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