF FINAL ACTION OF TITLE SETTING BOARD CONCERNING PROPOSED INITIATIVE #119 ( TRANSPARENCY IN HEALTH CARE INSURANCE CARRIER BILLING ) _3

2 Petitioner Deborah Farrell, a registered elector of the State of Colorado, pursuant to C.R.S (2), respectfully petitions this Court to review the actions of the Ballot Title Setting Board with respect to the setting of the title and submission clause for Proposed Initiative #119 ( Transparency in Health Care Insurance Carrier Billing ), and states: STATEMENT OF THE CASE I. Procedural History of Proposed Initiative #119 On January 11, 2018, Proponents David Silverstein and Andrew Graham filed Proposed Initiative #119 (the Initiative ) with the Office of Legislative Council. The Initiative is one of a series of four initiatives filed by Respondents on which Petitioner is seeking review (initiatives #119, #121, #122, and #123). Each of the four initiatives is related. Initiative #119 would regulate health insurance carriers, Initiative #122 would regulate healthcare providers, and Initiatives #121 and #123 are omnibus measures that would each regulate health insurance carriers, pharmacies, and healthcare providers. 1 The review and comment meeting for Initiative #119 was held under C.R.S (1) on January 23, Proponents submitted the original, amended, 1 Initiatives #121 and #123, with limited exceptions, include the provisions of Initiatives #119 and #122. As such, judicial economy may best be served by consolidating review of these four initiatives _3 2

3 and final versions of the Initiative to the Secretary of State for title setting on January 26, On February 7, 2018, the Title Board set the Initiative s title. On February 14, 2018, Petitioner timely filed a Motion for Rehearing on the basis that the Title Board lacked jurisdiction to set title because amendments to the Initiative made after the review and comment meeting violate C.R.S (2), the Initiative violates the single subject requirement of article V, section 1(5.5) of the Colorado Constitution and C.R.S , and further that the title does not fairly express the true meaning and intent of the proposed measure. The Title Board held a rehearing on February 21, 2018 and denied the Petitioner s motion except to the extent that the Board made changes to the title. II. Jurisdiction Under C.R.S (2), Petitioner is entitled to Colorado Supreme Court review of the Title Board s actions in setting the Initiative s title. Petitioner filed a timely Motion for Rehearing, see C.R.S (1), and subsequently filed this Petition for Review within seven days from the date of the rehearing, see C.R.S (2). As required by C.R.S (2), attached to this Petition are certified copies of: (1) the Proponents original, amended, and final drafts of the Initiative; (2) the title set by the Title Board on February 7, 2018; (3) the Motion for Rehearing filed by the Petitioner; and (4) the Title Board s rulings _3 3

4 on the Motion for Rehearing as reflected by the title and submission clause set by the Board after rehearing on February 21, Petitioner respectfully submits that the Title Board erred in denying her motion for rehearing on the issues set forth below. For these reasons, this matter is properly before the Colorado Supreme Court. GROUNDS FOR APPEAL The following is an advisory list of the issues to be addressed in the Petitioner s brief: (1) The Initiative violates the single subject requirement of article V, section 1(5.5) of the Colorado Constitution and C.R.S While the Initiative purports to address price transparency in healthcare billing, it also requires insurance carriers to make broad disclosures regarding all forms of remuneration derived from rebates or other forms of incentive received as the result of healthcare services or purchases of prescription drugs or medical devices. (2) The title violates C.R.S (3)(b) because it is misleading and does not reflect a central feature of the Initiative; specifically, the fact that although the Initiative purports to regulate healthcare providers, _3 4

5 the Initiative also regulates professionals such as social workers that are not commonly regarded to be healthcare providers. PRAYER FOR RELIEF Petitioner respectfully requests that the Court reverse the Title Board s denial of Petitioner s Motion for Rehearing and direct the Title Board to decline to set a title on the measure for failure to meet the single-subject requirement, or alternatively, to set a title that reflects the true intent and meaning of the Initiative. Respectfully submitted this 28th day of February, s/ Thomas M. Rogers III Thomas M. Rogers III Dietrich C. Hoefner LEWIS ROCA ROTHGERBER CHRISTIE LLP Attorneys for Petitioner Deborah Farrell _3 5

6 CERTIFICATE OF SERVICE I hereby certify that on February 28, 2018, I electronically filed a true and correct copy of the foregoing PETITION FOR REVIEW OF FINAL ACTION OF TITLE SETTING BOARD CONCERNING PROPOSED INITIATIVE #119 ( TRANSPARENCY IN HEALTH CARE INSURANCE CARRIER BILLING ) with the clerk of Court via the Colorado Courts E-Filing system and served the same via and via US Mail on the following: Martha Tierney 225 East 16th Avenue, Suite 350 Denver, CO mtierney@tierneylawrence.com Attorney for Respondents David Silverstein and Andrew Graham Matthew Grove, Assistant Attorney General Office of the Colorado Attorney General Ralph L. Carr Colorado Judicial Center 1300 Broadway, 6th Floor Denver, CO matt.grove@coag.gov Attorney for the Title Board s/ Robin Newcomer Of: Lewis Roca Rothgerber Christie LLP _3 6

7 DATE FILED: February 28, :21 PM DEPARTMENT OF STATE CERTIFICATE I, WAYNE W. WILLIAMS, Secretary of State of the State of Colorado, do hereby certify that: the attached are true and exact copies of the filed text, initial fiscal impact statement, abstract, motion for rehearing, and the rulings thereon of the Title Board for Proposed Initiative " #119 'Transparency in Health Care Insurance Carrier Billing'" IN TESTIMONY WHEREOF I have unto set my hand.. and affixed the Great Seal of the State of Colorado, at the City of Denver this 26 th day of February, 2018.

