By: Zaffirini, Hancock S.B. No. 2476
      West
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to consumer protections against certain medical and health
  care billing by emergency medical services providers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 38, Insurance Code, is
  amended by adding Section 38.006 to read as follows:
         Sec. 38.006.  EMERGENCY MEDICAL SERVICES PROVIDER BALANCE
  BILLING RATE DATABASE.  (a)  A political subdivision may submit to
  the department a rate set, controlled, or regulated by the
  political subdivision for purposes of Section 1271.159, 1275.054,
  1301.166, 1551.231, 1575.174, or 1579.112.  The department shall
  establish and maintain on the department's Internet website a
  publicly accessible database for the rates.
         (b)  This section expires September 1, 2025.
         SECTION 2.  (a)  Section 1271.008, Insurance Code, is
  amended to read as follows:
         Sec. 1271.008.  BALANCE BILLING PROHIBITION NOTICE. (a)  A
  health maintenance organization shall provide written notice in
  accordance with this section in an explanation of benefits provided
  to the enrollee and the physician or provider in connection with a
  health care service or supply or transport provided by a
  non-network physician or provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1271.155, 1271.157, [or] 1271.158, or 1271.159, as
  applicable;
               (2)  the total amount the physician or provider may
  bill the enrollee under the enrollee's health benefit plan and an
  itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  A health maintenance organization shall provide the
  explanation of benefits with the notice required by this section to
  a physician or health care provider not later than the date the
  health maintenance organization makes a payment under Section
  1271.155, 1271.157, [or] 1271.158, or 1271.159, as applicable.
         (b)  Effective September 1, 2025, Section 1271.008,
  Insurance Code, is amended to read as follows:
         Sec. 1271.008.  BALANCE BILLING PROHIBITION NOTICE. (a)  A
  health maintenance organization shall provide written notice in
  accordance with this section in an explanation of benefits provided
  to the enrollee and the physician or provider in connection with a
  health care service or supply provided by a non-network physician
  or provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1271.155, 1271.157, or 1271.158, as applicable;
               (2)  the total amount the physician or provider may
  bill the enrollee under the enrollee's health benefit plan and an
  itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  A health maintenance organization shall provide the
  explanation of benefits with the notice required by this section to
  a physician or health care provider not later than the date the
  health maintenance organization makes a payment under Section
  1271.155, 1271.157, or 1271.158, as applicable.
         SECTION 3.  Subchapter D, Chapter 1271, Insurance Code, is
  amended by adding Section 1271.159 to read as follows:
         Sec. 1271.159.  NON-NETWORK EMERGENCY MEDICAL SERVICES
  PROVIDER.  (a)  In this section, "emergency medical services
  provider" has the meaning assigned by Section 773.003, Health and
  Safety Code, except that the term does not include an air ambulance.
         (b)  Except as provided by Subsection (c), a health
  maintenance organization shall pay for a covered health care
  service performed for, or a covered supply or covered transport
  related to that service provided to, an enrollee by a non-network
  emergency medical services provider at:
               (1)  if the political subdivision has submitted the
  rate to the department under Section 38.006, the rate set,
  controlled, or regulated by the political subdivision in which:
                     (A)  the service originated; or
                     (B)  the transport originated if transport is
  provided; or
               (2)  if the political subdivision has not submitted the
  rate to the department, the lesser of:
                     (A)  the provider's billed charge; or
                     (B)  325 percent of the current Medicare rate,
  including any applicable extenders and modifiers.
         (c)  A health maintenance organization shall adjust a
  payment required by Subsection (b)(1) each plan year by increasing
  the payment by the lesser of the Medicare Inflation Index or 10
  percent of the provider's previous calendar year rates.
         (d)  The health maintenance organization shall make a
  payment required by this section directly to the provider not later
  than, as applicable:
               (1)  the 30th day after the date the health maintenance
  organization receives an electronic clean claim as defined by
  Section 843.336 for those services that includes all information
  necessary for the health maintenance organization to pay the claim;
  or
               (2)  the 45th day after the date the health maintenance
  organization receives a nonelectronic clean claim as defined by
  Section 843.336 for those services that includes all information
  necessary for the health maintenance organization to pay the claim.
