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2005 Texas Insurance Code CHAPTER 1301. PREFERRED PROVIDER BENEFIT PLANS
INSURANCE CODE SUBTITLE D. PROVIDER PLANS CHAPTER 1301. PREFERRED PROVIDER BENEFIT PLANS SUBCHAPTER A. GENERAL PROVISIONS § 1301.001. DEFINITIONS. In this chapter: (1) "Health care provider" means a practitioner, institutional provider, or other person or organization that furnishes health care services and that is licensed or otherwise authorized to practice in this state. The term does not include a physician. (2) "Health insurance policy" means a group or individual insurance policy, certificate, or contract providing benefits for medical or surgical expenses incurred as a result of an accident or sickness. (3) "Hospital" means a licensed public or private institution as defined by Chapter 241, Health and Safety Code, or Subtitle C, Title 7, Health and Safety Code. (4) "Institutional provider" means a hospital, nursing home, or other medical or health-related service facility that provides care for the sick or injured or other care that may be covered in a health insurance policy. (5) "Insurer" means a life, health, and accident insurance company, health and accident insurance company, health insurance company, or other company operating under Chapter 841, 842, 884, 885, 982, or 1501, that is authorized to issue, deliver, or issue for delivery in this state health insurance policies. (6) "Physician" means a person licensed to practice medicine in this state. (7) "Practitioner" means a person who practices a healing art and is a practitioner described by Section 1451.001 or 1451.101. (7-a) "Preauthorization" means a determination by an insurer that medical care or health care services proposed to be provided to a patient are medically necessary and appropriate. (8) "Preferred provider" means a physician or health care provider, or an organization of physicians or health care providers, who contracts with an insurer to provide medical care or health care to insureds covered by a health insurance policy. (9) "Preferred provider benefit plan" means a benefit plan in which an insurer provides, through its health insurance policy, for the payment of a level of coverage that is different from the basic level of coverage provided by the health insurance policy if the insured person uses a preferred provider. (10) "Service area" means a geographic area or areas specified in a health insurance policy or preferred provider contract in which a network of preferred providers is offered and available. (11) "Verification" means a reliable representation by an insurer to a physician or health care provider that the insurer will pay the physician or provider for proposed medical care or health care services if the physician or provider renders those services to the patient for whom the services are proposed. The term includes precertification, certification, recertification, and any other term that would be a reliable representation by an insurer to a physician or provider. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.033(a), eff. Sept. 1, 2005. § 1301.002. NONAPPLICABILITY TO DENTAL CARE BENEFITS. This chapter does not apply to a provision for dental care benefits in a health insurance policy. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.003. PREFERRED PROVIDER BENEFIT PLANS PERMITTED. A health insurance policy that provides different benefits from the basic level of coverage for the use of preferred providers and that meets the requirements of this chapter is not: (1) unjust under Chapter 1701; (2) unfair discrimination under Subchapter A or B, Chapter 544; or (3) a violation of Subchapter B or C, Chapter 1451. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.004. COMPLIANCE WITH CHAPTER REQUIRED. Each preferred provider benefit plan offered in this state must comply with this chapter. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.0045. CONSTRUCTION OF CHAPTER. Except as provided by Section 1301.0046, this chapter may not be construed to limit the level of reimbursement or the level of coverage, including deductibles, copayments, coinsurance, or other cost-sharing provisions, that are applicable to preferred providers or nonpreferred providers. Added by Acts 2005, 79th Leg., ch. 1221, § 1, eff. Sept. 1, 2005. § 1301.0046. COINSURANCE REQUIREMENTS FOR SERVICES OF NONPREFERRED PROVIDERS. The insured's coinsurance applicable to payment to nonpreferred providers may not exceed 50 percent of the total covered amount applicable to the medical or health care services. Added by Acts 2005, 79th Leg., ch. 1221, § 1, eff. Sept. 1, 2005. § 1301.005. AVAILABILITY OF PREFERRED PROVIDERS. (a) An insurer offering a preferred provider benefit plan shall ensure that both preferred provider benefits and basic level benefits are reasonably available to all insureds within a designated service area. (b) If services are not available through a preferred provider within the service area, an insurer shall reimburse a physician or health care provider who is not a preferred provider at the same percentage level of reimbursement as a preferred provider would have been reimbursed had the insured been treated by a preferred provider. (c) Subsection (b) does not require reimbursement at a preferred level of coverage solely because an insured resides out of the service area and chooses to receive services from a provider other than a preferred provider for the insured's own convenience. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.006. AVAILABILITY OF AND ACCESSIBILITY TO HEALTH CARE SERVICES. An insurer that markets a preferred provider benefit plan shall contract with physicians and health care providers to ensure that all medical and health care services and items contained in the package of benefits for which coverage is provided, including treatment of illnesses and injuries, will be provided under the health insurance policy in a manner ensuring availability of and accessibility to adequate personnel, specialty care, and facilities. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.0061. TERMS OF ENROLLEE ELIGIBILITY. A contract between an insurer and a group policyholder under a preferred provider benefit plan must provide that: (1) in addition to any other premiums for which the group policyholder is liable, the group policyholder is liable for an individual insured's premiums from the time the individual is no longer part of the group eligible for coverage under the policy until the end of the month in which the policyholder notifies the insurer that the individual is no longer part of the group eligible for coverage under the policy; and (2) the individual remains covered under the policy until the end of that period. Added by Acts 2005, 79th Leg., ch. 669, § 1, eff. Sept. 1, 2005. § 1301.007. RULES. The commissioner shall adopt rules as necessary to: (1) implement this chapter; and (2) ensure reasonable accessibility and availability of preferred provider services to residents of this state. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 1221, § 2, eff. Sept. 1, 2005. § 1301.008. CONFLICT WITH OTHER LAW. To the extent of any conflict between this chapter and Subchapter C, Chapter 1204, this chapter controls. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(c), eff. Sept. 1, 2005.SUBCHAPTER B. RELATIONS WITH PHYSICIANS OR HEALTH CARE PROVIDERS § 1301.051. DESIGNATION AS PREFERRED PROVIDER. (a) An insurer shall afford a fair, reasonable, and equivalent opportunity to apply to be and to be designated as a preferred provider to practitioners and institutional providers and to health care providers other than practitioners and institutional providers, if those other health care providers are included by the insurer as preferred providers, provided that the practitioners, institutional providers, or health care providers: (1) are licensed to treat injuries or illnesses or to provide services covered by a health insurance policy; and (2) comply with the terms established by the insurer for designation as preferred providers. (b) An insurer may not unreasonably withhold a designation as a preferred provider. (c) An insurer shall give a physician or health care provider who, on the person's initial application, is not designated as a preferred provider written reasons for denial of the designation. (d) Unless otherwise limited by this code, this section does not prohibit an insurer from rejecting a physician's or health care provider's application for designation based on a determination that the preferred provider benefit plan has sufficient qualified providers. (e) An insurer may not withhold a designation to a podiatrist described by Section 1301.0521. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.034(a), eff. Sept. 1, 2005. § 1301.0515. ACUPUNCTURIST SERVICES. (a) An insurer offering a preferred provider benefit plan that includes acupuncture in the services covered by the plan may not refuse to provide reimbursement for the performance of a covered acupuncture service solely because the service is provided by an acupuncturist. (b) This section does not require an insurer to offer acupuncture as a covered service. Added by Acts 2005, 79th Leg., ch. 622, § 2, eff. Sept. 1, 2005. § 1301.052. DESIGNATION OF ADVANCED PRACTICE NURSE OR PHYSICIAN ASSISTANT AS PREFERRED PROVIDER. An insurer offering a preferred provider benefit plan may not refuse a request made by a physician participating as a preferred provider under the plan and an advanced practice nurse or physician assistant to have the advanced practice nurse or physician assistant included as a preferred provider under the plan if: (1) the advanced practice nurse or physician assistant is authorized by the physician to provide care under Subchapter B, Chapter 157, Occupations Code; and (2) the advanced practice nurse or physician assistant meets the quality of care standards previously established by the insurer for participation in the plan by advanced practice nurses and physician assistants. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.0521. DESIGNATION OF CERTAIN PODIATRISTS AS PREFERRED PROVIDERS. (a) Notwithstanding Section 1301.051, an insurer may not withhold the designation of preferred provider to a podiatrist licensed by the Texas State Board of Podiatric Medical Examiners who: (1) joins the professional practice of a contracted preferred provider; (2) applies to the insurer for designation as a preferred provider; and (3) complies with the terms and conditions of eligibility to be a preferred provider. (b) A podiatrist designated as a preferred provider under this section must comply with the terms of the preferred provider contract used by the insurer or the insurer's network provider. Added by Acts 2005, 79th Leg., ch. 728, § 11.035(a), eff. Sept. 1, 2005. § 1301.053. APPEAL RELATING TO DESIGNATION AS PREFERRED PROVIDER. (a) An insurer that does not designate a practitioner as a preferred provider shall provide a reasonable mechanism for reviewing that action. The review mechanism must incorporate, in an advisory role only, a review panel. (b) A review panel must be composed of at least three individuals selected by the insurer from a list of participating practitioners and must include one member who is a practitioner in the same or similar specialty as the affected practitioner, if available. The practitioners contracting with the insurer in the applicable service area shall provide the list of practitioners to the insurer. (c) On request, the insurer shall provide to the affected practitioner: (1) the panel's recommendation, if any; and (2) a written explanation of the insurer's determination, if that determination is contrary to the panel's recommendation. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.054. NOTICE TO PRACTITIONERS OF PREFERRED PROVIDER BENEFIT PLAN. (a) When sponsoring a preferred provider benefit plan, an insurer shall immediately notify each practitioner in the plan's service area of the insurer's intent to offer the plan and of the opportunity to participate. The notification must be made by publication or in writing to each practitioner. (b) After establishing a preferred provider benefit plan, an insurer shall annually provide notice of and an opportunity to participate in the plan to practitioners in the plan's service area who do not participate in the plan. (c) On request, an insurer shall provide to any physician or health care provider information concerning the application process and qualification requirements for participation as a preferred provider in the plan. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.055. COMPLAINT RESOLUTION. (a) Each contract under a preferred provider benefit plan between an insurer and a physician or other practitioner or a physicians' group must have a mechanism for resolving complaints initiated by an insured, a physician or other practitioner, or a physicians' group. (b) A complaint resolution mechanism must provide for reasonable due process that includes, in an advisory role only, a review panel selected in the manner described by Section 1301.053(b). Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.056. RESTRICTIONS ON PAYMENT AND REIMBURSEMENT. (a) An insurer or third-party administrator may not reimburse a physician or other practitioner, institutional provider, or organization of physicians and health care providers on a discounted fee basis for covered services that are provided to an insured unless: (1) the insurer or third-party administrator has contracted with either: (A) the physician or other practitioner, institutional provider, or organization of physicians and health care providers; or (B) a preferred provider organization that has a network of preferred providers and that has contracted with the physician or other practitioner, institutional provider, or organization of physicians and health care providers; (2) the physician or other practitioner, institutional provider, or organization of physicians and health care providers has agreed to the contract and has agreed to provide health care services under the terms of the contract; and (3) the insurer or third-party administrator has agreed to provide coverage for those health care services under the health insurance policy. (b) A party to a preferred provider contract, including a contract with a preferred provider organization, may not sell, lease, or otherwise transfer information regarding the payment or reimbursement terms of the contract without the express authority of and prior adequate notification to the other contracting parties. This subsection does not affect the authority of the commissioner of insurance or the commissioner of workers' compensation under this code or Title 5, Labor Code, to request and obtain information. (c) An insurer or third-party administrator who violates this section: (1) commits an unfair claim settlement practice in violation of Subchapter A, Chapter 542; and (2) is subject to administrative penalties under Chapters 82 and 84. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 265, § 6.061, eff. Sept. 1, 2005. § 1301.057. TERMINATION OF PARTICIPATION; EXPEDITED REVIEW PROCESS. (a) Before terminating a contract with a preferred provider, an insurer shall: (1) provide written reasons for the termination; and (2) if the affected provider is a practitioner, provide, on request, a reasonable review mechanism, except in a case involving: (A) imminent harm to a patient's health; (B) an action by a state medical or other physician licensing board or other government agency that effectively impairs the practitioner's ability to practice medicine; or (C) fraud or malfeasance. (b) The review mechanism described by Subsection (a)(2) must incorporate, in an advisory role only, a review panel selected in the manner described by Section 1301.053(b) and must be completed within a period not to exceed 60 days. (c) The insurer shall provide to the affected practitioner: (1) the panel's recommendation, if any; and (2) on request, a written explanation of the insurer's determination, if that determination is contrary to the panel's recommendation. (d) On request, an insurer shall make an expedited review available to a practitioner whose participation in a preferred provider benefit plan is being terminated. The expedited review process must comply with rules established by the commissioner. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.058. ECONOMIC PROFILING. An insurer that conducts, uses, or relies on economic profiling to admit or terminate the participation of physicians or health care providers in a preferred provider benefit plan shall make available to a physician or health care provider on request the economic profile of that physician or health care provider, including the written criteria by which the physician or health care provider's performance is to be measured. An economic profile must be adjusted to recognize the characteristics of a physician's or health care provider's practice that may account for variations from expected costs. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.059. QUALITY ASSESSMENT. (a) In this section, "quality assessment" means a mechanism used by an insurer to evaluate, monitor, or improve the quality and effectiveness of the medical care delivered by physicians or health care providers to persons covered by a health insurance policy to ensure that the care delivered is consistent with the care delivered by an ordinary, reasonable, and prudent physician or health care provider under the same or similar circumstances. (b) An insurer may not engage in quality assessment except through a panel of at least three physicians selected by the insurer from among a list of physicians contracting with the insurer. The physicians contracting with the insurer in the applicable service area shall provide the list of physicians to the insurer. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.060. COMPENSATION ON DISCOUNTED FEE BASIS. A preferred provider contract must include a provision by which the physician or health care provider agrees that if the preferred provider is compensated on a discounted fee basis, the insured may be billed only on the discounted fee and not the full charge. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.061. PREFERRED PROVIDER NETWORKS. (a) An insurer may enter into an agreement with a preferred provider organization for the purposes of offering a network of preferred providers. The agreement may provide that either the insurer or the preferred provider organization on the insurer's behalf will comply with the notice requirements and other requirements imposed on the insurer by this subchapter. (b) An insurer that enters into an agreement with a preferred provider organization under this section shall meet the requirements of this chapter or ensure that those requirements are met. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.062. PREFERRED PROVIDER CONTRACTS BETWEEN INSURERS AND PODIATRISTS. A preferred provider contract between an insurer and a podiatrist licensed by the Texas State Board of Podiatric Medical Examiners must provide that: (1) the podiatrist may request a copy of the coding guidelines and payment schedules applicable to the compensation that the podiatrist will receive under the contract for services; (2) the insurer shall provide a copy of the coding guidelines and payment schedules not later than the 30th day after the date of the podiatrist's request; (3) the insurer may not unilaterally make material retroactive revisions to the coding guidelines and payment schedules; and (4) the podiatrist may, practicing within the scope of the law regulating podiatry, furnish x-rays and nonprefabricated orthotics covered by the health insurance policy. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.063. CONTRACT PROVISIONS RELATING TO USE OF HOSPITALIST. (a) In this section, "hospitalist" means a physician who: (1) serves as physician of record at a hospital for a hospitalized patient of another physician; and (2) returns the care of the patient to that other physician at the end of the patient's hospitalization. (b) A preferred provider contract between an insurer and a physician may not require the physician to use a hospitalist for a hospitalized patient. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.064. CONTRACT PROVISIONS RELATING TO PAYMENT OF CLAIMS. Subject to Subchapter C, a preferred provider contract must provide for payment to a physician or health care provider for health care services and benefits provided to an insured under the contract and to which the insured is entitled under the terms of the contract not later than: (1) the 45th day after the date on which a claim for payment is received with the documentation reasonably necessary to process the claim; or (2) if applicable, within the number of calendar days specified by written agreement between the physician or health care provider and the insurer. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.0641. CONTRACT PROVISIONS PROHIBITING REJECTION OF BATCHED CLAIMS. (a) If requested by a preferred provider, an insurer shall include a provision in the preferred provider's contract providing that the insurer or the insurer's clearinghouse may not refuse to process or pay an electronically submitted clean claim, as defined by Subchapter C, because the claim is submitted together with or in a batch submission with a claim that is not a clean claim. (b) In accordance with Chapters 82 and 84, the commissioner may issue a cease and desist order against or impose sanctions on an insurer that violates this section or a contract provision adopted under this section. Added by Acts 2005, 79th Leg., ch. 668, § 2, eff. Sept. 1, 2005. § 1301.065. SHIFTING OF INSURER'S TORT LIABILITY PROHIBITED. A preferred provider contract may not require any physician, health care provider, or physicians' group to execute a hold harmless clause to shift the insurer's tort liability resulting from the insurer's acts or omissions to the preferred provider. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.066. RETALIATION AGAINST PREFERRED PROVIDER PROHIBITED. 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. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.067. INTERFERENCE WITH RELATIONSHIP BETWEEN PATIENT AND PHYSICIAN OR HEALTH CARE PROVIDER PROHIBITED. (a) An insurer may not, as a condition of a preferred provider contract with a physician or health care provider or in any other manner, prohibit, attempt to prohibit, or discourage a physician or provider from discussing with or communicating to a current, prospective, or former patient, or a person designated by a patient, information or an opinion: (1) regarding the patient's health care, including the patient's medical condition or treatment options; or (2) in good faith regarding the provisions, terms, requirements, or services of the health insurance policy as they relate to the patient's medical needs. (b) An insurer may not in any way penalize, terminate the participation of, or refuse to compensate for covered services a physician or health care provider for discussing or communicating with a current, prospective, or former patient, or a person designated by a patient, pursuant to this section. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.068. INDUCEMENT TO LIMIT MEDICALLY NECESSARY SERVICES PROHIBITED. (a) An insurer may not use any financial incentive or make payment to a physician or health care provider that acts directly or indirectly as an inducement to limit medically necessary services. (b) This section does not prohibit the use of capitation as a method of payment. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.069. SERVICES PROVIDED BY CERTAIN PHYSICIANS AND HEALTH CARE PROVIDERS. The provisions of this chapter relating to prompt payment by an insurer of a physician or health care provider and to verification of medical care or health care services apply to a physician or provider who: (1) is not a preferred provider included in the preferred provider network; and (2) provides to an insured: (A) care related to an emergency or its attendant episode of care as required by state or federal law; or (B) specialty or other medical care or health care services at the request of the insurer or a preferred provider because the services are not reasonably available from a preferred provider who is included in the preferred delivery network. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(d), eff. Sept. 1, 2005.SUBCHAPTER C. PROMPT PAYMENT OF CLAIMS § 1301.101. DEFINITION. In this subchapter, "clean claim" means a claim that complies with Section 1301.131. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.102. SUBMISSION OF CLAIM. (a) A physician or health care provider must submit a claim to an insurer not later than the 95th day after the date the physician or provider provides the medical care or health care services for which the claim is made. (b) Except as provided by Chapter 1213, a physician or health care provider may, as appropriate: (1) mail a claim by United States mail, first class, or by overnight delivery service; (2) submit the claim electronically; (3) fax the claim; or (4) hand deliver the claim. (c) An insurer shall accept as proof of timely filing a claim filed in compliance with Subsection (b) or information from another insurer or health maintenance organization showing that the physician or health care provider submitted the claim to the insurer or health maintenance organization in compliance with Subsection (b). (d) If a physician or health care provider fails to submit a claim in compliance with this section, the physician or provider forfeits the right to payment unless the failure to submit the claim in compliance with this section is a result of a catastrophic event that substantially interferes with the normal business operations of the physician or provider. (e) The period for submitting a claim under this section may be extended by contract. (f) A physician or health care provider may not submit a duplicate claim for payment before the 46th day after the date the original claim was submitted. The commissioner shall adopt rules under which an insurer may determine whether a claim is a duplicate claim. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.1021. RECEIPT OF CLAIM. (a) If a claim for medical care or health care services provided to a patient is mailed, the claim is presumed to have been received by the insurer on the fifth day after the date the claim is mailed or, if the claim is mailed using overnight service or return receipt requested, on the date the delivery receipt is signed. (b) If the claim is submitted electronically, the claim is presumed to have been received on the date of the electronic verification of receipt by the insurer or the insurer's clearinghouse. If the insurer or the insurer's clearinghouse does not provide a confirmation within 24 hours of submission by the physician or health care provider, the physician's or provider's clearinghouse shall provide the confirmation. The physician's or provider's clearinghouse must be able to verify that the filing contained the correct payor identification of the entity to receive the filing. (c) If the claim is faxed, the claim is presumed to have been received on the date of the transmission acknowledgment. (d) If the claim is hand delivered, the claim is presumed to have been received on the date the delivery receipt is signed. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.103. DEADLINE FOR ACTION ON CLEAN CLAIMS. Except as provided by Section 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. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.104. DEADLINE FOR ACTION ON CERTAIN PHARMACY CLAIMS. Not later than the 21st day after the date an insurer affirmatively adjudicates a pharmacy claim that is electronically submitted, the insurer shall pay the total amount of the claim. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.105. AUDITED CLAIMS. (a) Except as provided by Section 1301.1054, an insurer that intends to audit a claim submitted by a preferred provider shall pay the charges submitted at 100 percent of the contracted rate on the claim not later than: (1) the 30th day after the date the insurer receives the clean claim from the preferred provider if the claim is submitted electronically; or (2) the 45th day after the date the insurer receives the clean claim from the preferred provider if the claim is submitted nonelectronically. (b) The insurer shall clearly indicate on the explanation of payment statement in the manner prescribed by the commissioner by rule that the clean claim is being paid at 100 percent of the contracted rate, subject to completion of the audit. (c) If the insurer requests additional information to complete the audit, the request must describe with specificity the clinical information requested and relate only to information the insurer in good faith can demonstrate is specific to the claim or episode of care. The insurer may not request as a part of the audit information that is not contained in, or is not in the process of being incorporated into, the patient's medical or billing record maintained by a preferred provider. (d) If the preferred provider does not supply information reasonably requested by the insurer in connection with the audit, the insurer 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. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.1051. COMPLETION OF AUDIT. 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. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Renumbered from V.T.C.A., Insurance Code § 1301.105 (part) by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.1052. PREFERRED PROVIDER APPEAL AFTER AUDIT. 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, and the insurer may not attempt to recover the payment until all appeal rights are exhausted. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.1053. DEADLINES NOT EXTENDED. The investigation and determination of payment, including any coordination of other payments, does not extend the period for determining whether a claim is payable under Section 1301.103 or 1301.104 or for auditing a claim under Section 1301.105. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.1054. REQUESTS FOR ADDITIONAL INFORMATION. (a) If an insurer needs additional information from a treating preferred provider to determine payment, the insurer, not later than the 30th calendar day after the date the insurer receives a clean claim, shall request in writing that the preferred provider provide an attachment to the claim that is relevant and necessary for clarification of the claim. The request must describe with specificity the clinical information requested and relate only to information the insurer can demonstrate is specific to the claim or the claim's related episode of care. The preferred provider is not required to provide an attachment that is not contained in, or is not in the process of being incorporated into, the patient's medical or billing record maintained by a preferred provider. (b) An insurer that requests an attachment under Subsection (a) shall determine whether the claim is payable on or before the later of the 15th day after the date the insurer receives the requested attachment or the latest date for determining whether the claim is payable under Section 1301.103 or 1301.104. (c) An insurer may not make more than one request under Subsection (a) in connection with a claim. Sections 1301.102(b) and 1301.1021 apply to a request for and submission of an attachment under Subsection (a). (d) If an insurer requests an attachment or other information from a person other than the preferred provider who submitted the claim, the insurer shall provide notice containing the name of the physician or health care provider from whom the insurer is requesting information to the preferred provider who submitted the claim. The insurer may not withhold payment pending receipt of an attachment or information requested under this subsection. If on receiving an attachment or information requested under this subsection the insurer determines that there was an error in payment of the claim, the insurer may recover any overpayment under Section 1301.132. (e) The commissioner shall adopt rules under which an insurer can easily identify attachments or other information submitted by a physician or health care provider under this section. