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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0841.01D EBD HOUSE BILL 98­1386

STATE OF COLORADO

BY REPRESENTATIVE Kreutz

HEWI

A BILL FOR AN ACT

CONCERNING REQUIREMENTS RELATED TO THE RELATIONSHIP BETWEEN PHYSICIAN PROVIDERS AND CARRIERS PROVIDING COVERAGE THROUGH MANAGED CARE PLANS UNDER THE "CONSUMER PROTECTION STANDARDS ACT FOR THE OPERATION OF MANAGED CARE PLANS".

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Requires the medical directors of managed care plans doing business in Colorado to have an active Colorado medical license. Forbids carriers offering a managed care plan from entering into a contract with a provider that includes an indemnification or hold harmless clause for the acts or conduct of the carrier or managed care plan. Specifies that such clauses are void as against the public policy of the state.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  10­16­704, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

10­16­704.  Network adequacy. (10)  ALL PERSONS FUNCTIONING IN THE CAPACITY OF MEDICAL DIRECTOR OF A CARRIER OF A MANAGED CARE PLAN DOING BUSINESS IN COLORADO SHALL HAVE AN ACTIVE COLORADO LICENSE TO PRACTICE MEDICINE.

SECTION 2.  10­16­705, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

10­16­705.  Requirements for carriers and participating providers. (11.5)  A CARRIER OFFERING A MANAGED CARE PLAN SHALL NOT ENTER INTO A CONTRACT WITH A PROVIDER THAT INCLUDES AN INDEMNIFICATION OR HOLD HARMLESS CLAUSE FOR THE ACTS OR CONDUCT OF THE CARRIER OR MANAGED CARE PLAN. ANY SUCH INDEMNIFICATION OR HOLD HARMLESS CLAUSE SHALL BE VOID AS AGAINST THE PUBLIC POLICY OF COLORADO.

SECTION 3.  Effective date. This act shall take effect July 1, 1998.

SECTION 4.  Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.