1-1     By:  Giddings (Senate Sponsor - Armbrister)           H.B. No. 1778
 1-2           (In the Senate - Received from the House April 19, 1999;
 1-3     April 20, 1999, read first time and referred to Committee on
 1-4     Economic Development; May 14, 1999, reported adversely, with
 1-5     favorable Committee Substitute by the following vote:  Yeas 4, Nays
 1-6     0; May 14, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1778              By:  Armbrister
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the medical review of health care provided under the
1-11     workers' compensation insurance system.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 408.023, Labor Code, is amended to read
1-14     as follows:
1-15           Sec. 408.023.  LIST OF APPROVED DOCTORS.  (a)  Each doctor
1-16     licensed in this state on January 1, 1993, is on the commission's
1-17     list of approved doctors unless subsequently deleted and not
1-18     reinstated.  The name of a doctor shall be placed on the list of
1-19     approved doctors when that doctor becomes licensed in this state.
1-20     A doctor not licensed in this state but licensed in another state
1-21     or jurisdiction who treats employees may apply to the commission to
1-22     be included on the list.  The executive director shall delete from
1-23     the list a doctor who is deceased, who requests to be deleted, or
1-24     whose license has been suspended or revoked.
1-25           (b)  The commission shall establish criteria for deleting a
1-26     doctor from the list of approved doctors, for imposing sanctions on
1-27     a doctor as provided by this section as a condition of continued
1-28     approved doctor practice privileges, and for authorizing reduced
1-29     utilization review controls.  The criteria for deleting a doctor
1-30     from the list or for imposing sanctions may include anything the
1-31     commission considers relevant, including:
1-32                 (1)  a sanction [sanctions] of the doctor by the
1-33     commission for a violation [violations] of Chapter 413 or Chapter
1-34     415;
1-35                 (2)  a sanction [sanctions] by the Medicare or Medicaid
1-36     program for:
1-37                       (A)  substandard medical care;
1-38                       (B)  overcharging; [or]
1-39                       (C)  overutilization of medical services; or
1-40                       (D)  any other noncompliance with that program in
1-41     professional practice or billing;
1-42                 (3)  evidence from the commission's medical records
1-43     that the insurance carrier's utilization review practices or that a
1-44     doctor's charges, fees, diagnoses, [or] treatments, evaluations, or
1-45     impairment ratings are unjustifiably [substantially] different from
1-46     those the commission finds to be fair and reasonable; [and]
1-47                 (4)  suspension of the doctor's license by an [the]
1-48     appropriate licensing authority;
1-49                 (5)  professional failure to practice medicine in an
1-50     acceptable manner consistent with the public health and welfare;
1-51     and
1-52                 (6)  the findings of fact and conclusions of law of a
1-53     court, an administrative law judge of the State Office of
1-54     Administrative Hearings, or a licensing or regulatory authority or
1-55     a criminal conviction.
1-56           (c)  The commission shall establish by rule procedures under
1-57     which [for] a doctor may [to] apply for reinstatement to the list
1-58     or for restoration of privileges removed based on sanctions.
1-59           (d)  Each doctor performing functions under this subtitle,
1-60     including required medical examinations under Section 408.004 and
1-61     medical utilization review evaluations, must be on the list of
1-62     approved doctors to perform services under this subtitle or to
1-63     receive payment for services.
1-64           (e)  The commission may grant exceptions to the requirement
 2-1     imposed under Subsection (d) as necessary to ensure that employees
 2-2     have access to medical care.  The commission may allow an
 2-3     out-of-state doctor to perform utilization review services on
 2-4     behalf of an insurance carrier if the doctor and insurance carrier
 2-5     agree to make the doctor available for civil or administrative
 2-6     proceedings as if the doctor were a resident of this state.
 2-7           (f)  Notwithstanding Section 402.072, the executive director
 2-8     may, on a recommendation by the medical advisor and after notice
 2-9     and the opportunity for a hearing, impose sanctions on a health
2-10     care provider, an insurance carrier, or a utilization review agent
2-11     under this section.  The sanctions may include:
2-12                 (1)  reduction of allowable reimbursement;
2-13                 (2)  mandatory preauthorization of all or certain
2-14     medical services;
2-15                 (3)  required peer review monitoring and audits;
2-16                 (4)  temporary suspension or deletion from the approved
2-17     doctor list and the designated doctor list;
2-18                 (5)  restrictions on appointment as a required medical
2-19     examination doctor under Section 408.004; and
2-20                 (6)  temporary suspension of a utilization review
2-21     agent's ability to perform functions under this subtitle.
2-22           SECTION 2.  Section 413.051, Labor Code, is amended to read
2-23     as follows:
2-24           Sec. 413.051.  CONTRACTS WITH REVIEW ORGANIZATIONS AND HEALTH
2-25     CARE PROVIDERS.  (a)  The commission may contract with a health
2-26     care provider professional review organization, health care
2-27     provider, or other entity to develop, maintain, or review medical
2-28     policies or fee guidelines or to review compliance with the medical
2-29     policies or fee guidelines.
