SRC-CTC S.B. 1606 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1606
77R7076 PB-FBy: Staples
Business & Commerce
4/25/2001
As Filed


DIGEST AND PURPOSE 

Currently, managed care plans often offer more than one kind of health care
plan (product) and may require a health care provider to participate in all
of the plan's products in order to participate in any of the products.
This policy, sometimes called a "tied products" policy, requires providers
to accept the contract provisions of one product in order to have access to
patients covered by another product.  If conditions under one product
interfere with a provider's ability to care for patients, the plan will not
allow the provider to stop participation in one product and still
participate in other products.  As proposed, S.B. 1606 amends the Insurance
Code to prohibit a "tied products" policy by including such a practice in
the definition of coercion. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 4, Article 21.21, Insurance Code, to define
"coercion." 

SECTION 2.  Makes application of this Act prospective to January 1, 2002.

SECTION 3.  Effective date: September 1, 2001.