89R658 RDS-D
 
  By: Bell of Montgomery H.B. No. 4872
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the calculation of penalties for violating certain laws
  governing the prompt payment of claims submitted by a physician or
  health care provider to certain health benefit plan issuers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 843.342, Insurance Code, is amended by
  adding Subsection (o) to read as follows:
         (o)  For the purposes of calculating a penalty under this
  section related to a claim by a physician or provider described by
  Section 843.351, the contracted rate for health care services
  provided by the physician or provider is the usual and customary
  rate for the service in the geographic area in which the service is
  provided.
         SECTION 2.  Section 1301.137, Insurance Code, is amended by
  adding Subsection (m) to read as follows:
         (m)  For the purposes of calculating a penalty under this
  section related to a claim by a physician or health care provider
  described by Section 1301.069, the contracted rate for health care
  services provided by the physician or provider is the usual and
  customary rate for the service in the geographic area in which the
  service is provided.
         SECTION 3.  The changes in law made by this Act apply only to
  a penalty or interest on a penalty owed with respect to a claim
  submitted on or after the effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2025.