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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 3LIFE, ACCIDENT, AND HEALTH INSURANCE AND ANNUITIES
SUBCHAPTER XPREFERRED AND EXCLUSIVE PROVIDER PLANS
DIVISION 1GENERAL REQUIREMENTS
RULE §3.3703Contracting Requirements

    (H) A preferred provider that receives information under this paragraph may terminate the contract on or before the 30th day after the date the preferred provider receives information requested under this paragraph without penalty or discrimination in participation in other health care products or plans. If a preferred provider chooses to terminate the contract, the insurer is required to assist the preferred provider in providing the notice required by paragraph (18) of this subsection.

    (I) The provisions of this paragraph may not be waived, voided, or nullified by contract.

  (21) An insurer may require a preferred provider to retain in the preferred provider's records updated information concerning a patient's other health benefit plan coverage.

  (22) Upon request by a preferred provider, an insurer is required to include a provision in the preferred provider's contract providing that the insurer and the insurer's clearinghouse may not refuse to process or pay an electronically submitted clean claim because the claim is submitted together with or in a batch submission with a claim that is deficient. As used in this section, the term batch submission is a group of electronic claims submitted for processing at the same time within a HIPAA standard ASC X12N 837 Transaction Set and identified by a batch control number. This paragraph applies to a contract entered into or renewed on or after January 1, 2006.

  (23) A contract between an insurer and a preferred provider other than an institutional provider may contain a provision requiring a referring physician or provider, or a designee, to disclose to the insured:

    (A) that the physician, provider, or facility to whom the insured is being referred might not be a preferred provider; and

    (B) if applicable, that the referring physician or provider has an ownership interest in the facility to which the insured is being referred.

  (24) A contract provision that requires notice as specified in paragraph (23)(A) of this subsection is required to allow for exceptions for emergency care and as necessary to avoid interruption or delay of medically necessary care and may not limit access to nonpreferred providers.

  (25) A contract between an insurer and a preferred provider must require the preferred provider to comply with all applicable requirements of the Insurance Code §1661.005 (relating to refunds of overpayments from enrollees).

  (26) A contract between an insurer and a facility must require that the facility give notice to the insurer of the termination of a contract between the facility and a facility-based physician group that is a preferred provider for the insurer as soon as reasonably practicable, but not later than the fifth business day following termination of the contract.

  (27) A contract between an insurer and a preferred provider must require, except for instances of emergency care as defined under Insurance Code §1301.155(a), that a physician or provider referring an insured to a facility for surgery:

    (A) notify the insured of the possibility that out-of-network providers may provide treatment and that the insured can contact the insurer for more information;

    (B) notify the insurer that surgery has been recommended; and

    (C) notify the insurer of the facility that has been recommended for the surgery.

  (28) A contract between an insurer and a facility must require, except for instances of emergency care as defined under Insurance Code §1301.155(a), that the facility, when scheduling surgery:

    (A) notify the insured of the possibility that out-of-network providers may provide treatment and that the insured can contact the insurer for more information; and

    (B) notify the insurer that surgery has been scheduled.

(b) In addition to all other contract rights, violations of these rules will be treated for purposes of complaint and action in accordance with Insurance Code Chapter 542, Subchapter A, and the provisions of that subchapter will be utilized insofar as practicable, as it relates to the power of the department, hearings, orders, enforcement, and penalties.

(c) An insurer may enter into an agreement with a preferred provider organization, an exclusive provider network, or a health care collaborative for the purpose of offering a network of preferred providers, provided that it remains the insurer's responsibility to:

  (1) meet the requirements of Insurance Code Chapter 1301 and this subchapter;

  (2) ensure that the requirements of Insurance Code Chapter 1301 and this subchapter are met; and

  (3) provide all documentation to demonstrate compliance with all applicable rules on request by the department.


Source Note: The provisions of this §3.3703 adopted to be effective July 1, 1986, 11 TexReg 2810; amended to be effective December 6, 1995, 20 TexReg 9697; amended to be effective July 15, 1999, 24 TexReg 5204; amended to be effective October 8, 2002, 27 TexReg 9328; amended to be effective October 5, 2003, 28 TexReg 8623; amended to be effective January 19, 2006, 31 TexReg 289; amended to be effective December 6, 2011, 36 TexReg 3411; amended to be effective February 21, 2013, 38 TexReg 827

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