SRC-JXG S.B. 130 76(R) BILL ANALYSIS
Senate Research Center S.B. 130
76R3283 PB-FBy: Nelson
Economic Development
2/19/1999
As Filed
DIGEST
Currently, health care providers may contract with health insurance plans
to give a discounted rate on their services in exchange for being listed as
a "preferred provider." An insurer or independent agent may deliberately
mislead providers and doctors by claiming to belong to an exclusive
preferred provider arrangement to receive a discount. This bill would hold
insurers in violation of an unfair act or deceptive practice under the
Insurance Code, if the insurers knowingly mislead a provider into giving
them discounts to which the insurers are not entitled.
PURPOSE
As proposed, S.B. 130 holds insurers in violation of an unfair act or
deceptive practice under the Insurance Code, if the insurers knowingly
mislead a provider into giving them discounts to which the insurers are not
entitled.
RULEMAKING AUTHORITY
This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Article 3.70-3C, Insurance Code, as added by Chapter
1024, Acts of the 75th Legislature, Regular Session, 1997, by adding
Section 7A, as follows:
Sec. 7A. MISREPRESENTATION REGARDING DISCOUNT PROHIBITED. (a) Provides that
this section applies to an insurer, an agent of an insurer, and an
administrator regulated under Article 21.07-6 of this code.
(b) Prohibits a person to whom this section applies from representing to a
physician or health care provider that the person is entitled to a
preferred provider discount or other discount in the fees charged by the
physician or health care provider for services rendered to an insured under
certain conditions.
(c) Prohibits this section from being waived by contract.
(d) Provides that a person violating this section commits an unfair act or
deceptive practice in violation of Articles 21.21 and 21.21-2 of this code.
SECTION 2. Emergency clause.
Effective date: upon passage.