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A BILL TO BE ENTITLED
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AN ACT
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relating to the termination by an insurer of a contract with a |
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preferred provider. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1301.057(a), Insurance Code, is amended |
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to read as follows: |
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(a) Before terminating a contract with a preferred |
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provider, an insurer shall: |
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(1) provide written reasons for the termination; and |
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(2) if the affected provider is a practitioner, |
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provide, on request, a reasonable review mechanism, except in a |
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case involving: |
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(A) imminent harm to a patient's health; |
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(B) an action by a state medical or other |
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physician licensing board or other government agency that |
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effectively impairs the practitioner's ability to practice |
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medicine; or |
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(C) fraud or malfeasance committed by the |
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practitioner against the insurer, as determined by a final, |
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unappealable judgment of a court. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract entered into or renewed on or after the effective date |
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of this Act. A contract entered into or renewed before the |
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effective date of this Act is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |