R E S O L U T I O N
 1-1           BE IT RESOLVED by the House of Representatives of the State
 1-2     of Texas, 77th Legislature, Regular Session, 2001, That House Rule
 1-3     13, Section 9(a), be suspended in part as provided by House Rule
 1-4     13, Section 9(f), to enable the conference committee appointed to
 1-5     resolve the differences on House Bill No. 1862, relating to the
 1-6     regulation and prompt payment of health care providers under
 1-7     certain health benefit plans and providing penalties, to consider
 1-8     and take action on the following matters:
 1-9           1.  House Rule 13, Section 9(a)(1), is suspended to permit
1-10     the committee to change text that is not in disagreement in amended
1-11     Section 3A(b), Article 3.70-3C, Insurance Code, as added by Chapter
1-12     1024, Acts of the 75th Legislature, Regular Session, 1997, so that
1-13     the subsection reads as follows:
1-14           (b)  A physician or [preferred] provider must submit a claim
1-15     to an insurer not later than the 95th day after the date the
1-16     physician or provider provides the medical care or health care
1-17     services for which the claim is made.  An insurer shall accept as
1-18     proof of timely filing a claim filed in compliance with Subsection
1-19     (c) of this section or information from another insurer showing
1-20     that the physician or provider submitted the claim to the insurer
1-21     in compliance with Subsection (c) of this section.  If a physician
1-22     or provider fails to submit a claim in compliance with this
1-23     subsection, the physician or provider forfeits the right to payment
1-24     unless the failure to submit the claim in compliance with this
 2-1     subsection is a result of a catastrophic event that substantially
 2-2     interferes with the normal business operations of the physician or
 2-3     provider. The period for submitting a claim under this subsection
 2-4     may be extended by contract.  A physician or provider may not
 2-5     submit a duplicate claim for payment before the 46th day after the
 2-6     date the original claim was submitted.  The commissioner shall
 2-7     adopt rules under which an insurer may determine whether a claim is
 2-8     a duplicate claim [for medical care or health care services under a
 2-9     health insurance policy may obtain acknowledgment of receipt of a
2-10     claim for medical care or health care services under a health care
2-11     plan by submitting the claim by United States mail, return receipt
2-12     requested.  An insurer or the contracted clearinghouse of an
2-13     insurer that receives a claim electronically shall acknowledge
2-14     receipt of the claim by an electronic transmission to the preferred
2-15     provider and is not required to acknowledge receipt of the claim by
2-16     the insurer in writing].
2-17           Explanation:  This change is necessary to prevent a physician
2-18     or provider from forfeiting payment of a claim if a catastrophic
2-19     event prevents the physician or provider from submitting the claim
2-20     in the required time.
2-21           2.  House Rule 13, Section 9(a)(1), is suspended to permit
2-22     the committee to change text that is not in disagreement in added
2-23     Section 3A(d), Article 3.70-3C, Insurance Code, so that the
2-24     subsection reads as follows:
2-25           (d)  If a claim for medical care or health care services
2-26     provided to a patient is mailed, the claim is presumed to have been
2-27     received by the insurer on the third day after the date the claim
 3-1     is mailed or, if the claim is mailed using overnight service or
 3-2     return receipt requested, on the date the delivery receipt is
 3-3     signed.  If the claim is submitted electronically, the claim is
 3-4     presumed to have been received on the date of the electronic
 3-5     verification of receipt by the insurer or the insurer's
 3-6     clearinghouse.  If the insurer or the insurer's clearinghouse does
 3-7     not provide a confirmation within 24 hours of submission by the
 3-8     physician or provider, the physician's or provider's clearinghouse
 3-9     shall provide the confirmation.  The physician's or provider's
3-10     clearinghouse must be able to verify that the filing contained the
3-11     correct payor identification of the entity to receive the filing.
