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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the state health benefit plan |
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reimbursement review board and the reimbursement for health care |
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services or supplies provided under certain state-funded health |
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benefit plans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 3, Government Code, is amended |
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by adding Chapter 331 to read as follows: |
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CHAPTER 331. STATE HEALTH BENEFIT PLAN REIMBURSEMENT REVIEW BOARD |
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Sec. 331.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the state health benefit plan |
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reimbursement review board. |
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(2) "Enrollee" means an individual entitled to health |
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benefit coverage under a state health benefit plan. |
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(3) "Facility" means: |
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(A) a hospital; |
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(B) an ambulatory surgical center licensed under |
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Chapter 243, Health and Safety Code; |
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(C) a birthing center; or |
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(D) a freestanding emergency medical care |
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facility, as defined by Section 254.001, Health and Safety Code, |
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including a freestanding emergency medical care facility that is |
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exempt from the licensing requirements of Chapter 254, Health and |
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Safety Code, under Section 254.052(8), Health and Safety Code. |
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(4) "State health benefit plan" means a health benefit |
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plan provided under Chapter 1551, 1575, 1579, or 1601, Insurance |
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Code. |
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Sec. 331.002. ESTABLISHMENT; PURPOSE. The state health |
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benefit plan reimbursement review board is established for the |
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purpose of controlling present and future cost growth for state |
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health benefit plans while maintaining access for enrollees to |
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high-quality health care services and supplies. |
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Sec. 331.003. MEMBERSHIP. (a) The board consists of: |
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(1) the lieutenant governor; |
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(2) the speaker of the house of representatives; |
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(3) the chair of the senate finance committee; |
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(4) the chair of the house appropriations committee; |
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(5) three members of the senate appointed by the |
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lieutenant governor; and |
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(6) three members of the house appointed by the |
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speaker. |
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(b) The lieutenant governor and the speaker of the house of |
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representatives are joint chairs of the board. |
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Sec. 331.004. QUORUM; MEETINGS. (a) A majority of the |
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members of the board from each house constitutes a quorum to |
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transact business. If a quorum is present, the board may act on any |
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matter that is within its jurisdiction by a majority vote. |
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(b) The board shall meet as often as necessary to perform |
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the board's duties. Meetings may be held at any time at the request |
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of either of the joint chairs of the board. |
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(c) The board shall meet in Austin, except that if a |
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majority of the members of the board from each house agree, the |
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board may meet in any location determined by the board. |
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(d) As an exception to Chapter 551 and other law, if a |
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meeting is located in Austin and the joint chairs of the board are |
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physically present at the meeting, then any number of the other |
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members of the board may attend the meeting by use of telephone |
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conference call, video conference call, or other similar |
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telecommunication device. This subsection applies for purposes of |
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constituting a quorum, for purposes of voting, and for any other |
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purpose allowing a member of the board to otherwise fully |
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participate in any meeting of the board. This subsection applies |
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without exception with regard to the subject of the meeting or |
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topics considered by the members. |
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(e) A meeting held by use of telephone conference call, |
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video conference call, or other similar telecommunication device: |
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(1) is subject to the notice requirements applicable |
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to other meetings; |
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(2) must specify in the notice of the meeting the |
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location in Austin of the meeting at which the joint chairs will be |
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physically present; |
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(3) must be open to the public and shall be audible to |
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the public at the location in Austin specified in the notice of the |
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meeting as the location of the meeting at which the joint chairs |
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will be physically present; and |
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(4) must provide two-way audio communication between |
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all members of the board attending the meeting during the entire |
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meeting, and if the two-way audio communication link with any |
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member attending the meeting is disrupted at any time, the meeting |
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may not continue until the two-way audio communication link is |
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reestablished. |
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Sec. 331.005. DUTY TO ADOPT REIMBURSEMENT STRUCTURE. The |
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board shall adopt a provider reimbursement structure, regardless of |
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methodology, that each state health benefit plan will use to |
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determine reimbursement to a facility for a health care service or |
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supply, determined by provider type and class and according to |
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whether the facility is an in-network or out-of-network facility. |
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The board may not adopt a reimbursement structure that is in excess |
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of the aggregated provider reimbursement, regardless of |
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methodology, reported by participating state health benefit plans |
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under Section 331.006 for that health care service or supply. |
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Sec. 331.006. REPORTS BY STATE HEALTH BENEFIT PLANS. (a) |
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Each state health benefit plan shall submit to the board in the form |
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and manner prescribed by the board a report that includes: |
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(1) information on reimbursements and costs for |
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applicable provider types and classes paid by that plan during the |
