1 | 1 | | 84R26261 AJA-F |
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2 | 2 | | By: Coleman, Bonnen of Galveston, Zerwas, H.B. No. 3006 |
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3 | 3 | | Davis of Harris, Sheffield |
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4 | 4 | | Substitute the following for H.B. No. 3006: |
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5 | 5 | | By: Sheets C.S.H.B. No. 3006 |
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6 | 6 | | |
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7 | 7 | | |
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8 | 8 | | A BILL TO BE ENTITLED |
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9 | 9 | | AN ACT |
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10 | 10 | | relating to the distribution and use of certain penalties paid by |
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11 | 11 | | health maintenance organizations and insurers for violating |
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12 | 12 | | certain provisions governing prompt payment of physicians and |
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13 | 13 | | health care providers. |
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14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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15 | 15 | | SECTION 1. Section 843.342, Insurance Code, is amended by |
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16 | 16 | | amending Subsection (m) and adding Subsection (m-1) to read as |
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17 | 17 | | follows: |
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18 | 18 | | (m) Notwithstanding any other provision of this section, |
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19 | 19 | | this subsection governs the payment of a penalty under this |
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20 | 20 | | section. For a penalty under this section relating to a clean |
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21 | 21 | | claim submitted by a physician or provider other than an |
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22 | 22 | | institutional provider, the health maintenance organization shall |
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23 | 23 | | pay the entire penalty to the physician or provider, except for any |
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24 | 24 | | interest computed under Subsection (c), which shall be paid to the |
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25 | 25 | | department to be distributed to the fund established under |
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26 | 26 | | Subchapter F, Chapter 1508, to be used for any purpose authorized by |
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27 | 27 | | the commissioner by rule to improve access to health benefit |
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28 | 28 | | coverage for individuals without coverage [Texas Health Insurance |
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29 | 29 | | Risk Pool]. For a penalty under this section relating to a clean |
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30 | 30 | | claim submitted by an institutional provider, the health |
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31 | 31 | | maintenance organization shall pay 50 percent of the total penalty |
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32 | 32 | | amount computed under this section, including interest, to the |
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33 | 33 | | institutional provider and the remaining 50 percent of that amount |
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34 | 34 | | to the department to be distributed to the fund established under |
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35 | 35 | | Subchapter F, Chapter 1508, to be used as provided by Subsection |
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36 | 36 | | (m-1). |
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37 | 37 | | (m-1) Money in the fund established under Subchapter F, |
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38 | 38 | | Chapter 1508, that is derived from penalties under this section |
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39 | 39 | | relating to clean claims submitted by institutional providers may |
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40 | 40 | | only be appropriated as follows: |
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41 | 41 | | (1) the first $5 million may be appropriated only to |
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42 | 42 | | the Health and Human Services Commission to be used only to fund the |
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43 | 43 | | commission's consumer assistance for Medicaid program; |
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44 | 44 | | (2) the next $20 million collected may be appropriated |
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45 | 45 | | only to the Health and Human Services Commission to be used only to |
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46 | 46 | | provide postpartum coverage through the child health plan program |
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47 | 47 | | operated under Chapter 62, Health and Safety Code, and Medicaid; |
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48 | 48 | | and |
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49 | 49 | | (3) amounts in excess of the amounts described by |
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50 | 50 | | Subdivisions (1) and (2) may be appropriated only to the Health and |
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51 | 51 | | Human Services Commission to be used only to increase reimbursement |
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52 | 52 | | rates to health care providers who provide services through the |
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53 | 53 | | Texas Women's Health Program [the Texas Health Insurance Risk |
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54 | 54 | | Pool]. |
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55 | 55 | | SECTION 2. Section 1301.137, Insurance Code, is amended by |
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56 | 56 | | amending Subsection (l) and adding Subsection (l-1) to read as |
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57 | 57 | | follows: |
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58 | 58 | | (l) Notwithstanding any other provision of this section, |
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59 | 59 | | this subsection governs the payment of a penalty under this |
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60 | 60 | | section. For a penalty under this section relating to a clean |
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61 | 61 | | claim submitted by a preferred provider other than an institutional |
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62 | 62 | | provider, the insurer shall pay the entire penalty to the preferred |
