XXXXXXXXXXXXXXXXXXXXXXXX Group Number: XXXXXXXX XXX
XXXXXXXXXXXXXXXXXXXXXXXXX Identification Number: ON FILE
XXXXXXXXXXXXXXXXXXXXXXXXX Type of Coverage: XXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXX
X8933-R15 Filing Copy: -MSPMED31A -Composed: 10-26-10/
DATE RUN: XX-XX-XXXX
EXTENDED BASIC MEDICARE SUPPLEMENT PLAN
The Commissioner of Commerce, State of Minnesota has established two categories of Medicare Supplements. The two categories from most to least comprehensive are the Extended Basic Medicare Supplement Plan and the Basic Medicare Supplement Plan.
This contract is a legal contract between you and us. PLEASE READ YOUR CONTRACT CAREFULLY.
RIGHT TO CANCEL: If you are not pleased with this contract, you may cancel it by midnight of the 30th day after you receive it. To do so you must return the contract and mail a written notice to Blue Cross and Blue Shield of Minnesota, P.O. Box 64560, St. Paul, Minnesota 55164 or your Blue Cross Agent. Mail must be postmarked by midnight of the 30th day, postage prepaid and properly addressed to us. We will then return all payments (including any fees or charges if applicable) made for this contract within 10 business days after we receive the returned contract and cancellation notice. The contract will then be considered void from the beginning. However, if before the end of the 30 day period you have incurred expenses and received coverage for claims in excess of the amount of your monthly premiums for that period, no refund will be made for that period.
Note to buyer:
THIS CONTRACT MAY NOT COVER ALL OF YOUR MEDICAL EXPENSES. CONTRACT PREMIUMS:
We have the right to change the premium for the contract term at any time. We will charge you on any due date the amount in effect for your contract on that due date. Such change in the amount of premiums shall take effect only on the first day of the new term. The term premiums will be the same amount for all Extended Basic Medicare Supplement contracts like yours. We have the right to refuse to renew your contract if you fail to pay the contract premiums when due. If we refuse to renew your contract for nonpayment, we will give you written notice as stated in the grace period, and shall end your coverage as of a premium due date. Any such refusal shall not allow us to deny a claim you incurred prior to the date your coverage ends.
TERMINATION AND RENEWAL TERMS:
We will not cancel your coverage or refuse renewal because of the deterioration of your health. You may renew your contract for further terms by paying us the proper premium. Such payments must be made before the end of the grace period.
® Registered marks of the Blue Cross and Blue Shield Association © 2011, Blue Cross and Blue Shield of Minnesota
Because of our concern for the environment, this document is entirely recyclable as business office paper. When you no longer need it, recycle if possible.
[X8933-R15] - Annual Notifications: General Provider Payment Methods Page i
ANNUAL NOTIFICATIONS
General Provider Payment Methods
Medigap, or Medicare supplement plans are designed to supplement traditional Medicare
coverage. Payments to providers for Medicare covered services may be affected by the member plan, Medicare's payment, and other Medicare requirements. In general, our payment is based on what Medicare approves and pays.
When Medicare is "primary" (pays before any other payor), Blue Cross and Blue Shield of
Minnesota (Blue Cross) is the secondary payor. As the secondary payor, Blue Cross may pay up to the Medicare-approved amount, Medicare limiting charge, or a percentage of the Medicare Part A deductible.
When Medicare is not primary, the following payment methods may apply.
Participating Providers
Blue Cross contracts with a large majority of doctors, hospitals and clinics in Minnesota to be part of its network. Other Blue Cross and/or Blue Shield Plans contract with providers in their states as well. (Each Blue Cross and/or Blue Shield Plan is an independent licensee of the Blue Cross and Blue Shield Association.) Each provider is an independent contractor and is not an agent or employee of Blue Cross, another Blue Cross and/or Blue Shield Plan, or the Blue Cross and Blue Shield Association. These health care providers are referred to as "Participating Providers." They have agreed to accept as full payment (less deductibles, coinsurance and copayments) an
amount that a Blue Cross and/or Blue Shield Plan has negotiated with its Participating Providers (the "Allowed Amount"). The Allowed Amount may vary from one provider to another for the same service.
Several methods are used to pay participating health care providers. If the provider is
"participating" they are under contract and the method of payment is part of the contract. Most contracts and payment rates are negotiated or revised on an annual basis.
• Non-Institutional or Professional (i.e. doctor visits, office visits) Provider
Payments
Fee-for-Service - Providers are paid for each service or bundle of services. Payment is based on the amount of the provider's billed charges.
Page ii Annual Notifications: General Provider Payment Methods
Discounted Fee-for-Service, Withhold and Bonus Payments - Providers are paid a portion of their billed charges for each service or bundle of services, and a portion
(generally 5-20%) of the provider's payment is withheld. As an incentive to promote high quality and cost-effective care, the provider may receive all or a portion of the withhold amount based upon the cost-effectiveness of the provider's care. In order to determine cost-effectiveness, a per member per month target is established. The target is established by using historical payment information to predict average costs. If the provider's costs are below this target, providers are eligible for a return of all or a portion of the withhold amount and may also qualify for an additional bonus payment.
In addition, as an incentive to promote high quality care and as a way to recognize those providers that participate in certain quality improvement projects, providers may be paid a bonus based on the quality of the provider's care to its member patients. In order to determine quality of care, certain factors are measured, such as member patient satisfaction feedback on the provider, compliance with clinical guidelines for preventive services or specific disease management processes, immunization administration and tracking, and tobacco cessation counseling. Payment for high cost cases and selected preventive and other services may be excluded from the discounted fee-for-service and withhold payment. When payment for these services is excluded, the provider is paid on a discounted fee-for-service basis, but no portion of the provider's payment is withheld.
• Institutional (i.e. hospital and other facility) Provider Payments
Inpatient Care
• Payments for each Case (case rate) - Providers are paid a fixed amount based upon the member's diagnosis at the time of admission, regardless of the number of days that the member is hospitalized. This payment amount may be adjusted if the length of stay is unusually long or short in comparison to the average stay for that diagnosis ("outlier payment"). The method is similar to the payment methodology used by the federal government to pay providers for Medicare services.
• Payments for each Day (per diem) - Providers are paid a fixed amount for each day the patient spends in the hospital or facility.
• Percentage of Billed Charges - Providers are paid a percentage of the hospital's or facility's billed charges for inpatient or outpatient services, including home services. Outpatient Care
• Payments for each Category of Services - Providers are paid a fixed or bundled amount for each category of outpatient services a member receives during one (1) or more related visits.