         (e)  A non-network emergency medical services provider or a
  person asserting a claim as an agent or assignee of the provider may
  not bill an enrollee receiving a health care service or supply or
  transport described by Subsection (b) in, and the enrollee does not
  have financial responsibility for, an amount greater than an
  applicable copayment, coinsurance, and deductible under the
  enrollee's health care plan that is based on:
               (1)  the amount initially determined payable by the
  health maintenance organization; or
               (2)  if applicable, a modified amount as determined
  under the health maintenance organization's internal appeal
  process.
         (f)  This section may not be construed to require the
  imposition of a penalty under Section 843.342.
         (g)  This section expires September 1, 2025.
         SECTION 4.  (a)  Section 1275.003, Insurance Code, is
  amended to read as follows:
         Sec. 1275.003.  BALANCE BILLING PROHIBITION NOTICE.  (a)  
  The administrator of a health benefit plan to which this chapter
  applies shall provide written notice in accordance with this
  section in an explanation of benefits provided to the enrollee and
  the physician or health care provider in connection with a health
  care or medical service or supply or transport provided by an
  out-of-network provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1275.051, 1275.052, [or] 1275.053, or 1275.054, as
  applicable;
               (2)  the total amount the physician or provider may
  bill the enrollee under the enrollee's health benefit plan and an
  itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  The administrator shall provide the explanation of
  benefits with the notice required by this section to a physician or
  health care provider not later than the date the administrator
  makes a payment under Section 1275.051, 1275.052, [or] 1275.053, or
  1275.054, as applicable.
         (b)  Effective September 1, 2025, Section 1275.003,
  Insurance Code, is amended to read as follows:
         Sec. 1275.003.  BALANCE BILLING PROHIBITION NOTICE.  (a)  
  The administrator of a health benefit plan to which this chapter
  applies shall provide written notice in accordance with this
  section in an explanation of benefits provided to the enrollee and
  the physician or health care provider in connection with a health
  care or medical service or supply provided by an out-of-network
  provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1275.051, 1275.052, or 1275.053, as applicable;
               (2)  the total amount the physician or provider may
  bill the enrollee under the enrollee's health benefit plan and an
  itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  The administrator shall provide the explanation of
  benefits with the notice required by this section to a physician or
  health care provider not later than the date the administrator
  makes a payment under Section 1275.051, 1275.052, or 1275.053, as
  applicable.
         SECTION 5.  Subchapter B, Chapter 1275, Insurance Code, is
  amended by adding Section 1275.054 to read as follows:
         Sec. 1275.054.  OUT-OF-NETWORK EMERGENCY MEDICAL SERVICES
  PROVIDER PAYMENTS. (a) In this section, "emergency medical
  services provider" has the meaning assigned by Section 773.003,
  Health and Safety Code, except that the term does not include an air
  ambulance.
         (b)  Except as provided by Subsection (c), the administrator
  of a health benefit plan to which this chapter applies shall pay for
  a covered health care or medical service performed for, or a covered
  supply or covered transport related to that service provided to, an
  enrollee by an out-of-network provider who is an emergency medical
  services provider at:
               (1)  if the political subdivision has submitted the
  rate to the department under Section 38.006, the rate set,
  controlled, or regulated by the political subdivision in which:
                     (A)  the service originated; or
                     (B)  the transport originated if transport is
  provided; or
               (2)  if the political subdivision has not submitted the
  rate to the department, the lesser of:
                     (A)  the provider's billed charge; or
                     (B)  325 percent of the current Medicare rate,
  including any applicable extenders and modifiers.
         (c)  The administrator shall adjust a payment required by
  Subsection (b)(1) each plan year by increasing the payment by the
  lesser of the Medicare Inflation Index or 10 percent of the
  provider's previous calendar year rates.
         (d)  The administrator shall make a payment required by this
  section directly to the provider not later than, as applicable:
               (1)  the 30th day after the date the administrator
  receives an electronic claim for those services that includes all
  information necessary for the administrator to pay the claim; or
               (2)  the 45th day after the date the administrator
  receives a nonelectronic claim for those services that includes all
  information necessary for the administrator to pay the claim.
         (e)  An out-of-network provider who is an emergency medical
  services provider or a person asserting a claim as an agent or
  assignee of the provider may not bill an enrollee receiving a health
  care or medical service or supply or transport described by
  Subsection (b) in, and the enrollee does not have financial
  responsibility for, an amount greater than an applicable copayment,
  coinsurance, and deductible under the enrollee's health benefit
  plan that is based on:
               (1)  the amount initially determined payable by the
  administrator; or
               (2)  if applicable, the modified amount as determined
  under the administrator's internal appeal process.
