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  By: Deuell S.B. No. 1143
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to ranking of physicians by health benefit plans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 8, Insurance Code, is amended
  by adding Chapter 1460 to read as follows:
  CHAPTER 1460. PHYSICIAN RANKING BY HEALTH BENEFIT PLANS
         Sec. 1460.001.  DEFINITIONS. In this chapter:
               (1)  "Health benefit plan issuer" means an entity
  authorized under this code or another insurance law of this state
  that provides health insurance or health benefits in this state,
  including:
                     (A)  an insurance company;
                     (B)  a group hospital service corporation
  operating under Chapter 842;
                     (C)  a health maintenance organization operating
  under Chapter 843; and
                     (D)  a stipulated premium company operating under
  Chapter 884.
               (2)  "Physician" means an individual licensed to
  practice medicine in this state or another state of the United
  States.
         Sec. 1460.002.  PHYSICIAN RANKING REQUIREMENTS.  (a)  A
  health benefit plan issuer is subject to the requirements of this
  chapter if the health benefit plan issuer establishes ranking
  programs for use in the provision of medical services by the health
  benefit plan under which certain physicians are presented as
  superior in:
               (1)  the quality of medical care provided; or
               (2)  efficiency in the provision of medical services.
         (b)  A health benefit plan issuer that establishes ranking
  programs must:
               (1)  before posting the rankings, provide affected
  physicians with a complete description of the ranking program and
  the factors used to determine rankings; and
               (2)  provide a reasonable mechanism for reviewing a
  physician's dispute regarding the physician's ranking by the health
  benefit plan issuer in accordance with Subsection (c).
         (c)  A health benefit plan issuer must:
               (1)  provide for an opportunity for review by an
  advisory review panel composed of at least three physicians that
  participate in the health benefit plan issuer's network; and
               (2)  include one member who is a physician in the same
  or similar specialty as the affected physician, if available.
         (d)  The health benefit plan issuer shall provide to the
  affected physician:
               (1)  any recommendation of the advisory review panel;
  and
               (2)  a written explanation of the health benefit plan
  issuer's determination, if that determination is contrary to the
  advisory review panel's recommendation.
         (e)  The health benefit plan issuer shall annually report to
  the department the number of instances in which the health benefit
  plan issuer makes a determination contrary to the recommendation of
  the advisory review panel.
         Sec. 1460.003.  RULES. The commissioner shall adopt rules
  in the manner prescribed by Subchapter A, Chapter 36, as necessary
  to implement this chapter.
         Sec. 1460.004.  SANCTIONS. A health benefit plan issuer
  that violates this chapter is subject to sanctions under Chapter
  82.
         SECTION 2.  (a)  A health benefit plan issuer shall comply
  with Chapter 1460, Insurance Code, as added by this Act, not later
  than December 31, 2007.
         (b)  A health benefit plan issuer is not subject to sanctions
  under Section 1460.004, Insurance Code, as added by this Act,
  before January 1, 2008.
         SECTION 3.  This Act takes effect September 1, 2007.