1-1                                   AN ACT
 1-2     relating to discrimination in health care rates and reimbursement;
 1-3     providing administrative and civil penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  SHORT TITLE.  This Act may be cited as the
 1-6     Omnibus Women's Equal Health Care Act.
 1-7           SECTION 2.  PURPOSE.  Historically, there has been widespread
 1-8     discrimination in compensation to providers of women's health care.
 1-9     Providers involved with female-specific medical procedures who
1-10     devote the same amount of time, equivalent skill, and resources and
1-11     who have similar or even greater risks of liability are paid less
1-12     than when those providers or others perform comparable
1-13     male-specific procedures.  This discrimination creates an economic
1-14     disincentive to invest funds in training doctors, in creating
1-15     suitable hospital facilities, and in engaging in female-specific
1-16     medical research that further results in unequal treatment of women
1-17     in the health care field.  It is the policy of this state that no
1-18     such discrimination against women will be tolerated.  To that end,
1-19     this statute should be liberally construed to effectuate its
1-20     purposes.  The purpose of this Act is to remedy the unequal health
1-21     care rates and payments by requiring that all third party payors
1-22     shall pay providers of women's health services equal pay for equal
1-23     work.
1-24           SECTION 3.  AMENDMENT.  Subchapter E, Chapter 21, Insurance
1-25     Code, is amended by adding Article 21.53N to read as follows:
 2-1           Art. 21.53N.  WOMEN'S EQUAL HEALTH CARE ACT
 2-2           Sec. 1.  DEFINITIONS.  In this article:
 2-3                 (1)  "Physician" means a person licensed by the Texas
 2-4     State Board of Medical Examiners to practice medicine and surgery
 2-5     in this state.
 2-6                 (2)  "Provider" means a hospital, nurse practitioner,
 2-7     registered nurse, physician assistant, home health aide, nurse
 2-8     midwife, surgery center, or other outpatient care center.
 2-9           Sec. 2.  APPLICABILITY OF ARTICLE.  This article applies only
2-10     to a health benefit plan that provides benefits for medical or
2-11     surgical expenses incurred as a result of a health condition,
2-12     accident, or sickness, including an individual, group blanket, or
2-13     franchise insurance policy or insurance agreement, a group hospital
2-14     service contract, or an individual or group evidence of coverage or
2-15     similar coverage document that is offered by:
2-16                 (1)  an insurance company;
2-17                 (2)  a group hospital service corporation operating
2-18     under Chapter 20 of this code;
2-19                 (3)  a fraternal benefit society operating under
2-20     Chapter 10 of this code;
2-21                 (4)  a stipulated premium insurance company operating
2-22     under Chapter 22 of this code;
2-23                 (5)  a reciprocal exchange operating under Chapter 19
2-24     of this code;
2-25                 (6)  a health maintenance organization operating under
2-26     the Texas Health Maintenance Organization Act (Chapter 20A,
 3-1     Vernon's Texas Insurance Code);
 3-2                 (7)  a multiple employer welfare arrangement that holds
 3-3     a certificate of authority under Article 3.95-2 of this code;
 3-4                 (8)  an approved nonprofit health corporation that
 3-5     holds a certificate of authority under Article 21.52F of this code;
 3-6     or
 3-7                 (9)  a small employer health benefit plan written under
 3-8     Chapter 26 of this code.
 3-9           Sec. 3.  REIMBURSEMENT FOR SERVICES.  When reimbursing a
3-10     physician or provider for reproductive health and oncology services
3-11     provided to women, a health benefit plan must pay an amount not
3-12     less than the annual average compensation per hour or unit as would
3-13     be paid in the service area to a physician or provider for the same
3-14     medical, surgical, hospital, pharmaceutical, nursing, or other
3-15     similar resources, as applicable, that would be used in providing
3-16     health services exclusively to men or to the general population.
3-17           Sec. 4.  PENALTIES.  (a)  A health benefit plan as described
3-18     by Section 2 of this article that is found to be in violation of or
3-19     failing to comply with this article is subject to the sanctions
3-20     authorized by Chapter 82 of this code.  The commissioner may also
3-21     use the cease and desist procedures authorized by Chapter 83 of
3-22     this code and, in accordance with the provisions of that chapter,
3-23     direct the plan to make complete restitution, which may include
3-24     reasonable attorney's fees incurred by a person making a complaint
3-25     under this article.  Notwithstanding the provisions of this
3-26     section, the commissioner may order the greater of complete or
 4-1     economic damages.
 4-2           (b)  In addition to imposing the sanctions authorized by
 4-3     Subsection (a) of this section, the commissioner may impose an
 4-4     administrative penalty in accordance with Chapter 84 of this code.
 4-5     Upon a finding that the plan knowingly violated the provisions of
 4-6     this article, the commissioner may impose an administrative penalty
 4-7     not to exceed $25,000 in addition to the penalty authorized by
 4-8     Section 84.022 of this code.
