By:  Van de Putte                                     S.R. No. 1254
                                  SENATE RESOLUTION
 1-1           BE IT RESOLVED by the Senate of the State of Texas, 77th
 1-2     Legislature, Regular Session, 2001, That Senate Rule 12.03 be
 1-3     suspended in part as provided by Senate Rule 12.08 to enable the
 1-4     conference committee appointed to resolve the differences on House
 1-5     Bill No. 1862, relating to the regulation and prompt payment of
 1-6     health care providers under certain health benefit plans and
 1-7     providing penalties, to consider and take action on the following
 1-8     matters:
 1-9           1.  Senate Rule 12.03(1) is suspended to permit the committee
1-10     to change text that is not in disagreement in amended Section
1-11     3A(b), Article 3.70-3C, Insurance Code, as added by Chapter 1024,
1-12     Acts of the 75th Legislature, Regular Session, 1997, so that the
1-13     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
1-25     subsection is a result of a catastrophic event that substantially
 2-1     interferes with the normal business operations of the physician or
 2-2     provider.  The period for submitting a claim under this subsection
 2-3     may be extended by contract.  A physician or provider may not
 2-4     submit a duplicate claim for payment before the 46th day after the
 2-5     date the original claim was submitted.  The commissioner shall
 2-6     adopt rules under which an insurer may determine whether a claim is
 2-7     a duplicate claim [for medical care or health care services under a
 2-8     health insurance policy may obtain acknowledgment of receipt of a
 2-9     claim for medical care or health care services under a health care
2-10     plan by submitting the claim by United States mail, return receipt
2-11     requested.  An insurer or the contracted clearinghouse of an
2-12     insurer that receives a claim electronically shall acknowledge
2-13     receipt of the claim by an electronic transmission to the preferred
2-14     provider and is not required to acknowledge receipt of the claim by
2-15     the insurer in writing].
2-16           Explanation:  This change is necessary to prevent a physician
2-17     or provider from forfeiting payment of a claim if a catastrophic
2-18     event prevents the physician or provider from submitting the claim
2-19     in the required time.
2-20           2.  Senate Rule 12.03(1) is suspended to permit the committee
2-21     to change text that is not in disagreement in added Section 3A(d),
2-22     Article 3.70-3C, Insurance Code, so that the subsection reads as
2-23     follows:
2-24           (d)  If a claim for medical care or health care services
2-25     provided to a patient is mailed, the claim is presumed to have been
2-26     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.  Senate Rules 12.03(1) and (2) are suspended to permit the
3-26     committee to change and omit text that is not in disagreement in
 4-1     added Section 3A(g), Article 3.70-3C, Insurance Code, so that the
 4-2     subsection reads as follows:
 4-3           (g)  An insurer that determines under Subsection (e) of this
 4-4     section that a claim is eligible for payment and does not pay the
 4-5     claim on or before the 45th day after the date the insurer receives
 4-6     a clean claim shall pay the physician or provider making the claim
 4-7     the lesser of the full amount of billed charges submitted on the
 4-8     claim and interest on the billed charges at a rate of 15 percent
 4-9     annually or two times the contracted rate and interest on that
4-10     amount at a rate of 15 percent annually.  If the provider submits
4-11     the claim using a form described by Section 3B(a) of this article,
4-12     billed charges shall be established under a fee schedule provided
4-13     by the preferred provider to the insurer on or before the 30th day
4-14     after the date the physician or provider enters into a preferred
4-15     provider contract with the insurer.  The preferred provider may
4-16     modify the fee schedule if the provider notifies the insurer of the
4-17     modification on or before the 90th day before the date the
4-18     modification takes effect.
4-19           Explanation:  This change is necessary to omit language
4-20     relating to payment of certain claims and change the consequences
4-21     of failing to pay certain claims as required.
4-22           4.  Senate Rule 12.03(1) is suspended to permit the committee
4-23     to change text that is not in disagreement in added Section 3B(a),
4-24     Article 3.70-3C, Insurance Code, to add the phrase "in the manner
4-25     prescribed".
4-26           Explanation:  This change is necessary to specify that for a
 5-1     claim by certain physicians or providers to be a "clean claim"
 5-2     information must be entered into the required form "in the manner
 5-3     prescribed".
 5-4           5.  Senate Rule 12.03(1) is suspended to allow the committee
 5-5     to change text that is not in disagreement in amended Section
 5-6     18B(b), Texas Health Maintenance Organization Act (Article 20A.18B,
 5-7     Vernon's Texas Insurance Code), so that the subsection reads as
 5-8     follows:
 5-9           (b)  A physician or provider must submit a claim under this
5-10     section to a health maintenance organization not later than the
5-11     95th day after the date the physician or provider provides the
5-12     medical care or health care services for which the claim is made.
