Texas 2023 88th Regular

Texas Senate Bill SB1765 Introduced / Bill

Filed 03/07/2023

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                    2023S0261-T 03/07/23
 By: Schwertner S.B. No. 1765


 A BILL TO BE ENTITLED
 AN ACT
 relating to network adequacy standards and other requirements for
 preferred provider benefit plans.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 1301.001, Insurance Code, is amended by
 adding Subdivision (6-a) to read as follows:
 (6-a)  "Post-emergency stabilization care" means health care
 services that are furnished by an out-of-network provider,
 including an out-of-network hospital, freestanding emergency
 medical care facility or comparable emergency facility,
 (regardless of the department of the hospital in which such
 services or supplies are furnished) after the insured is stabilized
 and as part of outpatient observation or an inpatient or outpatient
 stay with respect to the visit in which the services defined by
 Section 1301.155(a) are furnished.
 SECTION 2.  Section 1301.0046, Insurance Code, is amended to
 read as follows:
 Sec. 1301.0046.  COST-SHARING [COINSURANCE] REQUIREMENTS
 FOR SERVICES OF NONPREFERRED PROVIDERS. (a) The insured's
 coinsurance applicable to payment to nonpreferred providers may not
 exceed 50 percent of the total covered amount applicable to the
 medical or health care services.
 (b)  An insurer shall credit a cost-sharing payment,
 including any copayment, coinsurance, or deductible, paid by or on
 behalf of an insured for services furnished by an out-of-network
 provider to any out-of-pocket maximum that applies to the insured.
 The cost-sharing payment must be applied to the out-of-pocket
 maximum in the same manner as if it were made with respect to
 services furnished by a preferred provider.
 (c)  An insurer may not have separate out-of-pocket maximums
 for in-network and out-of-network services.
 (d)  The commissioner by rule shall set a reasonable cap on
 an out-of-pocket maximum under this section.
 (e)  This section does not apply to an exclusive provider
 benefit plan.
 SECTION 3.  The heading to Section 1301.005, Insurance Code,
 is amended to read as follows:
 Sec. 1301.005.  AVAILABILITY OF PREFERRED PROVIDERS;
 SERVICE AREA LIMITATIONS.
 SECTION 4.  Section 1301.005, Insurance Code, is amended by
 amending Subsections (a) and adding Subsection (d) to read as
 follows:
 (a)  An insurer offering a preferred provider benefit plan
 shall ensure that both preferred provider benefits and basic level
 benefits, including benefits for emergency care, as defined by
 Section 1301.155 and post-emergency stabilization care, are
 reasonably available to all insureds within the designated service
 area. This subsection does not apply to an exclusive provider
 benefit plan.
 (d)  A service area, other than a statewide service area, may
 include noncontiguous geographic areas but:
 (1)  may not divide a county; and
 (2)  must include at least one trauma service area in
 its entirety.
 SECTION 5.  1301.0053, Insurance Code, is amended by
 amending Subsections (a) and (b) and adding Subsections (d) and (e)
 to read as follows:
 (a)  If an out-of-network provider provides emergency care,
 as defined by Section 1301.155 or post-emergency stabilization care
 to an enrollee in an exclusive provider benefit plan, the issuer of
 the plan shall reimburse the out-of-network provider at the usual
 and customary rate or at a rate agreed to by the issuer and the
 out-of-network provider for the provision of the services and any
 supply related to those services. The insurers shall make a payment
 required by this subsection directly to the provider not later
 than, as applicable:
 (1)  the 30th day after the date the insurer receives an
 electronic clean claim as defined by Section 1301.101 for those
 services that includes all information necessary for the insurer to
 pay the claim; or
 (2)  the 45th day after the date the insurer receives a
 nonelectronic clean claim as defined by Section 1301.101 for those
 services that includes all information necessary for the insurer to
 pay the claim;
 (b)  For emergency care or post-emergency stabilization care
 subject to this section or a supply related to that care, an
 out-of-network provider or a person asserting a claim as an agent or
 assignee of the provider may not bill an insured in, and the insured
 does not have financial responsibility for, an amount greater than
 an applicable copayment, coinsurance, and deductible under the
 insured's exclusive provider benefit plan that:
 (1)  is based on:
 (A)  the amount initially determined payable by
 the insurer; or
 (B)  if applicable, a modified amount as
 determined under the insured's internal appeal process; and
 (2)  is not based on any additional amount determined
 to be owed to the provider under Chapter 1467.
 (d)  Post-emergency stabilization care that is subject to
 this section and a supply related to that care are subject to
 Chapter 1467 in the same manner as if they were emergency care, as
 defined by Section 1301.155.
 (e)  This section does not apply to claims for post-emergency
 stabilization care if each of the conditions described under 42 USC ยง
 300gg-111(a)(3)(C)(ii)(II) are met.
 SECTION 6.  Section 1301.0055, Insurance Code, is amended to
 read as follows:
 Sec. 1301.0055.  NETWORK ADEQUACY STANDARDS. (a) The
 commissioner shall by rule adopt network adequacy standards that:
 (1)  require an insurer offering a preferred provider
 benefit plan to monitor compliance with network adequacy standards,
 including provisions of this chapter relating to network adequacy,
 on an ongoing basis, reporting any material deviation from network
 adequacy standards to the department within 30 days and promptly
 taking any correction action required to ensure the network is
 compliant; [adapted to local markets in which the insurer offering
 a preferred provider benefit plan operates];
 (2)  ensure availability of, and accessibility to, a
 full range of contracted physicians and health care providers to
 provide current and projected utilization of health care services
 for adult and minor insureds; [and]
 (3)  [on good cause shown,] may allow a waiver for a
 departure from [local market] network adequacy standards for a
 period not to exceed one year if the commissioner determines after
 receiving testimony at a public hearing under Section 1301.00565
 that good cause is shown and posts on the department's Internet
 website the name of the preferred provider benefit plan, the
 insurer offering the plan, each affected county, and the specific
 network adequacy standards waived;
 (4)  require disclosure by the insurer of the
 information described by Subdivision (3) in all promotion and
 advertisement of the preferred provider benefit plan for which a
 waiver is allowed under that subdivision; and
 (5)  limit a waiver from being issued to a preferred
 provider benefit plan:
 (A)  more than twice consecutively for the same
 network adequacy standard in the same county unless the insurer
 demonstrates, in addition to the good cause described in
 Subdivision (4), multiple good faith attempts to bring the plan
 into compliance with the network adequacy standard during each of
 the prior consecutive waiver periods; or
 (B)  more than a total of four times within a
 21-year period for each county in a service area for issues that may
 be remedied through good faith efforts [and the affected local
 market].
 (b)  The standards described by Subsection (a)(2) must
 include factors regarding time, distance and appointment
 availability. The factors must:
 (1)  require that all insureds are able to receive an
 appointment with a preferred provider within the maximum travel
 times and distances established under Sections 1301.00553 and
 1301.00554;
 (2)  require that at all insureds are able to receive an
 appointment with a preferred provider within the maximum
 appointment wait times established under Section 1301.0055;
 (3)  require a preferred provider benefit plan to
 ensure sufficient choice, access, and quality of physicians and
 health care providers, in number, size, and geographic
 distribution, to be capable of providing the health care services
 covered by the plan from preferred providers to all insureds within
 the insurer's designated service area, taking into account the
