Bill Text: TX HB1696 | 2023-2024 | 88th Legislature | Enrolled

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Bill Title: Relating to the relationship between managed care plans and optometrists and therapeutic optometrists.

Spectrum: Moderate Partisan Bill (Republican 23-5)

Status: (Passed) 2023-06-14 - Effective on 9/1/23 [HB1696 Detail]

Download: Texas-2023-HB1696-Enrolled.html

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H.B. No. 1696

AN ACT
relating to the relationship between managed care plans and
optometrists and therapeutic optometrists.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter D, Chapter 1451,
Insurance Code, is amended to read as follows:
SUBCHAPTER D. ACCESS TO OPTOMETRISTS [AND OPHTHALMOLOGISTS] USED
UNDER MANAGED CARE PLAN
SECTION 2. Section 1451.151, Insurance Code, is amended to
read as follows:
Sec. 1451.151. DEFINITION [DEFINITIONS]. In this
subchapter,[:
[(1)] "managed [Managed] care plan" means a plan under
which a health maintenance organization, preferred provider
benefit plan issuer, vision benefit plan issuer, vision benefit
plan administrator, or other organization provides or arranges for
health care benefits or vision benefits to plan participants and
requires or encourages plan participants to use health care
practitioners the plan designates.
[(2) "Ophthalmologist" means a physician who
specializes in ophthalmology.]
SECTION 3. Section 1451.153, Insurance Code, is amended to
read as follows:
Sec. 1451.153. USE OF OPTOMETRIST OR[,] THERAPEUTIC
OPTOMETRIST[, OR OPHTHALMOLOGIST]. (a) A managed care plan may
not:
(1) discriminate against a health care practitioner
because the practitioner is an optometrist or a[,] therapeutic
optometrist[, or ophthalmologist];
(2) restrict or discourage a plan participant from
obtaining covered vision or medical eye care services or procedures
from a participating optometrist or[,] therapeutic optometrist[,
or ophthalmologist] solely because the practitioner is an
optometrist or[,] therapeutic optometrist[, or ophthalmologist];
(3) exclude an optometrist or a[,] therapeutic
optometrist[, or ophthalmologist] as a participating practitioner
in the plan because the optometrist or[,] therapeutic optometrist[,
or ophthalmologist] does not have medical staff privileges at a
hospital or at a particular hospital;
(4) identify a participating optometrist or
therapeutic optometrist differently from another optometrist or
therapeutic optometrist based on:
(A) a discount or incentive offered on a medical
or vision care product or service, as defined by Section 1451.155,
that is not a covered product or service, as defined by Section
1451.155, by the optometrist or therapeutic optometrist;
(B) the dollar amount, volume amount, or percent
usage amount of any product or good purchased by the optometrist or
therapeutic optometrist; or
(C) the brand, source, manufacturer, or supplier
of a medical or vision care product or service, as defined by
Section 1451.155, utilized by the optometrist or therapeutic
optometrist to practice optometry;
(5) incentivize, recommend, encourage, persuade, or
attempt to persuade an enrollee to obtain covered or uncovered
products or services:
(A) at any particular participating optometrist
or therapeutic optometrist instead of another participating
optometrist or therapeutic optometrist;
(B) at a retail establishment owned by, partially
owned by, contracted with, or otherwise affiliated with the managed
care plan instead of a different participating optometrist or
therapeutic optometrist; or
(C) at any Internet or virtual provider or
retailer owned by, partially owned by, contracted with, or
otherwise affiliated with the managed care plan instead of a
different participating optometrist or therapeutic optometrist;
(6) exclude an optometrist or a[,] therapeutic
optometrist[, or ophthalmologist] as a participating practitioner
in the plan because the services or procedures provided by the
optometrist or[,] therapeutic optometrist[, or ophthalmologist]
may be provided by another type of health care practitioner; or
(7) [(5)] as a condition for a therapeutic optometrist
[or ophthalmologist] to be included in one or more of the plan's
medical panels, require the therapeutic optometrist [or
ophthalmologist] to be included in, or to accept the terms of
payment under or for, a particular vision panel in which the
therapeutic optometrist [or ophthalmologist] does not otherwise
wish to be included.