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preceding plan year; |
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(2) recommendations to the board regarding the |
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provider reimbursement structure to be adopted by the board; and |
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(3) a summary of public comments received by the plan |
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on the recommendations provided to the board under Subdivision (2). |
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(b) Each state health benefit plan shall, before submitting |
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the report required under Subsection (a), allow for public comment |
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on the plan's recommendations to be submitted under that |
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subsection. |
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Sec. 331.007. REIMBURSEMENT STRUCTURE REPORT. (a) The |
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board shall analyze the reports submitted under Section 331.006, |
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including the recommendations provided, and issue a report on the |
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reimbursement structure for state health benefit plans. The report |
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issued by the board must: |
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(1) establish a provider reimbursement structure, |
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regardless of methodology, in accordance with Section 331.005 that |
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provides for reimbursement that a facility that provides health |
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care services or supplies to an enrollee under a state health |
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benefit plan will receive for those health care services or |
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supplies and specify any other requirements or limitations related |
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to reimbursement; |
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(2) be made publicly available on an Internet website; |
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and |
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(3) specify that the reimbursement structure in the |
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report is applicable to each state health benefit plan for each plan |
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year beginning after the date the report is issued until the plan |
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year beginning after the date a later report is issued under this |
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subsection. |
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(b) The reimbursement structure adopted by the board's |
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report under Subsection (a) is applicable to a state health benefit |
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plan for each plan year beginning after the date the report is |
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issued until the plan year beginning after the date a later report |
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is issued under Subsection (a). |
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SECTION 2. Subchapter A, Chapter 1551, Insurance Code, is |
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amended by adding Section 1551.016 to read as follows: |
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Sec. 1551.016. REIMBURSEMENT STRUCTURE FOR FACILITIES. (a) |
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In this section: |
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(1) "Facility" has the meaning assigned by Section |
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331.001, Government Code. |
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(2) "Review board" means the state health benefit plan |
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reimbursement review board established under Chapter 331, |
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Government Code. |
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(b) Notwithstanding any other law or a provision of a |
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contract to the contrary, and subject to limitations imposed by the |
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General Appropriations Act, a facility that bills the group |
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benefits program, an administering firm, or a health benefit plan |
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provided under this chapter, or a designee of the program, firm, or |
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plan, for a health care service or supply provided to a plan |
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enrollee must be reimbursed for the health care service or supply in |
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accordance with the reimbursement structure adopted for the service |
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or supply by the review board for the applicable plan year. |
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(c) A facility that receives reimbursement for a health care |
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service or supply as provided by Subsection (b) must consider that |
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reimbursement as payment in full for the service or supply. Except |
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as provided by this subsection, the facility may not charge an |
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enrollee to recover from the enrollee the balance of the facility's |
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fee for a service or supply received by the enrollee from the |
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facility that is not fully reimbursed under Subsection (b). The |
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facility may charge the enrollee an applicable copayment, |
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coinsurance, or deductible under the enrollee's health benefit |
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plan. |
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(d) A facility may not discriminate against an enrollee or |
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the group benefits program based on the limitation on reimbursement |
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under Subsection (b) by: |
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(1) refusing to provide health care services or |
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supplies to the enrollee; or |
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(2) providing health care services or supplies of a |
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lower quality to the enrollee than those the facility provides to |
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similar patients who are not enrolled in a health benefit plan under |
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this chapter. |
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SECTION 3. Subchapter A, Chapter 1575, Insurance Code, is |
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amended by adding Section 1575.011 to read as follows: |
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Sec. 1575.011. REIMBURSEMENT STRUCTURE FOR FACILITIES. (a) |
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In this section: |
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(1) "Facility" has the meaning assigned by Section |
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331.001, Government Code. |
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(2) "Review board" means the state health benefit plan |
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reimbursement review board established under Chapter 331, |
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Government Code. |
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(b) Notwithstanding any other law or a provision of a |
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contract to the contrary, and subject to limitations imposed by the |
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General Appropriations Act, a facility that bills the group |
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program, an administrator of a health benefit plan provided under |
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this chapter, or a health benefit plan provided under this chapter, |
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or a designee of the program, administrator, or plan, for a health |
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care service or supply provided to a plan enrollee must be |
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reimbursed for the health care service or supply in accordance with |
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the reimbursement structure adopted for the service or supply by |
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the review board for the applicable plan year. |
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(c) A facility that receives reimbursement for a health care |
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service or supply as provided by Subsection (b) must consider that |
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reimbursement as payment in full for the service or supply. Except |
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as provided by this subsection, the facility may not charge an |
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enrollee to recover from the enrollee the balance of the facility's |