8 Initiative #119: Healthcare Insurance Carrier Billing Transparency - Final Draft Be it enacted by the people ofthe state of Colorado: SECTION 1. In Colorado Revised Statutes, add part 3 to article 20 of title 6 as follows: JAN ,.. _.! _ Colorado Secretary of Stats Purpose. A DECLARATION FROM THE PEOPLE OF COLORADO. (1) THE PEOPLE OF COLORADO ENACT THIS LAW REGARDING PRICE TRANSPARENCY IN HEALTHCARE BILLING TO ESTABLISH COMMON SENSE, ORDER, AND INTEGRITY IN COLORADO'S HEALTHCARE SYSTEM AND TO SET AN EXAMPLE FOR THE REST OF OUR NATION. THE PEOPLE BELIEVE TRANSPARENCY, IN ALL ASPECTS OF HEALTHCARE BILLING, IS OF PARAMOUNT IMPORTANCE AND THAT IT WILL NOT, IN ANY WAY, IMPEDE COMPETITION, BUT RATHER, WILL IMPROVE COMPETITION AND EMPOWER PATIENTS TO BECOME MORE ACTIVE PARTICIPANTS IN THEIR OWN CARE. (2) THE PEOPLE UNDERSTAND THAT SOME IN THE HEALTHCARE INDUSTRY MAY FIND PROVISIONS OF THIS LAW ONEROUS. THE PEOPLE, HOWEVER, BELIEVE THAT THE LACK OF TRANSPARENCY THAT IS THE NORM AT THE TIME OF THIS LAW'S ENACTMENT IS FAR MORE ONEROUS AND DANGEROUS, AND THUS, FIND THIS LAW ABSOLUTELY NECESSARY IN ALL OF ITS DETAIL. (3) THE PURPOSE OF TRANSPARENCY IN HEALTHCARE BILLING IS NOT MERELY TO PROVIDE PATIENTS WITH THE ABILITY TO SHOP FOR HEALTHCARE SERVICES ON THE BASIS OF PRICE. IN FACT, SHOPPING AROUND IS ONLY A SMALL ASPECT OF TRANSPARENCY IN HEALTHCARE BILLING, BECAUSE SHOPPING FOR SERVICES IS NOT ALWAYS PRACTICAL WHEN HEALTHCARE SERVICE IS NEEDED. THE PURPOSE OF TRANSPARENCY IN HEALTHCARE BILLING, AND OF THIS LAW, IS TO ENSURE THAT COLORADO'S HEALTHCARE SYSTEM BEGINS TO FUNCTION IN A MANNER WHERE PRICES ARE AVAILABLE TO ANYONE AND EVERYONE AT ALL TIMES. THE PEOPLE OF COLORADO BELIEVE THAT IF THERE IS TRANSPARENCY IN HEALTHCARE BILLING, PRICES WILL BE FAIR AND WELL BE DETERMINED BY THE MARKETPLACE, WHETHER OR NOT THEY PERSONALLY REVIEW ALL PRICES IN ADVANCE OF HEALTHCARE SERVICES. SECTION 2. In Colorado Revised Statutes, add part 3 to article 20 of title 6 as follows: PART 3 HEALTHCARE INSURANCE CARRIER BILLING TRANSPARENCY Short title. THE SHORT TITLE OF THIS PART 3 IS THE "HEALTHCARE INSURANCE CARRIER BILLING TRANSPARENCY ACT" Definitions. As USED IN THIS PART 3, UNLESS THE CONTEXT OTHERWISE REQUIRES: (1) "CMS" MEANS THE CENTERS FOR MEDICARE AND MEDICAID SERVICES. (2) "HEALTH INSURANCE" OR "HEALTH INSURANCE PLAN" HAS THE SAME MEANING AS "HEALTH COVERAGE PLAN", AS DEFINED IN SECTION (34). (3) "HEALTH INSURANCE CARRIER", "INSURANCE CARRIER", OR "CARRIER" HAS THE SAME MEANING AS "CARRIER", AS DEFINED IN SECTION (8). (4) "HEALTHCARE PROVIDER" OR "PROVIDER" MEANS: (a) A HEALTHCARE FACILITY LICENSED OR CERTIFIED BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT PURSUANT TO SECTION (l)(a), WHICH INCLUDES A HOSPITAL, HOSPITAL UNIT AS DEFINED IN SECTION (2), PSYCHIATRIC HOSPITAL, COMMUNITY CLINIC, REHABILITATION HOSPITAL, CONVALESCENT CENTER, COMMUNITY MENTAL HEALTH CENTER, ACUTE TREATMENT UNIT, FACILITY FOR PERSONS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, NURSING CARE FACILITY, HOSPICE CARE, ASSISTED LIVING RESIDENCE, DIALYSIS TREATMENT CLINIC, AMBULATORY

9 SURGICAL CENTER, BIRTHING CENTER, HOME CARE AGENCY, OR OTHER FACILITY OF A LIKE NATURE; (b) A CLINICAL LABORATORY REGISTERED THROUGH THE CERTIFICATION PROGRAM ADMINISTERED BY f THE CMS;, (c) A FACILITY THAT USES RADIATION MACHINES FOR MEDICAL PURPOSES AND THAT IS REGISTERED BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT PURSUANT TO STATE BOARD OF HEALTH RULES ADOPTED IN ACCORDANCE WITH SECTION ; (D) A PERSON WHO IS LICENSED, CERTIFIED, OR REGISTERED BY THE STATE UNDER TITLE 12 OR ARTICLE 3.5 OF TITLE 25 TO PROVIDE HEALTHCARE SERVICES AND WHO DIRECTLY BILLS PATIENTS OR THIRD- PARTY PAYERS FOR THE SERVICES, INCLUDING AN ACUPUNCTURIST, ATHLETIC TRAINER, AUDIOLOGIST, PODIATRIST, CHIROPRACTOR, DENTIST, DENTAL HYGEENIST, MASSAGE THERAPIST, PHYSICIAN, PHYSICIAN ASSISTANT, ANESTHESIOLOGIST ASSISTANT, DIRECT-ENTRY -MIDWIFE, NATUROPATHIC DOCTOR, NURSE, CERTIFIED NURSE AIDE, NURSING HOME ADMINISTRATOR, OPTOMETRIST, OCCUPATIONAL THERAPIST, OCCUPATIONAL THERAPY ASSISTANT, PHYSICAL THERAPIST, PHYSICAL THERAPY ASSISTANT, RESPIRATORY THERAPIST, PSYCHIATRIC TECHNICIAN, PSYCHOLOGIST, SOCIAL WORKER, CLINICAL SOCIAL WORKER, MARRIAGE AND FAMILY THERAPIST, PROFESSIONAL COUNSELOR, PSYCHOTHERAPIST, ADDICTION COUNSELOR, SURGICAL ASSISTANT, SURGICAL TECHNOLOGIST, SPEECH- LANGUAGE PATHOLOGIST, OR EMERGENCY MEDICAL SERVICE PROVIDER; OR (e) A MEDICAL GROUP, INDEPENDENT PRACTICE ASSOCIATION, OR PROFESSIONAL CORPORATION PROVIDING HEALTHCARE SERVICES. (f) TO THE EXTENT NOT COVERED BY SUBSECTIONS 5(a) THROUGH 5(e) OF THIS SECTION, FREE STANDING EMERGENCY ROOMS AND URGENT CARE CENTERS AND THOSE PROVIDING HEALTHCARE SERVICES UNDER OTHER DESCRIPTIONS. (5) "HEALTHCARE SERVICE" OR "SERVICE" MEANS A SERVICE, PROCEDURE, TREATMENT, OR GROUP OF SERVICES, PROCEDURES, OR TREATMENTS DELIVERED BY A HEALTHCARE PROVIDER. HEALTHCARE SERVICE INCLUDES SERVICES RENDERED THROUGH TELEMEDICINE AS DEFINED IN SECTION (8). (6) "THIRD-PARTY PAYER", "THIRD-PARTY PAYOR", "PAYOR", OR "PAYER" MEANS A HEALTH INSURANCE CARRIER, SELF-INSURED EMPLOYER, OR OTHER PUBLIC OR PRIVATE THIRD PARTY, INCLUDING A THIRD- PARTY ADMINISTRATOR OR INTERMEDIARY, THAT IS RESPONSIBLE FOR PAYING ALL, OR A PORTION OF, THE CHARGES FOR HEALTHCARE SERVICES DELIVERED TO A PATIENT Provider-carrier contracts. A CONTRACT ISSUED, AMENDED, OR RENEWED ON OR AFTER APRIL 30, 2019, BY, BETWEEN, OR ON BEHALF OF A HEALTH INSURANCE PLAN AND A HEALTHCARE PROVIDER SHALL NOT CONTAIN ANY PROVISION THAT RESTRICTS THE ABILITY OF THE HEALTH INSURANCE PLAN, THIRD-PARTY PAYER, OR HEALTHCARE PROVIDER TO FURNISH PATIENTS ANY INFORMATION REQUIRED TO BE PUBLISHED UNDER THIS ACT. ANY CONTRACTUAL PROVISION INCONSISTENT WITH THIS SECTION SHALL BE VOID AND UNENFORCEABLE. SECTION 3. In Colorado Revised Statutes, add as follows: Carrier disclosures - rules - definitions. (1) THE PURPOSE OF THIS SECTION IS TO: (a) PROVIDE TRANSPARENCY REGARDING HOW INSURANCE CARRIERS CALCULATE PAYMENTS OR REIMBURSEMENTS TO PROVIDERS FOR HEALTHCARE SERVICES FURNISHED TO COVERED PERSONS; AND (b) ENABLE A COVERED PERSON WHO HAS RECEIVED AND BEEN BILLED FOR A HEALTHCARE SERVICE, MEDICAL DEVICE, OR PRESCRIPTION DRUG TO DETERMINE THE AMOUNT THAT THE CARRIER WILL PAY OR REIMBURSE THE PROVIDER UNDER THE TERMS OF THE APPLICABLE HEALTH COVERAGE PLAN. IT IS