 4-9           (c)  The commissioner shall make a determination of a
4-10     violation of this article and impose the appropriate sanctions
4-11     within 120 days of the date a complaint alleging a violation is
4-12     filed.
4-13           (d)  The procedural requirements established by Subchapter C,
4-14     Chapter 84 of this code, shall govern the imposition of sanctions
4-15     and administrative penalties under this article.
4-16           (e)  In any proceeding relating to the imposition of a
4-17     sanction or administrative penalty by the commissioner under this
4-18     article, any person affected by an order of the commissioner,
4-19     including a physician or provider, is entitled to intervene in the
4-20     proceeding by filing with the commissioner a notice of
4-21     intervention.  The commissioner shall afford an affected person,
4-22     including a physician or provider, a reasonable period in which to
4-23     intervene.  At the time the commissioner notifies the health
4-24     benefit plan about the plan's opportunity for a hearing regarding
4-25     an alleged violation, the commissioner shall provide a notice to
4-26     each affected person, including a physician or provider, of all
 5-1     relevant information regarding the hearing.  An affected person,
 5-2     including a physician or provider who intervenes under this
 5-3     subsection, has the right and powers of a party under Chapter 2001,
 5-4     Government Code.
 5-5           Sec. 5.  JUDICIAL REVIEW.  (a)  A person, including a person
 5-6     who intervenes under Section 4(e) of this article, affected by an
 5-7     order of the commissioner regarding a violation of this article may
 5-8     file an appeal in district court.  The standard of review under
 5-9     this subsection is substantial evidence.
5-10           (b)  If the commissioner fails to make a determination by
5-11     order of a complaint within the time limit prescribed by Section
5-12     4(c) of this article, the person who initiated the complaint may
5-13     bring an action in the district court for a violation of this
5-14     article.  The action must be commenced within 12 months after the
5-15     date on which the time limit for the commissioner's determination
5-16     expired.
5-17           (c)  In a suit filed under Subsection (b) of this section, a
5-18     court may impose the same or similar sanctions as provided under
5-19     Section 4(a) of this article, including an additional civil penalty
5-20     of $25,000 if the trier of fact finds that the defendant knowingly
5-21     violated the provisions of this article.  In addition, if the
5-22     claimant prevails in the action, the court may award reasonable
5-23     attorney's fees and court costs, including any reasonable and
5-24     necessary expert witness fees.
5-25           (d)  On a finding by the court that an action under
5-26     Subsection (b) of this section was groundless and brought in bad
 6-1     faith or brought for the purpose of harassment, the court shall
 6-2     award the defendant reasonable and necessary attorney's fees.
 6-3           Sec. 6.  LIMITATION OF REIMBURSEMENT REQUIREMENTS.  This
 6-4     article does not require the issuer of a health benefit plan to
 6-5     provide reimbursement for an abortion as defined by the Family Code
 6-6     or related services.
 6-7           SECTION 4.  EFFECTIVE DATE; TRANSITION.  (a)  This Act takes
 6-8     effect September 1, 2001.
 6-9           (b)  The changes in law made by this Act apply only to an
6-10     insurance policy that is delivered, issued for delivery, or renewed
6-11     on or after January 1, 2002.  A policy delivered, issued for
6-12     delivery, or renewed before January 1, 2002, is governed by the law
6-13     as it existed immediately before the effective date of this Act,
6-14     and that law is continued in effect for that purpose.
6-15           (c)  Not later than 90 days after the effective date of this
6-16     Act, the Texas Board of Health, the Texas Board of Human Services,
6-17     and the Texas Department of Insurance shall repeal any rules
6-18     contrary to this Act and shall adopt rules necessary to implement
6-19     this Act.  The rules shall require that providers justify any
6-20     disparity in reimbursement rates for provision of health care
6-21     services and that any disparity accurately reflects the difference
6-22     in time and resources expended to provide the health care services.
                                                                  S.B. No. 8
            _______________________________     _______________________________
                President of the Senate              Speaker of the House
                  I hereby certify that S.B. No. 8 passed the Senate on
            April 19, 2001, by a viva-voce vote; May 25, 2001, Senate refused
            to concur in House amendment and requested appointment of
            Conference Committee; May 25, 2001, House granted request of the
            Senate; May 27, 2001, Senate adopted Conference Committee Report by
            a viva-voce vote.
                                                _______________________________
                                                    Secretary of the Senate
                  I hereby certify that S.B. No. 8 passed the House, with
            amendment, on May 23, 2001, by a non-record vote; May 25, 2001,
            House granted request of the Senate for appointment of Conference
            Committee; May 27, 2001, House adopted Conference Committee Report
            by a non-record vote.
                                                _______________________________
                                                    Chief Clerk of the House
            Approved:
            _______________________________
                         Date
            _______________________________
                       Governor