         (f)  This section expires September 1, 2025.
         SECTION 6.  (a)  Section 1301.0045(b), Insurance Code, is
  amended to read as follows:
         (b)  Except as provided by Sections 1301.0052, 1301.0053,
  1301.155, 1301.164, [and] 1301.165, and 1301.166, this chapter may
  not be construed to require an exclusive provider benefit plan to
  compensate a nonpreferred provider for services provided to an
  insured.
         (b)  Effective September 1, 2025, Section 1301.0045(b),
  Insurance Code, is amended to read as follows:
         (b)  Except as provided by Sections 1301.0052, 1301.0053,
  1301.155, 1301.164, and 1301.165, this chapter may not be construed
  to require an exclusive provider benefit plan to compensate a
  nonpreferred provider for services provided to an insured.
         SECTION 7.  (a)  Section 1301.010, Insurance Code, is
  amended to read as follows:
         Sec. 1301.010.  BALANCE BILLING PROHIBITION NOTICE. (a)  An
  insurer shall provide written notice in accordance with this
  section in an explanation of benefits provided to the insured and
  the physician or health care provider in connection with a medical
  care or health care service or supply or transport provided by an
  out-of-network provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1301.0053, 1301.155, 1301.164, [or] 1301.165, or 1301.166,
  as applicable;
               (2)  the total amount the physician or provider may
  bill the insured under the insured's preferred provider benefit
  plan and an itemization of copayments, coinsurance, deductibles,
  and other amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  An insurer shall provide the explanation of benefits
  with the notice required by this section to a physician or health
  care provider not later than the date the insurer makes a payment
  under Section 1301.0053, 1301.155, 1301.164, [or] 1301.165, or
  1301.166, as applicable.
         (b)  Effective September 1, 2025, Section 1301.010,
  Insurance Code, is amended to read as follows:
         Sec. 1301.010.  BALANCE BILLING PROHIBITION NOTICE. (a)  An
  insurer shall provide written notice in accordance with this
  section in an explanation of benefits provided to the insured and
  the physician or health care provider in connection with a medical
  care or health care service or supply provided by an out-of-network
  provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1301.0053, 1301.155, 1301.164, or 1301.165, as applicable;
               (2)  the total amount the physician or provider may
  bill the insured under the insured's preferred provider benefit
  plan and an itemization of copayments, coinsurance, deductibles,
  and other amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  An insurer shall provide the explanation of benefits
  with the notice required by this section to a physician or health
  care provider not later than the date the insurer makes a payment
  under Section 1301.0053, 1301.155, 1301.164, or 1301.165, as
  applicable.
         SECTION 8.  Subchapter D, Chapter 1301, Insurance Code, is
  amended by adding Section 1301.166 to read as follows:
         Sec. 1301.166.  OUT-OF-NETWORK EMERGENCY MEDICAL SERVICES
  PROVIDER. (a)  In this section, "emergency medical services
  provider" has the meaning assigned by Section 773.003, Health and
  Safety Code, except that the term does not include an air ambulance.
         (b)  Except as provided by Subsection (c), an insurer shall
  pay for a covered medical care or health care service performed for,
  or a covered supply or covered transport related to that service
  provided to, an insured by an out-of-network provider who is an
  emergency medical services provider at:
               (1)  if the political subdivision has submitted the
  rate to the department under Section 38.006, the rate set,
  controlled, or regulated by the political subdivision in which:
                     (A)  the service originated; or
                     (B)  the transport originated if transport is
  provided; or
               (2)  if the political subdivision has not submitted the
  rate to the department, the lesser of:
                     (A)  the provider's billed charge; or
                     (B)  325 percent of the current Medicare rate,
  including any applicable extenders and modifiers.
         (c)  An insurer shall adjust a payment required by Subsection
  (b)(1) each plan year by increasing the payment by the lesser of the
  Medicare Inflation Index or 10 percent of the provider's previous
  calendar year rates.
         (d)  The insurer shall make a payment required by this
  section directly to the provider not later than, as applicable:
               (1)  the 30th day after the date the insurer receives an
  electronic clean claim as defined by Section 1301.101 for those
  services that includes all information necessary for the insurer to
  pay the claim; or
               (2)  the 45th day after the date the insurer receives a
  nonelectronic clean claim as defined by Section 1301.101 for those
  services that includes all information necessary for the insurer to
  pay the claim.