10 RECOGNIZED THAT THE SERVICES TO BE RENDERED ARE NOT ALWAYS ESTIMABLE PRIOR TO SERVICE DELIVERY. THAT SHOULD NOT BE CONFUSED WITH THE INTENT OF THIS SECTION. (2) EACH CARRIER SHALL POST ON ITS WEBSITE AND PROVIDE, IN WRITING UPON REQUEST FROM A COVERED PERSON, THE FOLLOWING INFORMATION: (a) THE SPECIFIC BASIS FOR DETERMINING THE PAYMENT OR REIMBURSEMENT TO A PROVIDER FOR A HEALTHCARE SERVICE RENDERED BY THE PROVIDER TO A COVERED PERSON UNDER THE HEALTH COVERAGE PLAN, INCLUDING: (I) WHETHER THE PAYMENT IS BASED ON A PERCENTAGE OF THE PROVIDER'S CHARGES, A FLAT DAILY OR PER DIEM RATE, COPAYMENTS, DEDUCTIBLES, OR ANY OTHER FACTOR, VARIABLE, OR SYSTEM DEVISED AND NOT LISTED HERE THAT IS USED FOR DETERMINING THE PAYMENT OR REIMBURSEMENT AMOUNT; AND (II) HOW THE PAYMENT OR REIMBURSEMENT IS CALCULATED FOR AN IN-NETWORK VERSUS OUT-OF- NETWORK PROVIDER; (b) ITEMS THAT APPEAR AS CHARGES ON AN EXPLANATION OF BENEFITS OR PROVIDER BILLING STATEMENT BUT FOR WHICH THE CARRIER DOES NOT PAY; (c) DETAILED INFORMATION REGARDING COVERAGE AND NEGOTIATED PAYMENT INFORMATION BY PLAN TYPE AND PARTICIPATING PROVIDER; AND (d) PRESCRIPTION DRUG PRICES IN A FORM AND MANNER DETERMINED BY THE COMMISSIONER BY RULE. (3) EACH CARRIER SHALL PUBLISH ANNUALLY, UNLESS DIRECTED BY THE COMMISSIONER BY RULE TO PUBLISH MORE FREQUENTLY, DETAILED INFORMATION, IN A FORM AND MANNER DETERMINED BY THE COMMISSIONER BY RULE, REGARDING ALL FORMS OF REMUNERATION DERIVED FROM REBATES OR OTHER FORMS OF INCENTIVE RECEIVED AS THE RESULT OF HEALTHCARE SERVICES OR PURCHASES OF PRESCRIPTION DRUGS OR MEDICAL DEVICES. (4) ON OR BEFORE APRIL 30,2019, THE COMMISSIONER SHALL PROMULGATE RULES AS ARE NECESSARY FOR THE IMPLEMENTATION, ADMINISTRATION, AND ENFORCEMENT OF THIS SECTION, AND SHALL, THEREAFTER, REVISE SUCH RULES AS ARE NECESSARY. (5) IF THE COMMISSIONER DETERMINES THAT A CARRIER HAS VIOLATED THE REQUIREMENTS OF THIS SECTION, THE COMMISSIONER MAY SUSPEND OR REVOKE THE LICENSE OF THE CARRIER OR IMPOSE A CIVIL FINE OF NOT MORE THAN FIFTY THOUSAND DOLLARS FOR EACH VIOLATION, AND IF THE CARRIER CONTINUES TO VIOLATE THE REQUIREMENTS OF THIS SECTION, THE COMMISSIONER MAY IMPOSE A CIVIL FINE FOR EACH DAY OF VIOLATION. FINES IMPOSED AND PAID UNDER THIS SECTION SHALL BE DEPOSITED IN THE GENERAL FUND. (6) AS USED IN THIS SECTION, "COMMISSIONER" MEANS THE COMMISSIONER OF INSURANCE APPOINTED PURSUANT TO SECTION , (7) AS USED IN THIS SECTION, "PRESCRIPTION DRUG PRICE" IS THE PRICE FOR PRESCRIPTION DRUGS THAT CARRIERS HAVE NEGOTIATED WITH PROVIDERS, PHARMACIES, DISTRIBUTORS, OR MANUFACTURERS. (8) AS USED IN THIS SECTION, "PHARMACY" MEANS ANY ENTITY LICENSED BY THE BOARD PURSUANT TO ARTICLE 42.5 OF TITLE 12 TO ENGAGE IN THE PRACTICE OF PHARMACY, AS DEFINED IN SECTION (31). THE TERM DOES NOT INCLUDE A HOSPITAL, AMBULATORY SURGICAL CENTER, OR OTHER

11 PROVIDERS WHICH ADMINISTER PRESCRIPTION DRUGS AS PART OF A HEALTHCARE SERVICE AND FOR WHICH THE CHARGE FOR PRESCRIPTION DRUGS IS INCLUDED IN THEIR CHARGEMASTER OR FEE SCHEDULE. SECTION 4. Effective date. THIS ACT TAKES EFFECT JANUARY 1,2019. i Submitted by: David Silverstein, th Street (Suite 400), Denver, CO davidsilverstein@brokenhealthcare.oru (tel) (fax) Andrew Graham, 3464 S. Willow, Denver, CO andrewsuraham@vahoo.com (tel) (fax)

