1-1     By:  Smithee (Senate Sponsor - Sibley)                H.B. No. 3016
 1-2           (In the Senate - Received from the House May 13, 1999;
 1-3     May 14, 1999, read first time and referred to Committee on Economic
 1-4     Development; May 14, 1999, reported favorably by the following
 1-5     vote:  Yeas 4, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to health care utilization review agents.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Sections 5(a) and (c), Article 21.58A, Insurance
1-11     Code, are amended to read as follows:
1-12           (a)  A utilization review agent shall notify the enrollee
1-13     or[,] a person acting on behalf of the enrollee and[, or] the
1-14     enrollee's provider of record of a determination made in a
1-15     utilization review.
1-16           (c)  In the event of an adverse determination, the
1-17     notification by the utilization review agent must include:
1-18                 (1)  the principal reasons for the adverse
1-19     determination;
1-20                 (2)  the clinical basis for the adverse determination;
1-21                 (3)  a description or the source of the screening
1-22     criteria that were utilized as guidelines in making the
1-23     determination; and
1-24                 (4)  a description of the procedure for the complaint
1-25     and appeal process, including:
1-26                       (A)  notification to the enrollee of the
1-27     enrollee's right to appeal an adverse determination to an
1-28     independent review organization;
1-29                       (B)  notification to the enrollee of the
1-30     procedures for appealing an adverse determination to an independent
1-31     review organization; and
1-32                       (C)  notification to an enrollee who has a
1-33     life-threatening condition of the enrollee's right to an immediate
1-34     review by an independent review organization and the procedures to
1-35     obtain that review.
1-36           SECTION 2.  Section 6(a), Article 21.58A, Insurance Code, is
1-37     amended to read as follows:
1-38           (a)  A utilization review agent shall maintain and make
1-39     available a written description of appeal procedures involving an
1-40     adverse determination.  For the purposes of this section, a
1-41     complaint filed concerning dissatisfaction or disagreement with an
1-42     adverse determination constitutes an appeal of that adverse
1-43     determination.
1-44           SECTION 3.  Section 6(b), Article 21.58A, Insurance Code, as
1-45     amended by Chapters 163 and 1025, Acts of the 75th Legislature,
1-46     Regular Session, 1997, is amended and reenacted to read as follows:
1-47           (b)  The procedures for appeals must [shall] be reasonable
1-48     and must [shall] include the following:
1-49                 (1)  a provision that an enrollee, a person acting on
1-50     behalf of the enrollee, or the enrollee's physician or health care
1-51     provider may appeal the adverse determination orally or in writing;
1-52                 (2)  a provision that, within five working days from
1-53     receipt of the appeal, the utilization review agent shall send to
1-54     the appealing party a letter acknowledging the date of the
1-55     utilization review agent's receipt of the appeal [and include a
1-56     reasonable list of documents needed to be submitted by the
1-57     appealing party to the utilization review agent for the appeal].
1-58     The [Such] letter must also include the provisions listed in this
1-59     subsection and a list of the documents that the appealing party
1-60     must submit for review by the utilization review agent.  When the
1-61     utilization review agent receives an oral appeal of adverse
1-62     determination, the utilization review agent shall send a one-page
1-63     appeal form to the appealing party;
1-64                 (3)  a provision that appeal decisions shall be made by
 2-1     a physician, provided that, if the appeal is denied and within 10
 2-2     working days the health care provider sets forth in writing good
 2-3     cause for having a particular type of a specialty provider review
 2-4     the case, the denial shall be reviewed by a health care provider in
 2-5     the same or similar specialty as typically manages the medical
 2-6     or[,] dental[, or specialty] condition, procedure, or treatment
 2-7     under discussion for review of the adverse determination, and that
 2-8     [such] specialty review shall be completed within 15 working days
 2-9     of receipt of the request;
2-10                 (4)  in addition to the written appeal, a method for an
2-11     expedited appeal procedure for emergency care denials [, denials of
2-12     care for life-threatening conditions,] and denials of continued
2-13     stays for hospitalized patients.  That [Such] procedure must
2-14     [shall] include a review by a health care provider who has not
2-15     previously reviewed the case and who is of the same or a similar
2-16     specialty as typically manages the medical condition, procedure, or
2-17     treatment under review.  The time frame in which the [such] appeal
2-18     must be completed shall be based on the medical or dental immediacy
2-19     of the condition, procedure, or treatment, but may not [in no
2-20     event] exceed one working day from the date all information
2-21     necessary to complete the appeal is received;
2-22                 (5)  a provision that after the utilization review
2-23     agent has sought review of the appeal of the adverse determination,
2-24     the utilization review agent shall issue a response letter to the
2-25     patient or [,] a person acting on behalf of the patient, and [or]
2-26     the patient's physician or health care provider, explaining the
2-27     resolution of the appeal[.  Such letter shall include a statement
2-28     of the specific medical, dental, or contractual reasons for the
2-29     resolution, the clinical basis for such decision, and the
2-30     specialization of any physician or other provider consulted]; and
2-31                 (6) [(5)]  written notification to the appealing party
2-32     of the determination of the appeal, as soon as practical, but in no
2-33     case later than the 30th calendar day after the date the
2-34     utilization agent receives the appeal.  If the appeal is denied,
2-35     the written notification shall include a clear and concise
2-36     statement of:
2-37                       (A)  the clinical basis for the appeal's denial;
2-38                       (B)  the specialty of the physician or other
2-39     health care provider making the denial; and
2-40                       (C)  notice of the appealing party's right to
2-41     seek review of the denial by an independent review organization
2-42     under Section 6A of this article and the procedures for obtaining
2-43     that review
2-44                 [(6)  written notification to the appealing party of
2-45     the determination of the appeal, as soon as practical, but in no
2-46     case later than 30 days after the date the utilization review agent
2-47     receives the appeal].
2-48           SECTION 4.  Section 6(c), Article 21.58A, Insurance Code, is
2-49     amended to read as follows:
2-50           (c)  Notwithstanding this article or any other law, in a
2-51     circumstance involving an enrollee's life-threatening condition,
2-52     the enrollee is entitled to an immediate appeal to an independent
2-53     review organization as provided by Section 6A of this article and
2-54     is not required to comply with procedures for an internal review of
2-55     the utilization review agent's adverse determination.  [For
2-56     purposes of this section, "life-threatening condition" means a
2-57     disease or other medical condition with respect to which death is
2-58     probable unless the course of the disease or condition is
2-59     interrupted.]
2-60           SECTION 5.  This Act takes effect September 1, 1999.
2-61           SECTION 6.  The importance of this legislation and the
2-62     crowded condition of the calendars in both houses create an
2-63     emergency and an imperative public necessity that the
2-64     constitutional rule requiring bills to be read on three several
2-65     days in each house be suspended, and this rule is hereby suspended.
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