By Mowery H.B. No. 900
75R2772 SAW-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requiring health maintenance organizations to provide
1-3 written explanations of reasons for termination of contracts with
1-4 or employment of certain physicians and health care providers.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 14, Texas Health Maintenance Organization
1-7 Act (Article 20A.14, Vernon's Texas Insurance Code), is amended by
1-8 adding Subsection (i) to read as follows:
1-9 (i) On request from a physician or provider whose contract
1-10 with or employment by a health maintenance organization has been
1-11 terminated by the health maintenance organization, the health
1-12 maintenance organization shall provide a written explanation of the
1-13 reasons for the termination.
1-14 SECTION 2. This Act takes effect September 1, 1997, and
1-15 applies only to the termination by a health maintenance
1-16 organization of a contract with or employment of a physician or
1-17 health care provider that takes effect on or after September 1,
1-18 1997. A termination that takes effect before September 1, 1997, is
1-19 governed by the law in effect at the time the termination takes
1-20 effect, and that law is continued in effect for that purpose.
1-21 SECTION 3. The importance of this legislation and the
1-22 crowded condition of the calendars in both houses create an
1-23 emergency and an imperative public necessity that the
1-24 constitutional rule requiring bills to be read on three several
2-1 days in each house be suspended, and this rule is hereby suspended.