• Payments for each visit - Providers are paid a fixed or bundled amount for all related services a member receives in an outpatient or home setting during one (1) visit. • Payments for each Patient - Providers are paid a fixed amount per patient per
[X8933-R15] - Annual Notifications: General Provider Payment Methods Page iii
Pharmacy Payment
Four (4) kinds of pricing are compared and the lowest amount of the four (4) is paid: • the average wholesale price of the drug, less a discount, plus a dispensing fee; or • the pharmacy's retail price; or
• the maximum allowable cost we determine by comparing market prices (for generic drugs only); or
• the amount of the pharmacy’s billed charge.
Nonparticipating Providers
When you use a Nonparticipating Provider, benefits are substantially reduced and you will likely incur significantly higher out-of-pocket expenses. A Nonparticipating Provider does not have any agreement with a Blue Cross or Blue Shield Plan. For services received from a
Nonparticipating Provider (other than those described under "Special Circumstances" below), the Allowed Amount is usually less than the Allowed Amount for a Participating Provider for the same service and can be significantly less than the Nonparticipating Provider's billed charges. You are responsible for paying the difference between the Blue Cross Allowed Amount and the
Nonparticipating Provider's billed charges. This amount can be significant and the amount you pay does not apply toward any out-of-pocket maximum contained in the Plan.
In determining the Allowed Amount for Nonparticipating Providers, Blue Cross makes no
representations that this amount is a usual, customary or reasonable charge from a provider. See the Allowed Amount definition for a more complete description of how payments will be calculated for services provided by Nonparticipating Providers.
• Example of payment for Nonparticipating Providers
The following table illustrates the different out-of-pocket costs you may incur using
Nonparticipating versus Participating Providers for most services. The example presumes that the member deductible has been satisfied and that the Plan covers 80 percent of the Allowed Amount for Participating Providers and 60 percent of the Allowed Amount for Nonparticipating Providers. It also presumes that the Allowed Amount for a Nonparticipating Provider will be less than for a Participating Provider. The difference in the Allowed Amount between a
Page iv Annual Notifications: General Provider Payment Methods
Participating Provider Nonparticipating Provider
Provider charge: $150 $150
Allowed Amount: $100 $60
Blue Cross pays: $80 (80 percent of the Allowed Amount)
$36 (60 percent of the Allowed Amount)
Coinsurance member owes: $20 (20 percent of the allowed Amount)
$24 (40 percent of the allowed Amount)
Difference up to billed charge member owes:
None (provider has agreed to write this off)
$90 ($150 minus $60)
Total member pays: $20 $114*
* Blue Cross will in most cases pay the benefits for any covered health care services received from a Nonparticipating Provider directly to the member based on the Allowed Amounts and subject to the other applicable limitations in the Plan. An assignment of benefits from a member to a Nonparticipating Provider generally will not be recognized. This figure, therefore, represents the net cost to the member after being reimbursed by Blue Cross.
• Special Circumstances
When you receive care from certain nonparticipating professionals at a participating facility such as a hospital, outpatient facility, or emergency room, the reimbursement to the
nonparticipating professional may include some of the costs that you would otherwise be required to pay (e.g., the difference between the Allowed Amount and the provider's billed charge). This reimbursement applies when nonparticipating professionals are hospital-based and needed to provide immediate medical or surgical care and you do not have the opportunity to select the provider of care. This reimbursement also applies when you receive care in a nonparticipating hospital as a result of a medical emergency.
Example of Special Circumstances
Your doctor admits you to the hospital for an elective procedure. Your hospital and surgeon are Participating Providers. You also receive anesthesiology services, but you are not able to select the anesthesiologist. The anesthesiologist is not a Participating Provider. When the claim for anesthesiology services is processed, Blue Cross may pay an additional amount because you needed care, but were not able to choose the provider who would render such services.
[X8933-R15] - Annual Notifications: General Provider Payment Methods Page v
[X8933-R15] - Annual Notifications: Women's Health and Cancer Rights Page vii
Women's Health and Cancer Rights
Under Minnesota law you are entitled to the following reconstructive surgery services following a mastectomy:
1. all stages of reconstruction of the breast on which the mastectomy has been performed; 2. surgery and reconstruction of the other breast to produce a symmetrical appearance; and 3. prostheses and treatment for physical complications during all stages of mastectomy, including
swelling of the lymph glands (lymphedema).
[X8933-R15] - Annual Notifications: Member Rights and Responsibilities Page ix
Blue Cross and Blue Shield of Minnesota Member Rights and Responsibilities
You have the right as a health plan member to:
• be treated with respect, dignity and privacy;
• receive quality health care that is friendly and timely;
• have available and accessible medically necessary covered services, including emergency services, 24 hours a day, seven (7) days a week;
• be informed of your health problems and to receive information regarding treatment
alternatives and their risk in order to make an informed choice regardless if the health plan pays for treatment;
• participate with your health care providers in decisions about your treatment;
• give your provider a health care directive or a living will (a list of instructions about health treatments to be carried out in the event of incapacity);
• refuse treatment;
• privacy of medical and financial records maintained by Blue Cross and its health care providers in accordance with existing law;
• receive information about Blue Cross, its services, its providers, and your rights and responsibilities;
• make recommendations regarding these rights and responsibilities policies;
• have a resource at Blue Cross or at the clinic that you can contact with any concerns about services;
• file a complaint with Blue Cross and the Minnesota Commissioner of Commerce and receive a prompt and fair review; and
• initiate a legal proceeding when experiencing a problem with Blue Cross or its providers. You have the responsibility as a health plan member to:
• know your health plan benefits and requirements;
• provide, to the extent possible, information that Blue Cross and its providers need in order to care for you;
• understand your health problems and work with your doctor to set mutually agreed upon treatment goals;
• follow the treatment plan prescribed by your provider or to discuss with your provider why you are unable to follow the treatment plan;
• provide proof of coverage when you receive services and to update the clinic with any personal changes;
• pay copays at the time of service and to promptly pay deductibles, coinsurance and, if applicable, charges for services that are not covered; and
[X8933-R15] - Table of Contents Page xi
TABLE OF CONTENTS
ANNUAL NOTIFICATIONS... I
General Provider Payment Methods... i
Women's Health and Cancer Rights...vii
Blue Cross and Blue Shield of Minnesota Member Rights and Responsibilities... ix
PREMIUMS, EFFECTIVE DATE, TERMS ... 1
INTER-PLAN PROGRAMS... 3
MEDICAL POLICY COMMITTEE ... 5
DEFINITIONS... 7
EXCLUSIONS ... 15
OUT OF POCKET LIMITATION... 19
MEDICARE PART A SUPPLEMENTAL COVERAGE... 21
MEDICARE PART B SUPPLEMENTAL COVERAGE... 23
ADDITIONAL BENEFITS... 25
OTHER ADDITIONAL BENEFITS ... 31
NONDUPLICATION PROVISIONS... 33 GENERAL PROVISIONS... 35 COMPLAINT PROCESS... 39 Introduction... 39 Medicare Appeals... 39 Definitions... 39
Process for issues related to enrollment, termination, premium payment or coverage of Medicare noneligible services... 39
Verbal Notification ... 39
Written Notification ... 40
Appeal ... 40
Process for Complaints When Utilization Review is Necessary... 40
Definitions... 41
Determinations ... 41
Standard review determination ... 41
Expedited review determination... 41
Appeals... 42
Standard appeal ... 42
[X8933-R15] - Premiums, Effective Date, Terms Page 1
PREMIUMS, EFFECTIVE DATE, TERMS
Blue Cross and Blue Shield of Minnesota (herein called "we", "us", or "our") agrees that the person named as the subscriber on the identification (ID) card, herein called "you" or "your", is entitled to health services as herein defined subject to the terms of your contract.
