1-1     By:  Smithee (Senate Sponsor - Sibley)                H.B. No. 2831
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Business
 1-4     and Commerce; May 10, 2001, reported favorably by the following
 1-5     vote:  Yeas 5, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to notification to certain health care providers of the
 1-9     factors considered by a managed care entity in determining the
1-10     amount of reimbursement for an out-of-network provider.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-13     amended by adding Article 21.60 to read as follows:
1-14           Art. 21.60.  AVAILABILITY OF CERTAIN REIMBURSEMENT GUIDELINES
1-15     USED BY MANAGED CARE ENTITY
1-16           Sec. 1.  DEFINITIONS. In this article:
1-17                 (1)  "Health care provider" means:
1-18                       (A)  a hospital, emergency clinic, outpatient
1-19     clinic, or other facility providing health care; or
1-20                       (B)  an individual who is licensed in this state
1-21     to provide health care.
1-22                 (2)  "Managed care entity" means a health maintenance
1-23     organization, a preferred provider organization, an approved
1-24     nonprofit health corporation that holds a certificate of authority
1-25     issued by the commissioner under Article 21.52F of this code, and
1-26     any other entity that offers a managed care plan, including:
1-27                       (A)  an insurance company;
1-28                       (B)  a group hospital service corporation
1-29     operating under Chapter 20 of this code;
1-30                       (C)  a fraternal benefit society operating under
1-31     Chapter 10 of this code;
1-32                       (D)  a stipulated premium insurance company
1-33     operating under Chapter 22 of this code;
1-34                       (E)  a multiple employer welfare arrangement that
1-35     holds a certificate of authority under Article 3.95-2 of this code;
1-36     or
1-37                       (F)  any entity not licensed under this code or
1-38     another insurance law of this state that contracts directly for
1-39     health care services on a risk-sharing basis, including an entity
1-40     that contracts for health care services under a capitation method. 
1-41                 (3)  "Managed care plan" means a health benefit plan:
1-42                       (A)  under which health care services are
1-43     provided through contracts with health care professionals or health
1-44     care facilities to persons enrolled in or insured under the plan;
1-45     and
1-46                       (B)  that provides financial incentives to
1-47     persons enrolled in or insured under the plan to use the
1-48     participating practitioners, participating health care facilities,
1-49     and procedures covered by the plan.
1-50           Sec. 2.  PROVISION OF INFORMATION REQUIRED. (a)  On the
1-51     written request of an out-of-network health care provider, a
1-52     managed care entity shall provide the provider with a written
1-53     description of the factors considered by the managed care entity in
1-54     determining the amount of reimbursement that the out-of-network
1-55     provider may receive for goods or services provided to a person
1-56     enrolled in or insured under the entity's managed care plan.
1-57           (b)  This article does not require a managed care entity to
1-58     disclose proprietary information that a contract between the
1-59     managed care entity and a vendor who supplies payment or
1-60     statistical data to the managed care entity prohibits from
1-61     disclosure.
1-62           (c)  A contract between the managed care entity and a vendor
1-63     who supplies payment or statistical data to the managed care entity
1-64     may not prohibit the managed care entity from disclosing under this
 2-1     section:
 2-2                 (1)  the name of the vendor; or
 2-3                 (2)  the methodology and origin of information used to
 2-4     compute the amount of reimbursement.
 2-5           (d)  A managed care entity that denies a request for
 2-6     information under Subsection (b) of this section shall send a copy
 2-7     of the request and the information requested to the department for
 2-8     review.
 2-9           Sec. 3.  RULES. The commissioner shall adopt rules as
2-10     necessary to implement this article.
2-11           SECTION 2. This Act takes effect September 1, 2001.
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