 insureds' characteristics, medical conditions, and health care
 needs, including:
 (A)  the current utilization of covered health
 care services within the counties of the service area; and
 (B)  an actuarial projection of utilization of
 covered health care services, physicians, and health care providers
 needed within the counties of the service area to meet the needs of
 the number of projected insureds.
 (4)  require a sufficient number of preferred providers
 of emergency medicine, anesthesiology, pathology, radiology,
 neonatology, surgery, hospitalist, intensivist and diagnostic
 services, including radiology and laboratory services at each
 preferred hospital, ambulatory surgical center or freestanding
 emergency medical care facility with credentials for these
 specialties to ensure all insureds are able to receive covered
 benefits at that preferred location;
 (5)  require that all insureds have the ability to
 access a preferred institutional provider listed in Section
 1301.00553 within the maximum travel times and distances for the
 corresponding county classification;
 (6)  require that insureds have the option of
 facilities, if available, of pediatric, for-profit, nonprofit, and
 tax-supported institutions, with special consideration to
 contracting with teaching hospitals that provide indigent care or
 care for uninsured individual as a significant percentage of their
 overall patient load;
 (7)  require that there is an adequate number of
 preferred provider physicians who have admitting privileges at one
 or more preferred provider hospitals located within the insurer's
 designated service area to make any necessary hospital admissions;
 (8)  provide for necessary hospital services by
 requiring contracting with general, pediatric, specialty, and
 psychiatric hospitals on a preferred benefit basis within the
 insurer's designated service area, as applicable;
 (9)  ensure that emergency care, as defined by Section
 1301.155, is available and accessible 24 hours a day, seven days a
 week, by preferred providers;
 (10)  ensure that covered urgent care is available and
 accessible from preferred providers within the insurer's
 designated service area within 24 hours for medical and behavioral
 health conditions;
 (11)  require an adequate number of preferred providers
 available and accessible to insureds 24 hours a day, seven days a
 week, within the insurer's designated service area; and
 (12)  require sufficient numbers and classes of
 preferred providers to ensure choice, access, and quality of care
 across the insurer's designated service area.
 SECTION 7.  Subchapter A, Chapter 1301, Insurance Code, is
 amended by adding Sections 1301.00553, 1301.00554, and 1301.00555
 to read as follows:
 Sec. 1301.00553.  MAXIMUM TRAVEL TIME AND DISTANCE STANDARDS
 BY PREFERRED PROVIDER TYPE. (a) For purposes of this section, each
 county in this state is classified as a large metro, metro, micro,
 or rural county, or a county with extreme access considerations as
 determined by the federal Centers for Medicare and Medicaid
 Services by population and density thresholds as of March 1, 2023.
 (b)  Maximum travel time in minutes and maximum distance in
 miles for preferred provider benefit plans by preferred provider
 type for each large metro county are:
 (1)  For physicians:
 (A)  Designated by physician specialty. The
 preferred provider benefit plan's network must comply with the time
 and distance standards for the following physician specialties:
 Time Distance  Time Distance
 Time Distance
 Allergy and Immunology 30 15 Allergy and Immunology 30 15
Allergy and Immunology 30 15
 Anesthesiology 20 10 Anesthesiology 20 10
Anesthesiology 20 10
 Cardiology 20 10 Cardiology 20 10
Cardiology 20 10
 Cardiothoracic Surgery 30 15 Cardiothoracic Surgery 30 15
Cardiothoracic Surgery 30 15
 Dermatology 20 10 Dermatology 20 10
Dermatology 20 10
 Emergency Medicine 20 10 Emergency Medicine 20 10
Emergency Medicine 20 10
 Endocrinology 30 15 Endocrinology 30 15
Endocrinology 30 15
 Ear, Nose, and Throat/Otolaryngology 30 15 Ear, Nose, and Throat/Otolaryngology 30 15
Ear, Nose, and Throat/Otolaryngology 30 15
 Gastroenterology 20 10 Gastroenterology 20 10
Gastroenterology 20 10
 General Surgery 20 10 General Surgery 20 10
General Surgery 20 10
 Gynecology and Obstetrics 10 5 Gynecology and Obstetrics 10 5
Gynecology and Obstetrics 10 5
 Infectious Diseases 30 15 Infectious Diseases 30 15
Infectious Diseases 30 15
 Nephrology 30 15 Nephrology 30 15
Nephrology 30 15
 Neurology 20 10 Neurology 20 10
Neurology 20 10
 Neurosurgery 30 15 Neurosurgery 30 15
Neurosurgery 30 15
 Oncology: Medical, Surgical 20 10 Oncology: Medical, Surgical 20 10
Oncology: Medical, Surgical 20 10
 Oncology: Radiation 30 15 Oncology: Radiation 30 15
Oncology: Radiation 30 15
 Ophthalmology 20 10 Ophthalmology 20 10
Ophthalmology 20 10
 Orthopedic Surgery 20 10 Orthopedic Surgery 20 10
Orthopedic Surgery 20 10
 Physical Medicine and Rehabilitation 30 15 Physical Medicine and Rehabilitation 30 15
Physical Medicine and Rehabilitation 30 15
 Plastic Surgery 30 15 Plastic Surgery 30 15
Plastic Surgery 30 15
 Primary Care: Adults 10 5 Primary Care: Adults 10 5
Primary Care: Adults 10 5
 Primary Care: Pediatric 10 5 Primary Care: Pediatric 10 5
Primary Care: Pediatric 10 5
 Psychiatry 20 10 Psychiatry 20 10
Psychiatry 20 10
 Pulmonology 20 10 Pulmonology 20 10
Pulmonology 20 10
 Rheumatology 30 15 Rheumatology 30 15
Rheumatology 30 15
 Urology 20 10 Urology 20 10
Urology 20 10
 Vascular Surgery 30 15 Vascular Surgery 30 15
Vascular Surgery 30 15
 (2)  For health care providers:
 (A)  Designated by the kind of practitioner or
 institutional provider furnishing the health care service.
 (i)  The preferred provider benefit plan's
 network must comply with the time and distance standards for
 practitioners licensed to provide health care services in this
 state, in the following disciplines:
 Time Distance  Time Distance
 Time Distance
 Chiropractic 30 15  Chiropractic 30 15
 Chiropractic 30 15
 Occupational Therapy 20 10  Occupational Therapy 20 10
 Occupational Therapy 20 10
 Physical Therapy 20 10  Physical Therapy 20 10
 Physical Therapy 20 10
 Podiatry 20 10  Podiatry 20 10
 Podiatry 20 10
 Speech Therapy 20 10  Speech Therapy 20 10
 Speech Therapy 20 10
 (ii)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following kinds of institutional providers:
 Time Distance  Time Distance
 Time Distance
 Acute Inpatient Hospitals (Emergency  Acute Inpatient Hospitals (Emergency
 Acute Inpatient Hospitals (Emergency
 Services Available 24/7) 20 10  Services Available 24/7) 20 10
 Services Available 24/7) 20 10
 Cardiac Catheterization Services 30 15  Cardiac Catheterization Services 30 15
 Cardiac Catheterization Services 30 15
 Cardiac Surgery Program 30 15  Cardiac Surgery Program 30 15
 Cardiac Surgery Program 30 15
 Critical Care Services: Intensive Care Units 20 10  Critical Care Services: Intensive Care Units 20 10
 Critical Care Services: Intensive Care Units 20 10
 Diagnostic Radiology (Freestanding;  Diagnostic Radiology (Freestanding;
 Diagnostic Radiology (Freestanding;
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 20 10  Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 20 10
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 20 10
 Inpatient or Residential Behavioral  Inpatient or Residential Behavioral
 Inpatient or Residential Behavioral
 Health Facility Services 30 15  Health Facility Services 30 15
 Health Facility Services 30 15
 Mammography 20 10  Mammography 20 10
 Mammography 20 10
 Outpatient Infusion/Chemotherapy 20 10  Outpatient Infusion/Chemotherapy 20 10
 Outpatient Infusion/Chemotherapy 20 10
 Skilled Nursing Facilities 20 10  Skilled Nursing Facilities 20 10
 Skilled Nursing Facilities 20 10
 Surgical Services (Outpatient or Ambulatory Surgical Center) 20 10  Surgical Services (Outpatient or Ambulatory Surgical Center) 20 10
 Surgical Services (Outpatient or Ambulatory Surgical Center) 20 10
 (3)  For other settings:
 (A)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following settings:
 Time Distance  Time Distance
 Time Distance
 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 10 5  Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 10 5
 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 10 5
 Urgent Care 20 10  Urgent Care 20 10
