KANSAS INSURANCE DEPARTMENT

 

Notice of Hearing on Proposed

Administrative Regulations

 

            A public hearing will be conducted at 9:30 a.m., November 17, 2005, in the third floor  conference room, Kansas Insurance Department, 420 S.W. 9th, Topeka, Kansas, to consider the adoption of proposed changes in existing rules and regulations.

 

            The 60-day notice of the public hearing shall constitute a public comment period for purpose of receiving written public comments on the proposed rules and regulations.  All interested parties may submit written comments prior to the hearing to Deletria Nash, Kansas Insurance Department, 420 S.W. 9th, Topeka, Kansas, 66612-1678, via facsimile at 785-291-3673, or via email at dnash@ksinsurance.org.  All interested parties will be given a reasonable opportunity to present their views orally on the adoption of the proposed regulation during the hearing.

 

            A summary of the regulations and their economic impact follows.

 

K.A.R. 40-4-41c.  Utilization review organizations; written procedures.  The purpose of the proposed amendments is to reflect changes made by the American Accreditation Health Commission a/k/a as URAC.  This is one of the major entities that accredits utilization review organizations nationally. These amendments were also made after consulting with the Utilization Review Advisory Committee.  The amendments to this regulation set out the procedures and deadlines that utilization review organizations are to follow in conducting utilization reviews.  This regulation also gives the provider one day to discuss the decision with the peer reviewer after receiving the decision.  It also sets out who is to be notified of a utilization review decision and what information should be contained in that decision.

 

This regulation sets out the written procedures for some of the functions utilization review organizations shall have and maintain, and what elements, at a minimum, these written procedures should contain.  This regulation sets out the requirements for written procedures for certain utilization review organization functions.  These requirements could result in additional costs to the utilization review organizations in designing and implementing these written procedures.  However, with the increase of managed care as a mechanism to deliver health care to consumers, these requirements are needed to safeguard consumers and insure that they obtain the care that they need.  The economic impact on those entities who perform utilization review functions is justified in the protection of Kansas consumers.

 

K.A.R. 40-4-41d.  Utilization review organizations; appeal procedures. The purpose of the proposed amendments is to reflect changes made by the American Accreditation Health Commission a/k/a as URAC.  This is one of the major entities that accredits utilization review organizations nationally.  These amendments were also made after consulting with the Utilization Review Advisory Committee.  The amendments to this regulation set out the procedures and deadlines that utilization review organizations are to follow in conducting appeals of utilization review decisions.  This regulation also gives the provider access to the reviewer who conducted the review a day after receiving the decision to discuss the decision with the reviewer.  This regulation also sets out the credentials that reviewers are to have in conducting these appeals.  

 

This regulation sets out requirements as to how utilization reviews appeals are to be conducted.  This could result in additional costs to the utilization review organizations in training their personnel in what in what procedures need to be followed in conducting utilization reviews.  Additional costs could also be incurred in having properly credentialed individuals on staff to conduct these appeals.  However with the increase of managed care as mechanism to deliver health care to consumers, these requirements are needed to safeguard consumers and insure that they obtain the care that they need.  The economic impact on those entities who perform utilization review functions is justified in the protection of Kansas consumers.

 

K.A.R. 40-4-41e.  Utilization review organizations; staff requirements. The purpose of the proposed amendments is to reflect changes made by the American Accreditation Health Commission a/k/a as URAC.  This is one of the major entities that accredits utilization review organizations nationally.  These amendments were also made after consulting with the Utilization Review Advisory Committee.  The amendments to this regulation set out what non-clinical staff of utilization review organizations can do and what qualifications and training they should have.  This regulation also sets out the procedures should be followed by a utilization review organization conducting initial reviews. The regulation further sets out the procedure that should be followed when utilization review organizations perform peer clinical review. 

 

This regulation sets out requirements as to what non clinical staff of utilization review organizations can do, what procedure should be followed in initial clinical review procedures and how peer clinical reviews are to be conducted.  This could result in additional costs to the utilization review organizations in training their personnel in what procedures need to be followed in conducting initial clinical reviews and peer clinical review.  Additional costs could also be incurred in having properly credentialed individuals on staff to conduct peer clinical reviews and initial clinical reviews.  Additional training cost may be incurred for non-clinical staff as to what tasks they should be performing and how they should be performed.  However, with the increase of managed care as mechanism to deliver health care to consumers, these requirements are needed to safeguard consumers and insure that they obtain the care that they need. The economic impact on those entities who perform utilization review functions is justified in the protection of Kansas consumers.

 

            These regulations were not mandated by federal law. The entities most impacted are utilization review organizations and health insurance carriers who perform utilization review activities and consumers of health insurance.

 

Any individual with a disability may request accommodation in order to participate in the public hearing and may request the proposed regulations and economic impact statements in an accessible format.  Requests for accommodation to participate in the hearing should be made at least 5 working days in advance by contacting Deletria Nash at (785) 296-4140 or via email at dnash@ksinsurance.org.  Any individual desiring a copy of this regulation and the policy and procedure that is being adopted by reference, if applicable, may obtain a copy from our website, www.ksinsurance.org, under the Legal Issues link or by contacting Deletria Nash by phone at (785)296-4140 or via email at dnash@ksinsurance.org.  The charge for copies is fifty cents per page.