All participating providers have agreed to provide health services as herein defined.
Your contract's issuance is based on the statements made on your application and the payment in advance of the term premiums. The issuance of your contract is subject to your being
enrolled in both Part A and Part B of Medicare.
Your coverage starts on the date stated on the Declaration Page.
Your contract renews on a monthly basis. All terms of coverage shall start at 12:00 a.m. and end at 12:01 a.m. Standard Time the following day at the place where you live.
If you are a disabled Medicare beneficiary and covered under a group health plan, you may not need this Medicare supplement policy. The benefits and premiums under this Medicare
supplement policy will be suspended during your enrollment in a group health plan. You must request this suspension in writing. When you lose group health plan coverage, your Medicare supplement policy will be reinstated if you request us to do so in writing within 90 days of losing group health plan coverage.
[X8933-R15] - Inter-Plan Programs Page 3
INTER-PLAN PROGRAMS
Out-of-Area Services
Blue Cross has a variety of relationships with other Blue Cross and/or Blue Shield Licensees referred to generally as "Inter-Plan Programs." Whenever you obtain health care services outside of Blue Cross' service area, the claims for these services may be processed through one of these Inter-Plan Programs, which include the BlueCard Program and may include negotiated National Account arrangements available between Blue Cross and other Blue Cross and Blue Shield Licensees.
Typically, when accessing care outside Blue Cross' service area, you will obtain care from health care providers that have a contractual agreement (i.e., are "participating providers") with the local Blue Cross and/or Blue Shield Licensee in that other geographic area ("Host Blue"). In some instances, you may obtain care from Nonparticipating Providers. Blue Cross' payment practices in both instances are described below.
BlueCard® Program
Under the BlueCard® Program, when you access covered health care services within the geographic area served by a Host Blue, Blue Cross will remain responsible for fulfilling Blue Cross' contractual obligations. However, the Host Blue is responsible for contracting with and generally handling all interactions with its Participating Providers.
Nonparticipating Providers Outside Blue Cross' Service Area 1. Member Liability Calculation
When covered health care services are provided outside of Blue Cross' service area by Nonparticipating Providers, the amount you pay for such services will generally be based on either the Host Blue's Nonparticipating Provider local payment or the pricing arrangements required by applicable state law. Where the Host Blue's pricing is greater than the
Nonparticipating Provider's billed charge or if no pricing is provided by a Host Blue, we generally will pay based on the definition of "Allowed Amount" as set forth in the "Definitions" section of this contract. In these situations, you may be liable for the difference between the amount that the Nonparticipating Provider bills and the payment Blue Cross will make for the covered services as set forth in this paragraph.
2. Exceptions
In certain situations, Blue Cross may use other payment bases, such as billed covered
charges, the payment we would make if the health care services had been obtained within our service area, or a special negotiated payment, as permitted under Inter-Plan Programs
Policies, to determine the amount Blue Cross will pay for services rendered by
[X8933-R15] - Medical Policy Committee Page 5
MEDICAL POLICY COMMITTEE
Our Medical Policy Committee determines whether new and existing medical treatments should be covered benefits. The Committee is made up of independent community physicians who represent a variety of medical specialties. The Committee's goal is to find the right balance between making improved treatments available and guarding against unsafe or unproven approaches. The Committee carefully examines the scientific evidence and outcomes for each treatment being considered.
For Medicare covered services, Medicare determines whether new and existing medical treatments should be covered.
For mental health services not covered by Medicare, we determine if the care is medically
necessary. Medically necessary care means mental health care services appropriate, in terms of type, frequency, level, setting, and duration, to the enrollee's diagnosis or condition and diagnostic testing and preventive services. Medically necessary care must be consistent with generally
accepted practice parameters as determined by health care providers in the same or similar general specialty as typically manages the condition, procedure, or treatment at issue and must:
[X8933-R15] - Definitions Page 7
DEFINITIONS
These terms have special meaning in this contract. Term Definition
Accidental Injury
Bodily injury or injuries caused by an accident.
Advanced Practice Nurses
Licensed registered nurses who have gained additional knowledge and skills through an organized program of study and clinical experience that meets the criteria for advanced practice established by the professional nursing
organization having the authority to certify the registered nurse in the
advanced nursing practice. Advanced practice nurses include clinical nurse specialists (C.N.S.), nurse practitioners (N.P.), certified registered nurse anesthetists (C.R.N.A.), and certified nurse midwives (C.N.M.).
Allowed Amount The amount upon which we base payment for a given covered service for a specific provider (also see "Inter-Plan Programs" section). The Allowed Amount may vary from one provider to another for the same covered service. All benefits are based on the Allowed Amount, except as specified in the "Benefit Chart."
The Allowed Amount for Participating Providers
For Participating Providers, the Allowed Amount is the negotiated amount of payment that the Participating Provider has agreed to accept as full payment for a covered service at the time your claim is processed. We periodically may adjust the negotiated amount of payment at the time your claim is processed for covered services at Participating Providers as a result of expected
settlements or other factors. The negotiated amount of payment with Participating Providers for certain covered services may not be based on a specified charge for each service, and we use a reasonable allowance to establish a per service Allowed Amount for such covered services. Through settlements with Participating Providers, we may subsequently pay a different amount to Participating Providers. Settlements will not impact or cause any change in the amount you paid at the time your claim was processed. The Allowed Amount for Nonparticipating Providers
In determining the Allowed Amount for Nonparticipating Providers, Blue Cross makes no representations that this amount is a usual, customary or
reasonable charge from a provider.
