BILL ANALYSIS H.B. 2207 By: Haggerty 04-25-95 Committee Report (Unamended) BACKGROUND Preferred provider organizations are insurance organizations that are different from HMOs. While HMOs require clients to see certain primary care physicians, sometimes referred to as gatekeepers, to refer them to specialists, preferred provider organizations allow clients to choose any doctor from their list of caregivers. HMOs are exempt from the law prohibiting solicitation of patients, however preferred provider organizations have not enjoyed the same benefit. This bill seeks to facilitate competition in the health care industry by placing preferred provider organizations and HMOs on the same playing field. PURPOSE H.B. 2207 would add preferred provider organizations to the list of entities exempt from the prohibition on illegal remuneration for patient solicitation. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sec. 161.091(f), Health and Safety Code, to add preferred provider organizations to the list of groups exempt from this section of the Health and Safety Code, which forbids a person licensed by a health care agency from knowingly accepting or giving remuneration for securing or soliciting patient's patronage. SECTION 2. Emergency clause. Effective upon passage. SUMMARY OF COMMITTEE ACTION H.B. 2207 was considered by the Public Health Committee in a public hearing on April 25, 1995. The bill was reported favorably without amendment, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 6 AYES, 0 NAYS, 0 PNV, and 3 ABSENT.