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.106. CLAIMS PROCESSING PROCEDURES AND CLAIMS PAYMENT PROCESSES. (a) An insurer shall provide a preferred provider with copies of all applicable utilization review policies and claim processing policies or procedures. (b) An insurer's claims payment processes shall: (1) use nationally recognized, generally accepted Current Procedural Terminology codes, notes, and guidelines, including all relevant modifiers; and (2) be consistent with nationally recognized, generally accepted bundling edits and logic. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.107. CONTRACTUAL WAIVER AND OTHER ACTIONS PROHIBITED. Except as provided by Section 1301.102(e), the provisions of this subchapter may not be waived, voided, or nullified by contract. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.108. ATTORNEY'S FEES. A preferred provider may recover reasonable attorney's fees and court costs in an action to recover payment under this subchapter. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005. § 1301.109. APPLICABILITY TO ENTITIES CONTRACTING WITH INSURER. This subchapter applies to a person with whom an insurer contracts to: (1) process or pay claims; (2) obtain the services of physicians and health care providers to provide health care services to insureds; or (3) issue verifications or preauthorizations. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. Amended by Acts 2005, 79th Leg., ch. 728, § 11.037(a), eff. Sept. 1, 2005.SUBCHAPTER C-1. OTHER PROVISIONS RELATING TO PAYMENT OF CLAIMS § 1301.131. ELEMENTS OF CLEAN CLAIM. (a) A nonelectronic claim by a physician or health care provider, other than an institutional provider, is a "clean claim" if the claim is submitted using the Centers for Medicare and Medicaid Services Form 1500 or, if adopted by the commissioner by rule, a successor to that form developed by the National Uniform Claim Committee or the committee's successor. An electronic claim by a physician or provider, other than an institutional provider, is a "clean claim" if the claim is submitted using the Professional 837 (ASC X12N 837) format or, if adopted by the commissioner by rule, a successor to that format adopted by the Centers for Medicare and Medicaid Services or the center's successor. (b) A nonelectronic claim by an institutional provider is a "clean claim" if the claim is submitted using the Centers for Medicare and Medicaid Services Form UB-92 or, if adopted by the commissioner by rule, a successor to that form developed by the National Uniform Billing Committee or the committee's successor. An electronic claim by an institutional provider is a "clean claim" if the claim is submitted using the Institutional 837 (ASC X12N 837) format or, if adopted by the commissioner by rule, a successor to that format adopted by the Centers for Medicare and Medicaid Services or the centers' successor. (c) The commissioner may adopt rules that specify the information that must be entered into the appropriate fields on the applicable claim form for a claim to be a clean claim. (d) The commissioner may not require any data element for an electronic claim that is not required in an electronic transaction set needed to comply with federal law. (e) An insurer and a preferred provider may agree by contract to use fewer data elements than are required in an electronic transaction set needed to comply with federal law. (f) An otherwise clean claim submitted by a physician or health care provider that includes additional fields, data elements, attachments, or other information not required under this section is considered to be a clean claim for the purposes of this chapter. (g) Except as provided by Subsection (e), the provisions of this section may not be waived, voided, or nullified by contract. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(b), eff. Sept. 1, 2005. § 1301.132. OVERPAYMENT. (a) An insurer may recover an overpayment to a physician or health care provider if: (1) not later than the 180th day after the date the physician or provider receives the payment, the insurer provides written notice of the overpayment to the physician or provider that includes the basis and specific reasons for the request for recovery of funds; and (2) the physician or provider does not make arrangements for repayment of the requested funds on or before the 45th day after the date the physician or provider receives the notice. (b) If a physician or health care provider disagrees with a request for recovery of an overpayment, the insurer shall provide the physician or provider with an opportunity to appeal, and the insurer may not attempt to recover the overpayment until all appeal rights are exhausted. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(b), eff. Sept. 1, 2005. § 1301.133. VERIFICATION. (a) In this section, "verification" includes preauthorization only when preauthorization is a condition for the verification. (b) On the request of a preferred provider for verification of a particular medical care or health care service the preferred provider proposes to provide to a particular patient, the insurer shall inform the preferred provider without delay whether the service, if provided to that patient, will be paid by the insurer and shall specify any deductibles, copayments, or coinsurance for which the insured is responsible. (c) An insurer shall have appropriate personnel reasonably available at a toll-free telephone number to provide a verification under this section between 6 a.m. and 6 p.m. central time Monday through Friday on each day that is not a legal holiday and between 9 a.m. and noon central time on Saturday, Sunday, and legal holidays. An insurer must have a telephone system capable of accepting or recording incoming phone calls for verifications after 6 p.m. central time Monday through Friday and after noon central time on Saturday, Sunday, and legal holidays and responding to each of those calls on or before the second calendar day after the date the call is received. (d) An insurer may decline to determine eligibility for payment if the insurer notifies the physician or preferred provider who requested the verification of the specific reason the determination was not made. (e) An insurer may establish a specific period during which the verification is valid of not less than 30 days. (f) An insurer that declines to provide a verification shall notify the physician or provider who requested the verification of the specific reason the verification was not provided. (g) If an insurer has provided a verification for proposed medical care or health care services, the insurer may not deny or reduce payment to the physician or provider for those medical care or health care services if provided to the insured on or before the 30th day after the date the verification was provided unless the physician or provider has materially misrepresented the proposed medical care or health care services or has substantially failed to perform the proposed medical care or health care services. (h) The provisions of this section may not be waived, voided, or nullified by contract. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(b), eff. Sept. 1, 2005. § 1301.134. COORDINATION OF PAYMENT. (a) An insurer may require a physician or health care provider to retain in the physician's or provider's records updated information concerning other health benefit plan coverage and to provide the information to the insurer on the applicable form described by Section 1301.131. Except as provided by this subsection, an insurer may not require a physician or provider to investigate coordination of other health benefit plan coverage. (b) Coordination of payment under this section does not extend the period for determining whether a service is eligible for payment under Section 1301.103 or 1301.104 or for auditing a claim under Section 1301.105. (c) A physician or health care provider who submits a claim for particular medical care or health care services to more than one health maintenance organization or insurer shall provide written notice on the claim submitted to each health maintenance organization or insurer of the identity of each other health maintenance organization or insurer with which the same claim is being filed. (d) On receipt of notice under Subsection (c), an insurer shall coordinate and determine the appropriate payment for each health maintenance organization or insurer to make to the physician or health care provider. (e) Except as provided by Subsection (f), if an insurer is a secondary payor and pays a portion of a claim that should have been paid by the insurer or health maintenance organization that is the primary payor, the overpayment may only be recovered from the health maintenance organization or insurer that is primarily responsible for that amount. (f) If the portion of the claim overpaid by the secondary insurer was also paid by the primary health maintenance organization or insurer, the secondary insurer may recover the amount of overpayment under Section 1301.132 from the physician or health care provider who received the payment. An insurer processing an electronic claim as a secondary payor shall rely on the primary payor information submitted on the claim by the physician or provider. Primary payor information may be submitted electronically by the primary payor to the secondary payor. (g) An insurer may share information with a health maintenance organization or another insurer to the extent necessary to coordinate appropriate payment obligations on a specific claim. (h) The provisions of this section may not be waived, voided, or nullified by contract. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(b), eff. Sept. 1, 2005. § 1301.135. PREAUTHORIZATION OF MEDICAL AND HEALTH CARE SERVICES. (a) An insurer that uses a preauthorization process for medical care and health care services shall provide to each preferred provider, not later than the 10th business day after the date a request is made, a list of medical care and health care services that require preauthorization and information concerning the preauthorization process. (b) If proposed medical care or health care services require preauthorization as a condition of the insurer's payment to a preferred provider under a health insurance policy, the insurer shall determine whether the medical care or health care services proposed to be provided to the insured are medically necessary and appropriate. (c) On receipt of a request from a preferred provider for preauthorization, the insurer shall review and issue a determination indicating whether the proposed medical care or health care services are preauthorized. The determination must be issued and transmitted not later than the third calendar day after the date the request is received by the insurer. (d) If the proposed medical care or health care services involve inpatient care and the insurer requires preauthorization as a condition of payment, the insurer shall review the request and issue a length of stay for the admission into a health care facility based on the recommendation of the patient's physician or health care provider and the insurer's written medically accepted screening criteria and review procedures. If the proposed medical or health care services are to be provided to a patient who is an inpatient in a health care facility at the time the services are proposed, the insurer shall review the request and issue a determination indicating whether proposed services are preauthorized within 24 hours of the request by the physician or provider. (e) An insurer shall have appropriate personnel reasonably available at a toll-free telephone number to respond to requests for a preauthorization between 6 a.m. and 6 p.m. central time Monday through Friday on each day that is not a legal holiday and between 9 a.m. and noon central time on Saturday, Sunday, and legal holidays. An insurer must have a telephone system capable of accepting or recording incoming phone calls for preauthorizations after 6 p.m. central time Monday through Friday and after noon central time on Saturday, Sunday, and legal holidays and responding to each of those calls not later than 24 hours after the call is received. (f) If an insurer has preauthorized medical care or health care services, the insurer 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 provider has materially misrepresented the proposed medical or health care services or has substantially failed to perform the proposed medical or health care services. (g) This section applies to an agent or other person with whom an insurer contracts to perform, or to whom the insurer delegates the performance of, preauthorization of proposed medical or health care services. (h) The provisions of this section may not be waived, voided, or nullified by contract. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(b), eff. Sept. 1, 2005. § 1301.136. AVAILABILITY OF CODING GUIDELINES. (a) A contract between an insurer and a preferred provider must provide that: (1) the preferred provider may request a description and copy of the coding guidelines, including any underlying bundling, recoding, or other payment process and fee schedules applicable to specific procedures that the preferred provider will receive under the contract; (2) the insurer or the insurer's agent will provide the coding guidelines and fee schedules not later than the 30th day after the date the insurer receives the request; (3) the insurer or the insurer's agent will provide notice of changes to the coding guidelines and fee schedules that will result in a change of payment to the preferred provider not later than the 90th day before the date the changes take effect and will not make retroactive revisions to the coding guidelines and fee schedules; and (4) the contract may be terminated by the preferred provider on or before the 30th day after the date the preferred provider receives information requested under this subsection without penalty or discrimination in participation in other health care products or plans. (b) A preferred provider who receives information under Subsection (a) may only: (1) use or disclose the information for the purpose of practice management, billing activities, and other business operations; and (2) disclose the information to a governmental agency involved in the regulation of health care or insurance. (c) The insurer shall, on request of the preferred provider, provide the name, edition, and model version of the software that the insurer uses to determine bundling and unbundling of claims. (d) The provisions of this section may not be waived, voided, or nullified by contract. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(b), eff. Sept. 1, 2005. § 1301.137. VIOLATION OF CLAIMS PAYMENT REQUIREMENTS; PENALTY. (a) Except as provided by this section, if a clean claim submitted to an insurer is payable and the insurer does not determine under Subchapter C that the claim is payable and pay the claim on or before the date the insurer is required to make a determination or adjudication of the claim, the insurer shall pay the preferred provider making the claim the contracted rate owed on the claim plus a penalty in the amount of the lesser of: (1) 50 percent of the difference between the billed charges, as submitted on the claim, and the contracted rate; or (2) $100,000. (b) If the claim is paid on or after the 46th day and before the 91st day after the date the insurer is required to make a determination or adjudication of the claim, the insurer shall pay a penalty in the amount of the lesser of: (1) 100 percent of the difference between the billed charges, as submitted on the claim, and the contracted rate; or (2) $200,000. (c) If the claim is paid on or after the 91st day after the date the insurer is required to make a determination or adjudication of the claim, the insurer shall pay a penalty computed under Subsection (b) plus 18 percent annual interest on that amount. Interest under this subsection accrues beginning on the date the insurer was required to pay the claim and ending on the date the claim and the penalty are paid in full. (d) Except as provided by this section, an insurer that determines under Subchapter C that a claim is payable, pays only a portion of the amount of the