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63 | 63 | | provider, except for any interest computed under Subsection (c), |
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64 | 64 | | which shall be paid to the department to be distributed to the fund |
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65 | 65 | | established under Subchapter F, Chapter 1508, to be used for any |
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66 | 66 | | purpose authorized by the commissioner by rule to improve access to |
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67 | 67 | | health benefit coverage for individuals without coverage [Texas |
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68 | 68 | | Health Insurance Risk Pool]. For a penalty under this section |
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69 | 69 | | relating to a clean claim submitted by an institutional provider, |
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70 | 70 | | the insurer shall pay 50 percent of the penalty amount computed |
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71 | 71 | | under this section, including interest, to the institutional |
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72 | 72 | | provider and the remaining 50 percent of that amount to the |
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73 | 73 | | department to be distributed to the fund established under |
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74 | 74 | | Subchapter F, Chapter 1508, to be used as provided by Subsection |
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75 | 75 | | (l-1). |
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76 | 76 | | (l-1) Money in the fund established under Subchapter F, |
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77 | 77 | | Chapter 1508, that is derived from penalties under this section |
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78 | 78 | | relating to clean claims submitted by institutional providers may |
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79 | 79 | | only be appropriated as follows: |
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80 | 80 | | (1) the first $5 million may be appropriated only to |
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81 | 81 | | the Health and Human Services Commission to be used only to fund the |
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82 | 82 | | commission's consumer assistance for Medicaid program; |
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83 | 83 | | (2) the next $20 million collected may be appropriated |
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84 | 84 | | only to the Health and Human Services Commission to be used only to |
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85 | 85 | | provide postpartum coverage through the child health plan program |
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86 | 86 | | operated under Chapter 62, Health and Safety Code, and Medicaid; |
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87 | 87 | | and |
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88 | 88 | | (3) amounts in excess of the amounts described by |
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89 | 89 | | Subdivisions (1) and (2) may be appropriated only to the Health and |
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90 | 90 | | Human Services Commission to be used only to increase reimbursement |
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91 | 91 | | rates to health care providers who provide services through the |
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92 | 92 | | Texas Women's Health Program [Texas Health Insurance Risk Pool]. |
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93 | 93 | | SECTION 3. (a) Notwithstanding Section 6(e), Chapter 615 |
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94 | 94 | | (S.B. 1367), Acts of the 83rd Legislature, Regular Session, 2013, |
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95 | 95 | | any penalties relating to clean claims submitted by institutional |
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96 | 96 | | providers that were paid under Section 843.342(m) or 1301.137(l), |
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97 | 97 | | Insurance Code, before the effective date of this Act, and that |
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98 | 98 | | remain unexpended and unobligated on the effective date of this |
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99 | 99 | | Act, shall be used to provide grants to hospitals in this state to |
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100 | 100 | | upgrade the hospitals' emergency rooms and trauma facilities. |
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101 | 101 | | (b) The commissioner of insurance shall adopt rules |
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102 | 102 | | governing the distribution of grants to hospitals under this |
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103 | 103 | | section and the contracts under which the grants are awarded. |
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104 | 104 | | (c) The commissioner of insurance shall distribute all |
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105 | 105 | | money that is subject to this section not later than September 1, |
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106 | 106 | | 2017. |
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107 | 107 | | SECTION 4. (a) The changes in law made by this Act to |
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108 | 108 | | Sections 843.342 and 1301.137, Insurance Code, apply only to |
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109 | 109 | | penalties paid under those sections on or after the effective date |
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110 | 110 | | of this Act. |
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111 | 111 | | (b) Except as provided by this Act, penalties paid before |
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112 | 112 | | the effective date of this Act are governed by the law applicable to |
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113 | 113 | | the penalties immediately before the effective date of this Act, |
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114 | 114 | | and that law is continued in effect for that purpose. |
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115 | 115 | | SECTION 5. This Act takes effect immediately if it receives |
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116 | 116 | | a vote of two-thirds of all the members elected to each house, as |
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117 | 117 | | provided by Section 39, Article III, Texas Constitution. If this |
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118 | 118 | | Act does not receive the vote necessary for immediate effect, this |
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119 | 119 | | Act takes effect September 1, 2015. |
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