Bill Text: IN HB1269 | 2012 | Regular Session | Enrolled
Bill Title: Health care compact.
Spectrum: Partisan Bill (Republican 28-0)
Status: (Enrolled - Dead) 2012-03-19 - Signed by the Governor [HB1269 Detail]
Download: Indiana-2012-HB1269-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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AN ACT to amend the Indiana Code concerning health.
Whereas, the separation of powers, both between the branches of
the federal government and between federal and state authority, is
essential to the preservation of individual liberty;
Whereas, the United States Constitution creates a federal
government of limited and enumerated powers, and reserves to the
states or to the people those powers not granted to the federal
government;
Whereas, the federal government has enacted many laws that have
preempted state laws with respect to health care, and placed
increasing strain on state budgets, impairing other responsibilities
such as education, infrastructure, and public safety;
Whereas, the member states seek to protect individual liberty and
personal control over health care decisions, and believe the best
method to achieve these ends is by vesting regulatory authority over
health care in the states;
Whereas, by acting in concert, the member states may express and
inspire confidence in the ability of each member state to govern health
care effectively; and
Whereas, the member states recognize that consent of Congress
may be more easily secured if the member states collectively seek
consent through an interstate compact: Therefore,
Be it enacted by the General Assembly of the State of Indiana:
ARTICLE 16.5. THE HEALTH CARE COMPACT
Chapter 1. Definitions
Sec. 1. As used in this article, "commission" refers to the interstate advisory health care commission established by IC 12-16.5-4-1.
Sec. 2. As used in this article, "compact" refers to the health care compact entered into under this article.
Sec. 3. As used in this article, "current year inflation adjustment factor" means the total gross domestic product deflator, as determined by the United States Department of Commerce's Bureau of Economic Analysis, in the current year divided by the total gross domestic product deflator in federal fiscal year 2010.
Sec. 4. (a) As used in this article, "health care" means care, services, supplies, or plans related to the health of an individual, including the following:
(1) Preventative, diagnostic, therapeutic, rehabilitative, maintenance, and palliative care, including counseling, service, assessment, or procedure concerning the physical or mental condition or functional status of an individual or that affects the structure or function of the body.
(2) Sale or dispensing of a drug, device, equipment, or other item under a prescription.
(3) An individual or group health plan that provides or pays the costs of care, services, or supplies related to the health of an individual.
(b) The term does not include care, services, supplies, or plans provided:
(1) by the United States Department of Defense;
(2) by the United States Department of Veterans Affairs; or
(3) to Native Americans.
Sec. 5. As used in this article, "member state" means a state that has adopted the health care compact law.
Sec. 6. As used in this article, "member state base funding level" means a number determined by the member state to be equal to the total federal spending on health care in the member state during federal fiscal year 2010 and is set forth in IC 12-16.5-3-4.
Sec. 7. As used in this article, "member state current year funding level" means the member state base funding level multiplied by the member state current year population
adjustment factor multiplied by the current year inflation
adjustment factor.
Sec. 8. As used in this article, "member state current year
population adjustment factor" means the average population of the
member state in the current year, as determined by the United
States Census Bureau, less the average population of the member
state in federal fiscal year 2010, divided by the average population
of the member state in federal fiscal year 2010 plus one (1).
Chapter 2. Applicability
Sec. 1. This article is effective upon the following:
(1) The adoption of the compact by at least two (2) member
states.
(2) The consent of the federal United States Congress without
changes by Congress to the following fundamental purposes
of the compact:
(A) To secure the right of the member states to regulate
health care in the member state's jurisdiction under the
compact and to suspend the operation of any conflicting
federal laws, rules, regulations, and orders within the
member state.
(B) To secure federal funding for member states that
choose to invoke the member state's authority under the
compact, as set forth in IC 12-16.5-3.
Chapter 3. Health Care Compact
Sec. 1. (a) The governor may enter into the compact on behalf
of the state with any other state only after the following occur:
(1) The budget committee reviews the compact and any plan
developed under subdivision (2).
(2) The budget agency prepares a plan showing how Indiana
will provide access to health care for Indiana residents under
the compact.
(3) The budget agency presents the plan described in
subdivision (2) to the health finance commission established
by IC 2-5-23-3.
