Texas 2019 - 86th Regular

Texas House Bill HB4536 Latest Draft

Bill / Introduced Version Filed 03/08/2019

                            86R13583 SMT-D
 By: Lucio III H.B. No. 4536


 A BILL TO BE ENTITLED
 AN ACT
 relating to the determination of a usual and customary amount under
 the Insurance Code.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle A, Title 2, Insurance Code, is amended
 by adding Chapter 41 to read as follows:
 CHAPTER 41. USUAL AND CUSTOMARY AMOUNTS
 Sec. 41.0001.  STANDARDIZED PROCEDURE. (a)  The
 commissioner of insurance by rule shall adopt a standardized
 procedure to determine the usual and customary rate or amount for a
 particular medical care or health care service or supply, including
 a dental care service or supply, for purposes of this code.
 (b)  The procedure may include the use of a database or
 clearing house, a survey procedure, or any other mechanism that
 facilitates the determination of whether an amount is usual and
 customary.
 Sec. 41.0002.  SIMILAR STATUTORY PROVISIONS. For a
 provision of this code that establishes a payment standard for a
 medical care or health care service or supply using statutory
 language that is similar to "usual and customary," including
 "reasonable and customary" or "usual, customary, and reasonable,"
 the commissioner by rule shall determine whether the provision is
 subject to the standardized procedure adopted under Section
 41.0001.
 Sec. 41.0003.  USE OF PROCEDURE. (a)  The issuer of any
 health benefit plan regulated under this code, including a health
 maintenance organization or a preferred provider organization,
 must use the standardized procedure adopted under this chapter to
 determine whether the amount of a rate, charge, claim, or analogous
 payment to be paid to a physician, health care practitioner, or
 other health care provider, including a dentist, for a medical care
 or health care service or supply, including a dental care service or
 supply, is the usual and customary amount for the service or supply.
 (b)  The standardized procedure adopted under this chapter
 is applicable to the determination of the usual and customary rate
 for a service or supply in a mediation conducted under Chapter 1467.
 SECTION 2.  Not later than December 31, 2019, the
 commissioner of insurance shall adopt rules as necessary to
 implement Chapter 41, Insurance Code, as added by this Act.
 SECTION 3.  The standardized procedure adopted under Chapter
 41, Insurance Code, as added by this Act, does not apply to the
 amount of a rate, charge, claim, or analogous payment to be paid for
 a medical care or health care service or supply provided before
 January 1, 2020.
 SECTION 4.  This Act takes effect September 1, 2019.