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A BILL TO BE ENTITLED
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AN ACT
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relating to standards for independent review organizations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 14, Chapter 4202, Insurance Code, is |
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amended by adding a new section 4202.0021 to read as follows: |
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Sec. 4202.0021. Independent Review Organizations shall |
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include the following standards: |
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(a) no more than one independent review organization may be |
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located at one facility; |
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(b) multiple ownership of independent review organizations |
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shall be disallowed and no individual shall own stock or be on the |
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board of more than one independent review organization; |
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(c) an independent review organization shall be based in |
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Texas, have licensure in Texas and its primary offices must be |
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located in Texas; |
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(d) an independent review organization shall voluntarily |
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surrender its license while under investigation or as part of an |
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agreed order; |
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(d) a person who has served on the board of directors of an |
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independent review organization which has lost its license for due |
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cause, as determined by the Department, shall be ineligible to |
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serve on the board of another independent review organization for a |
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period of five calendar years; |
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(e) any attorney who is, or has in the past served as, the |
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registered agent for an independent review organization is |
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considered to have a conflict of interest and may be disqualified |
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from representing the independent review organization in legal |
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proceedings; |
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(f) the sale of an independent review organization shall |
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require a complete new application process; and |
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(g) it shall be considered a violation of patient |
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confidentiality to outsource any part of a review, except to the |
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provider who is under contract to perform the review. |
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SECTION 2. This Act takes effect September 1, 2009. |