Bill Text: TX HB3195 | 2023-2024 | 88th Legislature | Engrossed


Bill Title: Relating to conduct of insurers providing preferred provider benefit plans with respect to physician and health care provider contracts and claims.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2023-05-11 - Referred to Health & Human Services [HB3195 Detail]

Download: Texas-2023-HB3195-Engrossed.html
  88R1933 SCL-F
 
  By: Bonnen H.B. No. 3195
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to conduct of insurers providing preferred provider
  benefit plans with respect to physician and health care provider
  contracts and claims.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 1301.066 and 1301.103, Insurance Code,
  are amended to read as follows:
         Sec. 1301.066.  RETALIATION AGAINST PREFERRED PROVIDER
  PROHIBITED. (a) An insurer may not engage in any retaliatory action
  against a physician or health care provider[, including terminating
  the physician's or provider's participation in the preferred
  provider benefit plan or refusing to renew the physician's or
  provider's contract,] because the physician or provider has:
               (1)  on behalf of an insured, reasonably filed a
  complaint against the insurer; or
               (2)  appealed a decision of the insurer.
         (b)  A retaliatory action under Subsection (a) includes:
               (1)  terminating the physician's or provider's
  participation in the preferred provider benefit plan;
               (2)  refusing to renew the physician's or provider's
  contract;
               (3)  implementing measurable penalties in the contract
  negotiation process;
               (4)  engaging in an unfair or deceptive practice,
  including not listing the physician or provider in the network
  directory or requiring the physician or provider to submit medical
  records with each claim;
               (5)  arbitrarily reducing the physician's or provider's
  fees on the insurer's fee schedule; and
               (6)  otherwise making changes to material contractual
  terms that are adverse to the physician or provider.
         (c)  Subsections (b)(3)-(6) do not apply to a freestanding
  emergency medical care facility.
         Sec. 1301.103.  DEADLINE FOR ACTION ON CLEAN CLAIMS. (a)
  Except as provided by Sections 1301.104 and 1301.1054, not later
  than the 45th day after the date an insurer receives a clean claim
  from a preferred provider in a nonelectronic format or the 30th day
  after the date an insurer receives a clean claim from a preferred
  provider that is electronically submitted, the insurer shall make a
  determination of whether the claim is payable and:
               (1)  if the insurer determines the entire claim is
  payable, pay the total amount of the claim in accordance with the
  contract between the preferred provider and the insurer;
               (2)  if the insurer determines a portion of the claim is
  payable, pay the portion of the claim that is not in dispute and
  notify the preferred provider in writing why the remaining portion
  of the claim will not be paid; or
               (3)  if the insurer determines that the claim is not
  payable, notify the preferred provider in writing why the claim
  will not be paid.
         (b)  An insurer shall provide notice under Subsection (a)
  electronically if the preferred provider's clean claim was
  electronically submitted and the provider is not a freestanding
  emergency medical care facility.
         SECTION 2.  Section 1301.105, Insurance Code, is amended by
  amending Subsection (d) and adding Subsection (e) to read as
  follows:
         (d)  If the preferred provider does not supply information
  reasonably requested by the insurer in connection with the audit,
  the insurer shall or, if the provider is a freestanding emergency
  medical care facility, may:
               (1)  notify the provider in writing that the provider
  must provide the information not later than the 45th day after the
  date of the notice or forfeit the amount of the claim; and
               (2)  if the provider does not provide the information
  required by this section, recover the amount of the claim.
         (e)  An insurer shall make a request or provide information
  under this section electronically if the preferred provider's clean
  claim was electronically submitted and the provider is not a
  freestanding emergency medical care facility.
         SECTION 3.  Sections 1301.1051 and 1301.1052, Insurance
  Code, are amended to read as follows:
         Sec. 1301.1051.  COMPLETION OF AUDIT. (a) The insurer must
  complete an audit under Section 1301.105 on or before the 180th day
  after the date the clean claim is received by the insurer, and any
  additional payment due a preferred provider or any refund due the
  insurer shall be made not later than the 30th day after the
  completion of the audit.
         (b)  An insurer may not recover a payment on an audited claim
