HBA-DMH H.B. 1562 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1562 By: Thompson Insurance 3/11/2001 Introduced BACKGROUND AND PURPOSE Health care fraud and abuse are costing the national health care system several billion dollars annually. Many losses occur in Medicare and Medicaid programs, but private sector health benefit programs are also affected by fraud. One of the more common methods of health care fraud is to bill for services not performed or to bill for more expensive services than were actually provided. House Bill 1562 sets forth requirements for the investigation of insurance fraud and the business of insurance. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1562 amends the Insurance Code to authorize the insurance fraud unit to receive, review, and investigate in a timely manner insurer antifraud reports. The bill requires the insurance fraud unit to report annually in writing, making the initial report not later than January 1, 2003, to the commissioner of insurance the number of cases completed and any recommendations for new regulatory and statutory responses to the types of fraudulent activities encountered by the insurance fraud unit. The bill requires an insurer to adopt an antifraud plan. The bill authorizes the insurer to annually file the antifraud plan with the insurance fraud unit and specifies what the plan must include. The bill establishes that provisions relating to immunity do not apply to a claim made against a policy issued by a reinsurer. The bill requires an insurers to provide a notice of penalty for false or fraudulent claims on a claim form that is provided to certain claimants. The bill sets forth that certain persons are not subject to liability based on reports or information concerning fraudulent insurance acts if the reports or information are provided to an individual employed by or acting on behalf of an insurer to detect and prevent fraudulent insurance acts. H.B. 1562 amends the Occupations Code to specify the activities that constitute unprofessional conduct by a health care provider, and provides that, in addition to other provisions of civil or criminal law, such acts of unprofessional conduct constitute cause for the revocation or suspension of a provider's license, permit, registration, certificate, or other authority or other disciplinary action. EFFECTIVE DATE September 1, 2001.