1-1 By: Nelson S.B. No. 130 1-2 (In the Senate - Filed January 7, 1999; January 28, 1999, 1-3 read first time and referred to Committee on Economic Development; 1-4 March 1, 1999, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 5, Nays 0; March 1, 1999, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 130 By: Madla 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to certain unfair practices by insurers and certain 1-11 related entities regarding preferred providers of health care. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Article 3.70-3C, Insurance Code, as added by 1-14 Chapter 1024, Acts of the 75th Legislature, Regular Session, 1997, 1-15 is amended by adding Section 7A to read as follows: 1-16 Sec. 7A. RESTRICTIONS ON PAYMENT AND REIMBURSEMENT. 1-17 (a) This section applies to: 1-18 (1) an insurer; 1-19 (2) an agent of an insurer; 1-20 (3) an administrator regulated under Article 21.07-6 1-21 of this code; or 1-22 (4) a preferred provider organization. 1-23 (b) A person to whom this section applies shall not 1-24 reimburse a physician, practitioner, hospital, institutional 1-25 provider, or organization of physicians and health care providers 1-26 on a discounted fee basis for covered services that are rendered to 1-27 an insured unless the insured is covered by a preferred provider 1-28 benefit plan to which the physician, practitioner, hospital, 1-29 institutional provider, or organization of physicians and health 1-30 care providers has contracted and to which the person has agreed to 1-31 provide coverage. 1-32 (c) No party to a preferred provider contract may buy, 1-33 purchase, acquire, obtain, lease, rent, or otherwise transfer 1-34 information concerning the payment or reimbursement terms of the 1-35 contract without express authority and prior adequate notification 1-36 to contracted parties. 1-37 (d) A person who violates this section commits an unfair act 1-38 or deceptive practice in violation of Articles 21.21 and 21.21-2 of 1-39 this code. 1-40 SECTION 2. The importance of this legislation and the 1-41 crowded condition of the calendars in both houses create an 1-42 emergency and an imperative public necessity that the 1-43 constitutional rule requiring bills to be read on three several 1-44 days in each house be suspended, and this rule is hereby suspended, 1-45 and that this Act take effect and be in force from and after its 1-46 passage, and it is so enacted. 1-47 * * * * *