85R7231 SCL-D By: Workman H.B. No. 2345 A BILL TO BE ENTITLED AN ACT relating to the performance and appeal of utilization review by and under the direction of physicians. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 4201.152, Insurance Code, is amended to read as follows: Sec. 4201.152. UTILIZATION REVIEW UNDER DIRECTION OF PHYSICIAN. A utilization review agent shall conduct utilization review under the direction of a physician licensed to practice medicine in this [by a] state [licensing agency in the United States]. SECTION 2. Subchapter D, Chapter 4201, Insurance Code, is amended by adding Section 4201.1525 to read as follows: Sec. 4201.1525. UTILIZATION REVIEW BY PHYSICIANS. (a) A utilization review agent that uses a physician to conduct utilization review may only use a physician licensed to practice medicine in this state. (b) A payor that conducts utilization review on the payor's own behalf is subject to Subsection (a) as if the payor were a utilization review agent. SECTION 3. Section 4201.356, Insurance Code, is amended to read as follows: Sec. 4201.356. DECISION BY PHYSICIAN REQUIRED; SPECIALTY REVIEW. (a) The procedures for appealing an adverse determination must provide that a physician licensed to practice medicine in this state makes the decision on the appeal, except as provided by Subsection (b). (b) If not later than the 10th working day after the date an appeal is denied the enrollee's health care provider states in writing good cause for having a particular type of specialty provider review the case, a health care provider licensed in this state who is of the same or a similar specialty as the health care provider who would typically manage the medical or dental condition, procedure, or treatment under consideration for review shall review the decision denying the appeal. The specialty review must be completed within 15 working days of the date the health care provider's request for specialty review is received. SECTION 4. Section 4201.357(a), Insurance Code, is amended to read as follows: (a) The procedures for appealing an adverse determination must include, in addition to the written appeal, a procedure for an expedited appeal of a denial of emergency care or a denial of continued hospitalization. That procedure must include a review by a health care provider who: (1) has not previously reviewed the case; [and] (2) is of the same or a similar specialty as the health care provider who would typically manage the medical or dental condition, procedure, or treatment under review in the appeal; and (3) is licensed in this state. SECTION 5. Section 4201.454, Insurance Code, is amended to read as follows: Sec. 4201.454. UTILIZATION REVIEW UNDER DIRECTION OF PROVIDER OF SAME SPECIALTY. A specialty utilization review agent shall conduct utilization review under the direction of a health care provider who is of the same specialty as the agent and who is licensed or otherwise authorized to provide the specialty health care service in this [by a] state [licensing agency in the United States]. SECTION 6. Section 1305.351(d), Insurance Code, is amended to read as follows: (d) A [Notwithstanding Section 4201.152, a] utilization review agent or an insurance carrier that uses doctors to perform reviews of health care services provided under this chapter, including utilization review, or peer reviews under Section 408.0231(g), Labor Code, may only use doctors licensed to practice in this state. SECTION 7. Section 408.023(h), Labor Code, is amended to read as follows: (h) A [Notwithstanding Section 4201.152, Insurance Code, a] utilization review agent or an insurance carrier that uses doctors to perform reviews of health care services provided under this subtitle, including utilization review, may only use doctors licensed to practice in this state. SECTION 8. The change in law made by this Act applies only to utilization review that was requested on or after the effective date of this Act. Utilization review that was requested 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 9. This Act takes effect September 1, 2017.