(b) A managed care plan shall:
(1) include optometrists and[,] therapeutic
optometrists[, and ophthalmologists] as participating health care
practitioners in the plan; [and]
(2) include the name of a participating optometrist
or[,] therapeutic optometrist[, or ophthalmologist] in any list of
participating health care practitioners and give equal prominence
to each name;
(3) provide directly to an optometrist, therapeutic
optometrist, or plan enrollee immediate access by electronic means
to an enrollee's complete plan coverage information, including
in-network and out-of-network coverage details;
(4) publish complete plan information, including
in-network and out-of-network coverage details, with any marketing
materials that describe the plan benefits, including any summary
plan description;
(5) allow an optometrist or a therapeutic optometrist
to utilize any third-party claim-filing service, billing service,
or electronic data interchange clearinghouse company that uses the
standardized claim submission protocol of the National Uniform
Claim Committee and that allows the optometrist or therapeutic
optometrist to submit details for both services and vision care
products to facilitate the authorization, submission, and
reimbursement of claims; and
(6) allow an optometrist or a therapeutic optometrist
to receive reimbursement through an electronic funds transfer.
(c) For the purposes of Subsection (a)(7) [(a)(5)],
"medical panel" and "vision panel" have the meanings assigned by
Section 1451.154(a).
SECTION 4. Section 1451.154(a)(2), Insurance Code, is
amended to read as follows:
(2) "Vision panel" means the optometrists and[,]
therapeutic optometrists[, and ophthalmologists] who are listed as
participating providers for routine eye examinations under a
managed care plan or who a patient seeking a routine eye examination
is encouraged or required to use under a managed care plan.
SECTION 5. Section 1451.154(c), Insurance Code, is amended
to read as follows:
(c) A therapeutic optometrist who is included in a managed
care plan's medical panels under Subsection (b) must:
(1) abide by the terms and conditions of the managed
care plan;
(2) satisfy the managed care plan's credentialing
standards for therapeutic optometrists; and
(3) provide proof that the Texas Optometry Board
considers the therapeutic optometrist's license to practice
therapeutic optometry to be in good standing[; and
[(4) comply with the requirements of the Controlled
Substances Registration Program operated by the Department of
Public Safety].
SECTION 6. Section 1451.155, Insurance Code, is amended to
read as follows:
Sec. 1451.155. CONTRACTS WITH OPTOMETRISTS OR THERAPEUTIC
OPTOMETRISTS. (a) In this section:
(1) "Chargeback" means a dollar amount, fee,
surcharge, or item of value that reduces, modifies, or offsets all
or part of the patient responsibility, provider reimbursement, or
fee schedule for a covered product or service.
(2) "Covered product or service" means a medical or
vision care product or service for which reimbursement is available
under an enrollee's managed care plan contract or for which
reimbursement is available subject to a contractual limitation,
including:
(A) a deductible;
(B) a copayment;
(C) coinsurance;
(D) a waiting period;
(E) an annual or lifetime maximum limit;
(F) a frequency limitation; or
(G) an alternative benefit payment.
(3) [(2)] "Medical or vision [Vision] care product or
service" means a product or service provided within the scope of the
practice of optometry or therapeutic optometry under Chapter 351,
Occupations Code.
(a-1) For the purposes of this section, a product or service
reimbursed to an optometrist or therapeutic optometrist at a
nominal or de minimis rate is not a covered product or service.
(a-2) For the purposes of this section, a product or service
reimbursed to an optometrist or therapeutic optometrist solely by
the enrollee is not a covered product or service.
(b) A contract between a managed care plan [an insurer] and
an optometrist or therapeutic optometrist may not limit the fee the
optometrist or therapeutic optometrist may charge for a product or
service that is not a covered product or service.
(c) A contract between a managed care plan [an insurer] and
an optometrist or therapeutic optometrist may not require a
discount on a product or service that is not a covered product or
service.
