83R984 KKR-D By: Kuempel H.B. No. 522 A BILL TO BE ENTITLED AN ACT relating to direct payment by a health insurer to physicians and health care providers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Subchapter B, Chapter 1204, Insurance Code, is amended to read as follows: SUBCHAPTER B. ASSIGNMENT OF BENEFIT PAYMENTS; DIRECT PAYMENT OF BENEFITS SECTION 2. Section 1204.051(3), Insurance Code, is amended to read as follows: (3) "Health care provider" means a person who provides health care services or ambulance services under a license, certificate, registration, or other similar evidence of regulation issued by this or another state of the United States. SECTION 3. Subchapter B, Chapter 1204, Insurance Code, is amended by adding Sections 1204.056, 1204.057, and 1204.058 to read as follows: Sec. 1204.056. ASSIGNMENT OF BENEFITS OPTION REQUIRED. (a) A health insurance policy claim form must provide an option for the claimant to assign benefits to a physician or health care provider who provided covered services. (b) The health insurer may require a written attestation of assignment of benefits. Sec. 1204.057. AMOUNT OF PAYMENT UNDER ASSIGNMENT OF BENEFITS. A payment to a physician or health care provider under an assignment of benefits may not be more than the amount the insurer would have paid in the absence of an assignment of benefits. Sec. 1204.058. DIRECT PAYMENT PROVISION AUTHORIZED. A health insurance policy may provide for payment of benefits directly to a physician or health care provider who provides covered services to a covered person, even in the absence of an assignment of benefits. SECTION 4. Subchapter B, Chapter 1301, Insurance Code, is amended by adding Section 1301.0561 to read as follows: Sec. 1301.0561. DIRECT PAYMENT TO PREFERRED PROVIDERS REQUIRED. An insurer that issues a preferred provider benefit plan shall pay a preferred provider directly for covered services provided to a person insured under the plan, in accordance with this chapter, without requiring an assignment of benefits. SECTION 5. The changes in law made by this Act apply only to an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2014. An insurance policy delivered, issued for delivery, or renewed before January 1, 2014, is governed by the law in effect immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 6. This Act takes effect September 1, 2013.