Texas 2017 85th Regular

Texas Senate Bill SB1413 Introduced / Bill

Filed 03/07/2017

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                    85R12211 SMT-F
 By: Schwertner S.B. No. 1413


 A BILL TO BE ENTITLED
 AN ACT
 relating to health maintenance organization contracts with certain
 entities to provide health care services.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 843.101, Insurance Code, is amended by
 amending Subsection (b) and adding Subsections (b-1) and (b-2) to
 read as follows:
 (b)  A health maintenance organization may provide or
 arrange for health care services only through:
 (1)  other health maintenance organizations;
 (2)  providers or groups of providers who are:
 (A)  under contract with or are employed by the
 health maintenance organization; or
 (B)  under contract with an entity that is under
 contract with the health maintenance organization to provide a
 network of providers to provide health care services only if the
 contract between the entity and the health maintenance
 organization:
 (i)  does not limit the health maintenance
 organization's authority or responsibility, including financial
 responsibility, to comply with any regulatory requirement that
 applies to a function performed by the entity;
 (ii)  requires the entity to comply with all
 regulatory requirements that apply to a function performed by the
 entity; and
 (iii)  expressly sets forth the requirements
 of Subparagraphs (i) and (ii); or
 (3)  additional health maintenance organizations or
 physicians or providers who have contracted for health care
 services with:
 (A)  the other health maintenance organizations;
 (B)  physicians with whom the health maintenance
 organization has contracted; or
 (C)  providers who are under contract with or are
 employed by the health maintenance organization.
 (b-1)  Except as provided by Subsection (b-2) and
 notwithstanding any other law, an entity described by Subsection
 (b)(2)(B) and the health maintenance organization with which the
 entity contracts are subject to Chapter 1272 as if the entity were a
 delegated entity.
 (b-2)  An entity described by Subsection (b)(2)(B) and the
 health maintenance organization with which the entity contracts are
 not subject to the following provisions:
 (1)  Section 1272.053(1);
 (2)  Section 1272.057(1);
 (3)  Section 1272.061(1)(C); and
 (4)  Subchapter D, Chapter 1272.
 SECTION 2.  This Act takes effect September 1, 2017.