85R2014 SMT-F
By: Muñoz, Jr. H.B. No. 2397
A BILL TO BE ENTITLED
AN ACT
relating to the termination by an insurer of a contract with a
preferred provider.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1301.057(a), Insurance Code, is amended
to read as follows:
(a) Before terminating a contract with a preferred
provider, an insurer shall:
(1) provide written reasons for the termination; and
(2) if the affected provider is a practitioner,
provide, on request, a reasonable review mechanism, except in a
case involving:
(A) imminent harm to a patient's health;
(B) an action by a state medical or other
physician licensing board or other government agency that
effectively impairs the practitioner's ability to practice
medicine; or
(C) fraud or malfeasance committed by the
practitioner against the insurer, as determined by a final,
unappealable judgment of a court.
SECTION 2. The change in law made by this Act applies only
to a contract 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.