3-12     If the claim is faxed, the claim is presumed to have been received
3-13     on the date of the transmission acknowledgment.  If the claim is
3-14     hand delivered, the claim is presumed to have been received on the
3-15     date the delivery receipt is signed.  The commissioner shall
3-16     promulgate a form to be submitted by the physician or provider that
3-17     easily identifies all claims included in each filing and that can
3-18     be used by a physician or provider as the physician's or provider's
3-19     log.
3-20           Explanation:  This change is necessary to require that a
3-21     physician's or provider's clearinghouse be able to verify that a
3-22     filed claim contains the correct "payor identification" of the
3-23     entity to receive the filing, rather than the "correct address" of
3-24     the entity.
3-25           3.  House Rule 13, Sections 9(a)(1) and (2), is suspended to
3-26     permit the committee to change and omit text that is not in
3-27     disagreement in added Section 3A(g), Article 3.70-3C, Insurance
 4-1     Code, so that the subsection reads as follows:
 4-2           (g)  An insurer that determines under Subsection (e) of this
 4-3     section that a claim is eligible for payment and does not pay the
 4-4     claim on or before the 45th day after the date the insurer receives
 4-5     a clean claim shall pay the physician or provider making the claim
 4-6     the lesser of the full amount of billed charges submitted on the
 4-7     claim and interest on the billed charges at a rate of 15 percent
 4-8     annually or two times the contracted rate and interest on that
 4-9     amount at a rate of 15 percent annually.  If the provider submits
4-10     the claim using a form described by Section 3B(a) of this article,
4-11     billed charges shall be established under a fee schedule provided
4-12     by the preferred provider to the insurer on or before the 30th day
4-13     after the date the physician or provider enters into a preferred
4-14     provider contract with the insurer.  The preferred provider may
4-15     modify the fee schedule if the provider notifies the insurer of the
4-16     modification on or before the 90th day before the date the
4-17     modification takes effect.
4-18           Explanation:  This change is necessary to omit language
4-19     relating to payment of certain claims and change the consequences
4-20     of failing to pay certain claims as required.
4-21           4.  House Rule 13, Section 9(a)(1), is suspended to permit
4-22     the committee to change text that is not in disagreement in added
4-23     Section 3B(a), Article 3.70-3C, Insurance Code, to add the phrase
4-24     "in the manner prescribed".
4-25           Explanation:  This change is necessary to specify that for a
4-26     claim by certain physicians or providers to be a "clean claim"
4-27     information must be entered into the required form "in the manner
 5-1     prescribed".
 5-2           5.  House Rule 13, Section 9(a)(1), is suspended to allow the
 5-3     committee to change text that is not in disagreement in amended
 5-4     Section 18B(b), Texas Health Maintenance Organization Act (Article
 5-5     20A.18B, Vernon's Texas Insurance Code), so that the subsection
 5-6     reads as follows:
 5-7           (b)  A physician or provider must submit a claim under this
 5-8     section to a health maintenance organization not later than the
 5-9     95th day after the date the physician or provider provides the
5-10     medical care or health care services for which the claim is made.
5-11     A health maintenance organization shall accept as proof of timely
5-12     filing a claim filed in compliance with Subsection (c) of this
5-13     section or information from another health maintenance organization
5-14     showing that the physician or provider submitted the claim to the
5-15     health maintenance organization in compliance with Subsection (c)
5-16     of this section.  If a physician or provider fails to submit a
5-17     claim in compliance with this subsection, the physician or provider
5-18     forfeits the right to payment unless the failure to submit the
5-19     claim in compliance with this subsection is a result of a
5-20     catastrophic event that substantially interferes with the normal
5-21     business operations of the physician or provider.  The period for
5-22     submitting a claim under this subsection may be extended by
5-23     contract.  A physician or provider may not submit a duplicate claim
5-24     for payment before the 46th day after the date the original claim
5-25     was submitted.  The commissioner shall adopt rules under which a
5-26     health maintenance organization may determine whether a claim is a
5-27     duplicate claim. [A physician or provider for medical care or
 6-1     health care services under a health care plan may obtain
 6-2     acknowledgment of receipt of a claim for medical care or health
 6-3     care services under a health care plan by submitting the claim by
 6-4     United States mail, return receipt requested.  A health maintenance
 6-5     organization or the contracted clearinghouse of the health
 6-6     maintenance organization that receives a claim electronically shall
 6-7     acknowledge receipt of the claim by an electronic transmission to
 6-8     the physician or provider and is not required to acknowledge
 6-9     receipt of the claim by the health maintenance organization in
6-10     writing.]
