89R4715 DNC-D By: Menéndez S.B. No. 547 A BILL TO BE ENTITLED AN ACT relating to notice from a health benefit plan issuer to the Texas Department of Insurance regarding a physician's or health care provider's preauthorization exemption status. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter N, Chapter 4201, Insurance Code, is amended by adding Section 4201.660 to read as follows: Sec. 4201.660. EXEMPTION STATUS NOTIFICATION TO DEPARTMENT; DATABASE AND REPORT. (a) A health maintenance organization or insurer that uses a preauthorization process for health care services shall provide written notice to the department of a physician's or provider's preauthorization exemption status under this subchapter not later than the 10th day after the date on which the health maintenance organization or insurer: (1) completes an evaluation of the physician or provider as required by Section 4201.653(b) and determines whether the physician or provider qualifies for an exemption; (2) determines that the health maintenance organization or insurer will continue the physician's or provider's exemption under Section 4201.653(c); (3) provides notice to the physician or provider of a determination to rescind the physician's or provider's exemption; or (4) makes an internal appeal determination or receives a determination from an independent review organization under Section 4201.656 affirming or denying the health maintenance organization's or insurer's determination to rescind the physician's or provider's exemption. (b) The department shall establish and maintain a database of preauthorization exemption grants, denials, recissions, and internal appeal and independent review determinations. On the request of a physician or provider, the department shall provide the physician or provider with information regarding the physician's or provider's preauthorization exemption status with respect to each relevant health maintenance organization or insurer and with respect to each relevant health care service. (c) The department shall collect and compile data regarding: (1) the number and timing of evaluations being conducted by each health maintenance organization or insurer under this subchapter; (2) the number of internal appeals or independent reviews conducted by or with respect to each health maintenance organization or insurer under this subchapter; (3) the number of exemptions granted, denied, or rescinded by each health maintenance organization or insurer, by provider type and health care service; and (4) the number and outcomes of internal appeals or independent reviews conducted by or with respect to each health maintenance organization or insurer. (d) The department shall annually prepare a statistical report reflecting the data collected under Subsection (c) and make the report available to the public on request. SECTION 2. Section 4201.660, Insurance Code, as added by this Act, applies only to a determination regarding a physician's or provider's preauthorization exemption status made on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2025.