  until a final audit is completed if the claim was submitted by a
  preferred provider other than a freestanding emergency medical care
  facility.
         (c)  An insurer shall provide written notice to the preferred
  provider, other than a freestanding emergency medical care
  facility, of the insurer's failure to complete an audit in the time
  required by Subsection (a) not later than the 15th day after the
  date on which the insurer is required to complete the audit under
  that subsection.
         Sec. 1301.1052.  PREFERRED PROVIDER APPEAL AFTER AUDIT. (a)
  If a preferred provider disagrees with a refund request made by an
  insurer based on an audit under Section 1301.105, the insurer shall
  provide the provider with an opportunity to appeal in accordance
  with this section, and the insurer may not attempt to recover the
  payment until all appeal rights are exhausted.
         (b)  An insurer shall provide a reasonable mechanism for an
  appeal requested under Subsection (a) by a preferred provider other
  than a freestanding emergency medical care facility.  The review
  mechanism must incorporate, in an advisory role only, a review
  panel.
         (c)  A review panel described by Subsection (b) must be
  composed of at least three preferred provider representatives of
  the same or similar specialty as the affected preferred provider
  selected by the insurer from a list of preferred providers. The
  preferred providers contracting with the insurer in the applicable
  service area shall provide the list of preferred provider
  representatives to the insurer.
         (d)  On request and if applicable, the insurer shall provide
  to the affected preferred provider:
               (1)  the panel's composition and recommendation; and
               (2)  a written explanation of the insurer's
  determination, if that determination is contrary to the panel's
  recommendation.
         SECTION 4.  Subchapter C, Chapter 1301, Insurance Code, is
  amended by adding Section 1301.10525 to read as follows:
         Sec. 1301.10525.  DEPARTMENT REVIEW OF AUDITS. (a) The
  commissioner by rule shall establish procedures for a preferred
  provider, other than a freestanding emergency medical care
  facility, to submit a request for the department to review an audit
  conducted by an insurer under this subchapter. The department
  review of an audit is a contested case under Chapter 2001,
  Government Code.
         (b)  If the department determines that an audit for which a
  preferred provider requested review under Subsection (a) resulted
  in unreasonable costs for the preferred provider, unnecessarily
  delayed or prevented payment of a claim, or otherwise violated this
  subchapter or rules adopted under this subchapter, the department
  shall:
               (1)  award compensatory damages to the preferred
  provider incurred as a result of the audit; and
               (2)  order the insurer to pay to the department the
  costs incurred by the department in reviewing the audit.
         SECTION 5.  Section 1301.132, Insurance Code, is amended by
  adding Subsections (c), (d), and (e) to read as follows:
         (c)  An insurer shall provide a reasonable mechanism for an
  appeal requested under Subsection (b) by a physician or health care
  provider other than a freestanding emergency medical care facility.  
  The review mechanism must incorporate, in an advisory role only, a
  review panel.
         (d)  A review panel described by Subsection (c) must be
  composed of at least three preferred provider representatives of
  the same or similar specialty as the affected preferred provider
  selected by the insurer from a list of preferred providers.  The
  preferred providers contracting with the insurer in the applicable
  service area shall provide the list of preferred provider
  representatives to the insurer.
         (e)  On request and if applicable, the insurer shall provide
  to the affected preferred provider:
               (1)  the panel's composition and recommendation; and
               (2)  a written explanation of the insurer's
  determination, if that determination is contrary to the panel's
  recommendation.
         SECTION 6.  (a) The changes in law made by this Act apply to
  a claim for payment made on or after the effective date of this Act
  unless the claim is made under a contract that was entered into
  before the effective date of this Act and that, at the time the
  claim is made, has not been renewed or was last renewed before the
  effective date of this Act.
         (b)  A claim made before the effective date of this Act or
  made on or after the effective date of this Act under a contract
  described by Subsection (a) of this section is governed by the law
  as it existed immediately before the effective date of this Act, and
  that law is continued in effect for that purpose.
         SECTION 7.  This Act takes effect September 1, 2023.
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