5-13     A health maintenance organization shall accept as proof of timely
5-14     filing a claim filed in compliance with Subsection (c) of this
5-15     section or information from another health maintenance organization
5-16     showing that the physician or provider submitted the claim to the
5-17     health maintenance organization in compliance with Subsection (c)
5-18     of this section.  If a physician or provider fails to submit a
5-19     claim in compliance with this subsection, the physician or provider
5-20     forfeits the right to payment unless the failure to submit the
5-21     claim in compliance with this subsection is a result of a
5-22     catastrophic event that substantially interferes with the normal
5-23     business operations of the physician or provider.  The period for
5-24     submitting a claim under this subsection may be extended by
5-25     contract.  A physician or provider may not submit a duplicate claim
5-26     for payment before the 46th day after the date the original claim
 6-1     was submitted.  The commissioner shall adopt rules under which a
 6-2     health maintenance organization may determine whether a claim is a
 6-3     duplicate claim.  [A physician or provider for medical care or
 6-4     health care services under a health care plan may obtain
 6-5     acknowledgment of receipt of a claim for medical care or health
 6-6     care services under a health care plan by submitting the claim by
 6-7     United States mail, return receipt requested.  A health maintenance
 6-8     organization or the contracted clearinghouse of the health
 6-9     maintenance organization that receives a claim electronically shall
6-10     acknowledge receipt of the claim by an electronic transmission to
6-11     the physician or provider and is not required to acknowledge
6-12     receipt of the claim by the health maintenance organization in
6-13     writing.]
6-14           Explanation:  This change is necessary to prevent a physician
6-15     or provider from forfeiting payment of a claim if a catastrophic
6-16     event prevents the physician or provider from submitting the claim
6-17     in the required time.
6-18           6.  Senate Rule 12.03(1) is suspended to allow the committee
6-19     to change text that is not in disagreement in added Section 18B(d),
6-20     Texas Health Maintenance Organization Act (Article 20A.18B,
6-21     Vernon's Texas Insurance Code), so that the subsection reads as
6-22     follows:
6-23           (d)  If a claim for medical care or health care services
6-24     provided to a patient is mailed, the claim is presumed to have been
6-25     received by the health maintenance organization on the third day
6-26     after the date the claim is mailed or, if the claim is mailed using
 7-1     overnight service or return receipt requested, on the date the
 7-2     delivery receipt is signed.  If the claim is submitted
 7-3     electronically, the claim is presumed to have been received on the
 7-4     date of the electronic verification of receipt by the health
 7-5     maintenance organization or the health maintenance organization's
 7-6     clearinghouse.  If the health maintenance organization or the
 7-7     health maintenance organization's clearinghouse does not provide a
 7-8     confirmation within 24 hours of submission by the physician or
 7-9     provider, the physician's or provider's clearinghouse shall provide
7-10     the confirmation.  The physician's or provider's clearinghouse must
7-11     be able to verify that the filing contained the correct payor
7-12     identification of the entity to receive the filing.  If the claim
7-13     is faxed, the claim is presumed to have been received on the date
7-14     of the transmission acknowledgment.  If the claim is hand
7-15     delivered, the claim is presumed to have been received on the date
7-16     the delivery receipt is signed.  The commissioner shall promulgate
7-17     a form to be submitted by the physician or provider which easily
7-18     identifies all claims included in each filing which can be utilized
7-19     by the physician or provider as their log.
7-20           Explanation:  This change is necessary to require that a
7-21     physician's or provider's clearinghouse be able to verify that a
7-22     filed claim contains the correct "payor identification" of the
7-23     entity to receive the filing, rather than the "correct address" of
7-24     the entity.
7-25           7.  Senate Rules 12.03(1) and (2) are suspended to allow the
7-26     committee to change and omit text that is not in disagreement in
 8-1     added Section 18B(g), Texas Health Maintenance Organization Act
 8-2     (Article 20A.18B, Vernon's Texas Insurance Code), so that the
 8-3     subsection reads as follows:
 8-4           (g)  A health maintenance organization that determines under
 8-5     Subsection (e) of this section that a claim is eligible for payment
 8-6     and does not pay the claim on or before the 45th day after the date
 8-7     the health maintenance organization receives a clean claim shall
 8-8     pay the physician or provider making the claim the lesser of the
 8-9     full amount of billed charges submitted on the claim and interest
8-10     on the billed charges at a rate of 15 percent annually or two times
8-11     the contracted rate and interest on that amount at a rate of 15
8-12     percent annually.  If the physician or provider submits the claim
8-13     using a form described by Section 18D(a) of this Act, billed
8-14     charges shall be established under a fee schedule provided by the
8-15     physician or provider to the health maintenance organization on or
8-16     before the 30th day after the date the physician or provider enters
8-17     into the contract with the health maintenance organization.  The
8-18     physician or provider may modify the fee schedule if the physician
8-19     or provider notifies the health maintenance organization of the
8-20     modification on or before the 90th day before the date the
8-21     modification takes effect.
