By Siebert                                             H.B. No. 266
         76R1254 DLF-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the availability of certain specialists under a health
 1-3     care plan offered by a health maintenance organization.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  The Texas Health Maintenance Organization Act
 1-6     (Chapter 20A, Vernon's Texas Insurance Code) is amended by adding
 1-7     Section 39 to read as follows:
 1-8           Sec. 39.  AVAILABILITY OF OUT-OF-NETWORK SPECIALISTS.  (a)
 1-9     In this section:
1-10                 (1)  "Network specialist" means a specialist who is
1-11     participating in the health maintenance organization delivery
1-12     network.
1-13                 (2)  "Out-of-network specialist" means a specialist who
1-14     is not participating in the health maintenance organization
1-15     delivery network.
1-16                 (3)  "Specialist" means:
1-17                       (A)  a properly credentialed physician who is
1-18     practicing in a recognized specialty practice; or
1-19                       (B)  another health care provider who is licensed
1-20     or otherwise authorized by this state to provide specialized health
1-21     care services.
1-22           (b)  An enrollee may select an out-of-network specialist to
1-23     provide a health care service if, under the enrollee's health care
1-24     plan, a  network specialist is compensated for a similar service on
 2-1     the basis of each service actually provided and is not compensated
 2-2     for the service on a capitated or other similar basis.
 2-3           (c)  The health maintenance organization shall pay the
 2-4     out-of-network specialist an amount equal to the amount the health
 2-5     maintenance organization would pay to a network specialist for the
 2-6     same service. Notwithstanding any other law, an enrollee who
 2-7     selects an out-of-network specialist under Subsection (b) of this
 2-8     section is responsible for any amount charged for the service by
 2-9     that specialist that exceeds the amount paid by the health
2-10     maintenance organization.
2-11           (d)  This section does not affect the duty of a health
2-12     maintenance organization to:
2-13                 (1)  assure the availability of adequate personnel
2-14     under Section 5 of this Act and applicable rules of the department;
2-15     or
2-16                 (2)  provide a referral and reimbursement under Section
2-17     9(f) of this Act, as added by Chapter 905, Acts of the 75th
2-18     Legislature, Regular Session, 1997.
2-19           (e)  This section does not require a health maintenance
2-20     organization to provide benefits for a service:
2-21                 (1)  for which benefits would not otherwise be provided
2-22     under the evidence of coverage; or
2-23                 (2)  without referral from the enrollee's primary care
2-24     physician or without prior authorization or precertification from
2-25     the health care plan, if the referral, preauthorization, or
2-26     precertification is required under the health care plan.
2-27           (f)  The department shall adopt rules to implement this
 3-1     section.
 3-2           SECTION 2.  This Act takes effect September 1, 1999, and
 3-3     applies only to an evidence of coverage for a health care plan that
 3-4     is delivered, issued for delivery, or renewed on or after January
 3-5     1, 2000.  An evidence of coverage for a health care plan that is
 3-6     delivered, issued for delivery, or renewed before January 1, 2000,
 3-7     is governed by the law as it existed immediately before the
 3-8     effective date of this Act, and that law is continued in effect for
 3-9     this purpose.
3-10           SECTION 3.  The importance of this legislation and the
3-11     crowded condition of the calendars in both houses create an
3-12     emergency and an imperative public necessity that the
3-13     constitutional rule requiring bills to be read on three several
3-14     days in each house be suspended, and this rule is hereby suspended.