         (e)  An out-of-network provider who is an emergency medical
  services provider or a person asserting a claim as an agent or
  assignee of the provider may not bill an insured receiving a medical
  care or health care service or supply or transport described by
  Subsection (b) in, and the insured does not have financial
  responsibility for, an amount greater than an applicable copayment,
  coinsurance, and deductible under the insured's preferred provider
  benefit plan that is based on:
               (1)  the amount initially determined payable by the
  insurer; or
               (2)  if applicable, the modified amount as determined
  under the insurer's internal appeal process.
         (f)  This section may not be construed to require the
  imposition of a penalty under Section 1301.137.
         (g)  This section expires September 1, 2025.
         SECTION 9.  (a)  Section 1551.015, Insurance Code, is
  amended to read as follows:
         Sec. 1551.015.  BALANCE BILLING PROHIBITION NOTICE. (a)  
  The administrator of a managed care plan provided under the group
  benefits program shall provide written notice in accordance with
  this section in an explanation of benefits provided to the
  participant and the physician or health care provider in connection
  with a health care or medical service or supply or transport 
  provided by an out-of-network provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1551.228, 1551.229, [or] 1551.230, or 1551.231, as
  applicable;
               (2)  the total amount the physician or provider may
  bill the participant under the participant's managed care plan and
  an itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  The administrator shall provide the explanation of
  benefits with the notice required by this section to a physician or
  health care provider not later than the date the administrator
  makes a payment under Section 1551.228, 1551.229, [or] 1551.230, or
  1551.231, as applicable.
         (b)  Effective September 1, 2025, Section 1551.015,
  Insurance Code, is amended to read as follows:
         Sec. 1551.015.  BALANCE BILLING PROHIBITION NOTICE. (a)  
  The administrator of a managed care plan provided under the group
  benefits program shall provide written notice in accordance with
  this section in an explanation of benefits provided to the
  participant and the physician or health care provider in connection
  with a health care or medical service or supply  provided by an
  out-of-network provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1551.228, 1551.229, or 1551.230, as applicable;
               (2)  the total amount the physician or provider may
  bill the participant under the participant's managed care plan and
  an itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  The administrator shall provide the explanation of
  benefits with the notice required by this section to a physician or
  health care provider not later than the date the administrator
  makes a payment under Section 1551.228, 1551.229, or 1551.230, as
  applicable.
         SECTION 10.  Subchapter E, Chapter 1551, Insurance Code, is
  amended by adding Section 1551.231 to read as follows:
         Sec. 1551.231.  OUT-OF-NETWORK EMERGENCY MEDICAL SERVICES
  PROVIDER PAYMENTS.  (a) In this section, "emergency medical
  services provider" has the meaning assigned by Section 773.003,
  Health and Safety Code, except that the term does not include an air
  ambulance.
         (b)  Except as provided by Subsection (c), the administrator
  of a managed care plan provided under the group benefits program
  shall pay for a covered health care or medical service performed
  for, or a covered supply or covered transport related to that
  service provided to, a participant by an out-of-network provider
  who is an emergency medical services provider at:
               (1)  if the political subdivision has submitted the
  rate to the department under Section 38.006, the rate set,
  controlled, or regulated by the political subdivision in which:
                     (A)  the service originated; or
                     (B)  the transport originated if transport is
  provided; or
               (2)  if the political subdivision has not submitted the
  rate to the department, the lesser of:
                     (A)  the provider's billed charge; or
                     (B)  325 percent of the current Medicare rate,
  including any applicable extenders and modifiers.
         (c)  The administrator shall adjust a payment required by
  Subsection (b)(1) each plan year by increasing the payment by the
  lesser of the Medicare Inflation Index or 10 percent of the
  provider's previous calendar year rates.
         (d)  The administrator shall make a payment required by this
  section directly to the provider not later than, as applicable:
               (1)  the 30th day after the date the administrator
  receives an electronic claim for those services that includes all
  information necessary for the administrator to pay the claim; or
               (2)  the 45th day after the date the administrator
  receives a nonelectronic claim for those services that includes all
  information necessary for the administrator to pay the claim.
         (e)  An out-of-network provider who is an emergency medical
  services provider or a person asserting a claim as an agent or
  assignee of the provider may not bill a participant receiving a
  health care or medical service or supply or transport described by
  Subsection (b) in, and the participant does not have financial
  responsibility for, an amount greater than an applicable copayment,
  coinsurance, and deductible under the participant's managed care
  plan that is based on:
               (1)  the amount initially determined payable by the
  administrator; or
               (2)  if applicable, the modified amount as determined
  under the administrator's internal appeal process.
