Texas House Bill HB223

Texas 2009 - 81st Regular

• Filed: 11/13/08

Caption

Relating to regulation of the secondary market in certain physician and health care provider discounts; providing administrative penalties.

Impact

By regulating how discount brokers operate within the secondary market for health care discounts, HB223 directly impacts Texas insurance laws. The bill mandates changes in how communication regarding fees and discounts must be conducted, thereby affecting the overall business practices of health care providers and the insurance entities they contract with. Providers will need to be informed constantly about which entities can access their discounted fees, enhancing their ability to make informed decisions regarding their contracts. These changes could lead to more equitable arrangements in the pricing of health services, benefiting both providers and patients.

Summary

House Bill 223 addresses the regulation of the secondary market for discounts provided by health care providers, specifically targeting the practices of discount brokers. The bill introduces measures that require discount brokers and payors to provide clear disclosures about the discounts they offer and the entities involved in accessing those discounts. This regulation aims to improve transparency in health care pricing and protect health care providers by establishing rules governing the disclosure and transfer of contracted discounted fees. The focus on administrative penalties for violations serves as a mechanism to enforce compliance among discount brokers and payors.

Contention

The primary points of contention surrounding HB223 may arise from the implications it holds for discount brokers and payors within the health care market. Stakeholders may express concerns regarding the burden of additional administrative requirements, viewing the regulations as potential constraints on the flexibility and efficiency of their operations. Some may argue that while the bill promotes transparency, it could inadvertently lead to increased costs for providers and consumers if discount brokers pass on compliance costs. Furthermore, the specifics of how enforcement mechanisms are implemented may also generate debate amongst legislators and involved parties.