The Allowed Amount for Nonparticipating Provider professional services (physicians or clinics) in Minnesota
Page 8 Definitions
Term Definition
Amount is most commonly the amount in the Nonparticipating Provider Professional Services in Minnesota Fee Schedule. You may view this fee schedule at www.bluecrossmn.com. You may also call Customer service to obtain a copy of the portions of the fee schedule which are relevant to you. These proprietary fee schedules are for the information of Blue Cross
members only and are not to be used for any other purpose. They are subject to change without notice. You may need to talk with your Nonparticipating Provider to determine what procedure codes are applicable to the services your Nonparticipating Provider will provide in order to determine which parts of the fee schedule apply.
The Allowed Amount is the lesser of: (1) the Nonparticipating Provider Professional Services in Minnesota Fee Schedule; or (2) a designated percentage of the Nonparticipating Provider's billed charges. The
determination of the Allowed Amount is subject to all Blue Cross business rules as defined in the Blue Cross Provider Policy and Procedure Manual. As a result, Blue Cross may bundle services, take multiple procedure discounts and/or other reductions as a result of the procedures performed and billed on the claim. No fee schedule amounts include any applicable tax.
The fee schedule that is current as of the time the services are provided will be the fee schedule that is used for determining the Allowed Amount.
The Allowed Amount for all other Nonparticipating Providers (facility services) in Minnesota
The Blue Cross and Blue Shield of Minnesota Allowed Amount for
Nonparticipating Provider facility services is a designated percentage of the facility's billed charges, except under Special Circumstances as described below, and subject to business rules established in the Blue Cross Provider Policy and Procedure Manual. As a result, certain procedures billed by a Nonparticipating Provider facility may be combined into a single procedure or denied as not a covered service for purposes of determining what the
designated percentage will be applied against. Examples of facility-based provider types include, but are not limited to hospitals, skilled nursing facilities or renal dialysis centers.
The Allowed Amount for Nonparticipating Provider professional services (physicians or clinics) outside Minnesota
For Nonparticipating Provider physician or clinic services outside of
Minnesota, except those described under Special Circumstances below, the Allowed Amount is determined by the local Blue Cross and/or Blue Shield Plan, unless that amount is greater than the Nonparticipating Provider's billed charge, or no amount is provided by the local Blue Plan. In that case, the Allowed Amount will be based on a percentage of pricing obtained from a nationwide provider reimbursement database that considers various factors, including the ZIP code of the place of service and the type of service
[X8933-R15] - Definitions Page 9
Term Definition
The Allowed Amount for all other Nonparticipating Providers (facility services) outside Minnesota
For Nonparticipating Provider facility services outside of Minnesota, except those described under Special Circumstances below, the Allowed Amount is determined by the local Blue Cross and/or Blue Shield Plan, unless that amount is greater than the Nonparticipating Provider's billed charge, or no amount is provided by the local Blue Plan. In that case, the Allowed Amount is determined from a Medicare-based fee schedule. If such pricing is not available, payment will be based on a percentage of the Nonparticipating Provider's billed charges.
Special Circumstances
When you receive care from certain nonparticipating professionals at a
participating facility such as a hospital, outpatient facility, or emergency room, the reimbursement to the nonparticipating professional may include some of the costs that you would otherwise be required to pay (e.g., the difference between the Allowed Amount and the provider's billed charge). This reimbursement applies when nonparticipating professionals are hospital-based and needed to provide immediate medical or surgical care and you do not have the opportunity to select the provider of care. This reimbursement also applies when you receive care in a nonparticipating hospital as a result of a medical emergency.
If you have questions about the benefits available for services to be provided by a Nonparticipating Provider, you will need to speak with your provider and you may call Blue Cross Customer Service at the telephone number on the back of your member ID card for more information.
For Medicare-eligible expenses, payment may be limited to the applicable Medicare Allowed Amount on assigned claims and the Medicare limiting charge on non-assigned claims. Under the Medicare program, "assignment" refers to providers who accept the amount Medicare approves for a certain service or supply as payment in full. "Allowed Amount" means the payment that Medicare approves for a specific service, and "Limiting charge" refers to the amount (if any) a provider is permitted to charge over and above
Medicare's approved payment amount. Approved Bed A bed which is certified by Medicare. Attending
Page 10 Definitions
Term Definition
Benefit Period A period which begins with the first day you are confined on an inpatient basis in a hospital or nursing facility, and ends after you have been out of the facility for 60 days in a row (including the day of discharge). A benefit period starts over when you re-enter a hospital or nursing facility more than 60 days after your last discharge.
Coinsurance The percentage of the Allowed Amount you must pay for certain covered services after you have paid any applicable copays until you reach your out-of-pocket maximum. For covered services from participating providers, coinsurance is calculated based on the lesser of the Allowed Amount or the participating provider's billed charge. Because payment amounts are
negotiated with participating providers to achieve overall lower costs, the Allowed Amount for participating providers is generally, but not always, lower than the billed charge. However, the amount used to calculate your
coinsurance will not exceed the billed charge. When your coinsurance is calculated on the billed charge rather than the Allowed Amount for
participating providers, the percentage of the Allowed Amount paid will be greater than the stated percentage.
For covered services from nonparticipating providers, coinsurance is
calculated based on the Allowed Amount. In addition, you are responsible for any excess charge over the Allowed Amount.
Your coinsurance amount will be based on the negotiated payment amount Blue Cross has established with the provider or the provider's charge, whichever is less. The negotiated payment amount includes discounts that are known and can be calculated when the claim is processed. In some cases, after a claim is processed, that negotiated payment amount may be adjusted at a later time if the agreement with the provider so provides.
Coinsurance calculation will not be changed by such subsequent adjustments or any other subsequent reimbursements Blue Cross may receive from other parties.
Under the Medicare program, coinsurance refers to the percent of the
Medicare approved amount that a beneficiary has to pay after the beneficiary pays any applicable deductible. The coinsurance payment is typically
expressed as a percentage of the cost of the service.
Option with effective dates of coverage prior to 01/01/06:
Compound Drug
A prescription where two or more medications are mixed together. One of these drugs must be a Federal legend drug. The end product must not be available in an equivalent commercial form. A prescription will not be
considered as a compound prescription if it is reconstituted or if, to the active ingredient, only water or sodium chloride solution are added.
Cosmetic Surgery
[X8933-R15] - Definitions Page 11
Custodial Care Care which is designed chiefly to assist a person to meet her or his activities of daily living as defined by Medicare guidelines and determined by our medical staff and/or the hospital's, or the Medicare-approved skilled nursing facility's utilization review committee. Such care is of a nature that does not require the continuing attention of trained medical or paramedical personnel. Custodial care is not skilled nursing service. Examples of custodial care include, but are not limited to:
A. service which constitutes personal care such as walking and getting in or out of bed, aid in bathing, dressing, feeding and using the toilet;
B. preparation of special diets; or
C. supervision of medication which usually can be self-administered. Diagnostic
Admission
An admission to a hospital for the purpose of discovering or evaluating an illness rather than treatment.
