HBA-JEK C.S.H.B. 2620 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2620 By: Goodman Insurance 4/26/2001 Committee Report (Substituted) 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 they often place the information in a different format and require physicians to use the organization's specific forms. The absence of standardized forms can delay care and inconvenience patients and physicians. C.S.H.B. 2620 provides for the use of standard physician contracts and forms for those contracts. 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 C.S.H.B. 2620 amends the Insurance Code to require the commissioner of insurance (commissioner) to adopt rules that establish and require managed care entities to use standard physician contracts and forms for those contracts. The bill requires the commissioner to adopt the rules, contracts, and forms by January 1, 2002. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2620 differs from the original bill by removing the requirement that the commissioner of insurance adopt rules to establish and require managed care entities to use other standard documents and forms for routine managed care functions other than those for contracts. The substitute removes the provision that the commissioner's rules must include standard documents for member identification cards, referral forms, and pre-authorization forms. The substitute also removes the provision that applied this bill to a multiple employer welfare arrangement or analogous benefit arrangement and any non-licensed entity that contracts directly for health care services on a risk-sharing basis.