By Smithee                                            H.B. No. 2826
         77R7901 MXM-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the adoption of a uniform explanation of payment form
 1-3     by the Texas Department of Insurance.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 21.52C, Insurance Code, is amended to
 1-6     read as follows:
 1-7           Art. 21.52C.  UNIFORM CLAIM BILLING AND PAYMENT FORMS.
 1-8           Sec. 1.  DEFINITIONS.  [(a)]  In this article:
 1-9                 (1)  "Health benefit plan" means a group, blanket, or
1-10     franchise insurance policy, a group hospital service contract, or a
1-11     group subscriber contract or evidence of coverage issued by a
1-12     health maintenance organization that provides benefits for health
1-13     care services.
1-14                 (2)  "Health carrier" means any entity authorized under
1-15     this code or another insurance law of this state that provides
1-16     health insurance or health benefits in this state, including an
1-17     insurance company, a group hospital service corporation under
1-18     Chapter 20 of this code, a health maintenance organization under
1-19     the Texas Health Maintenance Organization Act (Chapter 20A,
1-20     Vernon's Texas Insurance Code), and a stipulated premium company
1-21     authorized under Chapter 22 of this code.
1-22                 (3)  "Provider" means an individual or entity [a
1-23     person] who provides health care under a license issued by this
1-24     state, including an individual or entity described under:
 2-1                       (A)  [a person listed in] Section 2(B), Chapter
 2-2     397, Acts of the 54th Legislature, Regular Session, 1955 (Article
 2-3     3.70-2, Vernon's Texas Insurance Code);
 2-4                       (B)  Article 3.70-3C of this code, as added by
 2-5     Chapter 1024, Acts of the 75th Legislature, Regular Session,
 2-6     1997;[,] or
 2-7                       (C)  [in] Article 21.52 of this code.
 2-8           Sec. 2.  USE OF UNIFORM CLAIM BILLING FORM REQUIRED.  [(b)] A
 2-9     provider seeking payment or reimbursement under a health benefit
2-10     plan and the health carrier that issued that plan must use uniform
2-11     claim billing form UB-82/HCFA or HCFA 1500, or their successors, as
2-12     developed by the National Uniform Billing Committee or its
2-13     successor.
2-14           Sec. 3.  USE OF UNIFORM EXPLANATION OF PAYMENT FORM REQUIRED.
2-15     (a) The commissioner by rule shall adopt a single uniform
2-16     explanation of payment form and by rule shall define the
2-17     terminology used in that form.
2-18           (b)  Each health carrier shall use the uniform explanation of
2-19     payment form adopted under this section and shall send that form to
2-20     a provider with  any payment for a claim.  The form must contain
2-21     the information necessary for the provider to be able to determine
2-22     if the amount of the payment made is correct.  If there is a
2-23     contract between the health carrier and the provider, the form must
2-24     also contain any information necessary for the provider to
2-25     determine if the amount of payment is correct according to the
2-26     terms of the contract.
2-27           (c)  A health carrier shall send the uniform explanation of
 3-1     payment form to a provider in the same manner required for
 3-2     transmission of the claim payment, either through an electronic
 3-3     format that complies with applicable federal law or regulations, or
 3-4     through a paper format.
 3-5           SECTION 2.  (a)  Except as provided by Subsection (b) of this
 3-6     section, this Act takes effect September 1, 2001, and applies only
 3-7     to a claim under a health benefit plan that is filed with a health
 3-8     carrier on or after January 1, 2002.  A claim filed before January
 3-9     1, 2002, is governed by the law in effect on the date that the
3-10     claim was filed, and the former law is continued in effect for that
3-11     purpose.
3-12           (b)  The commissioner of insurance shall adopt rules as
3-13     required by Article 21.52C, Insurance Code, as amended by this Act,
3-14     not later than December 1, 2001.