Duration of Coverage
The period starting on the date your contract starts and ending on the date your contract ends.
Facility A hospital, home health agency, skilled nursing facility, freestanding ambulatory facility, residential behavioral health treatment facility, or
outpatient behavioral health treatment facility licensed, certified or otherwise qualified under state law, in the state in which the services are rendered, to provide the health services billed by that facility.
Foot Orthotic A rigid or semi-rigid orthopedic appliance or apparatus worn to support, align and/or correct deformities of the lower extremity.
Freestanding Ambulatory Facility
A facility that provides medical, surgical, and other professional services to sick and injured persons on an outpatient basis. Such services are performed by or under the direction of a staff of licensed doctors of medicine (M.D.) or osteopathy (D.O.) and/or registered nurses (R.N.). A freestanding ambulatory facility is not part of a hospital, a clinic, a doctor's office, or other health care professional's office.
Health Care Professional
A health care professional, licensed for independent practice, certified or otherwise qualified under state law, in the state in which the services are rendered, to provide the health services billed by that health care
professional. Health care professionals include only physicians, chiropractors, mental health professionals, advanced practice nurses, physician assistants, audiologists, physical, speech and occupational therapists, licensed
registered dieticians, licensed nutritionists, and licensed acupuncture
Page 12 Definitions
Health Service Services and supplies that are reasonably priced, needed and usual for
treatment of an illness as determined by us. A health service shall be deemed incurred on the date the services or supplies are rendered or received. Health services include services or supplies for reconstructive surgery resulting from illness of the involved body part.
Home Health Agency
A Medicare-approved facility that sends health professionals and home health aides into a person’s home to provide health services.
Hospital A facility that provides diagnostic, therapeutic and surgical services to sick and injured persons on an inpatient or outpatient basis. Such services are performed by or under the direction of a staff of licensed doctors of medicine (M.D.) or osteopathy (D.O.). A hospital provides 24-hour-a-day professional registered nursing (R.N.) services.
Illness A sickness, disease, or injury.
Investigative A drug, device, diagnostic procedure, technology, or medical treatment or procedure is investigative if reliable evidence does not permit conclusions concerning its safety, effectiveness, or effect on health outcomes. We base our decision upon an examination of the following reliable evidence, none of which is determinative in and of itself:
• the drug or device cannot be lawfully marketed without approval of the U.S. Food and Drug Administration and approval for marketing has not been given at the time the drug or device is furnished;
• the drug, device, diagnostic procedure, technology, or medical treatment or procedure is the subject of ongoing phase I, II, or III clinical trials.
(Phase I clinical trials determine the safe dosages of medication for Phase II trials and define acute effects on normal tissue. Phase II clinical trials determine clinical response in a defined patient setting. If significant activity is observed in any disease during Phase II, further clinical trials usually study a comparison of the experimental treatment with the standard treatment in Phase III trials. Phase III trials are typically quite large and require many patients to determine if a treatment improves outcomes in a large population of patients);
• medically reasonable conclusions establishing its safety, effectiveness or effect on health outcomes have not been established. For purposes of this subparagraph, a drug, device, diagnostic procedure, technology, or
medical treatment or procedure shall not be considered investigative if reliable evidence shows that it is safe and effective for the treatment of a particular patient.
Reliable evidence shall also mean consensus opinions and recommendations reported in the relevant medical and scientific literature, peer-reviewed
[X8933-R15] - Definitions Page 13
Medical Emergency
Medically necessary care which a reasonable lay person believes is
immediately necessary to preserve life, prevent serious impairment to bodily functions, organs, or parts, or prevent placing the physical or mental health of the member in serious jeopardy.
Medically Necessary
Eligible medical and hospital services that we determine are appropriate and necessary based on our internal standards. In disputed cases, we use the standard peer review process.
For purposes of mental health care services, the following medically necessary definition applies:
Health care services appropriate in terms of type, frequency, level, setting and duration to the individual's diagnosis or condition, diagnostic testing and preventive services. Medically necessary care must:
A. be consistent with generally accepted practice parameters as determined by health care providers in the same or similar general specialty as typically manages the conditions, procedures or treatment at issue; and B. help restore or maintain the individual's health; or
C. prevent deterioration of the individual's condition; or
D. prevent the reasonable likely onset of a health problem or detect an incipient problem.
For Medicare covered services, Medicare determines whether services are appropriate and necessary.
Medicare The Health Insurance for The Aged Act, title XVIII of the Social Security Amendments of 1965, as amended, or title I, Part I, of Public Law Number 89-97 as enacted by the 89th Congress of the United States.
Medicare Eligible Expenses
Health care expenses allowed by Medicare, to the extent recognized as reasonable and medically necessary by Medicare.
Mental Health Professional
A psychiatrist, psychologist, independent social worker, or marriage and family therapist, licensed for independent practice, that provides treatment for mental health disorders, alcoholism, chemical dependency, or drug addiction. Outpatient
Behavioral Health Treatment Facility
A facility that provides outpatient treatment, by or under the direction of, a doctor of medicine (M.D.) or osteopathy (D.O.), for alcoholism, chemical dependency, or drug addiction. An outpatient behavioral health treatment facility does not, other than incidentally, provide educational or recreational services as part of its treatment program.
Participating Provider
A provider who has a service agreement with us. All providers participating with Blue Cross are participating providers.
Page 14 Definitions
Provider A health care professional or facility licensed, certified or otherwise qualified under state law, in the state in which the services are rendered, to provide the health services billed by that provider. Provider also includes pharmacies, medical supply companies, independent laboratories and ambulances. Residential
Behavioral Health Treatment Facility
A facility that provides inpatient treatment, by or under the direction of, a doctor of medicine (M.D.) or osteopathy (D.O.), for mental health disorders, alcoholism, chemical dependency or drug addition. A residential behavioral health treatment facility does not, other than incidentally, provide educational or recreational services as part of its treatment program.
Skilled Nursing
Facility A Medicare-approved facility that provides skilled transitional care, by or under the direction of a doctor of medicine (M.D.) or osteopathy (D.O.), after a hospital stay. A skilled nursing facility provides 24-hour-a-day professional registered nursing (R.N.) services.
