86R21738 PMO-D
 
  By: Zedler H.B. No. 1273
 
  Substitute the following for H.B. No. 1273:
 
  By:  Lucio III C.S.H.B. No. 1273
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to denial of payment for preauthorized health care
  services.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 1217, Insurance Code, is
  amended to read as follows:
  CHAPTER 1217. [STANDARD REQUEST FORM FOR] PRIOR AUTHORIZATION OF
  HEALTH CARE SERVICES
         SECTION 2.  Chapter 1217, Insurance Code, is amended by
  adding Section 1217.008 to read as follows:
         Sec. 1217.008.  PROHIBITION OF DENIAL OF PAYMENT FOR
  PREAUTHORIZED HEALTH CARE SERVICES. (a) If a health benefit plan
  issuer has given prior authorization for health care services to be
  performed by a physician or health care provider, the health
  benefit plan issuer may not deny or reduce payment to the physician
  or health care provider for those services based on medical
  necessity or appropriateness of care unless the physician or health
  care provider materially misrepresented the proposed health care
  services or substantially failed to perform the proposed health
  care services.
         (b)  Nothing in this section limits the liability of a
  physician or health care provider:
               (1)  in an action brought under Chapter 36, Human
  Resources Code; or
               (2)  for a violation of state or federal law governing
  medical assistance under Chapter 32, Human Resources Code,
  including medical assistance delivered through a managed care model
  or health benefits provided under the state child health plan
  program under Chapter 62, Health and Safety Code.
         (c)  Subsection (a) does not apply to:
               (1)  a denial, recoupment, or suspension of or
  reduction in a payment to a physician or health care provider made
  by a managed care organization under the direction of the Health and
  Human Services Commission's office of the inspector general, under
  the office's authority to prevent, detect, audit, inspect, review,
  and investigate fraud, waste, and abuse in the provision and
  delivery of all health and human services in the state under Section
  531.102, Government Code; or
               (2)  a recovery by a managed care organization under
  Section 531.1131, Government Code.
         SECTION 3.  This Act takes effect September 1, 2019.