12 Initiative #119: Healthcare Insurance Carrier Billing Transparency - Amended Draft Be it enacted by the people of the state of Colorado: r SECTION 1. In Colorado Revised Statutes, add part 3 efto article 20 of title 6 as follows: ^ 2-8lPj% Purpose. A DECLARATION FROM THE PEOPLE OF COLORADO. F F TTI# (1) THE PEOPLE OF COLORADO ENACT THIS LAW REGARDING PRICE TRANSPARENCY IN HEALTHCARE BILLING TO ESTABLISH COMMON SENSE, ORDER, AND INTEGRITY IN COLORADO'S HEALTHCARE SYSTEM AND TO SET AN EXAMPLE FOR THE REST OF OUR NATION. THE PEOPLE BELIEVE TRANSPARENCY, IN ALL ASPECTS OF HEALTHCARE BILLING, IS OF PARAMOUNT IMPORTANCE AND THAT IT WILL NOT, IN ANY WAY, IMPEDE COMPETITION, BUT RATHER, WILL IMPROVE COMPETITION AND EMPOWER PATIENTS TO BECOME MORE ACTIVE PARTICIPANTS IN THEIR OWN CARE. (2) THE "PEOPLE UNDERSTAND THAT SOME IN THE HEALTHCARE INDUSTRY MAY FIND PROVISIONS OF THIS LAW ONEROUS. THE PEOPLE, HOWEVER, BELIEVE THAT THE LACK OF TRANSPARENCY THAT IS THE NORM AT THE TIME OF THIS LAW'S ENACTMENT IS FAR MORE ONEROUS AND DANGEROUS, AND THUS, FIND THIS LAW ABSOLUTELY NECESSARY IN ALL OF ITS DETAIL. (3) THE PURPOSE OF TRANSPARENCY IN HEALTHCARE BILLING IS NOT MERELY TO PROVIDE PATIENTS WITH THE ABILITY TO SHOP FOR HEALTHCARE SERVICES ON THE BASIS OF PRICE. IN FACT, SHOPPING AROUND IS ONLY A SMALL ASPECT OF TRANSPARENCY IN HEALTHCARE BILLING, BECAUSE SHOPPING FOR SERVICES IS NOT ALWAYS PRACTICAL WHEN HEALTHCARE SERVICE IS NEEDED. THE PURPOSE OF TRANSPARENCY IN HEALTHCARE BILLING, AND OF THIS LAW, IS TO ENSURE THAT COLORADO'S HEALTHCARE SYSTEM BEGINS TO FUNCTION IN A MANNER WHERE PRICES ARE AVAILABLE TO ANYONE AND EVERYONE AT ALL TIMES. THE PEOPLE OF COLORADO BELIEVE THAT IF THERE IS TRANSPARENCY IN HEALTHCARE BILLING, PRICES WILL BE FAIR AND WILL BE DETERMINED BY THE MARKETPLACE, WHETHER OR NOT THEY PERSONALLY REVIEW ALL PRICES IN ADVANCE OF HEALTHCARE SERVICES. SECTION 2. In Colorado Revised Statutes, add part 3 fto article 20 of title 6 as follows: PART 3 HEALTHCARE INSURANCE CARRIER BILLING TRANSPARENCY Short title. THE SHORT TITLE OF THIS PART 3 IS THE "HEALTHCARE INSURANCE CARRIER BILLING TRANSPARENCY ACT" Definitions. As USED IN THIS PART 3, UNLESS THE CONTEXT OTHERWISE REQUIRES: (1) "CMS" MEANS THE CENTERS FOR MEDICARE AND MEDICAID SERVICES. (2) "COMMISSIONER" MEANS TUT COMMISSIONER OF INSUIUNGFT {34(2) "HEALTH INSURANCE" OR "HEALTH INSURANCE PLAN" HAS THE SAME MEANING AS "HEALTH COVERAGE PLAN", AS DEFINED IN SECTION X34). FMI) "HEALTH INSURANCE CARRIER", "INSURANCE CARRIER", OR "CARRIER" HAS THE SAME MEANING AS "CARRIER", AS DEFINED IN SECTION X8). {5 LI S) "HEALTHCARE PROVIDER" OR "PROVIDER" MEANS: (a) A HEALTHCARE FACILITY LICENSED OR CERTIFIED BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT PURSUANT TO SECTION (l)(a), WHICH INCLUDES A HOSPITAL, HOSPITAL UNIT AS DEFINED IN SECTION (2), PSYCHIATRIC HOSPITAL, COMMUNITY CLINIC, REHABILITATION HOSPITAL, CONVALESCENT CENTER, COMMUNITY MENTAL HEALTH CENTER, ACUTE TREATMENT UNIT, FACILITY FOR PERSONS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, NURSING CARE

13 FACILITY, HOSPICE CARE, ASSISTED LIVING RESIDENCE, DIALYSIS TREATMENT CLINIC, AMBULATORY SURGICAL CENTER, BIRTHING CENTER, HOME CARE AGENCY, OR OTHER FACILITY OF A LIKE NATURE; (b) A CLINICAL LABORATORY REGISTERED THROUGH THE CERTIFICATION PROGRAM ADMINISTERED BY THE CMS; (c) A FACILITY THAT USES RADIATION MACHINES FOR MEDICAL PURPOSES AND THAT IS REGISTERED BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT PURSUANT TO STATE BOARD OF HEALTH RULES ADOPTED IN ACCORDANCE WITH SECTION ;. (d) A PERSON WHO IS LICENSED, CERTIFIED, OR REGISTERED BY THE STATE UNDER TITLE 12 OR ARTICLE 3.5 OF TITLE 25 TO PROVIDE HEALTHCARE SERVICES AND WHO DIRECTLY BILLS PATIENTS OR THIRD- PARTY PAYERS FOR THE SERVICES, INCLUDING AN ACUPUNCTURIST, ATHLETIC TRAINER, AUDIOLOGIST, PODIATRIST, CHIROPRACTOR, DENTIST, DENTAL HYGIENIST, MASSAGE THERAPIST, PHYSICIAN, PHYSICIAN ASSISTANT, ANESTHESIOLOGIST ASSISTANT, DIRECT-ENTRY MIDWIFE, NATUROPATHIC DOCTOR, NURSE, CERTIFIED NURSE AIDE, NURSING HOME ADMINISTRATOR, OPTOMETRIST, OCCUPATIONAL THERAPIST, OCCUPATIONAL THERAPY ASSISTANT, PHYSICAL THERAPIST, PHYSICAL THERAPY ASSISTANT, RESPIRATORY THERAPIST, PSYCHIATRIC TECHNICIAN, PSYCHOLOGIST, SOCIAL WORKER, CLINICAL SOCIAL WORKER, MARRIAGE AND FAMILY THERAPIST, PROFESSIONAL COUNSELOR, PSYCHOTHERAPIST, ADDICTION COUNSELOR, SURGICAL ASSISTANT, SURGICAL TECHNOLOGIST, SPEECH- LANGUAGE PATHOLOGIST, OR EMERGENCY MEDICAL SERVICE PROVIDER; OR (e) A MEDICAL GROUP, INDEPENDENT PRACTICE ASSOCIATION, OR PROFESSIONAL CORPORATION PROVIDING HEALTHCARE SERVICES. (f) TO THE EXTENT NOT COVERED BY SUBSECTIONS 5(a) THROUGH 5(e) QF THIS SECTION. FREE STANDING EMERGENCY ROOMS AND URGENT CARE CENTERS AND THOSE PROVIDING HEALTHCARE SERVICES UNDER OTHER DESCRIPTIONS. F& 5) "HEALTHCARE SERVICE" OR "SERVICE" MEANS A SERVICE, PROCEDURE, TREATMENT, OR GROUP OF SERVICES, PROCEDURES, OR TREATMENTS DELIVERED BY A HEALTHCARE PROVIDER. HEALTHCARE SERVICE INCLUDES SERVICES RENDERED THROUGH TELEMEDICENE AS DEFINED IN SECTION (8)OFRQTHFR^EMOTERMODILO, OR V F RTUATRME ANS AS MAY PI USCD IN 11 ID-FUTURE. (7) "PHARMACY" MEANS OR ' PISTRIBUTFS PRESCRIPTION DRUGS PULTSUA^JT TO ARTICLE 42.5 OR TITLE 12. ILLL TERM DOCS NOT PRESC WHQN4?RUGS4S-»< 44FLRAE> IN THEIR CIIARGEMASTCR OR RRX-BGHEBUUR FS^-^PRESCRIP'TTON DRUG PRICE" IS TJ IE PRICE FOR PRESCRIPTION DRUGS THAT CARRIERS [IAVC NEGOTIATED (M6) "THIRD-PARTY PAYER", "THIRD-PARTY PAYOR", "PAYOR", OR "PAYER" MEANS A HEALTH INSURANCE CARRIER, SELF-INSURED EMPLOYER, OR OTHER PUBLIC OR PRIVATE THIRD PARTY, INCLUDING A THIRD-PARTY ADMINISTRATOR OR INTERMEDIARY, THAT IS RESPONSIBLE FOR PAYING ALL, OR A PORTION OF, THE CHARGES FOR HEALTHCARE SERVICES DELIVERED TO A PATIENT Provider-carrier contracts., (1>A CONTRACT ISSUED, AMENDED, OR RENEWED ON OR AFTER APRIL 30,2019, BY, BETWEEN, OR ON BEHALF OF A HEALTH INSURANCE PLAN AND A HEALTHCARE PROVIDER SHALL NOT CONTAIN ANY PROVISION THAT RESTRICTS THE ABILITY OF THE HEALTH INSURANCE PLAN, THIRD-PARTY PAYER, OR HEALTHCARE PROVIDER TO FURNISH PATIENTS ANY INFORMATION REQUIRED TO BE PUBLISHED UNDER THIS ACT._

