Texas Senate Bill SB714

Texas 2009 - 81st Regular

• Out of Senate Committee: 5/19/09

Caption

Relating to the regulation of certain health care rental network contract arrangements; providing a civil penalty.

Impact

The impact of SB 714 includes significant changes in how health care contracts are managed, particularly regarding the transfer and disclosure of discounted fees. The bill prohibits discount brokers from transferring contracted discounted fees without adequate notice and explicit permission from the involved parties. It emphasizes the need for transparency within the operations of discount brokers, thereby aiming to enhance trust among health care providers, insurers, and patients. This regulatory oversight could streamline processes and reduce unfair practices that might arise from lack of oversight.

Summary

Senate Bill 714 seeks to regulate the secondary market for physician and health care provider discounts by adding Chapter 1302 to the Insurance Code of Texas. The proposed legislation introduces definitions crucial to understanding operations within this secondary market, specifying terms like 'discount broker,' 'health care provider,' and 'payor.' By clearly defining these roles, the bill lays groundwork for more structured operations in the healthcare discount ecosystem, aiming to protect both healthcare providers and patients from potential misconduct in the discount brokerage industry.

Contention

Notable points of contention surrounding SB 714 primarily focus on the balance of power between healthcare providers and discount brokers. Supporters of the bill argue that it enhances protections for providers who may be vulnerable to exploitative practices. Critics, however, might contend that increased regulation could limit the ability of discount brokers to operate effectively, potentially increasing costs for patients. The bill also introduces civil penalties for violations, which presents concerns about the punitive measures against discount brokers, particularly those who may be navigating complex regulatory requirements.