Section 550.1516 - Provider class plan; standards.
THE NONPROFIT HEALTH CARE CORPORATION REFORM ACT (EXCERPT)
Act 350 of 1980
550.1516 Provider class plan; standards.
Sec. 516.
(1) All provider class plans retained by the commissioner under section 513 or approved by the hearing officer shall maintain the following standards for all providers:
(a) Responsible cost controls shall exist that balance quality, accessibility, and cost.
(b) The health care corporation shall promote programs and policies which encourage cost-effective behavior by providers in accordance with the provisions of this act, and in accordance with all of the following:
(i) There shall be a reasonable basis for believing that the programs will be effective.
(ii) The programs applicable to a provider class shall be reviewed to avoid duplication or inconsistency, to the extent practicable.
(c) There shall be a fair and reasonable appeals process established and maintained by the health care corporation for aggrieved providers.
(d) There shall be a reasonable period for implementation of changes.
(e) There shall be reasonably prompt payment by the health care corporation to providers who render covered health care services.
(2) In addition to the standards prescribed in subsection (1), the following standards shall apply to hospitals:
(a) To the extent practicable, reimbursement control shall be expressed in the aggregate to individual hospitals.
(b) No portion of the health care corporation's fair share of hospitals' reasonable financial requirements shall be borne by other health care purchasers. However, this subdivision shall not preclude reimbursement arrangements which include financial incentives and disincentives.
(c) The health care corporation's programs and policies shall not unreasonably interfere with the hospital's ability and responsibility to manage its operations.
History: 1980, Act 350, Eff. Apr. 3, 1981
Popular Name: Blue Cross-Blue Shield
Popular Name: Act 350