14 (2) ANY CONTRACTUAL PROVISION INCONSISTENT WITH THIS SECTION SHALL BE VOID AND UNENFORCEABLE. SECTION 3. In Colorado Revised Statutes, add as follows: I Carrier disclosures - rules - definitions. (1) THE PURPOSE OF THIS SECTION IS TO: (a) PROVIDE TRANSPARENCY REGARDING HOW INSURANCE CARRIERS CALCULATE PAYMENTS OR REIMBURSEMENTS TO PROVIDERS FOR HEALTHCARE SERVICES FURNISHED TO COVERED PERSONS; AND (b) ENABLE A COVERED PERSON WHO HAS RECEIVED AND BEEN BILLED FOR A HEALTHCARE SERVICE, MEDICAL DEVICE, OR PRESCRIPTION DRUG TO DETERMINE THE AMOUNT THAT THE CARRIER WILL PAY OR REIMBURSE THE PROVIDER UNDER THE TERMS OF THE APPLICABLE HEALTH COVERAGE PLAN. IT IS RECOGNIZED THAT THE SERVICES TO BE RENDERED ARE NOT ALWAYS ESTIMABLE PRIOR TO SERVICE DELIVERY. THAT SHOULD NOT BE CONFUSED WITH THE INTENT OF THIS SECTION. (2) EACH CARRIER SHALL POST ON ITS WEBSITE AND PROVIDE, IN WRITING UPON REQUEST FROM A COVERED PERSON, THE FOLLOWING INFORMATION: (a) THE SPECIFIC BASIS FOR DETERMINING THE PAYMENT OR REIMBURSEMENT TO A PROVIDER FOR A HEALTHCARE SERVICE RENDERED BY THE PROVIDER TO A COVERED PERSON UNDER THE HEALTH COVERAGE PLAN, INCLUDING: (I) WHETHER THE PAYMENT IS BASED ON A PERCENTAGE OF THE PROVIDER'S CHARGES, A FLAT DAILY OR PER DIEM RATE, COPAYMENTS, DEDUCTIBLES, OR ANY OTHER FACTOR, VARIABLE, OR SYSTEM DEVISED AND NOT LISTED HERE THAT IS USED FOR DETERMINING THE PAYMENT OR REIMBURSEMENT AMOUNT; AND (II) HOW THE PAYMENT OR REIMBURSEMENT IS CALCULATED FOR AN IN-NETWORK VERSUS OUT-OF- NETWORK PROVIDER:? (b) ITEMS THAT APPEAR AS CHARGES ON AN EXPLANATION OF BENEFITS OR PROVIDER BILLING STATEMENT BUT FOR WHICH THE CARRIER DOES NOT PAY; (c) DETAILED INFORMATION REGARDING COVERAGE AND NEGOTIATED PAYMENT INFORMATION BY PLAN TYPE AND PARTICIPATING PROVIDER; AND (d) PPRESCRIPTION DRUG PRICES IN A FORM AND MANNER DETERMINED BY THE COMMISSIONER BY RULE. (3) EACH CARRIER SHALL PUBLISH ANNUALLY, UNLESS DIRECTED BY THE COMMISSIONER BY RULE TO PUBLISH MORE FREQUENTLY, DETAILED INFORMATION, IN A FORM AND MANNER DETERMINED BY THE COMMISSIONER BY RULE. REGARDING ALL FORMS OF REMUNERATION DERIVED FROM REBATES OR OTHER FORMS OF INCENTIVE RECEIVED AS THE RESULT OF HEALTHCARE SERVICES OR PURCHASES OF PRESCRIPTION DRUGS OR MEDICAL DEVICES. (4) ON OR BEFORE APRIL 30,2019, THE COMMISSIONER SHALL PROMULGATE RULES AS ARE NECESSARY FOR THE IMPLEMENTATION, ADMINISTRATION, AND ENFORCEMENT OF THIS SECTION, AND SHALL, THEREAFTER, REVISE SUCH RULES AS ARE NECESSARY. (5) IF THE COMMISSIONER DETERMINES THAT A CARRIER HAS VIOLATED THE REQUIREMENTS OF THIS SECTION. THE COMMISSIONER MAY SUSPEND OR REVOKE THE LICENSE OF THE CARRIER OR IMPOSE A

15 CIVIL FINE OF NOT MORJ:. THAN FIFTY THOUSAND DOLLARS FOR EACH VIOLATION. AND IF THE CARRIER CONTINUES TO VIOLATE THE REQUIREMENTS OF THIS SECTION. THE COMMISSIONER MAY IMPOSE A CIVIL FINE FOR EACH DAY OF VIOLATION. FINES IMPOSED AND PAID UNDER THIS SECTION SHALL BE DEPOSITED IN T IL GENERAL FUND. : (6) As USED RN THIS SECTION. "COMMISSIONER" MEANS THE COMMISSIONER OF INSURANCE APPOINTED PURSUANT TO SECTION (7) AS USED IN THIS SECTION, "PRESCRIPTION DRUG PRICE" IS THE PRICE FOR PRESCRIPTION DRUGS THAT CARRIERS HAVE NEGOTIATED WITH PROVIDERS, PHARMACIES. DISTRIBUTORS. OR MANUFACTURERS. (8) AS USED IN THIS SECTION. "PHARMACY" MEANS ANY ENTITY LICENSED BY THE BOARD PURSUANT TO ARTICLE 42.5 OF TITLE 12 TO ENGAGE IN THE PRACTICE OF PHARMACY. AS DEFINED IN SECTION (31). TL IE TERM DOES NOT 11 VCLUDE A HOSPITAL. AMBULA" TORY SURGICAL CENTER. OI I OTHER PROVIDERS < AHICH ADMINISTER PI DESCRIPTION DRUGS AS PART O F A HEALTHCARE SERVICE / \M FOR WHICH THE C TIARGEFORPRESCRIPI TON DRUGS IS INCLUDED INTHEI R CHARG EM ASTER OR FEE SC. HEDULE. SECTION 4. Effective date. THIS ACT TAKES EFFECT APFTFC-3-QJ ANIJARY L Submitted by: ; David Silverstein, th Street (Suite 400), Denver, CO dayidsiiv rstem@brokenhea]tlieare.org (tel) (fax) Andrew Graham, 3464 S. Willow, Denver, CO andrcwsgraham@vahqo.com (tel) (fax)

