LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 18, 2013 TO: Honorable John T. Smithee, Chair, House Committee On Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB522 by Kuempel (Relating to direct payment by a health insurer to physicians and health care providers.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code relating to direct payment by a health insurer to physicians and health care providers. The bill would require health insurance policy claim forms to have the option for the claimant to assign benefits to a health care provider who provided services, and payments to providers may not be more than it would be in the absence of the assignment of benefits. It would also allow health insurance policies to provide payment directly to health care providers, if the service and insured are both covered, even in the absence of an assignment of benefits. The bill would also require insurers that issue preferred provider benefit plans to pay preferred providers directly for covered services. The bill would apply to insurance policies after January 1, 2014. Based on information provided by the Texas Department of Insurance (TDI), it is assumed that any costs associated with the implementation of this bill would be absorbed within existing staff and resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:454 Department of Insurance LBB Staff: UP, AG, ER, LXH LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 18, 2013 TO: Honorable John T. Smithee, Chair, House Committee On Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB522 by Kuempel (Relating to direct payment by a health insurer to physicians and health care providers.), As Introduced TO: Honorable John T. Smithee, Chair, House Committee On Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB522 by Kuempel (Relating to direct payment by a health insurer to physicians and health care providers.), As Introduced Honorable John T. Smithee, Chair, House Committee On Insurance Honorable John T. Smithee, Chair, House Committee On Insurance Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB522 by Kuempel (Relating to direct payment by a health insurer to physicians and health care providers.), As Introduced HB522 by Kuempel (Relating to direct payment by a health insurer to physicians and health care providers.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code relating to direct payment by a health insurer to physicians and health care providers. The bill would require health insurance policy claim forms to have the option for the claimant to assign benefits to a health care provider who provided services, and payments to providers may not be more than it would be in the absence of the assignment of benefits. It would also allow health insurance policies to provide payment directly to health care providers, if the service and insured are both covered, even in the absence of an assignment of benefits. The bill would also require insurers that issue preferred provider benefit plans to pay preferred providers directly for covered services. The bill would apply to insurance policies after January 1, 2014. Based on information provided by the Texas Department of Insurance (TDI), it is assumed that any costs associated with the implementation of this bill would be absorbed within existing staff and resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 454 Department of Insurance 454 Department of Insurance LBB Staff: UP, AG, ER, LXH UP, AG, ER, LXH