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fee for a service or supply received by the enrollee from the |
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facility that is not fully reimbursed under Subsection (b). The |
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facility may charge the enrollee an applicable copayment, |
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coinsurance, or deductible under the enrollee's health benefit |
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plan. |
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(d) A facility may not discriminate against an enrollee or |
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the group program based on the limitation on reimbursement under |
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Subsection (b) by: |
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(1) refusing to provide health care services or |
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supplies to the enrollee; or |
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(2) providing health care services or supplies of a |
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lower quality to the enrollee than those the facility provides to |
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similar patients who are not enrolled in a health benefit plan under |
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this chapter. |
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SECTION 4. Subchapter A, Chapter 1579, Insurance Code, is |
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amended by adding Section 1579.011 to read as follows: |
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Sec. 1579.011. REIMBURSEMENT STRUCTURE FOR FACILITIES. (a) |
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In this section: |
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(1) "Facility" has the meaning assigned by Section |
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331.001, Government Code. |
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(2) "Review board" means the state health benefit plan |
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reimbursement review board established under Chapter 331, |
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Government Code. |
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(b) Notwithstanding any other law or a provision of a |
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contract to the contrary, and subject to limitations imposed by the |
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General Appropriations Act, a facility that bills the program, an |
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administering firm, or a health coverage plan provided under this |
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chapter, or a designee of the program, firm, or plan, for a health |
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care service or supply provided to a plan enrollee must be |
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reimbursed for the health care service or supply in accordance with |
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the reimbursement structure adopted for the service or supply by |
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the review board for the applicable plan year. |
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(c) A facility that receives reimbursement for a health care |
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service or supply as provided by Subsection (b) must consider that |
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reimbursement as payment in full for the service or supply. Except |
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as provided by this subsection, the facility may not charge an |
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enrollee to recover from the enrollee the balance of the facility's |
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fee for a service or supply received by the enrollee from the |
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facility that is not fully reimbursed under Subsection (b). The |
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facility may charge the enrollee an applicable copayment, |
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coinsurance, or deductible under the enrollee's health coverage |
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plan. |
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(d) A facility may not discriminate against an enrollee or |
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the program based on the limitation on reimbursement under |
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Subsection (b) by: |
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(1) refusing to provide health care services or |
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supplies to the enrollee; or |
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(2) providing health care services or supplies of a |
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lower quality to the enrollee than those the facility provides to |
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similar patients who are not enrolled in a health coverage plan |
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under this chapter. |
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SECTION 5. Subchapter A, Chapter 1601, Insurance Code, is |
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amended by adding Section 1601.012 to read as follows: |
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Sec. 1601.012. REIMBURSEMENT STRUCTURE FOR FACILITIES. (a) |
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In this section: |
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(1) "Facility" has the meaning assigned by Section |
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331.001, Government Code. |
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(2) "Review board" means the state health benefit plan |
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reimbursement review board established under Chapter 331, |
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Government Code. |
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(b) Notwithstanding any other law or a provision of a |
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contract to the contrary, and subject to limitations imposed by the |
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General Appropriations Act, a facility that bills the uniform |
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program, an administering carrier, or a health benefit plan |
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provided under this chapter, or a designee of the program, carrier, |
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or plan, for a health care service or supply provided to a plan |
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enrollee must be reimbursed for the health care service or supply in |
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accordance with the reimbursement structure adopted for the service |
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or supply by the review board for the applicable plan year. |
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(c) A facility that receives reimbursement for a health care |
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service or supply as provided by Subsection (b) must consider that |
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reimbursement as payment in full for the service or supply. Except |
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as provided by this subsection, the facility may not charge an |
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enrollee to recover from the enrollee the balance of the facility's |
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fee for a service or supply received by the enrollee from the |
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facility that is not fully reimbursed under Subsection (b). The |
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facility may charge the enrollee an applicable copayment, |
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coinsurance, or deductible under the enrollee's health benefit |
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plan. |
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(d) A facility may not discriminate against an enrollee or |
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the uniform program based on the limitation on reimbursement under |
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Subsection (b) by: |
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(1) refusing to provide health care services or |
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supplies to the enrollee; or |
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(2) providing health care services or supplies of a |
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lower quality to the enrollee than those the facility provides to |
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similar patients who are not enrolled in a health benefit plan under |
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this chapter. |
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SECTION 6. The changes in law made by this Act apply only |
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to: |
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(1) a plan year beginning on or after September 1, |
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2024; and |
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(2) a contract entered into or renewed on or after |
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September 1, 2023. |
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SECTION 7. This Act takes effect September 1, 2023. |