HBA-JEK H.B. 2620 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2620
By: Goodman
Insurance
4/8/2001
Introduced



BACKGROUND AND PURPOSE 

Managed care organizations require physicians and patients to complete
large amounts of paperwork. Increasing administrative costs are a possible
factor in rising health care costs, and administrative duties detract from
the time physicians are able to spend with their patients.  Most managed
care organizations ask for the same information, but each managed care
organization places the information in a different format and requires
physicians to use its plan's specific form.  The absence of standardized
forms can delay care and inconvenience patients and physicians.  House Bill
2620 provides for the use of standard contracts, forms, and other documents
for routine managed care functions. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of insurance in
SECTION 1 (Article 21.52K, Insurance Code) and SECTION 2 of this bill. 

ANALYSIS

House Bill 2620 amends the Insurance Code to require the commissioner of
insurance to adopt rules by January 1, 2002, to establish and require
managed care entities to use standard contracts, forms, and other documents
for routine managed care functions.  The rules must include standard
documents for contracts, member identification cards, referral forms, and
pre-authorization forms. 

EFFECTIVE DATE

September 1, 2001.