81R5894 PB-D By: Davis of Harris H.B. No. 1888 A BILL TO BE ENTITLED AN ACT relating to standards required for certain rankings of physicians by health benefit plans. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle F, Title 8, Insurance Code, is amended by adding Chapter 1460 to read as follows: CHAPTER 1460. STANDARDS REQUIRED REGARDING CERTAIN PHYSICIAN RANKINGS BY HEALTH BENEFIT PLANS Sec. 1460.001. DEFINITIONS. In this chapter: (1) "Health benefit plan issuer" means an entity authorized under this code or another insurance law of this state that provides health insurance or health benefits in this state, including: (A) an insurance company; (B) a group hospital service corporation operating under Chapter 842; (C) a health maintenance organization operating under Chapter 843; and (D) a stipulated premium company operating under Chapter 884. (2) "Physician" means an individual licensed to practice medicine in this state or another state of the United States. Sec. 1460.002. PHYSICIAN RANKING REQUIREMENTS. (a) A health benefit plan issuer may not rank physicians, classify physicians into tiers based on performance, or publish physician-specific information that includes rankings, tiers, ratings, or other comparisons of a physician's performance against standards, measures, or other physicians, unless: (1) the standards used by the health benefit plan issuer conform to nationally recognized standards as prescribed by the commissioner under Section 1460.003; (2) the standards and measurements to be used by the health benefit plan issuer are disclosed to each affected physician before any evaluation period used by the health benefit plan issuer; and (3) each affected physician is afforded an opportunity to dispute the ranking through a process that includes due process protections that conform to protections described by 42 U.S.C. Section 11112. (b) This section does not apply to the publication of a list of network physicians and providers if ratings or comparisons are not made. Sec. 1460.003. RULES; STANDARDS. (a) The commissioner shall adopt rules in the manner prescribed by Subchapter A, Chapter 36, as necessary to implement this chapter. (b) The commissioner by rule shall prescribe the standards to be used by a health benefit plan issuer that uses a physician ranking system. In adopting standards under this subsection, the commissioner shall consider the standards prescribed by nationally recognized health care organizations that establish or promote guidelines and performance measures emphasizing quality of health care, such as the National Quality Forum or the AQA Alliance, or other similar national organizations recognized by the commissioner. Sec. 1460.004. SANCTIONS. A health benefit plan issuer that violates this chapter or a rule adopted under this chapter is subject to sanctions under Chapter 82. SECTION 2. (a) A health benefit plan issuer shall comply with Chapter 1460, Insurance Code, as added by this Act, not later than December 31, 2009. (b) A health benefit plan issuer is not subject to sanctions under Section 1460.004, Insurance Code, as added by this Act, before January 1, 2010. SECTION 3. This Act takes effect September 1, 2009.