Skilled Nursing Service
A service which is furnished by or under the supervision of trained medical or paramedical personnel to assure the safety of the patient and achieve the medically desired result as defined by Medicare guidelines. A service is not considered a skilled nursing service merely because it is performed or supervised by trained medical or paramedical personnel. However, it is a service which cannot be safely and adequately self-administered or performed by the average, rational, nonmedical person without the supervision of such personnel.
Supervised
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EXCLUSIONS
A. We do not pay for the following (unless allowed by Medicare):
1. Services that are provided to you for the treatment of an employment related injury for which you are entitled to make a worker's compensation claim unless the worker's compensation carrier has disputed the claim.
2. Services to treat injuries which occur while on military duty.
3. Cosmetic surgery required to repair a defect caused by an accident or medical condition that is not covered by another insurance company.
4. Reconstructive surgery except that which is incidental to, or following, surgery resulting from injury, sickness, or disease of the involved body part.
5. Treatment, services or supplies which are not medically necessary.
6. Any diagnostic admission if such diagnostic tests can be performed on an outpatient basis as determined by our medical staff or independent medical physician review panel.
7. Charges for therapeutic acupuncture, except for conditions that meet medical necessity criteria as determined by us prior to the receipt of services.
8. Charges for surgery or treatment which is of an investigative nature. 9. Charges for marital, family or other counseling or training services.
10. Charges for recreational or educational therapy or forms of nonmedical self care or self help training and any related diagnostic testing.
11. Charges for services of the clergy who would normally not make a charge for services that are rendered during the course of their normal practice as a member of the clergy.
12. Charges for organ transplants which are not eligible expenses under Medicare. 13. Charges for treatment while confined in a state, federal or Veterans Administration
hospital for which charges are not imposed. 14. Charges in excess of our Allowed Amount.
15. Any charge for services or supplies which are not within the scope of authorized practice of the institution or individual rendering the services or supplies as would be licensed by the state of Minnesota whether or not such institution or individual is subject to licensure by the state of Minnesota.
Page 16 Exclusions
17. Any charge for eyeglasses, frames, contact lenses, internal, external, or implantable hearing aids or devices and related fitting or adjustment of eyeglasses or hearing aids or devices.
18. Any charge for services for medical or surgical treatment of refractive errors (including but not limited to radial keratotomy).
19. Any charges for custodial care that are not part of the At-Home Recovery Benefit. 20. Any charge for dental surgery (except as specified in the "Additional Benefits" or "Other
Additional Benefits" section of this contract).
21. Professional services of private duty nurses other than as covered in the "Additional Benefits" section of this contract.
22. Charges that are eligible, paid or payable, under any medical payment, personal injury protection, automobile or other coverage that is payable without regard to fault, including charges that are applied toward any copay or coinsurance requirement of such a policy. 23. Any charges by a physician or health care professional for services he or she renders to himself or herself or to any close relative of the physician or health professional. Close relative means spouse, brother, sister, parent or child.
Option:
24. Any charges for smoking cessation programs, drugs and supplies.
Option:
25. Any charges for smoking cessation program fees and/or supplies.
26. Any charge for drugs and supplies for high dose chemotherapy and the related course of treatment; drugs and supplies when the initial treatment plan includes or anticipates autologous bone marrow rescue, stem cell rescue, or biotechnological drug therapy. 27. Charges for over-the-counter drugs except as specified in the "Additional Benefits" or
"Other Additional Benefits" section of this contract; vitamin or dietary supplements; and investigative or non-FDA approved drugs.
28. Any charges for any treatment, equipment, drug, and/or device that we determine does not meet generally accepted standards of practice in the medical community for cancer and/or allergy testing; we do not cover services for or related to homeopathy, or chelation therapy that we determine is not medically necessary.
29. Foot orthotics.
30. Services or supplies that are primarily and customarily used for nonmedical purposes or used for environmental control or enhancement (whether or not prescribed by a
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31. Services for, or related to, growth hormone replacement therapy except for conditions that meet medical necessity criteria. In general, growth hormone replacement therapy is
covered when provided to augment growth in children with Turner's syndrome, renal failure, or growth hormone deficiency.
B. The following apply only to Medicare Part A Supplemental Coverage furnished by your contract. The Medicare Part A Supplemental Coverage does not cover:
1. Any treatment or service not prescribed by a physician. 2. Services and supplies which are furnished:
a. chiefly for rest cures, custodial care, domiciliary care or the ease of the household. b. chiefly for exams, diagnostic study, x-rays, appraisal, rechecks, or check-ups except
when needed by the symptoms of an illness.
3. Services or supplies not used in a hospital and services such as television, barber and beauty service, guest services and similar services.
4. Professional ambulance service. 5. Blood and blood plasma.
6. Eye refractions or exams for the fitting of glasses or hearing aids. 7. Orthopedic shoes or other support devices for the feet.
8. Professional services of a physician.
9. Services or supplies furnished by the hospital or skilled nursing facility which are not eligible for Medicare coverage.
C. The following apply only to the Medicare Part B Supplemental Coverage provided by your contract. The Medicare Part B Supplemental Coverage does not cover:
1. Charges by a health care professional if such health care professional is a member of your immediate family.
2. Any surgery, treatment service or supply for which no charge would have been made if your coverage were not in force and for which you are not required to pay.
3. Hospital services and supplies of any kind (except for the reasonable cost of the first three pints of blood) received while confined in a hospital.
Page 18 Exclusions
5. Dental surgery, treatment or care (except as specified in the "Additional Benefits" or "Other Additional Benefits" section of this contract).
6. Services rendered or treatment for recuperative care, custodial care or rest cures. 7. Services or supplies furnished by or through a nursing home, convalescent home,
extended care facility, infirmary or similar facility which are not specifically eligible for coverage under Part B of Medicare.
8. Any surgery treatment service or supply which for reason other than the maximum allowance having been paid is not eligible for Medicare coverage.
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OUT OF POCKET LIMITATION
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MEDICARE PART A SUPPLEMENTAL COVERAGE
When due to illness, and while your coverage is in force, if you receive any of the following health services, the following coverage will be furnished. The health services must be furnished while you are under the care of a physician who certifies that they are needed.
A. Hospital Confinement Benefits:
Coverage will be furnished for 100% of the Medicare Part A deductible.
After satisfaction of the Medicare Part A deductible, coverage will be furnished for 100% of the Medicare Part A coinsurance amounts for hospital confinement and hospice care during a benefit period, and 100% of all Medicare Part A eligible expense for hospitalization not covered by Medicare.
B. Skilled Nursing Facility Confinement Benefits:
Coverage is furnished for 100% of the Medicare coinsurance amounts incurred by you when you are confined to a Medicare-approved skilled nursing facility.
