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A BILL TO BE ENTITLED
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AN ACT
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relating to required due process provisions in managed care |
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contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 843, Insurance Code, is amended by |
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adding Section 843.324 to read as follows: |
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Sec. 843.324. CONTRACTS WITH PHYSICIANS: DUE PROCESS IN |
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REVIEW. (a) A contract between a health maintenance organization |
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and a physician or provider must include a provision that the health |
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maintenance organization will not publish physician specific |
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information, such as ratings or comparisons of performance against |
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standards, measures, or other physicians, until after the physician |
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has been provided due process. |
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(b) This section does not apply to the publication of a list |
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of network physicians and providers so long as ratings or |
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comparisons are not made. |
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SECTION 2. Section 1301.059, Chapter 1301, Insurance Code, |
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is amended to read as follows: |
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Sec. 1301.059. QUALITY ASSESSMENT. (a) In this section, |
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"quality assessment" means a mechanism used by an insurer to rate or |
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compare performance against standards, measures, or other |
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physicians or to evaluate, monitor, or improve the quality and |
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effectiveness of the medical care delivered by physicians or health |
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care providers to persons covered by a health insurance policy to |
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ensure that the care delivered is consistent with the care |
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delivered by an ordinary, reasonable, and prudent physician or |
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health care provider under the same or similar circumstances. |
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(b) An insurer may not engage in quality assessment except |
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through a panel of at least three physicians selected by the insurer |
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from among a list of physicians contracting with the insurer. The |
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physicians contracting with the insurer in the applicable service |
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area shall provide the list of physicians to the insurer. |
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(c) A preferred provider contract must include a provision |
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that the insurer will not publish physician specific information, |
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such as ratings or comparisons of performance against standards, |
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measures, or other physicians, until after the physician has been |
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provided due process. |
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(d) This section does not apply to the publication of a list |
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of preferred physicians and providers so long as ratings, measures |
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or comparisons are not made. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |