Texas 2019 - 86th Regular

Texas House Bill HB317 Latest Draft

Bill / Comm Sub Version Filed 04/24/2019

                            86R17487 SMT-F
 By: Raymond H.B. No. 317
 Substitute the following for H.B. No. 317:
 By:  Lucio III C.S.H.B. No. 317


 A BILL TO BE ENTITLED
 AN ACT
 relating to the use of clinical decision support software and
 laboratory benefits management programs in connection with the
 provision of clinical laboratory services to certain managed care
 plan enrollees.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Chapter 1451, Insurance Code, is amended by
 adding Subchapter L to read as follows:
 SUBCHAPTER L. CLINICAL LABORATORY SERVICES
 Sec. 1451.551.  DEFINITIONS. In this subchapter:
 (1)  "Clinical decision support software" means
 computer software that compares patient characteristics to a
 database of clinical knowledge to produce patient-specific
 assessments or recommendations to assist a physician or health care
 provider in making clinical decisions.
 (2)  "Clinical laboratory service" means the
 examination of a specimen taken from a human body ordered by a
 physician or health care provider for use in the diagnosis,
 prevention, or treatment of a disease or the identification or
 assessment of a medical or physical condition.
 (3)  "Enrollee" means an individual enrolled in a
 managed care plan.
 (4)  "Esoteric molecular and genomic testing" means any
 test of a patient specimen analyzing multiple biomarkers of
 deoxyribonucleic acid, ribonucleic acid, or proteins using a unique
 algorithm to yield a patient-specific prognosis or diagnosis.
 (5)  "Laboratory benefits management program" means a
 managed care plan issuer protocol or program administered by the
 managed care plan issuer or another entity under contract with the
 managed care plan issuer that directs or limits decision making of a
 physician or health care provider authorized to order clinical
 laboratory services.  The term includes a requirement for a
 physician or health care provider to provide advance notice of an
 order for clinical laboratory services.
 (6)  "Managed care plan" means a health benefit plan
 under which health care services are provided to enrollees through
 contracts with physicians or health care providers and that
 requires enrollees to use participating providers or that provides
 a different level of coverage for enrollees who use participating
 providers.  The term includes a health benefit plan issued by:
 (A)  a health maintenance organization;
 (B)  a preferred or exclusive provider benefit
 plan issuer; or
 (C)  any other entity that issues a health benefit
 plan described by this subdivision, including an insurance company.
 (7)  "National medical consensus guidelines" means
 applicable generally accepted practice guidelines that are:
 (A)  supported by peer-reviewed medical
 literature; and
 (B)  promulgated by the federal government or by a
 national professional medical society, board, or association.
 (8)  "Participating provider" means a physician or
 health care provider who has contracted with a managed care plan
 issuer to provide services to enrollees.
 (9)  "Physician" means a person licensed to practice
 medicine in this state.
 Sec. 1451.552.  CERTAIN REQUIREMENTS FOR CLINICAL
 LABORATORY SERVICES PROHIBITED; EXCEPTION. (a)  Except as provided
 by Subsection (d), a managed care plan issuer may not require the
 use of clinical decision support software or a laboratory benefits
 management program by an enrollee's physician or health care
 provider before, at the time, or after the physician or health care
 provider orders a clinical laboratory service for the enrollee.
 (b)  A managed care plan issuer may not direct or limit the
 decision making of an enrollee's physician or health care provider
 relating to the referral of a patient specimen to a laboratory in
 the managed care plan network or a network otherwise designated by
 the managed care plan issuer.
 (c)  A managed care plan issuer may not limit, reduce, or
 deny payment for a clinical laboratory service based on whether the
 ordering physician or health care provider uses clinical decision
 support software or a laboratory benefits management program.
 (d)  Subsection (a) does not apply to an order for a clinical
 laboratory service if the specimen is not obtained in a hospital or
 ambulatory surgical center and:
 (1)  the order is for esoteric molecular and genomic
 testing; or
 (2)  there are national medical consensus guidelines
 available for the clinical laboratory service ordered.
 Sec. 1451.553.  CERTAIN REQUIREMENTS FOR SECOND OPINION
 PROHIBITED. A managed care plan issuer may not routinely require a
 second opinion of a pathologist's finding from another pathologist
 unless the second opinion is medically warranted based on the
 specific clinical presentation of the enrollee or other clinical
 factors relevant to the enrollee.
 Sec. 1451.554.  CLINICAL DECISION SUPPORT SOFTWARE AND
 LABORATORY BENEFITS MANAGEMENT PROGRAM REQUIREMENTS. (a)  A
 managed care plan issuer may only use clinical decision support
 software or a laboratory benefits management program that:
 (1)  is transparently based on published,
 peer-reviewed medical literature;
 (2)  is subject to timely and routine updates based on
 national medical consensus guidelines and the most current medical
 knowledge; and
 (3)  may be immediately overridden by a physician based
 on the physician's medical judgment.
 (b)  A managed care plan issuer may not use a laboratory
 benefits management program that is administered, created, or owned
 by an individual or entity with an interest in a clinical laboratory
 in the managed care plan network.
 Sec. 1451.555.  SUPERVISION BY COMPARABLE PROFESSIONAL
 REQUIRED. A managed care plan issuer may only use clinical decision
 support software, a laboratory benefits management program, or a
 prior authorization protocol for clinical laboratory services that
 is supervised by a physician of the same or a similar specialty as
 the ordering physician or health care provider.
 Sec. 1451.556.  APPLICABILITY OF SUBCHAPTER TO ENTITIES
 CONTRACTING WITH MANAGED CARE PLAN ISSUER. This subchapter applies
 to a person with whom a managed care plan issuer contracts to:
 (1)  manage or administer benefits for clinical
 laboratory services;
 (2)  process or pay claims;
 (3)  obtain the services of physicians or other health
 care providers to provide health care services to enrollees; or
 (4)  issue verifications or prior authorizations.
 Sec. 1451.557.  CONSTRUCTION OF SUBCHAPTER. This subchapter
 may not be construed to regulate the implementation or
 administration of clinical decision support software, a laboratory
 benefits management program, or a prior authorization protocol by
 an entity, including a health care entity, that is not acting on
 behalf of or at the direction of a managed care plan issuer in
 adopting the software, program, or protocol.
 SECTION 2.  Subchapter L, Chapter 1451, Insurance Code, as
 added by this Act, applies only to a contract between a managed care
 plan issuer 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, 2019.