(d) A contract between a managed care plan and an
optometrist or therapeutic optometrist may not contain a provision
authorizing a chargeback to the patient, optometrist, or
therapeutic optometrist if the chargeback is for a covered product
or service that the managed care plan does not incur the cost to
produce, deliver, or provide to the patient, optometrist, or
therapeutic optometrist.
(e) A contract between a managed care plan and an
optometrist or therapeutic optometrist may not contain a provision
authorizing a reimbursement fee schedule for a covered product or
service that is different from the fee schedule applicable to
another optometrist or therapeutic optometrist because of the
optometrist's or therapeutic optometrist's choice of:
(1) optical laboratory;
(2) source or supplier of:
(A) contact lenses;
(B) ophthalmic lenses;
(C) ophthalmic glasses frames; or
(D) covered or uncovered products or services;
(3) equipment used for patient care;
(4) retail optical affiliation;
(5) vision support organization;
(6) group purchasing organization;
(7) doctor alliance;
(8) professional trade association membership;
(9) affiliation with an arrangement defined as a
franchise by 16 C.F.R. Part 436;
(10) electronic health record software, electronic
medical record software, or practice management software; or
(11) third-party claim-filing service, billing
service, or electronic data interchange clearinghouse company.
(f) A managed care plan may not change a contract between a
managed care plan and an optometrist or therapeutic optometrist,
including terms, reimbursements, or fee schedules, unless the
managed care plan provides written notice of the change to the
optometrist or therapeutic optometrist at least 90 days before the
date the proposed change takes effect.
(g) A contract between a managed care plan and an
optometrist or therapeutic optometrist may not contain a provision
requiring the optometrist or therapeutic optometrist to provide a
covered product at a loss.
(h) A contract between a managed care plan and an
optometrist or therapeutic optometrist may not contain a provision
requiring the optometrist or therapeutic optometrist to accept a
reimbursement payment in the form of a virtual credit card or any
other payment method where a processing fee, administrative fee,
percentage amount, or dollar amount is assessed to receive the
reimbursement payment, except in the case of a nominal fee assessed
by the optometrist's or therapeutic optometrist's bank to receive
an electronic funds transfer.
SECTION 7. The heading to Section 1451.156, Insurance Code,
is amended to read as follows:
Sec. 1451.156. CERTAIN CONDUCT PROHIBITED [CONDUCT].
SECTION 8. Section 1451.156(a), Insurance Code, is amended
to read as follows:
(a) A managed care plan, as described by Section
1451.152(a), may not directly or indirectly:
(1) control or attempt to control the professional
judgment, manner of practice, or practice of an optometrist or
therapeutic optometrist;
(2) employ an optometrist or therapeutic optometrist
to provide a vision care product or service as defined by Section
1451.155;
(3) pay an optometrist or therapeutic optometrist for
a service not provided;
(4) reimburse an optometrist or therapeutic
optometrist a different amount for a covered product or service as
defined by Section 1451.155 because of the optometrist's or
therapeutic optometrist's choice of:
(A) optical laboratory;
(B) source or supplier of:
(i) contact lenses;
(ii) ophthalmic lenses;
(iii) ophthalmic glasses frames; or
(iv) covered or uncovered products or
services;
(C) equipment used for patient care;
(D) retail optical affiliation;
(E) vision support organization;
(F) group purchasing organization;
(G) doctor alliance;
(H) professional trade association membership;
(I) affiliation with an arrangement defined as a
franchise by 16 C.F.R. Part 436;
(J) electronic health record software,
electronic medical record software, or practice management
software; or
(K) third-party claim-filing service, billing
service, or electronic data interchange clearinghouse company;
(5) restrict, [or] limit, or influence an
optometrist's or therapeutic optometrist's choice of sources or
suppliers of services or materials, including optical laboratories
used by the optometrist or therapeutic optometrist to provide
services or materials to a patient;
(6) restrict, limit, or influence an optometrist's or
therapeutic optometrist's choice of electronic health record
software, electronic medical record software, or practice
management software;
(7) restrict, limit, or influence an optometrist's or
therapeutic optometrist's choice of third-party claim-filing
service, billing service, or electronic data interchange
clearinghouse company;
(8) restrict or limit an optometrist's or therapeutic
optometrist's access to a patient's complete plan coverage
information, including in-network and out-of-network coverage
details;
(9) apply a chargeback, as defined by Section
1451.155, to a patient, optometrist, or therapeutic optometrist if
the chargeback is for a covered product or service that the managed
care plan does not incur the cost to produce, deliver, or provide to
the patient, optometrist, or therapeutic optometrist;
(10) require an optometrist or therapeutic
optometrist to provide a covered product at a loss; [or]
(11) [(5)] require an optometrist or therapeutic
optometrist to disclose a patient's confidential or protected
health information unless the disclosure is authorized by the
patient or permitted without authorization under the Health
Insurance Portability and Accountability Act of 1996 (42 U.S.C.
