                                 CODE OF VIRGINIA

DEFINITIONS (§ 38.2-5800)

As used in this chapter:

&#8220;Accident and sickness insurance company&#8221; means a person subject to
licensing in accordance with provisions in Chapter 10 (§ 38.2-1000 et seq.) or
Chapter 41 (§ 38.2-4100 et seq.) seeking or having authorization (i) to issue
accident and sickness insurance as defined in § 38.2-109, (ii) to issue the
benefit certificates or policies of accident and sickness insurance described in
§ 38.2-3801, or (iii) to provide hospital, medical and nursing benefits
pursuant to §§ 38.2-4116 and 38.2-4123.

&#8220;Affiliated provider&#8221; means any provider that is employed by or has
entered into a contractual agreement either directly or indirectly with a health
carrier to provide health care services to members of a managed care health
insurance plan for which the health carrier is responsible under this chapter.

&#8220;Basic health care services&#8221; means emergency services, inpatient
hospital and physician care, outpatient medical services, laboratory and
radiological services, mental health and substance use disorder benefits, and
preventive health services.

&#8220;Copayment&#8221; means a payment required of covered persons as a
condition of the receipt of specific health services.

&#8220;Covered person&#8221; means an individual, whether a policyholder,
subscriber, enrollee, or member of a managed care health insurance plan (MCHIP)
who is entitled to health care services or benefits provided, arranged for, paid
for or reimbursed pursuant to an MCHIP.

&#8220;Evidence of coverage&#8221; includes any certificate, individual or group
agreement or contract or related documents issued in conjunction with the
certificate, agreement or contract, issued to a subscriber setting out the
coverage and other rights to which a covered person is entitled.

&#8220;Health care services&#8221; means the furnishing of services to any
individual for the purpose of preventing, alleviating, curing, or healing human
illness, injury or physical disability.

&#8220;Health carrier&#8221; means an entity subject to Title 38.2 that
contracts or offers to contract to provide, deliver, arrange for, pay for or
reimburse any of the costs of health care services, including an entity
providing a plan of health insurance, health benefits or health services, an
accident and sickness insurance company, a health maintenance organization, or a
nonstock corporation offering or administering a health services plan, a
hospital services plan, or a medical or surgical services plan, or operating a
plan subject to regulation under Chapter 45 (§ 38.2-4500 et seq.).

&#8220;Health maintenance organization&#8221; means a person licensed pursuant
to Chapter 43 (§ 38.2-4300 et seq.).

&#8220;Limited health care services&#8221; means dental care services, vision
care services, and such other services as may be determined by the Commission to
be limited health care services. Limited health care services shall not include
hospital, medical, surgical or emergency services except as such services are
provided incident to the limited health care services set forth in the preceding
sentence.

&#8220;Managed care health insurance plan&#8221; or &#8220;MCHIP&#8221; means an
arrangement for the delivery of health care in which a health carrier undertakes
to provide, arrange for, pay for, or reimburse any of the costs of health care
services for a covered person on a prepaid or insured basis which (i) contains
one or more incentive arrangements, including any credentialing requirements
intended to influence the cost or level of health care services between the
health carrier and one or more providers with respect to the delivery of health
care services and (ii) requires or creates benefit payment differential
incentives for covered persons to use providers that are directly or indirectly
managed, owned, under contract with or employed by the health carrier. Any
health maintenance organization as defined in § 38.2-4300 or health carrier
that offers preferred provider contracts or policies as defined in § 38.2-3407
or preferred provider subscription contracts as defined in § 38.2-4209 shall be
deemed to be offering one or more MCHIPs. For the purposes of this definition,
the prohibition of balance billing by a provider shall not be deemed a benefit
payment differential incentive for covered persons to use providers who are
directly or indirectly managed, owned, under contract with or employed by the
health carrier. A single managed care health insurance plan may encompass
multiple products and multiple types of benefit payment differentials; however,
a single managed care health insurance plan shall encompass only one provider
network or set of provider networks.

&#8220;Medical necessity&#8221; or &#8220;medically necessary&#8221; means
appropriate and necessary health care services which are rendered for any
condition which, according to generally accepted principles of good medical
practice, requires the diagnosis or direct care and treatment of an illness,
injury, or pregnancy-related condition, and are not provided only as a
convenience.

&#8220;Network&#8221; means the set of providers directly or indirectly managed,
owned, under contract with or employed directly or indirectly by a health
carrier for the purpose of delivering health care services to the covered
persons of an MCHIP.

&#8220;Provider&#8221; or &#8220;health care provider&#8221; means any hospital,
physician, or other person authorized by statute, licensed or certified to
furnish health care services.

&#8220;Service area&#8221; means a clearly defined geographic area in which a
health carrier has directly or indirectly arranged for the provision of health
care services to be generally available and readily accessible to covered
persons of an MCHIP.

HISTORY: 1998, c. 891; 2006, c. 448; 2015, c. 649.