By Janek, Reyna of Dallas, Christian,                  H.B. No. 812

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain communications between physicians, dentists, or

 1-3     other providers and patients or health care plan enrollees and to

 1-4     certain related contracts.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  The Texas Health Maintenance Organization Act

 1-7     (Chapter 20A, Vernon's Texas Insurance Code) is amended by adding

 1-8     Section 18A to read as follows:

 1-9           Sec. 18A.  PHYSICIAN, DENTIST, OR PROVIDER COMMUNICATION.

1-10     (a)  A health maintenance organization may not, by contract or

1-11     otherwise,  restrict a physician's, dentist's, or provider's

1-12     ability to communicate with an enrollee with respect to:

1-13                 (1)  the enrollee's coverage under the health care

1-14     plan;

1-15                 (2)  any subject related to the medical care, dental

1-16     care, or health care services to be provided to the enrollee,

1-17     including treatment options that are not provided under the health

1-18     care plan; or

1-19                 (3)  the fact that the physician's, dentist's, or

1-20     provider's contract with the health care plan has terminated or

1-21     that the physician, dentist, or provider will otherwise no longer

1-22     be providing medical care, dental care, or health care services

1-23     under the health care plan.

1-24           (b)  A contract provision that violates this section is void.

1-25           SECTION 2.  Subchapter E, Chapter 241, Health and Safety

 2-1     Code, is amended by adding Section 241.1015 to read as follows:

 2-2           Sec. 241.1015.  PHYSICIAN COMMUNICATION AND CONTRACTS.  (a)

 2-3     A hospital, whether by contract, by granting or withholding staff

 2-4     privileges, or otherwise, may not restrict a physician's ability to

 2-5     communicate with a patient with respect to:

 2-6                 (1)  the patient's coverage under a health care plan;

 2-7                 (2)  any subject related to the medical care or health

 2-8     care services to be provided to the patient, including treatment

 2-9     options that are not provided under a health care plan;

2-10                 (3)  the availability or desirability of a health care

2-11     plan or insurance or similar coverage, other than the patient's

2-12     health care plan;

2-13                 (4)  the availability or desirability of services at

2-14     another hospital; or

2-15                 (5)  the fact that the physician's staff privileges or

2-16     contract with a hospital or health  care plan have terminated or

2-17     that the physician will otherwise no longer be providing medical

2-18     care or health care services at the hospital or under the health

2-19     care plan.

2-20           (b)  A hospital, by contract or otherwise, may not refuse or

2-21     fail to grant or renew staff privileges, or condition staff

2-22     privileges, based in whole or in part on the fact that the

2-23     physician or a partner, associate, or employee of the physician is

2-24     providing medical or health care services at a different hospital

2-25     or hospital system.

2-26           (c)  A hospital may not contract to limit a physician's

2-27     participation or staff privileges or the participation or staff

 3-1     privileges of a partner, associate, or employee of the physician at

 3-2     a different hospital or hospital system.

 3-3           (d)  A contract provision that violates this section is void.

 3-4           (e)  In this section, "health care plan" has the meaning

 3-5     assigned by Section 2, Texas Health Maintenance Organization Act

 3-6     (Article 20A.02, Vernon's Texas Insurance Code).

 3-7           SECTION 3.  This Act takes effect September 1, 1997, and

 3-8     applies only to a contract entered into or renewed on or after that

 3-9     date.  A contract entered into or renewed before September 1, 1997,

3-10     is governed by the law as it existed immediately before  that date,

3-11     and that law is continued in effect for that purpose.

3-12           SECTION 4.  The importance of this legislation and the

3-13     crowded condition of the calendars in both houses create an

3-14     emergency and an imperative public necessity that the

3-15     constitutional rule requiring bills to be read on three several

3-16     days in each house be suspended, and this rule is hereby suspended.