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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>71053</law_id><section_number>38.2-5806</section_number><catch_line>Prohibited practices</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="38.2">Insurance</unit><unit label="chapter" level="2" order_by="1" identifier="58">Managed Care Health Insurance Plans</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> No <span class="dictionary">MCHIP</span> licensee may cancel or refuse to renew the coverage of a <span class="dictionary">covered person</span> for <span class="dictionary">basic <span class="dictionary">health care services</span></span> on the basis of the status of the <span class="dictionary">covered person</span>&#x2019;s health. <a id="paragraph-256175" class="section-permalink" href="https://vacode.org/38.2-5806/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> The following provisions shall apply whenever an <span class="dictionary">MCHIP</span> provides a <span class="dictionary">covered person</span> who is also a resident of a <span class="dictionary">continuing care facility</span> with coverage for <span class="dictionary">Medicare benefits</span> and the <span class="dictionary">covered person</span>&#x2019;s primary care physician determines that it is <span class="dictionary">medically necessary</span> for the <span class="dictionary">covered person</span> to be referred to a skilled nursing unit: <a id="paragraph-256176" class="section-permalink" href="https://vacode.org/38.2-5806/#B"><i class="fa fa-link"/></a></p></section>
						<section id="B1" class="indent-1"><p><span class="prefix-number">1.</span> The <span class="dictionary">health carrier</span> shall not require that the <span class="dictionary">covered person</span> relocate to a skilled nursing unit outside the <span class="dictionary">continuing care facility</span> if (i) the <span class="dictionary">continuing care facility</span>&#x2019;s skilled nursing unit is certified as a Medicare skilled nursing facility and (ii) the <span class="dictionary">continuing care facility</span> agrees, as to such skilled nursing unit, to become a contracting <span class="dictionary">provider</span> in accordance with the <span class="dictionary">health carrier</span>&#x2019;s standard terms and conditions for its participating <span class="dictionary">providers</span>. <a id="paragraph-256177" class="section-permalink" href="https://vacode.org/38.2-5806/#B1"><i class="fa fa-link"/></a></p></section>
						<section id="B2" class="indent-1"><p><span class="prefix-number">2.</span> A <span class="dictionary">continuing care facility</span> that satisfies clauses (i) and (ii) of subdivision 1 shall not be obligated to accept as a skilled nursing unit patient any one other than a resident of the <span class="dictionary">continuing care facility</span>; and neither the <span class="dictionary">health carrier</span> nor the <span class="dictionary">continuing care facility</span> shall be allowed to include the skilled nursing unit or facilities on the list required by &#xA7; <a class="law" title="Establishment of an MCHIP" href="/38.2-5802/">38.2-5802</a> or to advertise in any other way that the facility&#x2019;s skilled nursing unit is a participating <span class="dictionary">provider</span> with respect to coverage offered by the <span class="dictionary">MCHIP</span> for <span class="dictionary">Medicare benefits</span> or skilled nursing unit facilities for other than the <span class="dictionary">continuing care facility</span>&#x2019;s residents.
				As used in this subsection, &#x201C;<span class="dictionary">Medicare benefits</span>&#x201D; means medical and health products, benefits and services offered in accordance with Title XVIII of the United <span class="dictionary">States</span> Social Security Act (42 U.S.C. &#xA7; 1395 et seq.) and &#x201C;<span class="dictionary">continuing care facility</span>&#x201D; means a continuing care retirement community regulated pursuant to Chapter 49 (&#xA7; <a class="law" title="Definitions" href="/38.2-4900/">38.2-4900</a> et seq.) of this title. <a id="paragraph-256178" class="section-permalink" href="https://vacode.org/38.2-5806/#B2"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> The following shall apply in accordance with provisions in Title 32.1 or regulations promulgated thereunder: <a id="paragraph-256179" class="section-permalink" href="https://vacode.org/38.2-5806/#C"><i class="fa fa-link"/></a></p></section>
						<section id="C1" class="indent-1"><p><span class="prefix-number">1.</span> Where complaints of a <span class="dictionary">covered person</span> may be resolved through a specified arbitration agreement, the <span class="dictionary">covered person</span> shall be advised in writing of his rights and duties under the agreement at the time the complaint is registered. <a id="paragraph-256180" class="section-permalink" href="https://vacode.org/38.2-5806/#C1"><i class="fa fa-link"/></a></p></section>
						<section id="C2" class="indent-1"><p><span class="prefix-number">2.</span> No <span class="dictionary">contract</span> or <span class="dictionary">evidence of coverage</span> that entitles <span class="dictionary">covered persons</span> to resolve complaints through an arbitration agreement shall limit or prohibit such arbitration for any claims asserted having a monetary value of $250 or more. <a id="paragraph-256181" class="section-permalink" href="https://vacode.org/38.2-5806/#C2"><i class="fa fa-link"/></a></p></section>
						<section id="C3" class="indent-1"><p><span class="prefix-number">3.</span> If the <span class="dictionary">covered person</span> agrees to binding arbitration, his written acceptance of the arbitration agreement shall not be executed prior to the time the complaint is registered nor subsequent to the time an initial resolution is made, and the agreement shall be accompanied by a statement setting forth in writing the terms and conditions of binding arbitration. <a id="paragraph-256182" class="section-permalink" href="https://vacode.org/38.2-5806/#C3"><i class="fa fa-link"/></a></p></section></text><history>1998, c. 891.</history><metadata></metadata></law>