8-22           Explanation:  This change is necessary to omit language
8-23     relating to payment of certain claims and change the consequences
8-24     of failing to pay certain claims as required.
8-25           8.  Senate Rule 12.03(1) is suspended to allow the committee
8-26     to change text that is not in disagreement in added Section 18D(a),
 9-1     Texas Health Maintenance Organization Act, to add the phrase "in
 9-2     the manner prescribed".
 9-3           Explanation:  This change is necessary to specify that for a
 9-4     claim by certain physicians or providers to be a "clean claim"
 9-5     information must be entered into the required form "in the manner
 9-6     prescribed".
 9-7           9.  Senate Rule 12.03(1) is suspended to allow the committee
 9-8     to change text that is not in disagreement in added Section 18H(c),
 9-9     Texas Health Maintenance Organization Act, to substitute the phrase
9-10     "health maintenance organization" for "insurer".
9-11           Explanation:  This change is necessary to make a technical
9-12     correction that changes "insurer" to "health maintenance
9-13     organization".
9-14           10.  Senate Rule 12.03(1) is suspended to allow the committee
9-15     to change text that is not in disagreement in added Section 18I,
9-16     Texas Health Maintenance Organization Act, to change the term
9-17     "preauthorization" to "verification".
9-18           Explanation:  This change is necessary to apply the
9-19     provisions of the Texas Health Maintenance Organization Act
9-20     relating to "verification" of certain services, rather than
9-21     provisions relating to "preauthorization" of those services, to
9-22     certain physicians or providers.
9-23           11.  Senate Rule 12.03(4) is suspended to allow the committee
9-24     to add a new section to the bill to read as follows:
9-25           SECTION 8.   (a)  Section 3, Article 21.53Q, Insurance Code,
9-26     as added by House Bill 1676, Acts of the 77th Legislature, Regular
 10-1    Session, 2001, is amended to read as follows:
 10-2          Sec. 3.  TRAINING FOR CERTAIN PERSONNEL REQUIRED.  (a)  In
 10-3    this section, "preauthorization" means a determination by [the
 10-4    provision of a reliable representation to a physician or health
 10-5    care provider of whether] the issuer of a health benefit plan that
 10-6    the [will pay the physician or provider for proposed] medical or
 10-7    health care services proposed to be provided [if the physician or
 10-8    provider renders those services] to a [the] patient are medically
 10-9    necessary and appropriate [for whom the services are proposed].
10-10    The term includes precertification, certification, recertification,
10-11    or any other activity that involves providing a reliable
10-12    representation by the issuer of a health benefit plan to a
10-13    physician or health care provider.
10-14          (b)  The commissioner by rule shall require the issuer of a
10-15    health benefit plan to provide adequate training to appropriate
10-16    personnel responsible for preauthorization of coverage, if required
10-17    under the plan, or utilization review under the plan to prevent
10-18    wrongful denial of coverage required under this article and to
10-19    avoid confusion of medical benefits with mental health benefits.
10-20          (b)  This section takes effect only if House Bill 1676, Acts
10-21    of the 77th Legislature, Regular Session, 2001, becomes law.  If
10-22    House Bill 1676 does not become law, this section has no effect.
10-23          Explanation:  This change is necessary to conform the
10-24    definition of "preauthorization" in Section 3, Article 21.53Q,
10-25    Insurance Code, to the definitions of "preauthorization" in House
10-26    Bill No. 1862 and clarify the preauthorization personnel to which
 11-1    the training requirement in that section applies.
 11-2                                 ______________________________________
 11-3                                         President of the Senate
 11-4                                      I hereby certify that the above
 11-5                                 Resolution was adopted by the Senate
 11-6                                 on May 27, 2001, by the following
 11-7                                 vote:  Yeas 30, Nays 0, one present
 11-8                                 not voting.
 11-9                                 ______________________________________
11-10                                         Secretary of the Senate