6-11           Explanation:  This change is necessary to prevent a physician
6-12     or provider from forfeiting payment of a claim if a catastrophic
6-13     event prevents the physician or provider from submitting the claim
6-14     in the required time.
6-15           6.  House Rule 13, Section 9(a)(1), is suspended to allow the
6-16     committee to change text that is not in disagreement in added
6-17     Section 18B(d), Texas Health Maintenance Organization Act (Article
6-18     20A.18B, Vernon's Texas Insurance Code), so that the subsection
6-19     reads as follows:
6-20           (d)  If a claim for medical care or health care services
6-21     provided to a patient is mailed, the claim is presumed to have been
6-22     received by the health maintenance organization on the third day
6-23     after the date the claim is mailed or, if the claim is mailed using
6-24     overnight service or return receipt requested, on the date the
6-25     delivery receipt is signed.  If the claim is submitted
6-26     electronically, the claim is presumed to have been received on the
6-27     date of the electronic verification of receipt by the health
 7-1     maintenance organization or the health maintenance organization's
 7-2     clearinghouse.  If the health maintenance organization or the
 7-3     health maintenance organization's clearinghouse does not provide a
 7-4     confirmation within 24 hours of submission by the physician or
 7-5     provider, the physician's or provider's clearinghouse shall provide
 7-6     the confirmation.  The physician's or provider's clearinghouse must
 7-7     be able to verify that the filing contained the correct payor
 7-8     identification of the entity to receive the filing.  If the claim
 7-9     is faxed, the claim is presumed to have been received on the date
7-10     of the transmission acknowledgment.  If the claim is hand
7-11     delivered, the claim is presumed to have been received on the date
7-12     the delivery receipt is signed.  The commissioner shall promulgate
7-13     a form to be submitted by the physician or provider which easily
7-14     identifies all claims included in each filing which can be utilized
7-15     by the physician or provider as their log.
7-16           Explanation:  This change is necessary to require that a
7-17     physician's or provider's clearinghouse be able to verify that a
7-18     filed claim contains the correct "payor identification" of the
7-19     entity to receive the filing, rather than the "correct address" of
7-20     the entity.
7-21           7.  House Rule 13, Sections 9(a)(1) and (2), is suspended to
7-22     allow the committee to change and omit text that is not in
7-23     disagreement in added Section 18B(g), Texas Health Maintenance
7-24     Organization Act (Article 20A.18B, Vernon's Texas Insurance Code),
7-25     so that the subsection reads as follows:
7-26           (g)  A health maintenance organization that determines under
7-27     Subsection (e) of this section that a claim is eligible for payment
 8-1     and does not pay the claim on or before the 45th day after the date
 8-2     the health maintenance organization receives a clean claim shall
 8-3     pay the physician or provider making the claim the lesser of the
 8-4     full amount of billed charges submitted on the claim and interest
 8-5     on the billed charges at a rate of 15 percent annually or two times
 8-6     the contracted rate and interest on that amount at a rate of 15
 8-7     percent annually.  If the physician or provider submits the claim
 8-8     using a form described by Section 18D(a) of this Act, billed
 8-9     charges shall be established under a fee schedule provided by the
8-10     physician or provider to the health maintenance organization on or
8-11     before the 30th day after the date the physician or provider enters
8-12     into the contract with the health maintenance organization.  The
8-13     physician or provider may modify the fee schedule if the physician
8-14     or provider notifies the health maintenance organization of the
8-15     modification on or before the 90th day before the date the
8-16     modification takes effect.
