By: Rose H.B. No. 3899
 
 
A BILL TO BE ENTITLED
AN ACT
relating to required due process provisions in managed care
contracts.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Chapter 843, Insurance Code, is amended by
adding Section 843.324 to read as follows:
       Sec. 843.324.  CONTRACTS WITH PHYSICIANS:  DUE PROCESS IN
REVIEW.  (a)  A contract between a health maintenance organization
and a physician or provider must include a provision that the health
maintenance organization will not publish physician specific
information, such as ratings or comparisons of performance against
standards, measures, or other physicians, until after the physician
has been provided due process.
       (b)  This section does not apply to the publication of a list
of network physicians and providers so long as ratings or
comparisons are not made.
       SECTION 2.  Section 1301.059, Chapter 1301, Insurance Code,
is amended to read as follows:
       Sec. 1301.059.  QUALITY ASSESSMENT.  (a)  In this section,
"quality assessment" means a mechanism used by an insurer to rate or
compare performance against standards, measures, or other
physicians or to evaluate, monitor, or improve the quality and
effectiveness of the medical care delivered by physicians or health
care providers to persons covered by a health insurance policy to
ensure that the care delivered is consistent with the care
delivered by an ordinary, reasonable, and prudent physician or
health care provider under the same or similar circumstances.
       (b)  An insurer may not engage in quality assessment except
through a panel of at least three physicians selected by the insurer
from among a list of physicians contracting with the insurer. The
physicians contracting with the insurer in the applicable service
area shall provide the list of physicians to the insurer.
       (c)  A preferred provider contract must include a provision
that the insurer will not publish physician specific information,
such as ratings or comparisons of performance against standards,
measures, or other physicians, until after the physician has been
provided due process.
       (d)  This section does not apply to the publication of a list
of preferred physicians and providers so long as ratings, measures
or comparisons are not made.
       SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2007.