2-30           (b)  For purposes of review or resolution of a dispute as to
2-31     compliance with the medical policies or fee guidelines, the
2-32     commission may contract [only] with a health care provider
2-33     professional review organization, health care provider, or other
2-34     entity that includes in the review process health care
2-35     practitioners who are licensed in the category under review and are
2-36     of the same field or specialty as the category under review.
2-37           (c)  The commission may contract with a health care provider
2-38     professional review organization, health care provider, or other
2-39     entity for medical consultant services, including:
2-40                 (1)  independent medical examinations;
2-41                 (2)  medical case reviews; or
2-42                 (3)  establishment of medical policies and fee
2-43     guidelines.
2-44           (d)  The commission shall establish standards for contracts
2-45     under this section.
2-46           SECTION 3.  Subchapter E, Chapter 413, Labor Code, is amended
2-47     by adding Section 413.0515 to read as follows:
2-48           Sec. 413.0515.  MEDICAL ADVISOR.  (a)  The commission shall
2-49     employ a medical advisor to:
2-50                 (1)  develop, maintain, and review medical policies and
2-51     fee guidelines, including medical policies regarding the
2-52     determination of impairment ratings;
2-53                 (2)  review compliance with those medical policies and
2-54     fee guidelines;
2-55                 (3)  perform other acts related to medical benefits as
2-56     required by the commission; and
2-57                 (4)  recommend, at least annually, the removal of
2-58     doctors from the commission's list of approved doctors under
2-59     Section 408.023 for any reason outlined in Section 408.023(b) or
2-60     for noncompliance with any policies reviewed under this section.
2-61           (b)  The medical advisor may establish a panel of health care
2-62     providers to assist the medical advisor.
2-63           (c)  The panel shall be independent of the medical advisory
2-64     committee created under Section 413.005.  The panel consists of:
2-65                 (1)  three doctors experienced in workers' compensation
2-66     practice, from recommendations from established medical and
2-67     chiropractic associations, including two physicians and one doctor
2-68     of chiropractic;
2-69                 (2)  three doctors representing  the insurance or
 3-1     employer community who are experienced in medical utilization or
 3-2     medical finance from recommendations from employer and insurance
 3-3     associations; and
 3-4                 (3)  a nonvoting attorney representative to advise the
 3-5     panel.
 3-6           (d)  The medical advisor may  cast the deciding vote in the
 3-7     event of a tie among the members of the medical quality review
 3-8     panel.
 3-9           (e)  The panel shall recommend to the medical advisor
3-10     appropriate action to sanction health care providers and
3-11     utilization review agents and to add, suspend, or delete doctors
3-12     from the list of approved doctors or the list of designated
3-13     doctors.
3-14           (f)  Except for harm resulting from acts or omissions
3-15     involving gross neglect, malice, or recklessness, an individual
3-16     health care provider is not liable for recommendations for sanction
3-17     made pursuant to Subsection (e).
3-18           (g)  Information that is confidential under law may not be
3-19     disclosed except:
3-20                 (1)  in a criminal proceeding;
3-21                 (2)  in a hearing conducted by or on behalf of the
3-22     commission;
3-23                 (3)  in a hearing conducted by another licensing or
3-24     regulatory authority, as provided in the interagency agreement; or
3-25                 (4)  on a finding of good cause in an administrative or
3-26     judicial proceeding involving the enforcement of this subtitle or
3-27     in a disciplinary action under this subtitle.
3-28           (h)  Confidential information developed by the commission is
3-29     not subject to discovery or court subpoena in any other action
3-30     other than to enforce the provisions of this subtitle by the
3-31     commission, the appropriate licensing or regulatory agency, or the
3-32     appropriate enforcement authority, or in a criminal proceeding.
3-33           (i)  Except for harm resulting from acts or omissions
3-34     involving gross neglect, malice, or recklessness, a health care
3-35     provider serving on a panel pursuant to Subsection (b) is not
3-36     liable for acts or omissions committed within the course and scope
3-37     of duties and responsibilities on the panel.  The person's actions
3-38     do not constitute utilization review and are not subject to Article
3-39     21.58A, Insurance Code.
3-40           (j)  The medical advisor must be a doctor as that term is
3-41     defined by Section 401.011.
3-42           SECTION 4.  This Act takes effect September 1, 1999.
3-43           SECTION 5.  The importance of this legislation and the
3-44     crowded condition of the calendars in both houses create an
3-45     emergency and an imperative public necessity that the
3-46     constitutional rule requiring bills to be read on three several
3-47     days in each house be suspended, and this rule is hereby suspended.
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