8-17           Explanation:  This change is necessary to omit language
8-18     relating to payment of certain claims and change the consequences
8-19     of failing to pay certain claims as required.
8-20           8.  House Rule 13, Section 9(a)(1), is suspended to allow the
8-21     committee to change text that is not in disagreement in added
8-22     Section 18D(a), Texas Health Maintenance Organization Act, to add
8-23     the phrase "in the manner prescribed".
8-24           Explanation:  This change is necessary to specify that for a
8-25     claim by certain physicians or providers to be a "clean claim"
8-26     information must be entered into the required form "in the manner
8-27     prescribed".
 9-1           9.  House Rule 13, Section 9(a)(1), is suspended to allow the
 9-2     committee to change text that is not in disagreement in added
 9-3     Section 18H(c), Texas Health Maintenance Organization Act, to
 9-4     substitute the phrase "health maintenance organization" for
 9-5     "insurer".
 9-6           Explanation:  This change is necessary to make a technical
 9-7     correction that changes "insurer" to "health maintenance
 9-8     organization".
 9-9           10.  House Rule 13, Section 9(a)(1), is suspended to allow
9-10     the committee to change text that is not in disagreement in added
9-11     Section 18I, Texas Health Maintenance Organization Act, to change
9-12     the term "preauthorization" to "verification".
9-13           Explanation:  This change is necessary to apply the
9-14     provisions of the Texas Health Maintenance Organization Act
9-15     relating to "verification" of certain services, rather than
9-16     provisions relating to "preauthorization" of those services, to
9-17     certain physicians or providers.
9-18           11.  House Rule 13, Section 9(a)(4), is suspended to allow
9-19     the committee to add a new section to the bill to read as follows:
9-20           SECTION 8. (a)  Section 3, Article 21.53Q, Insurance Code, as
9-21     added by House Bill 1676, Acts of the 77th Legislature, Regular
9-22     Session, 2001, is amended to read as follows:
9-23           Sec. 3.  TRAINING FOR CERTAIN PERSONNEL REQUIRED. (a)  In
9-24     this section, "preauthorization" means a determination by [the
9-25     provision of a reliable representation to a physician or health
9-26     care provider of whether] the issuer of a health benefit plan that
9-27     the [will pay the physician or provider for proposed] medical or
 10-1    health care services proposed to be provided [if the physician or
 10-2    provider renders those services] to a [the] patient are medically
 10-3    necessary and appropriate [for whom the services are proposed].
 10-4    The term includes precertification, certification, recertification,
 10-5    or any other activity that involves providing a reliable
 10-6    representation by the issuer of a health benefit plan to a
 10-7    physician or health care provider.
 10-8          (b)  The commissioner by rule shall require the issuer of a
 10-9    health benefit plan to provide adequate training to appropriate
10-10    personnel responsible for preauthorization of coverage, if required
10-11    under the plan, or utilization review under the plan to prevent
10-12    wrongful denial of coverage required under this article and to
10-13    avoid confusion of medical benefits with mental health benefits.
10-14          (b)  This section takes effect only if House Bill 1676, Acts
10-15    of the 77th Legislature, Regular Session, 2001, becomes law.  If
10-16    House Bill 1676 does not become law, this section has no effect.
10-17          Explanation:  This change is necessary to conform the
10-18    definition of "preauthorization" in Section 3, Article 21.53Q,
10-19    Insurance Code, to the definitions of "preauthorization" in House
10-20    Bill 1862 and clarify the preauthorization personnel to which the
10-21    training requirement in that section applies.
                                                                      Eiland
                                             _______________________________
                                                   Speaker of the House
               I certify that H.R. No. 1398 was adopted by the House on May
         27, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House