16 Initiative #119: Transparency in Health Care Insurance Carrier Billing - Original Draft Be it enacted by the people of the state of Colorado: SECTION 1. In Colorado Revised Statutes, add part 3 of article 20 of title 6 as follows: Purpose. A DECLARATION FROM THE PEOPLE OF COLORADO. (1) THE PEOPLE OF COLORADO ENACT THIS LAW REGARDING PRICE TRANSPARENCY IN HEALTHCARE BILLING TO ESTABLISH COMMON SENSE, ORDER, AND INTEGRITY IN COLORADO'S HEALTHCARE SYSTEM AND TO SET AN EXAMPLE FOR THE REST OF OUR NATION. THE PEOPLE BELIEVE TRANSPARENCY, IN ALL ASPECTS OF HEALTHCARE BILLING, IS OF PARAMOUNT IMPORTANCE AND THAT IT WILL NOT, IN ANY WAY, IMPEDE COMPETITION, BUT RATHER, WILL IMPROVE COMPETITION AND EMPOWER PATIENTS TO BECOME MORE ACTWE PARTICIPANTS IN THEIR OWN CARE. (2) THE PEOPLE UNDERSTAND THAT SOME IN THE HEALTHCARE INDUSTRY MAY FIND PROVISIONS OF THIS LAW ONEROUS. THE PEOPLE, HOWEVER, BELIEVE THAT THE LACK OF TRANSPARENCY THAT IS THE NORM AT THE TIME OF THIS LAW'S ENACTMENT IS FAR MORE ONEROUS AND DANGEROUS, AND THUS, FIND THIS LAW ABSOLUTELY NECESSARY IN ALL OF ITS DETAIL. (3) THE PURPOSE OF TRANSPARENCY IN HEALTHCARE BILLING IS NOT MERELY TO PROVIDE PATIENTS WITH THE ABILITY TO SHOP FOR HEALTHCARE SERVICES ON THE BASIS OF PRICE. IN FACT, SHOPPING AROUND IS ONLY A SMALL ASPECT OF TRANSPARENCY IN HEALTHCARE BILLING, BECAUSE SHOPPING FOR SERVICES IS NOT ALWAYS PRACTICAL WHEN HEALTHCARE SERVICE IS NEEDED. THE PURPOSE OF TRANSPARENCY IN HEALTHCARE BILLING, AND OF THIS LAW, IS TO ENSURE THAT COLORADO'S HEALTHCARE SYSTEM BEGINS TO FUNCTION IN A MANNER WHERE PRICES ARE AVAILABLE TO ANYONE AND EVERYONE AT ALL TIMES. THE PEOPLE OF COLORADO BELIEVE THAT IF THERE IS TRANSPARENCY IN HEALTHCARE BILLING, PRICES WILL BE FAIR AND WILL BE DETERMINED BY THE MARKETPLACE, WHETHER OR NOT THEY PERSONALLY REVIEW ALL PRICES IN ADVANCE OF HEALTHCARE SERVICES. SECTION 2. In Colorado Revised Statutes, add part 3 of article 20 of title 6 as follows: PART 3 HEALTHCARE INSURANCE CARRIER BILLING TRANSPARENCY Short title. THE SHORT TITLE OF THIS PART 3 IS THE "HEALTHCARE INSURANCE CARRIER BILLING TRANSPARENCY ACT" Definitions. As USED IN THIS PART 3, UNLESS THE CONTEXT OTHERWISE REQUIRES: (1) "CMS" MEANS THE CENTERS FOR MEDICARE AND MEDICAID SERVICES. (2) "COMMISSIONER" MEANS THE COMMISSIONER OF INSURANCE. (3) "HEALTH INSURANCE" OR "HEALTH INSURANCE PLAN" HAS THE SAME MEANING AS "HEALTH COVERAGE PLAN", AS DEFINED IN SECTION (34). (4) "HEALTH INSURANCE CARRIER", "INSURANCE CARRIER", OR "CARRIER" HAS THE SAME MEANING AS "CARRIER", AS DEFINED IN SECTION (8). (5) "HEALTHCARE PROVIDER" OR "PROVIDER" MEANS: (a) A HEALTHCARE FACILITY LICENSED OR CERTIFIED BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT PURSUANT TO SECTION (l)(a), WHICH INCLUDES A HOSPITAL, HOSPITAL UNIT AS DEFINED IN SECTION (2), PSYCHIATRIC HOSPITAL, COMMUNITY CLINIC, REHABILITATION HOSPITAL, CONVALESCENT CENTER, COMMUNITY MENTAL HEALTH CENTER, ACUTE TREATMENT UNIT, FACILITY FOR PERSONS WITH INTELLECTUAL AND DEVELOPMENTAL DISABILITIES, NURSING CARE

17 Initiative #119: Transparency in Health Care Insurance Carrier Billing - Original Draft FACILITY, HOSPICE CARE, ASSISTED LIVING RESIDENCE, DIALYSIS TREATMENT CLINIC, AMBULATORY SURGICAL CENTER, BIRTHING CENTER, HOME CARE AGENCY, OR OTHER FACILITY OF A LIKE NATURE; (B) A CLINICAL LABORATORY REGISTERED THROUGH THE CERTIFICATION PROGRAM ADMINISTERED BY THE CMS; ' ' (c) A FACILITY THAT USES RADIATION MACHINES FOR MEDICAL PURPOSES AND THAT IS REGISTERED BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT PURSUANT TO STATE BOARD OF HEALTH RULES ADOPTED IN ACCORDANCE WITH SECTION ; (d) A PERSON WHO IS LICENSED, CERTIFIED, OR REGISTERED BY THE STATE UNDER TITLE 12 OR ARTICLE 3.5 OF TITLE 25 TO PROVIDE HEALTHCARE SERVICES AND WHO DIRECTLY BILLS PATIENTS OR THIRD- PARTY PAYERS FOR THE SERVICES, INCLUDING AN ACUPUNCTURIST, ATHLETIC TRAINER, AUDIOLOGIST, PODIATRIST, CHIROPRACTOR, DENTIST, DENTAL HYGIENIST, MASSAGE THERAPIST, PHYSICIAN, PHYSICIAN ASSISTANT, ANESTHESIOLOGIST ASSISTANT, DIRECT-ENTRY MIDWIFE, NATUROPATHIC DOCTOR, NURSE, CERTIFIED NURSE AIDE, NURSING HOME ADMINISTRATOR, OPTOMETRIST, OCCUPATIONAL THERAPIST, OCCUPATIONAL THERAPY ASSISTANT, PHYSICAL THERAPIST, PHYSICAL THERAPY ASSISTANT, RESPIRATORY THERAPIST, PSYCHIATRIC TECHNICIAN, PSYCHOLOGIST, SOCIAL WORKER, CLINICAL SOCIAL WORKER, MARRIAGE AND FAMILY THERAPIST, PROFESSIONAL COUNSELOR, PSYCHOTHERAPIST, ADDICTION COUNSELOR, SURGICAL ASSISTANT, SURGICAL TECHNOLOGIST, SPEECH- LANGUAGE PATHOLOGIST, OR EMERGENCY MEDICAL SERVICE PROVIDER; OR (e) A MEDICAL GROUP, INDEPENDENT PRACTICE ASSOCIATION, OR PROFESSIONAL CORPORATION PROVIDING HEALTHCARE SERVICES. (f) TO THE EXTENT NOT COVERED BY SECTION (a) THROUGH (e), FREE-STANDING EMERGENCY ROOMS AND URGENT CARE CENTERS AND THOSE PROVIDING HEALTHCARE SERVICES UNDER OTHER DESCRIPTIONS. (6) "HEALTHCARE SERVICE" OR "SERVICE" MEANS A SERVICE, PROCEDURE, TREATMENT, OR GROUP OF SERVICES, PROCEDURES, OR TREATMENTS DELIVERED BY A HEALTHCARE PROVIDER. HEALTHCARE SERVICE INCLUDES SERVICES RENDERED THROUGH TELEMEDICINE OR OTHER REMOTE, MOBILE, OR VIRTUAL MEANS AS MAY BE USED IN THE FUTURE. (7) "PHARMACY" MEANS ANY ENTITY WHICH ADMINISTERS, COMPOUNDS, DELIVERS, DISPENSES, OR DISTRIBUTES PRESCRIPTION DRUGS PURSUANT TO ARTICLE 42.5 OF TITLE 12. THE TERM DOES NOT INCLUDE A HOSPITAL, AMBULATORY SURGICAL CENTER, OR OTHER PROVIDERS WHICH ADMINISTER PRESCRIPTION DRUGS AS PART OF A HEALTHCARE SERVICE AND FOR WHICH THE CHARGE FOR PRESCRIPTION DRUGS IS INCLUDED IN THEIR CHARGEMASTER OR FEE SCHEDULE. (8) "PRESCRIPTION DRUG PRICE" IS THE PRICE FOR PRESCRIPTION DRUGS THAT CARRIERS HAVE NEGOTIATED WITH PROVIDERS, PHARMACIES, DISTRIBUTORS, OR MANUFACTURERS. (9) "THIRD-PARTY PAYER", "THIRD-PARTY PAYOR", "PAYOR", OR "PAYER" MEANS A HEALTH INSURANCE CARRIER, SELF-INSURED EMPLOYER, OR OTHER PUBLIC OR PRIVATE THIRD PARTY, INCLUDING A THIRD- PARTY ADMINISTRATOR OR INTERMEDIARY, THAT IS RESPONSIBLE FOR PAYING ALL, OR A PORTION OF, THE CHARGES FOR HEALTHCARE SERVICES DELIVERED TO A PATIENT Provider-carrier contracts. (1) A CONTRACT ISSUED, AMENDED, OR RENEWED ON OR AFTER APRIL 30, 2019, BY, BETWEEN, OR ON BEHALF OF A HEALTH INSURANCE PLAN AND A HEALTHCARE PROVIDER SHALL NOT CONTAIN ANY PROVISION THAT RESTRICTS THE ABILITY OF THE HEALTH INSURANCE PLAN, THIRD-PARTY PAYER, OR HEALTHCARE PROVIDER TO FURNISH PATIENTS ANY INFORMATION REQUIRED TO BE PUBLISHED UNDER