Standard for effective dates 6/1/10 or later:
C. Hospice and Respite Care Benefits:
Coverage will be furnished for 100% of the Medicare Part A deductible and coinsurance amounts incurred by you for Medicare eligible hospice and respite care expenses. D. Home Health Care Services and Medical Supplies:
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MEDICARE PART B SUPPLEMENTAL COVERAGE
Services and supplies which are eligible under Medicare Part B in any calendar year will be covered.
Coverage will be furnished for 100% of the Medicare Part B calendar year deductible. Coverage will be furnished for 100% of the eligible coinsurance expenses incurred by you for Medicare Part B approved charges. Coverage will also be furnished for the reasonable cost of the first three pints of blood (Medicare blood deductible), unless replaced in accordance with federal regulations or otherwise covered by this contract.
Note: Benefits for the Medicare deductible and coinsurance amounts are automatically changed to coincide with Medicare deductible and coinsurance changes. We may change your contract premiums to correspond with these changes.
Standard for effective dates 6/1/10 or later:
Home Health Care Services and Medical Supplies:
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ADDITIONAL BENEFITS
Services and supplies or the portion of services and supplies not covered under Medicare Parts A and B, or the other sections of this contract are covered at 80% (except as otherwise stated) of our Allowed Amount (not to exceed any charge limitations established by the Medicare program) for the following.
A. Hospital Services
1. Hospital room and board (including general nursing service) in a two or more bed room. Coverage will be furnished for a private room which your physician prescribes as
medically necessary. If the hospital does not have semiprivate rooms available, coverage will be furnished for 90% of the hospital's private room charge.
2. All other eligible services and supplies furnished on an inpatient or outpatient basis by the hospital.
3. Private duty nursing while confined in a hospital.
B. Skilled Nursing Facility (services and supplies must qualify as reimbursable under Medicare)
1. Room and board (including general nursing service) in a two or more bed room for up to 120 days of confinement each calendar year. Coverage will be furnished for a private room which your physician prescribes as medically necessary. If the nursing home does not have semiprivate rooms available, coverage will be furnished for 90% of the hospital's lowest private room charge.
2. All other eligible services and supplies furnished by a nursing home for medical care therein.
3. Private duty nursing while confined in a nursing home.
C. Home Health Agency (services and supplies must qualify as reimbursable under Medicare)
Coverage for the services listed below will be furnished for visits by members of a home health agency team in your home. Such services must be furnished for the care or treatment of an illness which would require confinement in a hospital or nursing home if such services were not available. Coverage will be furnished for up to 180 visits per calendar year.
1. Skilled nursing service, as needed, other than private duty nursing service. Such service must be given by a licensed registered nurse who is employed by the home health agency.
2. Services of a:
Page 26 Additional Benefits
e. medical technologist; or f. nutritionist.
3. Services of a home health aide employed by the home health agency.
Each visit by a member of a home health agency shall be deemed as one home health agency visit.
D. Professional services
Professional services for diagnosis or treatment of illness which are rendered by a physician or at a physician's direction by the following who are not a close relative.
Anesthetics and their administration. Diagnostic x-ray and lab exams. Therapy by a:
1. physical therapist: 2. speech therapist; 3. inhalation therapist; or 4. occupational therapist.
A close relative means your spouse, brother, sister, parent or child.
Extended Basic Med Supp Drug Option for effective dates of coverage prior to 01/01/06:
E. Prescription Drugs
Coverage will be provided for 80% of our Allowed Amount for prescription drug expenses. You are responsible for any remaining prescription drug expenses.
Prescription drugs must be ordered by a health professional who is authorized by law to prescribe the drug. Prescription drugs are defined as drugs that are required by federal law to be dispensed only by prescription.
We cover off label drugs used for cancer treatment as specified by law.
The plan will cover prescription smoking cessation products and over-the-counter nicotine replacement products (limited to nicotine patches and gum) with a physician's prescription. Some quantity limitations may apply.
Some medications that are taken on an as needed basis will have individual dispensing limits. Prescription drugs are dispensed up to a 90-day supply or 100 unit doses, whichever is
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Blue Cross may receive pharmaceutical manufacturer volume purchase discounts in connection with the purchase of certain prescription drugs. Such discounts are the sole property of Blue Cross and will not be considered in calculating any deductible, coinsurance, copay or benefit maximums. The prescription drug coinsurance (if applicable) is based on a set percentage of the amount payable to the pharmacy at the time the prescription is dispensed. F. Supplies
Coverage will be provided for 80% of our Allowed Amount for supplies. You are responsible for any remaining expenses.
1. Blood or blood derivatives. 2. The following equipment:
a. casts; b. splints; c. trusses; d. braces; e. crutches; or
f. artificial limbs or eyes and certain other prosthetic appliances, excluding dental prosthetics.
3. Oxygen and the rental of oxygen equipment.
4. Rental or purchase, if appropriate, of durable medical equipment. 5. Use of radium or other radioactive materials.
6. Medical expenses and supplies incurred for special dietary treatment of phenylketonuria (PKU) when recommended by a physician.
G. Oral Surgery
Oral surgery for the extraction of partially or completely unerupted impacted teeth or tooth root without extraction of the entire tooth (root canal therapy is not covered).
H. Ambulance
Services furnished by licensed ambulance to the nearest facility qualified to treat the condition. Coverage for a reasonable mileage rate for transportation to the nearest kidney dialysis center for treatment.
I. Second Opinion
Page 28 Additional Benefits
For effective dates of coverage prior to 6/1/10:
J. Preventive Care
Coverage will be provided for 100% of the Medicare approved amount to a maximum benefit of $120 annually for one annual clinical preventive medical history and physical exam that may include any combination of the following services if considered medically appropriate:
1. fecal occult blood test and/or rectal exam;
2. dipstick urinalysis for hematuria, bacteriuria, and proteinuria;
3. pure tone (air only) hearing screening test administered or ordered by a physician; 4. serum cholesterol screening every five years;
5. thyroid function test; 6. diabetes screening; and
7. any other test or preventive measures determined appropriate by the attending physician.
For effective dates 6/1/10 or later:
K. Preventive Care
Coverage will be provided for 100%, to a maximum of $120 annually, for the following preventive health services not covered by Medicare:
1. an annual clinical preventive medical history and physical examination, including tests and services outlined below, and patient education to address preventive health measures; and 2. preventive screening and services, the selection of which is determined to be medically
necessary by the attending physician.
