SRC-JBJ C.S.S.B. 1530 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1530
76R10301 PB-FBy: Carona
Economic Development
3/31/1999
Committee Report (Substituted)


DIGEST 

Currently, the Insurance Code considers coercion as certain actions by a
health insurance plan.  An act currently not considered coercive by the
Code is when a plan requires a health care provider, as a condition of its
contract to participate in a health benefit plan or product, to participate
also in other plans or products.  C.S.S.B. 1530 would consider the acts to
be coercion, as prohibited by Article 21.21, Insurance Code. 

PURPOSE

As proposed, C.S.S.B. 1530 specifies certain acts by a health care prover
as coercion. 

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 Chapter 21B, Insurance Code, by adding Article 21.20-3,
as follows: 

Art. 21.30-3.  COERCION BY CERTAIN HEALTH PLANS PROHIBITED.  Provides that
any entity subject to the Insurance Code commits coercion for purposes of
Section 4, Article 21.21, Insurance Code, when the entity requires a health
care provider, as a condition of participation in a health benefit plan or
product of the entity, to participate in any of the entity's other plans or
products. 

SECTION 2.  Makes application of this Act prospective.

SECTION 3.Effective date: September 1, 1999.

SECTION 4.Emergency clause.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

 Deletes the proposed amendment to Section 4, Article 21.21, Insurance Code.

Amends Chapter 21B, Insurance Code, by adding Article 21.30-4, to establish
that certain act an entity subject to the Insurance Code commits a coercive
act. 

SECTION 2.

 Adds a provision to make application of this Act prospective.

SECTION 3-4.

 Redesignated from SECTIONS 2-3.