18 initiative #119: Transparency in Health Care Insurance Carrier Billing - Original Draft THIS ACT. (2) ANY CONTRACTUAL PROVISION INCONSISTENT WITH THIS SECTION SHALL BE VOID AND UNENFORCEABLE. ' I SECTION 3. In Colorado Revised Statutes, add as follows: Carrier disclosures - rules. (1) THE PURPOSE OF THIS SECTION IS TO: (a) PROVIDE TRANSPARENCY REGARDING HOW INSURANCE CARRIERS CALCULATE PAYMENTS OR REIMBURSEMENTS TO PROVIDERS FOR HEALTHCARE SERVICES FURNISHED TO COVERED PERSONS; AND (b) ENABLE A COVERED PERSON WHO HAS RECEIVED AND BEEN BILLED FOR A HEALTHCARE SERVICE, MEDICAL DEVICE, OR PRESCRIPTION DRUG TO DETERMINE THE AMOUNT THAT THE CARRIER WILL PAY OR REIMBURSE THE PROVIDER UNDER THE TERMS OF THE APPLICABLE HEALTH COVERAGE PLAN. IT IS RECOGNIZED THAT THE SERVICES TO BE RENDERED ARE NOT ALWAYS ESTIMABLE PRIOR TO SERVICE DELIVERY. THAT SHOULD NOT BE CONFUSED WITH THE INTENT OF THIS SECTION. (2) EACH CARRIER SHALL POST ON ITS WEBSITE AND PROVIDE, IN WRITING UPON REQUEST FROM A COVERED PERSON, THE FOLLOWING INFORMATION: (a) THE SPECIFIC BASIS FOR DETERMINING THE PAYMENT OR REIMBURSEMENT TO A PROVIDER FOR A HEALTHCARE SERVICE RENDERED BY THE PROVIDER TO A COVERED PERSON UNDER THE HEALTH COVERAGE PLAN, INCLUDING: (I) WHETHER THE PAYMENT IS BASED ON A PERCENTAGE OF THE PROVIDER'S CHARGES, A FLAT DAILY OR PER DIEM RATE, COPAYMENTS, DEDUCTIBLES, OR ANY OTHER FACTOR, VARIABLE, OR SYSTEM DEVISED AND NOT LISTED HERE THAT IS USED FOR DETERMINING THE PAYMENT OR REIMBURSEMENT AMOUNT; AND (II) HOW THE PAYMENT OR REIMBURSEMENT IS CALCULATED FOR AN IN-NETWORK VERSUS OUT-OF- NETWORK PROVIDER. (b) ITEMS THAT APPEAR AS CHARGES ON AN EXPLANATION OF BENEFITS OR PROVIDER BILLING STATEMENT BUT FOR WHICH THE CARRIER DOES NOT PAY; (c) DETAILED INFORMATION REGARDING COVERAGE AND NEGOTIATED PAYMENT INFORMATION BY PLAN TYPE AND PARTICIPATING PROVIDER; AND (d) PRESCRIPTION DRUG PRICES IN A FORM AND MANNER DETERMINED BY THE COMMISSIONER. (3) EACH CARRIER SHALL PUBLISH ANNUALLY, UNLESS DIRECTED BY THE COMMISSIONER TO PUBLISH MORE FREQUENTLY, DETAILED INFORMATION, IN A FORM AND MANNER DETERMINED BY THE COMMISSIONER, REGARDING ALL FORMS OF REMUNERATION DERIVED FROM REBATES OR OTHER FORMS OF INCENTIVE RECEIVED AS THE RESULT OF HEALTHCARE SERVICES OR PURCHASES OF PRESCRIPTION DRUGS OR MEDICAL DEVICES. (4) ON OR BEFORE APRIL 30,2019, THE COMMISSIONER SHALL PROMULGATE RULES AS ARE NECESSARY FOR THE IMPLEMENTATION, ADMINISTRATION, AND ENFORCEMENT OF THIS SECTION, AND SHALL, THEREAFTER, REVISE SUCH RULES AS ARE NECESSARY.

19 Initiative #119: Transparency in Health Care insurance Carrier Billing - Original Draft SECTION 4. Effective date. THIS ACT TAKES EFFECT APRIL 30,2019. Submitted by: I David Silverstein, th Street (Suite 400), Denver, CO davidsilverstein@brqkenhealthcai-e.org (tel) (fax) Andrew Graham, 3464 S. Willow, Denver, CO artdrewsgraham@vahoo.com (tel) (fax)

20 Colorado Legislative Council Staff Initiative #119 INITIAL FISCAL IMPACT STATEMENT Date: February 6, 2018 Fiscal Analyst: Bill Zepernick ( ) LCS TITLE: TRANSPARENCY IN HEALTH CARE INSURANCE CARRIER BILLING Fiscal Impact Summary FY FY j State Revenue less than $20,000 1 General Fund. less than $20,000 State Expenditures $16,056 $31,557 I Cash Funds 16,056 31,557 1 Note: This initial fiscal impact estimate has been prepared for the Title Board. If the initiative is placed on the ballot, Legislative Council Staff may revise this estimate for the Blue Book Voter Guide if new information becomes available. Summary of Measure Initiative #119 requires health insurance carriers to post on their website and make available to covered persons upon request the following information: the basis for determining the payment or reimbursement to a provider for a health care service rendered by the provider to a covered person, including the factors on which the payment is based and whether the payment is calculated for an in-network or out-of-network provider. «items that appear as charges on an explanation of benefits or provider billing statement which the carrier does not pay; detailed information regarding coverage and negotiated payment information by plan type and participating provider; and prescription drug prices. In addition, the health insurance carriers must publish detailed information on all forms of remuneration derived from rebates or other forms of incentives received as a result of health care services or purchases of prescription drugs or medical devices. The Commissioner of Insurance is required to promulgate rules concerning the measure's requirements on insurance carriers by April 30, If the Commissioner determines that a health insurance carrier is not complying with the provisions of the measure, the Commissioner may suspend or revoke the carrier's license, or impose a civil penalty up to $50,000, with an additional fine for each day of continued noncompliance. Fine revenue is deposited into the General Fund. Lastly, the measure specifies that contracts between insurance carriers and health care providers and facilities cannot contain any provision that restricts the ability of the health insurance plan, third-party payer, or health care provider to furnish patients any information required to be published under the measure. Any such provision in a contract is void and unenforceable.