 Urgent Care 20 10
 (c)  Maximum travel time in minutes and maximum distance in
 miles for preferred provider benefit plans by preferred provider
 type for each metro county are:
 (1)  For physicians:
 (A)  Designated by physician specialty. The
 preferred provider benefit plan's network must comply with the time
 and distance standards for the following physician specialties:
 Time Distance  Time Distance
 Time Distance
 Allergy and Immunology 45 30  Allergy and Immunology 45 30
 Allergy and Immunology 45 30
 Anesthesiology 30 20  Anesthesiology 30 20
 Anesthesiology 30 20
 Cardiology 30 20  Cardiology 30 20
 Cardiology 30 20
 Cardiothoracic Surgery 60 40  Cardiothoracic Surgery 60 40
 Cardiothoracic Surgery 60 40
 Dermatology 45 30  Dermatology 45 30
 Dermatology 45 30
 Emergency Medicine 45 30  Emergency Medicine 45 30
 Emergency Medicine 45 30
 Endocrinology 60 40  Endocrinology 60 40
 Endocrinology 60 40
 Ear, Nose, and Throat/Otolaryngology 45 30  Ear, Nose, and Throat/Otolaryngology 45 30
 Ear, Nose, and Throat/Otolaryngology 45 30
 Gastroenterology 45 30  Gastroenterology 45 30
 Gastroenterology 45 30
 General Surgery 30 20  General Surgery 30 20
 General Surgery 30 20
 Gynecology and Obstetrics 15 10  Gynecology and Obstetrics 15 10
 Gynecology and Obstetrics 15 10
 Infectious Diseases 60 40  Infectious Diseases 60 40
 Infectious Diseases 60 40
 Nephrology 45 30  Nephrology 45 30
 Nephrology 45 30
 Neurology 45 30  Neurology 45 30
 Neurology 45 30
 Neurosurgery 60 40  Neurosurgery 60 40
 Neurosurgery 60 40
 Oncology: Medical, Surgical 45 30  Oncology: Medical, Surgical 45 30
 Oncology: Medical, Surgical 45 30
 Oncology: Radiation 60 40  Oncology: Radiation 60 40
 Oncology: Radiation 60 40
 Ophthalmology 30 20  Ophthalmology 30 20
 Ophthalmology 30 20
 Orthopedic Surgery 30 20  Orthopedic Surgery 30 20
 Orthopedic Surgery 30 20
 Physical Medicine and Rehabilitation 45 30  Physical Medicine and Rehabilitation 45 30
 Physical Medicine and Rehabilitation 45 30
 Plastic Surgery 60 40  Plastic Surgery 60 40
 Plastic Surgery 60 40
 Primary Care: Adults 15 10  Primary Care: Adults 15 10
 Primary Care: Adults 15 10
 Primary Care: Pediatric 15 10  Primary Care: Pediatric 15 10
 Primary Care: Pediatric 15 10
 Psychiatry 45 30  Psychiatry 45 30
 Psychiatry 45 30
 Pulmonology 45 30  Pulmonology 45 30
 Pulmonology 45 30
 Rheumatology 60 40  Rheumatology 60 40
 Rheumatology 60 40
 Urology 45 30  Urology 45 30
 Urology 45 30
 Vascular Surgery 60 40  Vascular Surgery 60 40
 Vascular Surgery 60 40
 (2)  For health care providers:
 (A)  Designated by the kind of practitioner or
 institutional provider furnishing the health care service.
 (i)  The preferred provider benefit plan's
 network must comply with the time and distance standards for
 practitioners licensed to provide health care services in this
 state, in the following disciplines:
 Time Distance  Time Distance
 Time Distance
 Chiropractic 45 30  Chiropractic 45 30
 Chiropractic 45 30
 Occupational Therapy 45 30  Occupational Therapy 45 30
 Occupational Therapy 45 30
 Physical Therapy 45 30  Physical Therapy 45 30
 Physical Therapy 45 30
 Podiatry 45 30  Podiatry 45 30
 Podiatry 45 30
 Speech Therapy 45 30  Speech Therapy 45 30
 Speech Therapy 45 30
 (ii)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following kinds of institutional providers:
 Time Distance  Time Distance
 Time Distance
 Acute Inpatient Hospitals (Emergency Services Available 24/7) 45 30  Acute Inpatient Hospitals (Emergency Services Available 24/7) 45 30
 Acute Inpatient Hospitals (Emergency Services Available 24/7) 45 30
 Cardiac Catheterization Services 60 40  Cardiac Catheterization Services 60 40
 Cardiac Catheterization Services 60 40
 Cardiac Surgery Program 60 40  Cardiac Surgery Program 60 40
 Cardiac Surgery Program 60 40
 Critical Care Services: Intensive Care Units 45 30  Critical Care Services: Intensive Care Units 45 30
 Critical Care Services: Intensive Care Units 45 30
 Diagnostic Radiology (Freestanding;  Diagnostic Radiology (Freestanding;
 Diagnostic Radiology (Freestanding;
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 45 30  Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 45 30
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 45 30
 Inpatient or Residential  Inpatient or Residential
 Inpatient or Residential
 Behavioral Health Facility Services 70 45  Behavioral Health Facility Services 70 45
 Behavioral Health Facility Services 70 45
 Mammography 45 30  Mammography 45 30
 Mammography 45 30
 Outpatient Infusion/Chemotherapy 45 30  Outpatient Infusion/Chemotherapy 45 30
 Outpatient Infusion/Chemotherapy 45 30
 Skilled Nursing Facilities 45 30  Skilled Nursing Facilities 45 30
 Skilled Nursing Facilities 45 30
 Surgical Services (Outpatient or Ambulatory Surgical Center) 45 30  Surgical Services (Outpatient or Ambulatory Surgical Center) 45 30
 Surgical Services (Outpatient or Ambulatory Surgical Center) 45 30
 (3)  For other settings:
 (A)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following settings:
 Time Distance  Time Distance
 Time Distance
 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 15 10  Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 15 10
 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 15 10
 Urgent Care 45 30  Urgent Care 45 30
 Urgent Care 45 30
 (d)  Maximum travel time in minutes and maximum distance in
 miles for preferred provider benefit plans by preferred provider
 type for each micro county are:
 (1)  For physicians:
 (A)  Designated by physician specialty. The
 preferred provider benefit plan's network must comply with the time
 and distance standards for the following physician specialties:
 Time Distance  Time Distance
 Time Distance
 Allergy and Immunology 80 60  Allergy and Immunology 80 60
 Allergy and Immunology 80 60
 Anesthesiology 50 35  Anesthesiology 50 35
 Anesthesiology 50 35
 Cardiology 50 35  Cardiology 50 35
 Cardiology 50 35
 Cardiothoracic Surgery 100 75  Cardiothoracic Surgery 100 75
 Cardiothoracic Surgery 100 75
 Dermatology 60 45  Dermatology 60 45
 Dermatology 60 45
 Emergency Medicine 80 60  Emergency Medicine 80 60
 Emergency Medicine 80 60
 Endocrinology 100 75  Endocrinology 100 75
 Endocrinology 100 75
 Ear, Nose, and Throat/Otolaryngology 80 60  Ear, Nose, and Throat/Otolaryngology 80 60
 Ear, Nose, and Throat/Otolaryngology 80 60
 Gastroenterology 80 60  Gastroenterology 80 60
 Gastroenterology 80 60
 General Surgery 50 35  General Surgery 50 35
 General Surgery 50 35
 Gynecology and Obstetrics 30 20  Gynecology and Obstetrics 30 20
 Gynecology and Obstetrics 30 20
 Infectious Diseases 100 75  Infectious Diseases 100 75
 Infectious Diseases 100 75
 Nephrology 80 60  Nephrology 80 60
 Nephrology 80 60
 Neurology 60 45  Neurology 60 45
 Neurology 60 45
 Neurosurgery 100 75  Neurosurgery 100 75
 Neurosurgery 100 75
 Oncology: Medical, Surgical 60 45  Oncology: Medical, Surgical 60 45
 Oncology: Medical, Surgical 60 45
 Oncology: Radiation 100 75  Oncology: Radiation 100 75
 Oncology: Radiation 100 75
 Ophthalmology 50 35  Ophthalmology 50 35
 Ophthalmology 50 35
 Orthopedic Surgery 50 35  Orthopedic Surgery 50 35
 Orthopedic Surgery 50 35
 Physical Medicine and Rehabilitation 80 60  Physical Medicine and Rehabilitation 80 60
 Physical Medicine and Rehabilitation 80 60
 Plastic Surgery 100 75  Plastic Surgery 100 75
 Plastic Surgery 100 75
 Primary Care: Adults 30 20  Primary Care: Adults 30 20
 Primary Care: Adults 30 20
 Primary Care: Pediatric 30 20  Primary Care: Pediatric 30 20
 Primary Care: Pediatric 30 20
 Psychiatry 60 45  Psychiatry 60 45
 Psychiatry 60 45
 Pulmonology 60 45  Pulmonology 60 45
 Pulmonology 60 45
 Rheumatology 100 75  Rheumatology 100 75
 Rheumatology 100 75
 Urology 60 45  Urology 60 45
 Urology 60 45
 Vascular Surgery 100 75  Vascular Surgery 100 75
 Vascular Surgery 100 75
 (2)  For health care providers:
 (A)  Designated by the kind of practitioner or
 institutional provider furnishing the health care service.
 (i)  The preferred provider benefit plan's
 network must comply with the time and distance standards for
 practitioners licensed to provide health care services in this
 state, in the following disciplines:
 Time Distance  Time Distance
 Time Distance
 Chiropractic 80 60  Chiropractic 80 60
 Chiropractic 80 60
 Occupational Therapy 80 60  Occupational Therapy 80 60
 Occupational Therapy 80 60
