Texas House Bill HB4872

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to the calculation of penalties for violating certain laws governing the prompt payment of claims submitted by a physician or health care provider to certain health benefit plan issuers.

Impact

The proposed changes will primarily impact the existing laws regarding prompt payment of claims. By establishing a uniform guideline for what constitutes the 'contracted rate', the bill seeks to standardize the approach to calculating penalties across the state. This could lead to more consistent practices among health benefit plan issuers and may strengthen the financial position of healthcare providers in Texas, especially in scenarios where timely payments are not forthcoming.

Summary

House Bill 4872 aims to amend the Insurance Code in Texas, focusing on the calculation of penalties for health benefit plan issuers that fail to promptly pay claims submitted by physicians or healthcare providers. Specifically, the bill outlines that for assessing these penalties, the relevant contracted rate for healthcare services will be defined as the usual and customary rate for the service in the geographic area where the services are rendered. This adjustment is designed to enhance clarity and ensure fair compensation for healthcare providers in cases of delayed payments.

Contention

While the bill seems to position itself as a protective measure for healthcare providers, there may be contention surrounding how health benefit plan issuers will adapt to these changes. Stakeholders might have differing perspectives on what defines 'usual and customary' rates, and disputes could arise over the interpretation of these guidelines. Additionally, some critics may argue that this could lead to increased costs for health benefit plan issuers, potentially affecting premium rates for consumers.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 843. Health Maintenance Organizations
  • Section: 342

• Chapter 1301. Preferred Provider Benefit Plans
  • Section: 137