         (f)  This section expires September 1, 2025.
         SECTION 11.  (a)  Section 1575.009, Insurance Code, is
  amended to read as follows:
         Sec. 1575.009.  BALANCE BILLING PROHIBITION NOTICE. (a)  
  The administrator of a managed care plan provided under the group
  program shall provide written notice in accordance with this
  section in an explanation of benefits provided to the enrollee and
  the physician or health care provider in connection with a health
  care or medical service or supply or transport provided by an
  out-of-network provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1575.171, 1575.172, [or] 1575.173, or 1575.174, as
  applicable;
               (2)  the total amount the physician or provider may
  bill the enrollee under the enrollee's managed care plan and an
  itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  The administrator shall provide the explanation of
  benefits with the notice required by this section to a physician or
  health care provider not later than the date the administrator
  makes a payment under Section 1575.171, 1575.172, [or] 1575.173, or
  1575.174, as applicable.
         (b)  Effective September 1, 2025, Section 1575.009,
  Insurance Code, is amended to read as follows:
         Sec. 1575.009.  BALANCE BILLING PROHIBITION NOTICE. (a)  
  The administrator of a managed care plan provided under the group
  program shall provide written notice in accordance with this
  section in an explanation of benefits provided to the enrollee and
  the physician or health care provider in connection with a health
  care or medical service or supply provided by an out-of-network
  provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1575.171, 1575.172, or 1575.173, as applicable;
               (2)  the total amount the physician or provider may
  bill the enrollee under the enrollee's managed care plan and an
  itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  The administrator shall provide the explanation of
  benefits with the notice required by this section to a physician or
  health care provider not later than the date the administrator
  makes a payment under Section 1575.171, 1575.172, or 1575.173, as
  applicable.
         SECTION 12.  Subchapter D, Chapter 1575, Insurance Code, is
  amended by adding Section 1575.174 to read as follows:
         Sec. 1575.174.  OUT-OF-NETWORK EMERGENCY MEDICAL SERVICES
  PROVIDER PAYMENTS. (a)  In this section, "emergency medical
  services provider" has the meaning assigned by Section 773.003,
  Health and Safety Code, except that the term does not include an air
  ambulance.
         (b)  Except as provided by Subsection (c), the administrator
  of a managed care plan provided under the group program shall pay
  for a covered health care or medical service performed for, or a
  covered supply or covered transport related to that service
  provided to, an enrollee by an out-of-network provider who is an
  emergency medical services provider at:
               (1)  if the political subdivision has submitted the
  rate to the department under Section 38.006, the rate set,
  controlled, or regulated by the political subdivision in which:
                     (A)  the service originated; or
                     (B)  the transport originated if transport is
  provided; or
               (2)  if the political subdivision has not submitted the
  rate to the department, the lesser of:
                     (A)  the provider's billed charge; or
                     (B)  325 percent of the current Medicare rate,
  including any applicable extenders and modifiers.
         (c)  The administrator shall adjust a payment required by
  Subsection (b)(1) each plan year by increasing the payment by the
  lesser of the Medicare Inflation Index or 10 percent of the
  provider's previous calendar year rates.
         (d)  The administrator shall make a payment required by this
  section directly to the provider not later than, as applicable:
               (1)  the 30th day after the date the administrator
  receives an electronic claim for those services that includes all
  information necessary for the administrator to pay the claim; or
               (2)  the 45th day after the date the administrator
  receives a nonelectronic claim for those services that includes all
  information necessary for the administrator to pay the claim.
         (e)  An out-of-network provider who is an emergency medical
  services provider or a person asserting a claim as an agent or
  assignee of the provider may not bill an enrollee receiving a health
  care or medical service or supply or transport described by
  Subsection (b) in, and the enrollee does not have financial
  responsibility for, an amount greater than an applicable copayment,
  coinsurance, and deductible under the enrollee's managed care plan
  that is based on:
               (1)  the amount initially determined payable by the
  administrator; or
               (2)  if applicable, the modified amount as determined
  under the administrator's internal appeal process.
         (f)  This section expires September 1, 2025.