Section 1320d et seq.) or under Section 602.053;
(12) require an optometrist or therapeutic
optometrist to disclose or report a medical history or diagnosis as
a condition to file a claim, adjudicate a claim, or receive
reimbursement for a routine or wellness vision eye exam;
(13) require an optometrist or therapeutic
optometrist to disclose or report a patient's glasses prescription,
contact lens prescription, ophthalmic device measurements, facial
photograph, or unique anatomical measurements as a condition to
file a claim, adjudicate a claim, or receive reimbursement for a
claim unless the information is needed for the managed care plan to
manufacture or cause to be manufactured a covered product that is
submitted on the claim;
(14) require an optometrist or therapeutic
optometrist to disclose any patient information, other than
information identified on the version of the Health Insurance Claim
Form approved by the National Uniform Claim Committee as of March 1,
2023, as a condition to file a claim, adjudicate a claim, or receive
reimbursement for a claim unless the information is needed for the
managed care plan to manufacture or cause to be manufactured a
covered product that is submitted on the claim; or
(15) require an optometrist or therapeutic
optometrist to accept a reimbursement payment in the form of a
virtual credit card or any other payment method where a processing
fee, administrative fee, percentage amount, or dollar amount is
assessed to receive the reimbursement payment, except in the case
of a nominal fee assessed by the optometrist's or therapeutic
optometrist's bank to receive an electronic funds transfer.
SECTION 9. Subchapter D, Chapter 1451, Insurance Code, is
amended by adding Sections 1451.157 and 1451.158 to read as
follows:
Sec. 1451.157. EXTRAPOLATION PROHIBITED. (a) In this
section:
(1) "Extrapolation" means a mathematical process or
technique used by a vision care plan in the audit of an optometrist
or therapeutic optometrist to estimate audit results or findings
for a larger batch or group of claims not reviewed by the plan.
(2) "Vision care plan" means a limited-scope policy,
agreement, contract, or evidence of coverage that provides coverage
for eye care expenses but does not provide comprehensive medical
coverage.
(b) A vision care plan may not use extrapolation to complete
an audit of a participating optometrist or therapeutic optometrist.
Any additional payment due to a participating optometrist or
therapeutic optometrist or any refund due to the vision care plan
must be based on the actual overpayment or underpayment and may not
be based on an extrapolation.
Sec. 1451.158. ENFORCEMENT OF SUBCHAPTER. (a) A violation
of this subchapter by a managed care plan is subject to an
administrative penalty under Chapter 84.
(b) The commissioner shall take all reasonable actions to
ensure compliance with this subchapter, including issuing orders to
enforce this subchapter.
SECTION 10. Sections 1451.154(d) and 1451.156(d),
Insurance Code, are repealed.
SECTION 11. The changes in law made by this Act apply only
to a contract between a managed care plan or vision care plan and an
optometrist or a therapeutic optometrist entered into or renewed,
or a managed care plan or vision care plan delivered, issued for
delivery, or renewed, on or after January 1, 2024. A contract
entered into or renewed, or a managed care plan or vision care plan
delivered, issued for delivery, or renewed, before January 1, 2024,
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 12. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1696 was passed by the House on May 8,
2023, by the following vote: Yeas 143, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1696 was passed by the Senate on May
23, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor