LD 1673
pg. 4
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LR 2373
Item 1

 
Sec. 6. Standardization of administrative cost tracking. The Legislature requests
that the Maine Hospital Association develop, by January 1, 2006,
standardized definitions of various administrative cost categories
that hospitals may use when establishing budgets and reporting on
spending on administrative costs.

 
Sec. 7. Health care administrative streamlining work group.

 
1. Work group established. The Governor's Office of Health
Policy and Finance shall convene a health care administrative
streamlining work group to facilitate the creation and
implementation of a single portal through which hospitals can
access and transmit member eligibility, benefit and claims
information from multiple insurers. The work group shall
investigate:

 
A. Funding mechanisms, including seeking outside funding
for start-up and ongoing operational costs, with the
intention that the portal become independent and sustainable
over time; and

 
B. Ways to ensure that savings resulting from
implementation of such a portal are passed on to purchasers
in the form of rate reductions by hospitals and other
providers and by reductions in administrative costs by
insurers and 3rd-party administrators.

 
The work group may also consider the incorporation of medical and
quality data to the extent possible in the future.

 
2. Membership. The work group consists of 17 members
appointed by the Governor. The membership of the work group must
reflect the geographic diversity of the State. Members serve as
volunteers and without compensation or reimbursement for
expenses. The membership consists of the following persons:

 
A. Four members representing community hospitals chosen
from a list submitted by a statewide association
representing hospitals;

 
B. Four members representing insurers or other 3rd-party
payors;

 
C. Two members representing physician practices;

 
D. One member representing an organization that specializes
in the collection of health care data;


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