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.