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