April 13, 2012 — Over the past several years, the Kentucky Association of Chiropractors (KAC) has worked to bring the inappropriate practices of insurers using third-party administrators and provider networks to the attention of the Kentucky Department of Insurance (KY-DOI).
Until now, KY-DOI had lacked the statutory authority to remedy this situation.
With the assistance of the KY-DOI, the KAC drafted legislative language to eliminate this practice. Yesterday, Kentucky Governor Steve Beshear, signed H.B. 497 into law. This law will limit private insurance companies and their third-party administrators (TPAs) from arbitrarily reducing services provided by DCs that are allowed for in a patient’s health plan.
This is a huge victory in Kentucky and it will serve as model legislation throughout the country. Additionally, this important component will allow DCs to better treat their patients. TPAs and insurers will be required to re-write or amend provider agreements to comply with this new law.
for the history of this bill’s passage and links to statutory language that re-enforces the new law, complete with penalties for non-compliance. Please contact the ACA Insurance Relations Department at InsInfo@acatoday.org for more information.
Source: American Chiropractic Association, acatoday.org