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Texas Insurance Code

§ 562.105 — CONTRACT REQUIREMENTS

IN § 562.105Title 5. PROTECTION OF CONSUMER INTERESTS · Part C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · Ch. 562. UNFAIR METHODS OF COMPETITION AND · Art. C. REGULATION OF PRACTICES

Statute text

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(a)A program operator shall contract, directly or indirectly, with a provider offering discounted health care services or products under the discount health care program. The written contract must contain all of the following provisions:
(1)a description of the discounts to be provided to a member;
(2)a provision prohibiting the provider from charging a member more than the discounted rate agreed to in the written agreement with the provider; and
(3)a provision requiring the provider to promptly notify the program operator if the provider no longer participates in the program or loses the authority to provide services or products.
(b)The program operator may not charge or receive from a provider any fee or other compensation for entering into the agreement.
(c)If the program operator contracts with a network of providers, the program operator shall obtain written assurance from the network that:

Legislative history

Added by Acts 2009, 81st Leg., R.S., Ch. 1331 (H.B. 4341), Sec. 1, eff. September 1, 2009.