Texas Statutes
Subchapter B. Relations With Physicians or Health Care Providers
Section 1301.056. Restrictions on Payment and Reimbursement

Sec. 1301.056. RESTRICTIONS ON PAYMENT AND REIMBURSEMENT. (a) An insurer or third-party administrator may not reimburse a physician or other practitioner, institutional provider, or organization of physicians and health care providers on a discounted fee basis for covered services that are provided to an insured unless:
(1) the insurer or third-party administrator has contracted with either:
(A) the physician or other practitioner, institutional provider, or organization of physicians and health care providers; or
(B) a preferred provider organization that has a network of preferred providers and that has contracted with the physician or other practitioner, institutional provider, or organization of physicians and health care providers;
(2) the physician or other practitioner, institutional provider, or organization of physicians and health care providers has agreed to the contract and has agreed to provide health care services under the terms of the contract; and
(3) the insurer or third-party administrator has agreed to provide coverage for those health care services under the health insurance policy.
(b) A party to a preferred provider contract, including a contract with a preferred provider organization, may not sell, lease, or otherwise transfer information regarding the payment or reimbursement terms of the contract without the express authority of and prior adequate notification to the other contracting parties. This subsection does not affect the authority of the commissioner of insurance or the commissioner of workers' compensation under this code or Title 5, Labor Code, to request and obtain information.
(c) An insurer or third-party administrator who violates this section:
(1) commits an unfair claim settlement practice in violation of Subchapter A, Chapter 542; and
(2) is subject to administrative penalties under Chapters 82 and 84.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch. 265 (H.B. 7), Sec. 6.061, eff. September 1, 2005.

Structure Texas Statutes

Texas Statutes

Insurance Code

Title 8 - Health Insurance and Other Health Coverages

Subtitle D - Provider Plans

Chapter 1301 - Preferred Provider Benefit Plans

Subchapter B. Relations With Physicians or Health Care Providers

Section 1301.051. Designation as Preferred Provider

Section 1301.0515. Acupuncturist Services

Section 1301.0516. Chiropractic Services

Section 1301.052. Designation of Advanced Practice Nurse or Physician Assistant as Preferred Provider

Section 1301.0521. Designation of Certain Podiatrists as Preferred Providers

Section 1301.0522. Designation of Certain Optometrists, Therapeutic Optometrists, and Ophthalmologists as Preferred Providers

Section 1301.053. Appeal Relating to Designation as Preferred Provider

Section 1301.054. Notice to Practitioners of Preferred Provider Benefit Plan

Section 1301.055. Complaint Resolution

Section 1301.056. Restrictions on Payment and Reimbursement

Section 1301.057. Termination of Participation; Expedited Review Process

Section 1301.058. Economic Profiling

Section 1301.059. Quality Assessment

Section 1301.060. Compensation on Discounted Fee Basis

Section 1301.061. Preferred Provider Networks

Section 1301.062. Preferred Provider Contracts Between Insurers and Podiatrists

Section 1301.0625. Health Care Collaboratives

Section 1301.063. Contract Provisions Relating to Use of Hospitalist

Section 1301.064. Contract Provisions Relating to Payment of Claims

Section 1301.0641. Contract Provisions Prohibiting Rejection of Batched Claims

Section 1301.065. Shifting of Insurer's Tort Liability Prohibited

Section 1301.066. Retaliation Against Preferred Provider Prohibited

Section 1301.067. Interference With Relationship Between Patient and Physician or Health Care Provider Prohibited

Section 1301.068. Inducement to Limit Medically Necessary Services Prohibited

Section 1301.069. Services Provided by Certain Physicians and Health Care Providers