By Nelson                                              S.B. No. 130
         76R3283 PB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain unfair practices by insurers and certain
 1-3     related entities regarding preferred providers of health care.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 3.70-3C, Insurance Code, as added by
 1-6     Chapter 1024, Acts of the 75th Legislature, Regular Session, 1997,
 1-7     is amended by adding Section 7A to read as follows:
 1-8           Sec. 7A.  MISREPRESENTATION REGARDING DISCOUNT PROHIBITED.
 1-9     (a)  This section applies to:
1-10                 (1)  an insurer;
1-11                 (2)  an agent of an insurer; and
1-12                 (3)  an administrator regulated under Article 21.07-6
1-13     of this code.
1-14           (b)  A person to whom this section applies may not represent
1-15     to a physician or health care provider that the person is entitled
1-16     to a preferred provider  discount or other discount in the fees
1-17     charged by the physician or provider for services rendered to an
1-18     insured if the person:
1-19                 (1)  knows that the person is not entitled to that
1-20     discount; or
1-21                 (2)  is not a party to the original contract or
1-22     agreement for the preferred provider discount or other discount in
1-23     fees.
1-24           (c)  This section may not be waived by contract.
 2-1           (d)  A person who violates this section commits an unfair act
 2-2     or deceptive practice in violation of Articles 21.21 and 21.21-2 of
 2-3     this code.
 2-4           SECTION 2.  The importance of this legislation and the
 2-5     crowded condition of the calendars in both houses create an
 2-6     emergency and an imperative public necessity that the
 2-7     constitutional rule requiring bills to be read on three several
 2-8     days in each house be suspended, and this rule is hereby suspended,
 2-9     and that this Act take effect and be in force from and after its
2-10     passage, and it is so enacted.