         SECTION 13.  (a) Section 1579.009, Insurance Code, is
  amended to read as follows:
         Sec. 1579.009.  BALANCE BILLING PROHIBITION NOTICE. (a)  
  The administrator of a managed care plan provided under this
  chapter shall provide written notice in accordance with this
  section in an explanation of benefits provided to the enrollee and
  the physician or health care provider in connection with a health
  care or medical service or supply or transport provided by an
  out-of-network provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1579.109, 1579.110, [or] 1579.111, or 1579.112, as
  applicable;
               (2)  the total amount the physician or provider may
  bill the enrollee under the enrollee's managed care plan and an
  itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  The administrator shall provide the explanation of
  benefits with the notice required by this section to a physician or
  health care provider not later than the date the administrator
  makes a payment under Section 1579.109, 1579.110, [or] 1579.111, or
  1579.112, as applicable.
         (b)  Effective September 1, 2025, Section 1579.009,
  Insurance Code, is amended to read as follows:
         Sec. 1579.009.  BALANCE BILLING PROHIBITION NOTICE. (a)  
  The administrator of a managed care plan provided under this
  chapter shall provide written notice in accordance with this
  section in an explanation of benefits provided to the enrollee and
  the physician or health care provider in connection with a health
  care or medical service or supply provided by an out-of-network
  provider.  The notice must include:
               (1)  a statement of the billing prohibition under
  Section 1579.109, 1579.110, or 1579.111, as applicable;
               (2)  the total amount the physician or provider may
  bill the enrollee under the enrollee's managed care plan and an
  itemization of copayments, coinsurance, deductibles, and other
  amounts included in that total; and
               (3)  for an explanation of benefits provided to the
  physician or provider, information required by commissioner rule
  advising the physician or provider of the availability of mediation
  or arbitration, as applicable, under Chapter 1467.
         (b)  The administrator shall provide the explanation of
  benefits with the notice required by this section to a physician or
  health care provider not later than the date the administrator
  makes a payment under Section 1579.109, 1579.110, or 1579.111, as
  applicable.
         SECTION 14.  Subchapter C, Chapter 1579, Insurance Code, is
  amended by adding Section 1579.112 to read as follows:
         Sec. 1579.112.  OUT-OF-NETWORK EMERGENCY MEDICAL SERVICES
  PROVIDER PAYMENTS. (a)  In this section, "emergency medical
  services provider" has the meaning assigned by Section 773.003,
  Health and Safety Code, except that the term does not include an air
  ambulance.
         (b)  Except as provided by Subsection (c), the administrator
  of a managed care plan provided under this chapter shall pay for a
  covered health care or medical service performed for, or a covered
  supply or covered transport related to that service provided to, an
  enrollee by an out-of-network provider who is an emergency medical
  services provider at:
               (1)  if the political subdivision has submitted the
  rate to the department under Section 38.006, the rate set,
  controlled, or regulated by the political subdivision in which:
                     (A)  the service originated; or
                     (B)  the transport originated if transport is
  provided; or
               (2)  if the political subdivision has not submitted the
  rate to the department, the lesser of:
                     (A)  the provider's billed charge; or
                     (B)  325 percent of the current Medicare rate,
  including any applicable extenders and modifiers.
         (c)  The administrator shall adjust a payment required by
  Subsection (b)(1) each plan year by increasing the payment by the
  lesser of the Medicare Inflation Index or 10 percent of the
  provider's previous calendar year rates.
         (d)  The administrator shall make a payment required by this
  section directly to the provider not later than, as applicable:
               (1)  the 30th day after the date the administrator
  receives an electronic claim for those services that includes all
  information necessary for the administrator to pay the claim; or
               (2)  the 45th day after the date the administrator
  receives a nonelectronic claim for those services that includes all
  information necessary for the administrator to pay the claim.
         (e)  An out-of-network provider who is an emergency medical
  services provider or a person asserting a claim as an agent or
  assignee of the provider may not bill an enrollee receiving a health
  care or medical service or supply or transport described by
  Subsection (b) in, and the enrollee does not have financial
  responsibility for, an amount greater than an applicable copayment,
  coinsurance, and deductible under the enrollee's managed care plan
  that is based on:
               (1)  the amount initially determined payable by the
  administrator; or
               (2)  if applicable, a modified amount as determined
  under the administrator's internal appeal process.
         (f)  This section expires September 1, 2025.
         SECTION 15.  The changes in law made by this Act apply only
  to a ground ambulance service provided on or after January 1, 2024.  
  A ground ambulance service provided before January 1, 2024, is
  governed by the law in effect immediately before the effective date
  of this Act, and that law is continued in effect for that purpose.
         SECTION 16.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2023.