85R2014 SMT-F     By: Hinojosa S.B. No. 1388       A BILL TO BE ENTITLED   AN ACT   relating to the termination by an insurer of a contract with a   preferred provider.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1301.057(a), Insurance Code, is amended   to read as follows:          (a)  Before terminating a contract with a preferred   provider, an insurer shall:                (1)  provide written reasons for the termination; and                (2)  if the affected provider is a practitioner,   provide, on request, a reasonable review mechanism, except in a   case involving:                      (A)  imminent harm to a patient's health;                      (B)  an action by a state medical or other   physician licensing board or other government agency that   effectively impairs the practitioner's ability to practice   medicine; or                      (C)  fraud or malfeasance committed by the   practitioner against the insurer, as determined by a final,   unappealable judgment of a court.          SECTION 2.  The change in law made by this Act applies only   to a contract entered into or renewed on or after the effective date   of this Act. A contract entered into or renewed before the   effective date of this Act 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 3.  This Act takes effect September 1, 2017.