<<Prev Rule

Texas Administrative Code

Next Rule>>
RULE §10.42Network Contracts with Providers

(a) A network is not required to accept an application for participation in the network from a health care provider that otherwise meets the requirements specified in this chapter if the network determines that the network has contracted with a sufficient number of qualified health care providers, including health care providers of the same license type or specialty.

(b) Provider contracts and subcontracts must include, at a minimum, the following provisions:

  (1) except as provided in Insurance Code §1305.451(b)(6), concerning Employee Information; Responsibilities of Employee, a hold-harmless clause stating that the provider and the provider network will not bill or attempt to collect any amounts of payment from an employee for health care services for compensable injuries under any circumstances, including the insolvency of the insurance carrier or the network;

  (2) a statement that the provider agrees to follow treatment guidelines, return-to-work guidelines, and individual treatment protocols adopted by the network pursuant to §10.83 of this title (relating to Guidelines and Protocols) and the pharmacy closed formulary adopted by the Division of Workers' Compensation under §134.540 of this title (relating to Requirements for Use of the Closed Formulary for Claims Subject to Certified Networks), as applicable to an employee's injury;

  (3) a statement that the insurance carrier or network may not deny treatment solely on the basis that a treatment for a compensable injury in question is not specifically addressed by the treatment guidelines used by the insurance carrier or network;

  (4) a provision that the network will not engage in retaliatory action, including termination of or refusal to renew a contract, against a provider because the provider has, on behalf of an employee, reasonably filed a complaint against, or appealed a decision of, the network, or requested reconsideration or independent review of an adverse determination;

  (5) a continuity of treatment clause that states that:

    (A) if a provider leaves the network, upon the provider's request, the insurance carrier or network is obligated to continue to reimburse the provider for a period not to exceed 90 days at the contracted rate for care of an employee with a life-threatening condition or an acute condition for which disruption of care would harm the employee; and

    (B) a dispute concerning continuity of care must be resolved through the complaint resolution process under Insurance Code Chapter 1305, Subchapter I, concerning Complaint Resolution, and Subchapter G of this title (relating to Complaints);

  (6) a clause regarding appeal by the provider of termination of network provider status, except for termination due to contract expiration, and applicable written notification to employees receiving care regarding such a termination, including requirements that:

    (A) the network must provide notice to the provider at least 90 days before the effective date of a termination;

    (B) the network must provide an advisory review panel that consists of at least three providers of the same licensure and the same or similar specialty as the provider;

    (C) upon receipt of the written notification of termination, a provider may request a review by the network's advisory review panel not later than 30 days after receipt of the notification;

    (D) the network must complete the advisory panel review before the effective date of the termination;

    (E) a network may not notify patients of the termination until the earlier of the effective date of the termination or the date the advisory review panel makes a formal recommendation;

    (F) in the case of imminent harm to patient health, suspension or loss of license to practice, or fraud, the network may terminate the provider immediately and must notify employees immediately of the termination; and

    (G) if the provider terminates the contract, the network must provide notification of the termination to employees receiving care from the terminating provider. The network must give such notice immediately upon receipt of the provider's termination request or as soon as reasonably possible before the effective date of termination;

  (7) a provision that requires the provider to post, in the office of the provider, a notice to employees on the process for resolving workers' compensation health care network complaints in accordance with Insurance Code §1305.405, concerning Posting of Information on Complaint Process Required. The notice must include the department's toll-free telephone number for filing a complaint and must list all workers' compensation health care networks with which the provider contracts;

  (8) a statement that the network agrees to furnish to the provider, and the provider agrees to abide by, the list of any treatments and services that require the network's preauthorization and any procedures to obtain preauthorization;

  (9) a statement that the contract and any subcontract within the provider network must not be interpreted to involve a transfer of risk as defined under Insurance Code §1305.004(a)(26), concerning Definitions;

  (10) a statement that the provider and any subcontracting provider within the provider network must comply with all applicable statutory and regulatory requirements under federal and state law;

  (11) the schedule of fees that will be paid to the contracting provider;

  (12) a statement specifying whether the provider whose specialty has been designated by the network as a treating doctor agrees to be a network treating doctor and, if so, any additional provisions applicable to the provider;

  (13) a statement that billing by and payment to the provider will be made in accordance with Labor Code §408.027, concerning Payment of Health Care Provider, and other applicable statutes and rules, including rules governing the billing and payment for certifications of maximum medical improvement and impairment rating examinations;

  (14) a statement that the provider specifically agrees to provide treatment for injured employees who obtain workers' compensation health care services through the network that is specifically identified in the contract as a contracting party; and

  (15) a statement that the provider will receive written notice from the carrier if the carrier contests compensability of an injury the provider is treating as required under Insurance Code §1305.153(e), concerning Provider Reimbursement, including that the carrier may not deny payment for services provided prior to the issuance of the notice on the grounds that the injury was not compensable.

(c) An insurance carrier and a network may not use any financial incentive or make a payment to a health care provider that acts directly or indirectly as an inducement to limit medically necessary services. The adoption of treatment guidelines, return-to-work guidelines, and individual treatment protocols by a network under Insurance Code §1305.304, concerning Guidelines and Protocols, and §10.83(a) of this title (relating to Guidelines and Protocols) is not a violation of this section.

(d) An insurance carrier or a network must provide written notice to a network provider or group of network providers before the carrier or network conducts economic profiling, including utilization management studies comparing the provider to other providers, or other profiling of the provider or group of providers.

Source Note: The provisions of this §10.42 adopted to be effective December 5, 2005, 30 TexReg 8099; amended to be effective August 2, 2022, 47 TexReg 4534

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page