 Physical Therapy 80 60  Physical Therapy 80 60
 Physical Therapy 80 60
 Podiatry 60 45  Podiatry 60 45
 Podiatry 60 45
 Speech Therapy 80 60  Speech Therapy 80 60
 Speech Therapy 80 60
 (ii)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following kinds of institutional providers:
 Time Distance  Time Distance
 Time Distance
 Acute Inpatient Hospitals (Emergency Services Available 24/7) 80 60  Acute Inpatient Hospitals (Emergency Services Available 24/7) 80 60
 Acute Inpatient Hospitals (Emergency Services Available 24/7) 80 60
 Cardiac Catheterization Services 160 120  Cardiac Catheterization Services 160 120
 Cardiac Catheterization Services 160 120
 Cardiac Surgery Program 160 120  Cardiac Surgery Program 160 120
 Cardiac Surgery Program 160 120
 Critical Care Services: Intensive Care Units 160 120  Critical Care Services: Intensive Care Units 160 120
 Critical Care Services: Intensive Care Units 160 120
 Diagnostic Radiology (Freestanding;  Diagnostic Radiology (Freestanding;
 Diagnostic Radiology (Freestanding;
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 80 60  Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 80 60
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 80 60
 Inpatient or Residential  Inpatient or Residential
 Inpatient or Residential
 Behavioral Health Facility Services 100 75  Behavioral Health Facility Services 100 75
 Behavioral Health Facility Services 100 75
 Mammography 80 60  Mammography 80 60
 Mammography 80 60
 Outpatient Infusion/Chemotherapy 80 60  Outpatient Infusion/Chemotherapy 80 60
 Outpatient Infusion/Chemotherapy 80 60
 Skilled Nursing Facilities 80 60  Skilled Nursing Facilities 80 60
 Skilled Nursing Facilities 80 60
 Surgical Services (Outpatient or Ambulatory Surgical Center) 80 60  Surgical Services (Outpatient or Ambulatory Surgical Center) 80 60
 Surgical Services (Outpatient or Ambulatory Surgical Center) 80 60
 (3)  For other care and settings:
 (A)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following care and settings:
 Time Distance  Time Distance
 Time Distance
 Outpatient Clinical Behavioral Health (Texas Licensed, Accredited, or Certified) 30 20  Outpatient Clinical Behavioral Health (Texas Licensed, Accredited, or Certified) 30 20
 Outpatient Clinical Behavioral Health (Texas Licensed, Accredited, or Certified) 30 20
 Urgent Care 80 60  Urgent Care 80 60
 Urgent Care 80 60
 (e)  Maximum travel time in minutes and maximum distance in
 miles for preferred provider benefit plans by preferred provider
 type for each rural county are:
 (1)  For physicians:
 (A)  Designated by physician specialty. The
 preferred provider benefit plan's network must comply with the time
 and distance standards for the following physician specialties:
 Time Distance  Time Distance
 Time Distance
 Allergy and Immunology 90 75  Allergy and Immunology 90 75
 Allergy and Immunology 90 75
 Anesthesiology 75 60  Anesthesiology 75 60
 Anesthesiology 75 60
 Cardiology 75 60  Cardiology 75 60
 Cardiology 75 60
 Cardiothoracic Surgery 110 90  Cardiothoracic Surgery 110 90
 Cardiothoracic Surgery 110 90
 Dermatology 75 60  Dermatology 75 60
 Dermatology 75 60
 Emergency Medicine 75 60  Emergency Medicine 75 60
 Emergency Medicine 75 60
 Endocrinology 110 90  Endocrinology 110 90
 Endocrinology 110 90
 Ear, Nose, and Throat/Otolaryngology 90 75  Ear, Nose, and Throat/Otolaryngology 90 75
 Ear, Nose, and Throat/Otolaryngology 90 75
 Gastroenterology 75 60  Gastroenterology 75 60
 Gastroenterology 75 60
 General Surgery 75 60  General Surgery 75 60
 General Surgery 75 60
 Gynecology and Obstetrics 40 30  Gynecology and Obstetrics 40 30
 Gynecology and Obstetrics 40 30
 Infectious Diseases 110 90  Infectious Diseases 110 90
 Infectious Diseases 110 90
 Nephrology 90 75  Nephrology 90 75
 Nephrology 90 75
 Neurology 75 60  Neurology 75 60
 Neurology 75 60
 Neurosurgery 110 90  Neurosurgery 110 90
 Neurosurgery 110 90
 Oncology: Medical, Surgical 75 60  Oncology: Medical, Surgical 75 60
 Oncology: Medical, Surgical 75 60
 Oncology: Radiation 110 90  Oncology: Radiation 110 90
 Oncology: Radiation 110 90
 Ophthalmology 75 60  Ophthalmology 75 60
 Ophthalmology 75 60
 Orthopedic Surgery 75 60  Orthopedic Surgery 75 60
 Orthopedic Surgery 75 60
 Physical Medicine and Rehabilitation 90 75  Physical Medicine and Rehabilitation 90 75
 Physical Medicine and Rehabilitation 90 75
 Plastic Surgery 110 90  Plastic Surgery 110 90
 Plastic Surgery 110 90
 Primary Care: Adults 40 30  Primary Care: Adults 40 30
 Primary Care: Adults 40 30
 Primary Care: Pediatric 40 30  Primary Care: Pediatric 40 30
 Primary Care: Pediatric 40 30
 Psychiatry 75 60  Psychiatry 75 60
 Psychiatry 75 60
 Pulmonology 75 60  Pulmonology 75 60
 Pulmonology 75 60
 Rheumatology 110 90  Rheumatology 110 90
 Rheumatology 110 90
 Urology 75 60  Urology 75 60
 Urology 75 60
 Vascular Surgery 110 90  Vascular Surgery 110 90
 Vascular Surgery 110 90
 (2)  For health care providers:
 (A)  Designated by the kind of practitioner or
 institutional provider furnishing the health care service.
 (i)  The preferred provider benefit plan's
 network must comply with the time and distance standards for
 practitioners licensed to provide health care services in this
 state, in the following disciplines:
 Time Distance  Time Distance
 Time Distance
 Chiropractic 90 75  Chiropractic 90 75
 Chiropractic 90 75
 Occupational Therapy 75 60  Occupational Therapy 75 60
 Occupational Therapy 75 60
 Physical Therapy 75 60  Physical Therapy 75 60
 Physical Therapy 75 60
 Podiatry 75 60  Podiatry 75 60
 Podiatry 75 60
 Speech Therapy 75 60  Speech Therapy 75 60
 Speech Therapy 75 60
 (ii)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following kinds of institutional providers:
 Time Distance  Time Distance
 Time Distance
 Acute Inpatient Hospitals (Emergency Services Available 24/7) 75 60  Acute Inpatient Hospitals (Emergency Services Available 24/7) 75 60
 Acute Inpatient Hospitals (Emergency Services Available 24/7) 75 60
 Cardiac Catheterization Services 145 120  Cardiac Catheterization Services 145 120
 Cardiac Catheterization Services 145 120
 Cardiac Surgery Program 145 120  Cardiac Surgery Program 145 120
 Cardiac Surgery Program 145 120
 Critical Care Services: Intensive Care Units 145 120  Critical Care Services: Intensive Care Units 145 120
 Critical Care Services: Intensive Care Units 145 120
 Diagnostic Radiology (Freestanding;  Diagnostic Radiology (Freestanding;
 Diagnostic Radiology (Freestanding;
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 75 60  Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 75 60
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 75 60
 Inpatient or Residential  Inpatient or Residential
 Inpatient or Residential
 Behavioral Health Facility Services 90 75  Behavioral Health Facility Services 90 75
 Behavioral Health Facility Services 90 75
 Mammography 75 60  Mammography 75 60
 Mammography 75 60
 Outpatient Infusion/Chemotherapy 75 60  Outpatient Infusion/Chemotherapy 75 60
 Outpatient Infusion/Chemotherapy 75 60
 Skilled Nursing Facilities 75 60  Skilled Nursing Facilities 75 60
 Skilled Nursing Facilities 75 60
 Surgical Services (Outpatient or Ambulatory Surgical Center) 75 60  Surgical Services (Outpatient or Ambulatory Surgical Center) 75 60
 Surgical Services (Outpatient or Ambulatory Surgical Center) 75 60
 (3)  For other settings:
 (A)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following settings:
 Time Distance  Time Distance
 Time Distance
 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 40 30  Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 40 30
 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 40 30
 Urgent Care 75 60  Urgent Care 75 60
 Urgent Care 75 60
 (f)  Maximum travel time in minutes and maximum distance in
 miles for preferred provider benefit plans by preferred provider
 type for each county with extreme access considerations are:
 (1)  For physicians:
 (A)  Designated by physician specialty. The
 preferred provider benefit plan's network must comply with the time
 and distance standards for the following physician specialties:
 Time Distance  Time Distance
 Time Distance
 Allergy and Immunology 125 110  Allergy and Immunology 125 110
 Allergy and Immunology 125 110
 Anesthesiology 95 85  Anesthesiology 95 85
 Anesthesiology 95 85
 Cardiology 95 85  Cardiology 95 85
 Cardiology 95 85
 Cardiothoracic Surgery 145 130  Cardiothoracic Surgery 145 130
 Cardiothoracic Surgery 145 130
 Dermatology 110 100  Dermatology 110 100
 Dermatology 110 100
 Emergency Medicine 110 100  Emergency Medicine 110 100
 Emergency Medicine 110 100
 Endocrinology 145 130  Endocrinology 145 130
 Endocrinology 145 130
 Ear, Nose, and Throat/Otolaryngology 125 110  Ear, Nose, and Throat/Otolaryngology 125 110
 Ear, Nose, and Throat/Otolaryngology 125 110
 Gastroenterology 110 100  Gastroenterology 110 100
 Gastroenterology 110 100
 General Surgery 95 85  General Surgery 95 85
 General Surgery 95 85
 Gynecology and Obstetrics 70 60  Gynecology and Obstetrics 70 60
 Gynecology and Obstetrics 70 60
 Infectious Diseases 145 130  Infectious Diseases 145 130
 Infectious Diseases 145 130
 Nephrology 125 110  Nephrology 125 110
 Nephrology 125 110
 Neurology 110 100  Neurology 110 100
 Neurology 110 100
 Neurosurgery 145 130  Neurosurgery 145 130
 Neurosurgery 145 130
 Oncology: Medical, Surgical 110 100  Oncology: Medical, Surgical 110 100
 Oncology: Medical, Surgical 110 100
 Oncology: Radiation 145 130  Oncology: Radiation 145 130
 Oncology: Radiation 145 130
 Ophthalmology 95 85  Ophthalmology 95 85
 Ophthalmology 95 85
 Orthopedic Surgery 95 85  Orthopedic Surgery 95 85
 Orthopedic Surgery 95 85
 Physical Medicine and Rehabilitation 125 110  Physical Medicine and Rehabilitation 125 110
 Physical Medicine and Rehabilitation 125 110
 Plastic Surgery 145 130  Plastic Surgery 145 130
 Plastic Surgery 145 130
 Primary Care: Adults 70 60  Primary Care: Adults 70 60
 Primary Care: Adults 70 60
 Primary Care: Pediatric 70 60  Primary Care: Pediatric 70 60
 Primary Care: Pediatric 70 60
 Psychiatry 110 100  Psychiatry 110 100
 Psychiatry 110 100
 Pulmonology 110 100  Pulmonology 110 100
 Pulmonology 110 100
 Rheumatology 145 130  Rheumatology 145 130
 Rheumatology 145 130
 Urology 110 100  Urology 110 100
 Urology 110 100
 Vascular Surgery 145 130  Vascular Surgery 145 130
 Vascular Surgery 145 130
 (2)  For health care providers:
 (A)  Designated by the kind of practitioner or
 institutional provider furnishing the health care service.
 (i)  The preferred provider benefit plan's
 network must comply with the time and distance standards for
 practitioners licensed to provide health care services in this
 state, in the following disciplines:
 Time Distance  Time Distance
 Time Distance
 Chiropractic 125 110  Chiropractic 125 110
 Chiropractic 125 110
 Occupational Therapy 110 100  Occupational Therapy 110 100
 Occupational Therapy 110 100
 Physical Therapy 110 100  Physical Therapy 110 100
 Physical Therapy 110 100
 Podiatry 110 100  Podiatry 110 100
 Podiatry 110 100
 Speech Therapy 110 100  Speech Therapy 110 100
 Speech Therapy 110 100
 (ii)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following kinds of institutional providers:
 Time Distance  Time Distance
 Time Distance
 Acute Inpatient Hospitals (Emergency Services Available 24/7) 110 100  Acute Inpatient Hospitals (Emergency Services Available 24/7) 110 100
 Acute Inpatient Hospitals (Emergency Services Available 24/7) 110 100
 Cardiac Catheterization Services 155 140  Cardiac Catheterization Services 155 140
 Cardiac Catheterization Services 155 140
 Cardiac Surgery Program 155 140  Cardiac Surgery Program 155 140
 Cardiac Surgery Program 155 140
 Critical Care Services: Intensive Care Units 155 140  Critical Care Services: Intensive Care Units 155 140
 Critical Care Services: Intensive Care Units 155 140
 Diagnostic Radiology (Freestanding;  Diagnostic Radiology (Freestanding;
 Diagnostic Radiology (Freestanding;
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 110 100  Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 110 100
 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 110 100
 Inpatient or Residential Behavioral  Inpatient or Residential Behavioral
 Inpatient or Residential Behavioral
 Health Facility Services 155 140  Health Facility Services 155 140
 Health Facility Services 155 140
 Mammography 110 100  Mammography 110 100
 Mammography 110 100
 Outpatient Infusion/Chemotherapy 110 100  Outpatient Infusion/Chemotherapy 110 100
 Outpatient Infusion/Chemotherapy 110 100
 Skilled Nursing Facilities 95 85  Skilled Nursing Facilities 95 85
 Skilled Nursing Facilities 95 85
 Surgical Services (Outpatient or Ambulatory Surgical Center) 110 100  Surgical Services (Outpatient or Ambulatory Surgical Center) 110 100
 Surgical Services (Outpatient or Ambulatory Surgical Center) 110 100
 (3)  For other settings:
 (A)  The preferred provider benefit plan's
 network must comply with the time and distance standards for the
 following settings:
 Time Distance  Time Distance
 Time Distance
 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 70 60  Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 70 60
 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 70 60
 Urgent Care 110 100  Urgent Care 110 100
 Urgent Care 110 100
 Sec. 1301.00554.  OTHER MAXIMUM DISTANCE STANDARD
 REQUIREMENTS. (a) For any physician specialty not specifically
 listed in Section 1301.00553, the maximum distance, in any county
 classification, is 75 miles.
 (b)  When necessary due to utilization or supply patterns,
 the commissioner may by rule decrease the base maximum time and
 distance standards listed in this Section or Section 1301.00553 for
 specific counties.
 Sec. 1301.00555.  MAXIMUM APPOINTMENT WAIT TIME STANDARDS.
 An insurer must ensure that:
 (1)  routine care is available and accessible from
 preferred providers:
 (A)  within three weeks for medical conditions;
 and
 (B)  within two weeks for behavioral health
 conditions; and
 (2)  preventive health care services are available and
 accessible from preferred providers:
 (A)  within two months for a child, or earlier if
 necessary for compliance with recommendations for specific
 preventive health care services; and
 (B)  within three months for an adult.
 SECTION 8.  Section 1301.0056, Insurance Code, is amended by
 amending Subsection (a) and adding Subsections (a-1) and (e) to
 read as follows:
 (a)  The commissioner shall by rule adopt a process for the
 commissioner to examine a preferred provider benefit plan before an
 insurer offers for delivery the plan to insureds to determine
 whether the plan meets the quality of care and network adequacy
 standards of this chapter. An insurer may not offer [used by] a
 preferred provider benefit plan before [or an exclusive provider
 benefit plan offered by] the commissioner determines that the
 network meets the quality of care and network adequacy standards of
 [insurer under] this chapter.
 (a-1)  An insurer is subject to a qualifying examination of
 the insurer's preferred provider benefit plans [and exclusive
 provider benefit plans] and subsequent quality of care and network
 adequacy examinations by the commissioner at least once every three
 years, in connection with a public hearing under Section 1301.00565
 concerning a material deviation from network adequacy standards by
 a previously authorized plan or a request for a waiver of a network
 adequacy standard, and whenever the commissioner considers an
 examination necessary. Documentation provided to the commissioner
 during an examination conducted under this section is confidential
 and is not subject to disclosure as public information under
 Chapter 552, Government Code.
 (e)  Rules adopted under this section must require insurers
 to provide access to or submit data necessary for the commissioner
 to evaluate and make a determination of compliance with quality of
 care and network adequacy standards. The rules must require
 insurers to submit data that includes:
 (1)  a searchable and sortable database of network
 physicians and health care providers by national provider
 identifier, county, physician specialty, hospital privileges and
 credentials, and kind of health care provider or licensure type, as
 applicable;
 (2)  actuarial data of current and projected number of
 insureds by county; and
 (3)  actuarial data of current and projected
 utilization of each preferred provider type listed in Sections
 1301.00553 and 1301.00554(a) by county; and
 (4)  any other data or information considered necessary
 by the commissioner to make a determination to authorize the use of
 the preferred provider benefit plan in the most efficient and
