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.