Senate committee substitute makes the following changes to 2nd edition.
Provides that the Smart Card Pilot Program is to be administered by the Provider and Recipient Services Unit of the Division of Medical Assistance (was, administered by the Program Integrity Unit of the Division of Medical Assistance). Directs that the pilot program be initiated for a six-to-12 month period (was, a 12-month period). Provides that the pilot program is to involve enrollment, distribution, and use of smart cards by designated recipients (was, all recipients) as replacements for currently used Medicaid assistance cards. Clarifies that an information system that is included in the pilot program must be a secure Web-based information system. Provides that in implementing the pilot program, the Department of Health and Human Services (Department) may incorporate additional or alternative methods (was, alternative methods) of authentication of residents.
Directs that the pilot program is to be considered a success if it meets minimum criteria defined in this act and reduces the average monthly costs of recipients within the pilot area to recover the cost of the smart card program, (was, reduce the average monthly cost of the pilot program recipients by a minimum of 3%). Prohibits expansion of the pilot program unless the Department’s data indicates that the program can be expanded through program savings (was, prohibited expansion of the program unless the General Assembly provided for its continuation or expansion).
Provides that all federal and state laws regulating the privacy of personal health information including HIPAA and HITECH apply to prosecutions involving both criminal and civil penalties allowable under law, up to a felony criminal conviction. Provides that the provisions regarding compliance and prosecution apply to all contracts made by the Department in regards to this pilot program. Requires that all compliance and prosecution provisions in the proposed act be incorporated into all contractual documents between the Department and a third-party vendor. Provides that any violation of federal or state laws regarding the privacy of personal health information makes the contracting parties subject to prosecution; however, provides that if the Department is acting in good faith, it is not held responsible for the actions of a contractor or subcontractor that violates any federal or state law concerning the protection of personal health information.
Deletes provision specifying that funds appropriated to the General Assembly for 2010-11 fiscal year for fraud prevention be carried forward to the 2011-12 fiscal year to carry out the purposes of this act.