claim on or before the date the insurer is required to make a determination or adjudication of the claim, and pays the balance of the contracted rate owed for the claim after that date shall pay to the preferred provider, in addition to the contracted amount owed, a penalty on the amount not timely paid in the amount of the lesser of: (1) 50 percent of the underpaid amount; or (2) $100,000. (e) If the balance of the claim is paid on or after the 46th day and before the 91st day after the date the insurer is required to make a determination or adjudication of the claim, the insurer shall pay a penalty on the balance of the claim in the amount of the lesser of: (1) 100 percent of the underpaid amount; or (2) $200,000. (f) If the balance of the claim is paid on or after the 91st day after the date the insurer is required to make a determination or adjudication of the claim, the insurer shall pay a penalty on the balance of the claim computed under Subsection (e) plus 18 percent annual interest on that amount. Interest under this subsection accrues beginning on the date the insurer was required to pay the claim and ending on the date the claim and the penalty are paid in full. (g) For the purposes of Subsections (d) and (e), the underpaid amount is computed on the ratio of the amount underpaid on the contracted rate to the contracted rate as applied to the billed charges as submitted on the claim. (h) An insurer is not liable for a penalty under this section: (1) if the failure to pay the claim in accordance with Subchapter C is a result of a catastrophic event that substantially interferes with the normal business operations of the insurer; or (2) if the claim was paid in accordance with Subchapter C, but for less than the contracted rate, and: (A) the preferred provider notifies the insurer of the underpayment after the 180th day after the date the underpayment was received; and (B) the insurer pays the balance of the claim on or before the 45th day after the date the insurer receives the notice. (i) Subsection (h) does not relieve the insurer of the obligation to pay the remaining unpaid contracted rate owed the preferred provider. (j) An insurer that pays a penalty under this section shall clearly indicate on the explanation of payment statement in the manner prescribed by the commissioner by rule the amount of the contracted rate paid and the amount paid as a penalty. (k) In addition to any other penalty or remedy authorized by this code, an insurer that violates Section 1301.103, 1301.104, or 1301.105 in processing more than two percent of clean claims submitted to the insurer is subject to an administrative penalty under Chapter 84. For each day an administrative penalty is imposed under this subsection, the penalty may not exceed $1,000 for each claim that remains unpaid in violation of Section 1301.103, 1301.104, or 1301.105. In determining whether an insurer has processed preferred provider claims in compliance with Section 1301.103, 1301.104, or 1301.105, the commissioner shall consider paid claims, other than claims that have been paid under Section 1301.105, and shall compute a compliance percentage for physician and provider claims, other than institutional provider claims, and a compliance percentage for institutional provider claims. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(b), eff. Sept. 1, 2005. § 1301.138. APPLICABILITY TO ENTITIES CONTRACTING WITH INSURER. This subchapter applies to a person described by Section 1301.109. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(b), eff. Sept. 1, 2005.SUBCHAPTER D. RELATIONS BETWEEN INSUREDS AND PREFERRED PROVIDERS § 1301.151. INSURED'S RIGHT TO TREATMENT. Each insured is entitled to treatment and diagnostic techniques that are prescribed by the physician or health care provider included in the preferred provider benefit plan. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.152. CONTINUING CARE IN GENERAL. (a) An insurer shall establish reasonable procedures for ensuring a transition of insureds to physicians or health care providers and for continuity of treatment. (b) An insurer shall: (1) provide, subject to Section 1301.160, reasonable advance notice to an insured of the impending termination of the participation in the plan of a physician or health care provider who is currently treating the insured; and (2) in the event of termination of a preferred provider's participation in the plan, make available to the insured a current listing of preferred providers. (c) A contract between an insurer and a physician or health care provider must include a procedure for resolving disputes regarding the necessity for continued treatment by the physician or provider. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.153. CONTINUITY OF CARE. (a) In this section: (1) "Life-threatening" means a disease or condition for which the likelihood of death is probable unless the course of the disease or condition is interrupted. (2) "Special circumstances" means a condition regarding which the treating physician or health care provider reasonably believes that discontinuing care by the treating physician or provider could cause harm to the insured. Examples of an insured who has a special circumstance include an insured with a disability, acute condition, or life-threatening illness or an insured who is past the 24th week of pregnancy. (b) Each contract between an insurer and a physician or health care provider must provide that the termination of the physician's or provider's participation in a preferred provider benefit plan, except for reason of medical competence or professional behavior, does not: (1) release the physician or health care provider from the generally recognized obligation to: (A) treat an insured whom the physician or provider is currently treating; and (B) cooperate in arranging for appropriate referrals; or (2) release the insurer from the obligation to reimburse the physician or health care provider or, if applicable, the insured, at the same preferred provider rate if, at the time a physician's or provider's participation is terminated, an insured whom the physician or provider is currently treating has special circumstances in accordance with the dictates of medical prudence. (c) The treating physician or health care provider shall identify a special circumstance. The treating physician or health care provider shall: (1) request that the insured be permitted to continue treatment under the physician's or provider's care; and (2) agree not to seek payment from the insured of any amount for which the insured would not be responsible if the physician or provider were still a preferred provider. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.154. OBLIGATION FOR CONTINUITY OF CARE OF INSURER. (a) Except as provided by Subsection (b), Sections 1301.152 and 1301.153 do not extend an insurer's obligation to reimburse the terminated physician or provider or, if applicable, the insured at the preferred provider level of coverage for ongoing treatment of an insured after: (1) the 90th day after the effective date of the termination; or (2) if the insured has been diagnosed as having a terminal illness at the time of the termination, the expiration of the nine-month period after the effective date of the termination. (b) If an insured is past the 24th week of pregnancy at the time of termination, an insurer's obligation to reimburse, at the preferred provider level of coverage, the physician or provider or, if applicable, the insured, extends through delivery of the child, immediate postpartum care, and the follow-up checkup within the six-week period after delivery. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.155. EMERGENCY CARE. (a) In this section, "emergency care" means health care services provided in a hospital emergency facility or comparable facility to evaluate and stabilize a medical condition of a recent onset and severity, including severe pain, that would lead a prudent layperson possessing an average knowledge of medicine and health to believe that the person's condition, sickness, or injury is of such a nature that failure to get immediate medical care could result in: (1) placing the person's health in serious jeopardy; (2) serious impairment to bodily functions; (3) serious dysfunction of a bodily organ or part; (4) serious disfigurement; or (5) in the case of a pregnant woman, serious jeopardy to the health of the fetus. (b) If an insured cannot reasonably reach a preferred provider, an insurer shall provide reimbursement for the following emergency care services at the preferred level of benefits until the insured can reasonably be expected to transfer to a preferred provider: (1) a medical screening examination or other evaluation required by state or federal law to be provided in the emergency facility of a hospital that is necessary to determine whether a medical emergency condition exists; (2) necessary emergency care services, including the treatment and stabilization of an emergency medical condition; and (3) services originating in a hospital emergency facility following treatment or stabilization of an emergency medical condition. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.156. PAYMENT OF CLAIMS TO INSURED. An insurer shall comply with Subchapter B, Chapter 542, with respect to prompt payment to insureds. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.157. PLAIN LANGUAGE REQUIREMENTS. Each health insurance policy, health benefit plan certificate, endorsement, amendment, application, or rider must: (1) be written in plain language; (2) be in a readable and understandable format; and (3) comply with all applicable requirements relating to minimum readability requirements. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.158. INFORMATION CONCERNING PREFERRED PROVIDER BENEFIT PLANS. (a) In this section, "prospective insured" means: (1) for group coverage, an individual or an individual's dependent who is eligible for coverage under a health insurance policy issued to the group; or (2) for individual coverage, an individual or an individual's dependent who is eligible for coverage and who has expressed an interest in purchasing an individual health insurance policy. (b) An insurer shall provide to a current or prospective group contract holder or current or prospective insured on request an accurate written description of the terms of the health insurance policy to allow the current or prospective group contract holder or current or prospective insured to make comparisons and an informed decision before selecting among health care plans. The description must be in a readable and understandable format as prescribed by the commissioner and must include a current list of preferred providers. The insurer may satisfy this requirement by providing its handbook if: (1) the handbook's content is substantively similar to and achieves the same level of disclosure as the written description prescribed by the commissioner; and (2) the current list of preferred providers is provided. (c) An insurer or an agent or representative of an insurer may not use or distribute, or permit the use or distribution of, information for prospective insureds that is untrue or misleading. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.159. ANNUAL LIST OF PREFERRED PROVIDERS. A current list of preferred providers shall be provided to each insured at least annually. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.1591. PREFERRED PROVIDER INFORMATION ON INTERNET. (a) An insurer subject to this chapter that maintains an Internet site shall list on the Internet site the preferred providers, including, if appropriate, mental health providers and substance abuse treatment providers, that insureds may use in accordance with the terms of the insured's preferred provider benefit plan. The listing must identify those preferred providers who continue to be available to provide services to new patients or clients. (b) The insurer shall update at least quarterly an Internet site subject to this section. (c) The commissioner may adopt rules as necessary to implement this section. The rules may govern the form and content of the information required to be provided under Subsection (a). (d) Notwithstanding any other provision of this chapter, this section applies to an entity subject to Chapter 941 or 942 and to a multiple employer welfare arrangement that holds a certificate of authority under Chapter 846. Added by Acts 2005, 79th Leg., ch. 728, § 11.036(a), eff. Sept. 1, 2005. § 1301.160. NOTIFICATION OF TERMINATION OF PARTICIPATION OF PREFERRED PROVIDER. (a) If a practitioner's participation in a preferred provider benefit plan is terminated for a reason other than at the practitioner's request, an insurer may not notify insureds of the termination until the later of: (1) the effective date of the termination; or (2) the time at which a review panel makes a formal recommendation regarding the termination. (b) A physician or health care provider that voluntarily terminates the physician's or provider's participation in a preferred provider benefit plan shall provide reasonable notice to each insured under the physician's or provider's care. The insurer shall provide assistance to the physician or provider in ensuring that the notice requirements of this subsection are met. (c) If a practitioner's participation in a preferred provider benefit plan is terminated for reasons related to imminent harm, an insurer may notify insureds immediately. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.161. RETALIATION AGAINST INSURED PROHIBITED. An insurer may not engage in any retaliatory action against an insured, including canceling or refusing to renew a health insurance policy, because the insured or a person acting on the insured's behalf has: (1) filed a complaint against the insurer or against a preferred provider; or (2) appealed a decision of the insurer. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.162. IDENTIFICATION CARD. An identification card or other similar document issued by an insurer regulated by this code and subject to this chapter to an individual insured must display: (1) the first date on which the individual became insured under the plan; or (2) a toll-free number a physician or health care provider may use to obtain that date. Added by Acts 2005, 79th Leg., ch. 728, § 11.037(e), eff. Sept. 1, 2005.SUBCHAPTER E. CERTAIN HEALTH CARE PROVIDERS § 1301.201. CONTRACTS WITH AND REIMBURSEMENT FOR NURSE FIRST ASSISTANTS. A preferred provider may not refuse to: (1) contract with a nurse first assistant, as defined by Section 301.1525, Occupations Code, to be included in the provider's network; or (2) reimburse the nurse first assistant for a covered service that a physician has requested the nurse first assistant to perform. Added by Acts 2003, 78th Leg., ch. 1274, § 3, eff. April 1, 2005. § 1301.202. CONTRACTS WITH HOSPITALS. (a) An insurer that contracts with hospitals to provide services to insureds under a preferred provider benefit plan may not deny a hospital the opportunity to participate in providing health care services as a preferred provider solely because the hospital is not accredited by the Joint Commission on Accreditation of Healthcare Organizations or another specified national accrediting body. If a hospital is certified by the Medicare program, Title XVIII of the Social Security Act (42 U.S.C. Section 1395 et seq.), or accredited by the Joint Commission on Accreditation of Healthcare Organizations or another national accrediting body, an insurer shall accept that certification or accreditation. (b) This section does not limit an insurer's authority to establish other reasonable terms under which a hospital may provide health care services to individuals covered by a preferred provider benefit plan. (c) On the request of a hospital, the commissioner shall conduct an investigation, review, hearing, or other proceeding to determine whether an insurer is complying with this section. (d) The commissioner shall take reasonable action to ensure compliance with this section, including issuing orders and imposing sanctions. Added by Acts 2005, 79th Leg., ch. 1305, § 1, eff. June 18, 2005.
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