21 Page 2 February 6, 2018 Initiative #119 State Revenue Initiative #119 potentially increases General Fund revenue by up to $20,000 per year beginning in FY This revenue is from civil fines levied against health insurance carriers. Because the Commissioner of Insurance has discretion in the amount of any fine imposed, the exact revenue impact cannot be estimated. Overall, a high level of compliance is assumed, so fine revenue is expected to be less than $20,000 per year. Based on the rule-making deadlines in the measure and assuming a period for health insurance carriers to come into compliance, fine revenue is not expected prior to the start of FY State Diversions This measure, if enacted, will divert $16,056 from the General Fund in FY and $31,557 in FY This revenue diversion occurs because the measure increases costs in the Department of Regulatory Agencies, Division of Insurance, which is funded with premium tax revenue that would otherwise be credited to the General Fund. State Expenditures Initiative #119 increases expenditures by $16,056 and 0.1 FTE in FY and $31,557 and 0.3 FTE in FY in DORA. These costs are paid from the Division of Insurance Cash Fund. The measure will also impact workload and potentially costs in several other state agencies. Costs are summarized in Table 1 and discussed below. Table 1. Expenditures Under initiative #119 Cost Components FY FY Personal Services $9,100 $21,840 FTE 0.1 FTE 0.3 FTE Legal Services 5,328 5,328 Employee Benefits and Insurance 1,628 4,389 TOTAL $16,056 $31,557 Department of Regulatory Agencies. The Commissioner of Insurance is required to establish rules for disclosures by health insurance carriers. Generally, it is assumed that outreach with health insurance carriers about these new rules and requirements will be conducted within existing communication channels by staff in the division. An additional 0.1 FTE is required to conduct rulemaking in the first year and an additional 0.3 FTE is required to respond to consumer inquiries and complaints on an ongoing basis. Staff costs are prorated in the first year to reflect a start date of February 1, The division will also have costs for legal services provided by the Department of Law for rulemaking and enforcement activity. State employee health insurance. To the extent that this measure increases administrative costs for health insurance carriers, costs for state employee health insurance may increase. Because state employee health insurance contributions are based upon prevailing market rates, with costs shared between the employer and employee, this measure is not expected to affect the state's share of employee health insurance premiums until FY Because

22 Page 3 February 6, 2018 Initiative #119 insurance rates are influenced by a number of variables, the exact effect of this measure cannot be determined. Any increase caused by the measure will be addressed through the total compensation analysis included in the annua! budget process. Office of Administrative Courts and triai courts. The measure may potentially increase workload for the Office of Administrative Courts in the Department of Personnel and Administration and the trial courts in the Judicial Department in several ways. First, health insurance carriers may challenge enforcement actions against them for noncompliance with the measure, which would likely first be heard by an administrative law judge, and potentially appealed to the trial courts. Assuming a high level of compliance, these impacts are likely minimal and can be accomplished within existing appropriations. Local Government Impact Similar to the state employee insurance impact discussed above, local governments offering health insurance coverage to their employees may experience an increase in costs. To the extent that the requirements of the measure lead to higher insurance premiums, local government costs for employee health insurance may increase. Health insurance premiums depend on a variety of factors and an exact estimate of the potential increase cannot be determined. Economic Impact By promoting greater transparency in billing by health insurance carriers, Initiative #119 may help consumers more effectively spend their health care dollars, which over the long term could lead to lower health care costs for Coloradans. However, these savings may be offset by higher premiums to the extent that the measure increases administrative costs for health insurance carriers. Effective Date The measure takes effect on January 1, 2019, if approved by voters at the 2018 general election. State and Local Government Contacts Corrections Higher Education Judicial Personnel Counties Human Services Law Regulatory Agencies Health Care Policy and Financing Information Technology Municipalities Public Health and Environment

23 Page 4 February 6, 2018 Initiative #119 Abstract of Initiative 119: TRANSPARENCY IN HEALTH CARE INSURANCE CARRIER BILLING This initial fiscal estimate, prepared by the nonpartisan Director of Research of the Legislative Council as of February 5, 2018, identifies the following impacts: The abstract includes estimates of the fiscal impact of the initiative. If this initiative is to be placed on the ballot, Legislative Council Staff will prepare new estimates as part of a fiscal impact statement, which includes an abstract of that information. All fiscal impact statements are available at and the abstract will be included in the ballot information booklet that is prepared for the initiative. Sfafe expenditures. Initiative #119 requires health insurance carriers to disclose cost and billing information to consumers. The Department of Regulatory Agencies must establish rules and take action to implement the measure's requirements, which will increase state expenditures by $16,056 in FY and $31,557 in FY Additional costs may be incurred to the extent the measure leads to higher state employee insurance premiums or results in litigation in the courts. State revenue. Initiative #119 allows fines to be levied on health insurance carriers that do not comply with the its disclosure requirements. This potentially increases state revenue from fines by up to $20,000 per year beginning in FY Local government. The measure potentially increases costs for local governments that pay for employee health insurance. Economic impact. By promoting greater transparency in billing by health insurance carriers, Initiative #119 may help consumers more effectively spend their health care dollars, which over the long term could lead to lower health care costs for Coloradans. Fiowever, these savings may be offset by higher premiums to the extent that the measure increases administrative costs for health insurance carriers.

24 Ballot Title Setting Board Proposed Initiative #119 1 The title as designated and fixed by the Board is as follows: A change to the Colorado Revised Statutes concerning a requirement that health care insurers publish health insurance plan information, and, in connection therewith, requiring health insurers to publicly disclose: 1) the basis for determining payment or reimbursement amounts to health care providers, 2) the items that appear as charges on an explanation of benefits that the insurer does not pay, 3) detailed coverage and negotiated payment information by plan type and provider, 4) prescription drug prices negotiated with providers, pharmacies, distributors, and manufacturers, and 5) all rebates or other incentives; authorizing penalties for violations; and prohibiting any contract between a health insurance plan and a health care provider from restricting the publication of the required health insurance plan information. The ballot title and submission clause as designated and fixed by the Board is as follows: Shall there be a change to the Colorado Revised Statutes concerning a requirement that health care insurers publish health insurance plan information, and, in connection therewith, requiring health insurers to publicly disclose: 1) the basis for determining payment or reimbursement amounts to health care providers, 2) the items that appear as charges on an explanation of benefits that the insurer does not pay, 3) detailed coverage and negotiated payment information by plan type and provider, 4) prescription drug prices negotiated with providers, pharmacies, distributors, and manufacturers, and 5) all rebates or other incentives; authorizing penalties for violations; and prohibiting any contract between a health insurance plan and a health care provider from restricting the publication of the required health insurance plan information? Hearing February 7, 2018: Single subject approved; staff draft amended; titles set. Hearing adjourned 2:47p.m. 1 Unofficially captioned "Transparency in Health Care Insurance Carrier Billing" by legislative staff for tracking purposes. This caption is not part of the titles set by the Board.

25 RECEIVED -. m 1»is BEFORE COLORADO STATE TITLE SETTING BOARD tslsrad8 Secretary of State In re Ballot Title and Submission Clause for Initiative #119 ("Transparency in Health Care Insurance Carrier Billing") Deborah Farrell, Objector. MOTION FOR REHEARING Pursuant to C.R.S , Objector, Deborah Farrell, a registered elector of the State of Colorado, through her legal counsel, Lewis Roca Rothgerber Christie LLP, submits this Motion for Rehearing of the Title Board's February 7,2018 decision to set the title of Initiative #119 ("Initiative"), and states: I. The Initiative has been substantially amended and must be resubmitted for review and comment. The final version of the Initiative includes a substantial amendment that was not in the original version and that was not in direct response to the review and comment memorandum (attached as Ex. A), and therefore must be resubmitted to the offices of Legislative Council and Legislative Legal Services for review and comment under C.R.S (2). As compared to the original version of the Initiative, the final version adds (5), which creates specific penalties that did not exist in the original text: "If the Commissioner determines that a Carrier has violated the requirements of this section, the Commissioner may suspend or revoke the license of the Carrier or impose a civil fine of not more than fifty thousand dollars for each violation, and if the carrier continues to violate the requirements of this section, the Commissioner may impose a civil fine for each day of the violation. Fines imposed and paid under this section shall be deposited in the general fund."