By:  Wentworth                                        S.B. No. 1385
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to appeal process and elimination of discriminatory
    1-2  exclusion of insurers.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article 21.24-1, Insurance Code, is amended as
    1-5  follows:
    1-6              (5)  "Health insurance policy" or "policy" means an
    1-7  individual, group, blanket, or franchise insurance policy, or
    1-8  insurance agreement that provides reimbursement or indemnity for
    1-9  health care expenses incurred as a result of an accident or
   1-10  sickness.
   1-11              (6)  "Insurer" means an insurance company, association,
   1-12  or organization authorized to do business in this state under
   1-13  Chapter 3, 8, 10, 11, 12, 13, 14, 15, 18, 19, 20, or 22 of this
   1-14  code.
   1-15        SECTION 2.  Article 21.58A, Insurance Code, is amended as
   1-16  follows:
   1-17        Sec. 6.  APPEAL OF ADVERSE DETERMINATIONS OF UTILIZATION
   1-18  REVIEW AGENTS.
   1-19        (b)  The procedures for appeals shall be reasonable and shall
   1-20  include the following:
   1-21              (1)  a provision that an enrollee, a person acting on
   1-22  behalf of the enrollee, or the enrollee's physician or health care
   1-23  provider may appeal the adverse determination and shall be
    2-1  provided, on request, a clear and concise statement of the clinical
    2-2  basis for the adverse determination;
    2-3              (2)  a list of documents needed to be submitted by the
    2-4  appealing party to the utilization review agent for the appeal;
    2-5              (3)  a provision that appeal decisions shall be made by
    2-6  a physician, provided that, if the appeal is denied and within 10
    2-7  working days the health care provider sets forth in writing good
    2-8  cause for having a particular type of a specialty provider review
    2-9  the case, the denial shall be reviewed by a health care provider in
   2-10  the same or similar specialty as typically manages the medical
   2-11  condition, procedure, or treatment under discussion for review of
   2-12  the adverse determination.  This health care provider shall not be
   2-13  employed by or under contract to the utilization review company or
   2-14  its contractor; but rather come from an independent reviewer pool
   2-15  whose members are appointed by the appropriate State regulatory
   2-16  agency; the cost of the independent review shall be borne equally
   2-17  by the utilization review agent and the appealing party;
   2-18              (4)  in addition to the written appeal, a method for an
   2-19  expedited appeal procedure for emergency care denials and denials
   2-20  of continued stays for hospitalized patients, which shall include a
   2-21  health care provider who has not previously reviewed the case; such
   2-22  appeal must be completed no later than one working day following
   2-23  the day on which the appeal, including all information necessary to
   2-24  complete the appeal, is made to the utilization review agent.  This
   2-25  health care provider shall not be employed by or under contract to
    3-1  the utilization review company or its contractor; but rather come
    3-2  from an independent reviewer pool whose members are appointed by
    3-3  the appropriate State regulatory agency; the cost of the
    3-4  independent review shall be borne equally by the utilization review
    3-5  agent and the appealing party;
    3-6              (5)  written notification to the appealing party of the
    3-7  determination of the appeal, as soon as practical, but in no case
    3-8  later than 30 days after receiving all the required documentation
    3-9  of the appeal.  If the appeal is denied, the written notification
   3-10  shall include the clinical basis for the appeal's denial and the
   3-11  specialty of the physician making the denial.
   3-12        SECTION 3.  Article 21.58A, Insurance Code is amended as
   3-13  follows:
   3-14        Sec. 11.  Claims reviews of medical necessity.  (a)  When a
   3-15  retrospective review of the medical necessity and appropriateness
   3-16  of health care service is made under a health insurance policy or
   3-17  plan:  (1) such retrospective review shall be based on written
   3-18  screening criteria established and periodically updated with
   3-19  appropriate involvement from physicians, including practicing
   3-20  physicians, and other health care providers; and (2) the payor's
   3-21  system for such retrospective review of medical necessity and
   3-22  appropriateness shall be under the direction of a physician.
   3-23        (b)  When an adverse determination is made under a health
   3-24  insurance policy or plan based on a retrospective review of the
   3-25  medical necessity and appropriateness of the allocation of health
    4-1  care resources and services, the payor shall afford the health care
    4-2  providers the opportunity to appeal the determination in the same
    4-3  manner afforded the enrollee, with the enrollee's consent to act on
    4-4  his or her behalf, but in no event shall health care providers be
    4-5  precluded from appeal if the enrollee is not reasonably available
    4-6  or competent to consent.  Such appeal shall not be construed to
    4-7  imply or confer on such health care providers any contract rights
    4-8  with respect to the enrollee's health insurance policy or plan that
    4-9  the health care provider does not otherwise have; the enrolled or
   4-10  treatment provider is entitled to an independent review in cases of
   4-11  adverse determinations.  This review shall come from the approved
   4-12  list provided for in 21.58A section 6(3), (4).
   4-13        SECTION 4.  The importance of this legislation and the
   4-14  crowded condition of the calendars in both houses create an
   4-15  emergency and an imperative public necessity that the
   4-16  constitutional rule requiring bills to be read on three several
   4-17  days in each house be suspended, and this rule is hereby suspended,
   4-18  and that this Act take effect and be in force from and after its
   4-19  passage, and it is so enacted.