SB 547

relating to notice from a health benefit plan issuer to the Texas
Department of Insurance regarding a physician's or health care
provider's preauthorization exemption status.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter N, Chapter 4201, Insurance Code, is
amended by adding Section 4201.660 to read as follows:
Sec. 4201.660.  EXEMPTION STATUS NOTIFICATION TO
DEPARTMENT; DATABASE AND REPORT.  (a)  A health maintenance
organization or insurer that uses a preauthorization process for
health care services shall provide written notice to the department
of a physician's or provider's preauthorization exemption status
under this subchapter not later than the 10th day after the date on
which the health maintenance organization or insurer:
(1)  completes an evaluation of the physician or
provider as required by Section 4201.653(b) and determines whether
the physician or provider qualifies for an exemption;
(2)  determines that the health maintenance
organization or insurer will continue the physician's or provider's
exemption under Section 4201.653(c);
(3)  provides notice to the physician or provider of a
determination to rescind the physician's or provider's exemption;
(4)  makes an internal appeal determination or receives
a determination from an independent review organization under
Section 4201.656 affirming or denying the health maintenance
organization's or insurer's determination to rescind the
physician's or provider's exemption.
(b)  The department shall establish and maintain a database
of preauthorization exemption grants, denials, recissions, and
internal appeal and independent review determinations.  On the
request of a physician or provider, the department shall provide
the physician or provider with information regarding the
physician's or provider's preauthorization exemption status with
respect to each relevant health maintenance organization or insurer
and with respect to each relevant health care service.
(c)  The department shall collect and compile data
(1)  the number and timing of evaluations being
conducted by each health maintenance organization or insurer under
(2)  the number of internal appeals or independent
reviews conducted by or with respect to each health maintenance
organization or insurer under this subchapter;
(3)  the number of exemptions granted, denied, or
rescinded by each health maintenance organization or insurer, by
provider type and health care service; and
(4)  the number and outcomes of internal appeals or
independent reviews conducted by or with respect to each health
maintenance organization or insurer.
(d)  The department shall annually prepare a statistical
report reflecting the data collected under Subsection (c) and make
the report available to the public on request.
SECTION 2.  Section 4201.660, Insurance Code, as added by
this Act, applies only to a determination regarding a physician's
or provider's preauthorization exemption status made on or after
the effective date of this Act.
SECTION 3.  This Act takes effect September 1, 2025.