 effective manner possible.
 SECTION 9.  Subchapter A, Chapter 1301, Insurance Code, is
 amended by adding Section 1301.00565 to read as follows:
 Sec. 1301.00565.  PUBLIC HEARING ON NETWORK ADEQUACY
 STANDARDS WAIVERS. (a) On the earlier of a request from an insurer
 to receive a waiver from any network adequacy standard or receipt of
 notice under Section 1301.0055 of a material deviation from the
 network adequacy standards of this chapter, the commissioner shall
 set a public hearing for a determination of whether there is good
 cause for a waiver.
 (b)  The commissioner shall notify affected physicians and
 health care providers that may be the subject of a discussion of
 good faith efforts on behalf of the insurer to meet network adequacy
 standards and provide the physicians and health care providers with
 an opportunity to submit evidence, including written testimony, and
 to attend the public hearing and offer testimony either in person or
 virtually. A physician, including a physician group referenced in
 the insurer's waiver request or notice of material deviation, may
 not be identified by name at the hearing unless the physician
 consents to be identified in advance of the hearing.
 (c)  At the hearing, the commissioner shall consider all
 written and oral testimony and evidence submitted by the insurer
 and the public pertinent to the requested waiver, including:
 (1)  the total number of physicians or health care
 providers in each preferred provider type listed in Section
 1301.00553 within the county and service area being submitted for
 the waiver and whether the insurer made a good faith effort to
 contract with those required preferred provider types to meet
 network adequacy standards of this chapter;
 (2)  the total number of facilities, and availability
 of pediatric, for-profit, nonprofit, tax-supported, and teaching
 facilities, within the county and service area being submitted for
 a waiver and whether the insurer made a good faith effort to
 contract with these facilities and facility-based physicians and
 health care providers to meet network adequacy standards of this
 chapter;
 (3)  population, density, and geographical information
 to determine the possibility and travel time and distance
 requirements within the county and service area being submitted for
 a waiver; and
 (4)  availability of services, population, and density
 within a county and service area being submitted for a waiver.
 (d)  The commissioner may not consider a prohibition on
 balance billing in determining whether to grant a waiver from
 network adequacy standards.
 (e)  The commissioner may not grant a waiver without a public
 hearing.
 (f)  Except as provided by this subsection, any evidence
 submitted to the commissioner as evidence for the public hearing
 that is proprietary in nature is confidential and not subject to
 disclosure as public information under Chapter 552, Government
 Code. Information related to provider directories, credentials,
 and privileges, estimates of patient populations, and actuarial
 estimates of needed providers to meet the estimated patient
 population is not protected under this subsection.
 (g)  A policyholder is entitled to seek judicial review of
 the commissioner's decision to grant a waiver under this section in
 Travis County district court. Review by the district court under
 this subsection is de novo.
 SECTION 10.  Section 1301.009(b), Insurance Code, is amended
 to read as follows:
 (b)  The report shall:
 (1)  be verified by at least two principal officers;
 (2)  be in a form prescribed by the commissioner; and
 (3)  include:
 (A)  a financial statement of the insurer,
 including its balance sheet and receipts and disbursements for the
 preceding calendar year, certified by an independent public
 accountant;
 (B)  the number of individuals enrolled during the
 preceding calendar year, the number of enrollees as of the end of
 that year, and the number of enrollments terminated during that
 year; and
 (C)  a statement of:
 (i)  an evaluation of enrollee satisfaction;
 (ii)  an evaluation of quality of care;
 (iii)  coverage areas;
 (iv)  accreditation status;
 (v)  premium costs;
 (vi)  plan costs;
 (vii)  premium increases;
 (viii)  the range of benefits provided;
 (ix)  copayments and deductibles;
 (x)  the accuracy and speed of claims
 payment by the insurer for the plan;
 (xi)  the credentials of physicians who are
 preferred providers;
 (xii)  the number of preferred providers;
 [and]
 (xiii)  any waiver requests made and waivers
 of network adequacy standards granted under Section 1301.00565; and
 (xiv)  any material deviation from network
 adequacy standards reported to the department under Section
 1301.0055; and
 (xv)  any corrective actions, sanctions or
 penalties assessed against the insurer by the department for
 deficiencies related to the preferred provider benefit plan.
 SECTION 11.  Subchapter B, Chapter 1301, Insurance Code is
 amended by adding Section 1301.0642 to read as follows:
 Sec. 1301.0642.  CONTRACT PROVISIONS ALLOWING CERTAIN
 CHANGE PROHIBITED. (a) In this section, "adverse material change"
 means a change to a preferred provider contract that would decrease
 the preferred provider's payment or compensation; change the
 preferred provider's tier to a less preferred tier; or change the
 administrative procedures in a way that may reasonably be expected
 to significantly increase the provider's administrative expenses.
 Adverse material change does not include:
 (1)  a decrease in payment or compensation resulting
 soley from a change in a published fee schedule upon which the
 payment or compensation is based and the date of applicability is
 clearly identified in the contract;
 (2)  a decrease in payment or compensation that was
 anticipated under the terms of the contract, if the amount and date
 of applicability of the decrease is clearly identified in the
 contract;
 (3)  An administrative change that may significantly
 increase the preferred provider's administrative expense, the
 specific applicability of which is clearly identified in the
 contract; or
 (4)  A change that is required by the operation of state
 or federal law.
 (b)  An adverse material change to a preferred provider
 contract may only be made during the term of the preferred provider
 contract with the mutual agreement of the parties. A provision in a
 preferred provider contract that allows the insurer to unilaterally
 make an adverse material change during the term of the contract is
 void and unenforceable.
 (c)  Any adverse material change to the preferred provider
 contract may not go into effect until 120 days after physician or
 health care provider affirmatively agrees to the adverse material
 change in writing.
 (d)  A proposed amendment by an insurer seeking an adverse
 material change to a preferred provider contract must include a
 notice that clearly and conspicuously identifies such amendment as
 proposing an adverse material change to the contract. The notice
 must also clearly and conspicuously state that a physician or
 health care provider may choose not to agree to the amendment and
 that such a decision not to agree to the amendment may not affect
 the terms of the physician or health care provider's existing
 contract with the insurer or the preferred provider's participation
 in other health plans or products.
 (e)  A physician or health care provider's failure to agree
 to an adverse material change to a preferred provider contract
 shall not affect:
 (1)  the terms of the physician or health care
 provider's existing contract or other contracts with the insurer;
 or
 (2)  the preferred provider's participation in other
 health care products or plans.
 (f)  An insurer's failure to include the notice described by
 Subsection (d) with the proposed amendment shall make an otherwise
 agreed-to adverse material change void and unenforceable.
 SECTION 12.  The changes in law made by this Act apply only
 to an insurance policy that is delivered, issued, for delivery, or
 renewed on or after January 1, 2024. A policy delivered, issued for
 delivery, or renewed before January 1, 2024, is governed by the law
 as it existed immediately before the effective date of this Act, and
 the law is continued in effect for that purpose.
 SECTION 13.  This Act takes effect September 1, 2023.

 Time Distance

Allergy and Immunology 30 15

Anesthesiology 20 10

Cardiology 20 10

Cardiothoracic Surgery 30 15

Dermatology 20 10

Emergency Medicine 20 10

Endocrinology 30 15

Ear, Nose, and Throat/Otolaryngology 30 15

Gastroenterology 20 10

General Surgery 20 10

Gynecology and Obstetrics 10 5

Infectious Diseases 30 15

Nephrology 30 15

Neurology 20 10

Neurosurgery 30 15

Oncology: Medical, Surgical 20 10

Oncology: Radiation 30 15

Ophthalmology 20 10

Orthopedic Surgery 20 10

Physical Medicine and Rehabilitation 30 15

Plastic Surgery 30 15

Primary Care: Adults 10 5

Primary Care: Pediatric 10 5

Psychiatry 20 10

Pulmonology 20 10

Rheumatology 30 15

Urology 20 10

Vascular Surgery 30 15

 Time Distance

 Chiropractic 30 15

 Occupational Therapy 20 10

 Physical Therapy 20 10

 Podiatry 20 10

 Speech Therapy 20 10

 Time Distance

 Acute Inpatient Hospitals (Emergency

 Services Available 24/7) 20 10

 Cardiac Catheterization Services 30 15

 Cardiac Surgery Program 30 15

 Critical Care Services: Intensive Care Units 20 10

 Diagnostic Radiology (Freestanding;

 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 20 10

 Inpatient or Residential Behavioral

 Health Facility Services 30 15

 Mammography 20 10

 Outpatient Infusion/Chemotherapy 20 10

 Skilled Nursing Facilities 20 10

 Surgical Services (Outpatient or Ambulatory Surgical Center) 20 10

 Time Distance

 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 10 5

 Urgent Care 20 10

 Time Distance

 Allergy and Immunology 45 30

 Anesthesiology 30 20

 Cardiology 30 20

 Cardiothoracic Surgery 60 40

 Dermatology 45 30

 Emergency Medicine 45 30

 Endocrinology 60 40

 Ear, Nose, and Throat/Otolaryngology 45 30

 Gastroenterology 45 30

 General Surgery 30 20

 Gynecology and Obstetrics 15 10

 Infectious Diseases 60 40

 Nephrology 45 30

 Neurology 45 30

 Neurosurgery 60 40

 Oncology: Medical, Surgical 45 30

 Oncology: Radiation 60 40

 Ophthalmology 30 20

 Orthopedic Surgery 30 20

 Physical Medicine and Rehabilitation 45 30

 Plastic Surgery 60 40

 Primary Care: Adults 15 10

 Primary Care: Pediatric 15 10

 Psychiatry 45 30

 Pulmonology 45 30

 Rheumatology 60 40

 Urology 45 30

 Vascular Surgery 60 40

 Time Distance

 Chiropractic 45 30

 Occupational Therapy 45 30

 Physical Therapy 45 30

 Podiatry 45 30

 Speech Therapy 45 30

 Time Distance

 Acute Inpatient Hospitals (Emergency Services Available 24/7) 45 30

 Cardiac Catheterization Services 60 40

 Cardiac Surgery Program 60 40

 Critical Care Services: Intensive Care Units 45 30

 Diagnostic Radiology (Freestanding;

 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 45 30

 Inpatient or Residential

 Behavioral Health Facility Services 70 45

 Mammography 45 30

 Outpatient Infusion/Chemotherapy 45 30

 Skilled Nursing Facilities 45 30

 Surgical Services (Outpatient or Ambulatory Surgical Center) 45 30

 Time Distance

 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 15 10

 Urgent Care 45 30

 Time Distance

 Allergy and Immunology 80 60

 Anesthesiology 50 35

 Cardiology 50 35

 Cardiothoracic Surgery 100 75

 Dermatology 60 45

 Emergency Medicine 80 60

 Endocrinology 100 75

 Ear, Nose, and Throat/Otolaryngology 80 60

 Gastroenterology 80 60

 General Surgery 50 35

 Gynecology and Obstetrics 30 20

 Infectious Diseases 100 75

 Nephrology 80 60

 Neurology 60 45

 Neurosurgery 100 75

 Oncology: Medical, Surgical 60 45

 Oncology: Radiation 100 75

 Ophthalmology 50 35

 Orthopedic Surgery 50 35

 Physical Medicine and Rehabilitation 80 60

 Plastic Surgery 100 75

 Primary Care: Adults 30 20

 Primary Care: Pediatric 30 20

 Psychiatry 60 45

 Pulmonology 60 45

 Rheumatology 100 75

 Urology 60 45

 Vascular Surgery 100 75

 Time Distance

 Chiropractic 80 60

 Occupational Therapy 80 60

 Physical Therapy 80 60

 Podiatry 60 45

 Speech Therapy 80 60

 Time Distance

 Acute Inpatient Hospitals (Emergency Services Available 24/7) 80 60

 Cardiac Catheterization Services 160 120

 Cardiac Surgery Program 160 120

 Critical Care Services: Intensive Care Units 160 120

 Diagnostic Radiology (Freestanding;

 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 80 60

 Inpatient or Residential

 Behavioral Health Facility Services 100 75

 Mammography 80 60

 Outpatient Infusion/Chemotherapy 80 60

 Skilled Nursing Facilities 80 60

 Surgical Services (Outpatient or Ambulatory Surgical Center) 80 60

 Time Distance

 Outpatient Clinical Behavioral Health (Texas Licensed, Accredited, or Certified) 30 20

 Urgent Care 80 60

 Time Distance

 Allergy and Immunology 90 75

 Anesthesiology 75 60

 Cardiology 75 60

 Cardiothoracic Surgery 110 90

 Dermatology 75 60

 Emergency Medicine 75 60

 Endocrinology 110 90

 Ear, Nose, and Throat/Otolaryngology 90 75

 Gastroenterology 75 60

 General Surgery 75 60

 Gynecology and Obstetrics 40 30

 Infectious Diseases 110 90

 Nephrology 90 75

 Neurology 75 60

 Neurosurgery 110 90

 Oncology: Medical, Surgical 75 60

 Oncology: Radiation 110 90

 Ophthalmology 75 60

 Orthopedic Surgery 75 60

 Physical Medicine and Rehabilitation 90 75

 Plastic Surgery 110 90

 Primary Care: Adults 40 30

 Primary Care: Pediatric 40 30

 Psychiatry 75 60

 Pulmonology 75 60

 Rheumatology 110 90

 Urology 75 60

 Vascular Surgery 110 90

 Time Distance

 Chiropractic 90 75

 Occupational Therapy 75 60

 Physical Therapy 75 60

 Podiatry 75 60

 Speech Therapy 75 60

 Time Distance

 Acute Inpatient Hospitals (Emergency Services Available 24/7) 75 60

 Cardiac Catheterization Services 145 120

 Cardiac Surgery Program 145 120

 Critical Care Services: Intensive Care Units 145 120

 Diagnostic Radiology (Freestanding;

 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 75 60

 Inpatient or Residential

 Behavioral Health Facility Services 90 75

 Mammography 75 60

 Outpatient Infusion/Chemotherapy 75 60

 Skilled Nursing Facilities 75 60

 Surgical Services (Outpatient or Ambulatory Surgical Center) 75 60

 Time Distance

 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 40 30

 Urgent Care 75 60

 Time Distance

 Allergy and Immunology 125 110

 Anesthesiology 95 85

 Cardiology 95 85

 Cardiothoracic Surgery 145 130

 Dermatology 110 100

 Emergency Medicine 110 100

 Endocrinology 145 130

 Ear, Nose, and Throat/Otolaryngology 125 110

 Gastroenterology 110 100

 General Surgery 95 85

 Gynecology and Obstetrics 70 60

 Infectious Diseases 145 130

 Nephrology 125 110

 Neurology 110 100

 Neurosurgery 145 130

 Oncology: Medical, Surgical 110 100

 Oncology: Radiation 145 130

 Ophthalmology 95 85

 Orthopedic Surgery 95 85

 Physical Medicine and Rehabilitation 125 110

 Plastic Surgery 145 130

 Primary Care: Adults 70 60

 Primary Care: Pediatric 70 60

 Psychiatry 110 100

 Pulmonology 110 100

 Rheumatology 145 130

 Urology 110 100

 Vascular Surgery 145 130

 Time Distance

 Chiropractic 125 110

 Occupational Therapy 110 100

 Physical Therapy 110 100

 Podiatry 110 100

 Speech Therapy 110 100

 Time Distance

 Acute Inpatient Hospitals (Emergency Services Available 24/7) 110 100

 Cardiac Catheterization Services 155 140

 Cardiac Surgery Program 155 140

 Critical Care Services: Intensive Care Units 155 140

 Diagnostic Radiology (Freestanding;

 Hospital Outpatient; Ambulatory Health Facilities with Diagnostic Radiology) 110 100

 Inpatient or Residential Behavioral

 Health Facility Services 155 140

 Mammography 110 100

 Outpatient Infusion/Chemotherapy 110 100

 Skilled Nursing Facilities 95 85

 Surgical Services (Outpatient or Ambulatory Surgical Center) 110 100

 Time Distance

 Outpatient Clinical Behavioral Health (Licensed, Accredited, or Certified) 70 60

 Urgent Care 110 100