(b) The member states shall take joint and separate action to
secure the consent of the United States Congress for the compact
in order to return the authority to regulate health care to the
member states that is consistent with the goals and principles
articulated in the compact.
(c) The member states shall improve health care policy within
the states' jurisdictions and according to the judgment and
discretion of each member state.
Sec. 2. The state legislature of each member state has the primary responsibility to regulate health care in the member state's jurisdiction.
Sec. 3. (a) Each member state, for the member state's jurisdiction, may, to the extent allowed under the Constitution of the United States and the constitution of the member state, suspend by legislation federal laws, regulations, and orders concerning health care that are inconsistent with the laws and regulations adopted by the member state under the compact.
(b) Any federal or state law, regulation, or order concerning health care will remain in effect unless a member state expressly suspends the law, regulation, or order under the member state's authority under the compact.
(c) The member state shall be responsible for implementing any federal law, rule, regulation, or order described in this section that remains in effect in the member state.
Sec. 4. (a) Each member state for each federal fiscal year shall have the right to federal monies in an amount up to the member state current year funding level for the current year, funded by the federal government as mandatory spending and that is not subject to annual appropriation, to support the exercise of the member state authority under the compact. The funding may not be conditional on any action of or regulation, policy, law, or rule that is being adopted by the member state and that is allowed under the Constitution of the United States and the constitution of the member state.
(b) By the start of each federal fiscal year, the federal United States Congress shall establish an initial member state current year funding level for each member state. The initial member state current year funding level must be based on a reasonable estimate. The final member state current year funding level shall be calculated and funding shall be reconciled by the federal United States Congress based on information provided by each member state and audited by the United States Government Accountability Office.
Sec. 5. The member states may fund the commission in a manner agreed upon by the member states.
Sec. 6. The member states may, by unanimous agreement, amend the compact without the prior consent or approval of the federal United States Congress, to the extent the amendment is allowed under the Constitution of the United States and the constitutions of the member states. Any amendment shall be
effective unless, not later than one (1) year from the approval of
the amendment, the federal United States Congress disapproves of
the amendment.
Sec. 7. Any state may join the compact after the date of consent
of the compact by the federal United States Congress if the state
adopts the compact into law.
Sec. 8. (a) A member state may withdraw from the compact by
doing the following:
(1) The member state's governor notifies other member states
of the intent to withdraw from the compact at least six (6)
months before the withdrawal may occur.
(2) The member state's legislature adopts legislation to
withdraw from the compact.
(b) A member state withdrawing from the compact is liable for
any obligations that the withdrawing state may have incurred
prior to the date of which the withdrawal is effective.
Sec. 9. The compact shall be dissolved upon the withdrawal
from the compact of all but one (1) member state.
Chapter 4. Interstate Advisory Health Care Commission
Sec. 1. (a) The interstate advisory health care commission is
established.
(b) The commission consists of members appointed by each
member state in a manner determined by each member state. A
member state may not appoint more than two (2) members to the
commission and may withdraw membership from the commission
at any time.
(c) Each commission member is entitled to one (1) vote. The
commission may not act unless a majority of the members are
present, and an action is not binding unless approved by a majority
of the commission's total membership.
Sec. 2. (a) The commission may do the following:
(1) Elect a chairperson from the commission's membership.
(2) Adopt and publish bylaws and policies that are consistent
with the compact.
(3) Study issues of health care regulation that are of concern
to the member states.
(4) Make non-binding recommendations to the member states,
of which the state legislatures of the member states may
consider in determining appropriate health care policies for
the member state.
(b) The commission shall do the following:
(1) Meet at least one (1) time per calendar year.
(2) Collect information and data to assist member states in the regulation of health care, including assessing the performance of state health care programs and compiling information on the prices of health care.
(c) The commission shall make the information collected under this section available to the legislatures of member states.
(d) Legislatures of the member states may confer additional responsibilities and duties on the commission through legislative action in accordance with the terms of the compact.
(e) The commission may not take any action within a member state.
Sec. 3. A member state may not disclose personal health information of an individual to the commission. The commission may not disclose the personal health information of an individual.
Chapter 5. Participation in Compact
Sec. 1. Indiana's participation in the compact does not include the administration of Medicare (42 U.S.C. 1395 et seq.) unless the General Assembly takes action that specifically authorizes inclusion of the Medicare program in the compact.
HEA 1269
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