For effective dates of coverage prior to 6/1/10 only:
L. At-Home Recovery Services
Services to provide short-term at-home assistance with activities of daily living for persons recovering from an illness, injury, or surgery. Coverage will be provided for 100% of the actual charges for each visit, up to a maximum of $100 per visit. The following limitations and
exclusions also apply:
1. at-home recovery benefits provided must be primarily for services that assist in activities of daily living;
2. your attending physician must certify that the specific type and frequency of at-home recovery services are necessary because of a condition for which a home-care plan of treatment was approved by Medicare;
3. visits are limited to the number and type of at-home recovery visits certified as medically necessary by your attending physician;
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5. $4,000 calendar year maximum; 6. 7 visit per week maximum;
7. care must be furnished on a visiting basis in your home;
8. services must be provided by a care provider as defined below;
9. services must be provided while you are covered under this contract, and not otherwise excluded;
10. at-home recovery benefits must be received during the period that you are receiving Medicare-approved home care services, or no more than 8 weeks after the service date of the last Medicare-approved home health care visit;
11. home care visits paid for by Medicare or other government programs are excluded; and 12. care provided by unqualified family members, unpaid volunteers, or providers who are not
care providers is excluded.
The following definitions apply to the At-home Recovery Services benefit:
1. "activities of daily living" means activities including, but not limited to, bathing, dressing, personal hygiene, transferring, eating, ambulating, assistance with drugs that are normally self-administered, and changing bandages or other dressings;
2. "care provider" means a duly qualified or licensed home health aid/homemaker, personal care aide, or nurse provided through a licensed home health care agency or referred by a licensed referral agency or licensed nurses registry;
3. "home" means a place used by the insured as a place of residence provided that such place would qualify as a residence for home health care services covered by Medicare (a hospital or skilled nursing facility will not be considered the insured's place of residence); and
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OTHER ADDITIONAL BENEFITS
Coverage is furnished for 80% of our Allowed Amount unless otherwise specified (not to exceed any charge limitations established by the Medicare program) for:
A. Residential Behavioral Health Treatment Program
Coverage is furnished for services and supplies received in a hospital or residential behavioral health treatment facility for the treatment of alcoholism, chemical dependency or drug
addiction.
B. Outpatient Behavioral Health Treatment Program
Coverage is furnished for services and supplies in an outpatient behavioral health treatment facility for the treatment of alcoholism, chemical dependency or drug addiction.
C. TMJ
Surgical and non-surgical treatment of temporomandibular joint (TMJ) syndrome and craniomandibular disorder are covered on the same basis as any other body joint. D. Scalp Hair Prosthesis (Wigs)
Hair loss must be due to alopecia areata. The maximum is $350 per person per calendar year. E. Cancer Screening
Coverage will be provided for 100% of our Allowed Amount for services for routine screening procedures for cancer including mammograms, pap smears, proctoscopy, occult blood work, prostate-specific antigen tests, and related office visits when ordered or performed by a physician in accordance with the standard practice of medicine.
F. Ventilator-Dependent Persons
Services up to 120 hours per hospital admission for services that are provided by a private duty nurse for a ventilator-dependent person in a hospital licensed under Chapter 144. The private duty nurse shall perform only the services of communicator or interpreter for the
ventilator-dependent patient during the transition period to assure adequate training of hospital staff to communicate with the ventilator-dependent patient.
G. Reconstructive surgery
Services for reconstructive surgery incidental to or following surgery resulting from an injury, sickness, or disease of the involved body part.
Page 32 Other Additional Benefits
Services are provided in a manner determined in consultation with the physician and patient. Coverage is provided on the same basis as any other illness.
H. Immunizations
100% of the cost of immunizations unless covered under Part D of the Medicare program. I. Foreign Travel
Medically necessary services and supplies are covered when traveling outside of the United States.
J. Management and Treatment of Diabetes
Physician prescribed equipment and supplies used for the management and treatment of gestational, type I or type II diabetes, including insulin, needles and syringes, unless covered under Part D of the Medicare program.
Coverage does not include non-prescription supplies such as alcohol swabs and cotton balls. Coverage also includes diabetes outpatient self-management training and education, including medical nutrition therapy, that is provided by a certified, registered, or licensed health care professional working in a program consistent with the national standards of diabetes self-management education as established by the American Diabetes Association.
K. Treatment of Diagnosed Lyme Disease
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NONDUPLICATION PROVISIONS
Non-Duplication with Medicare: Your contract does not cover that part of any services and supplies for which Medicare has paid or would pay if coverage were requested by you, or for which you could have received payment if you had been enrolled in Medicare.
Non-Duplication With Our Other Contracts: If you are covered under more than one of our contracts, coverage will be furnished under all of our contracts only to the extent that the combined coverage does not exceed the total charges for the health services.
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GENERAL PROVISIONS
Notice of Medicare Benefits Changes: We will notify you of modifications made to this contract no later than 30 days before the annual effective date of any Medicare benefit changes. The notice will describe any benefit and coverage cost changes.
Your Identification: You must show your ID card to the participating provider at the time services are requested or not later than 30 days thereafter.
Time Limit on Certain Defenses: After two (2) years from the date of issue of this contract, no misstatements, except fraudulent misstatements, made by the applicant in the application for such contract shall be used to void the contract or deny a claim for loss incurred or disability (as defined in the contract) commencing after the end of such two (2) year period.
Reinstatement: If any renewal premium is not paid to us within the time granted, any future
acceptance of payment by us or one of our agents shall reinstate the contract, except as follows: If we or our agent require an application for reinstatement and issues to you a conditional receipt for your payment, your contract will be reinstated upon approval by us of such application. If we do not mail to you a notice of our disapproval within 40 days after the issuance of the conditional receipt, your contract will be reinstated on the forty-fifth (45) day following such issuance.
The reinstated contract shall cover only loss caused by any injury which occurs after the date of reinstatement or a sickness which starts ten (10) days after such date. In all other respects, you and we shall have the same rights as you and we now have under your contract except for any terms reached in connection with the reinstatement. Any payment made for reinstatement may be applied to a period for which payment had not previously been made, but not for more than sixty (60) days prior to the date or reinstatement.
Release of Records: You agree to allow all health care providers to give us needed information about the care they provide to you. We may need this information to process claims, conduct utilization review and quality improvement activities, and for other health plan activities as permitted by law. We keep this information confidential, but we may release it if you authorize release, or if state or federal law permits or requires release without your authorization. If a provider requires special authorization for release of records, you agree to provide this
authorization. Your failure to provide authorization or requested information may result in denial of your claim.
Proof of Claim: You or the participating provider must give us written proof of claims for service within 90 days after the date such claims are incurred. We will not make such claim void if it is not reasonably possible to give us such proof within such 90 day period. In such case we will allow proof to be given within one year from the end of such 90 day period, except in the absence of legal capacity. We deem a service to be incurred on the date the services or supplies are received or rendered.
