85R11062 PMO-D By: Muñoz, Jr. H.B. No. 2257 A BILL TO BE ENTITLED AN ACT relating to prohibiting an insurer from directing a policyholder to certain entities to provide certain medical or health care services and supplies to the policyholder. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 541, Insurance Code, is amended by adding Section 541.062 to read as follows: Sec. 541.062. DIRECTING POLICYHOLDER TO CERTAIN ENTITIES FOR HEALTH CARE SERVICES OR SUPPLIES. (a) In this section, "insurer" means an entity authorized under this code or another insurance law of this state to provide health insurance or health benefits in this state. (b) An insurer may not direct a policyholder to an entity or a physician or health care provider working for or under contract with an entity in which the insurer has an ownership interest or with which the insurer is affiliated to provide to the policyholder medical or health care services or supplies described by Subsection (d). (c) It is an unfair method of competition or an unfair or deceptive act or practice in the business of insurance for an insurer, directly or indirectly through a physician or health care provider or otherwise, to violate Subsection (b). (d) Medical or health care services and supplies under Subsection (b) include: (1) clinical laboratory services; (2) physical therapy services; (3) occupational therapy services; (4) radiology services; (5) radiation therapy services and supplies; (6) durable medical equipment and supplies; (7) prosthetics, orthotics, and prosthetic devices and supplies; (8) home health services; and (9) outpatient prescription drugs. (e) An insurer may not provide to a physician, health care provider, or other person any inducement or incentive to direct a policyholder to an entity in which the insurer has an ownership interest or with which the insurer is affiliated to provide to the policyholder medical or health care services or supplies described by Subsection (d). (f) Nothing in this section prohibits a physician or health care provider from referring a policyholder at the policyholder's request to a physician or health care provider. (g) The commissioner shall adopt rules to implement this section, including rules that prohibit specific acts or practices that violate this section. SECTION 2. Section 541.062(e), Insurance Code, as added by this Act, applies only to a contract between an insurer and a physician or health care provider that is entered into or renewed on or after the effective date of this Act. A contract entered into or renewed before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2017.