S.B. No. 500




AN ACT

relating to prices charged for the provision of health care 
services.       
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 552.001, Insurance Code, as effective 
April 1, 2005, is amended to read as follows:
	Sec. 552.001.  APPLICABILITY OF CHAPTER.  (a)  This chapter 
does not apply to the provision of a health care service to a:
		(1)  Medicaid or Medicare patient[;] or a patient who 
is covered by a federal, state, or local government-sponsored 
indigent health care program;
		(2)  financially or medically indigent person who 
qualifies for indigent health care services based on:
			(A)  a sliding fee scale; or                                   
			(B)  a written charity care policy established by 
a health care provider; or
		(3)  person who is not covered by a health insurance 
policy or other health benefit plan that provides benefits for the 
services and qualifies for services for the uninsured based on a 
written policy established by a health care provider.
	(b)  This chapter does not permit the establishment of health 
care provider policies or contracts that violate any other state or 
federal law.
	(c)  This chapter does not prohibit a health care provider 
from entering into a contract to provide services covered by a 
health insurance policy or other health benefit plan with:
		(1)  the issuer of the health insurance policy or other 
health benefit plan; or
		(2)  a preferred provider organization that contracts 
with the issuer of the health insurance policy or other health 
benefit plan.
	SECTION 2.  The change in law made by this Act applies only 
to charges for health care services provided on or after the 
effective date of this Act.  Charges for health care services 
provided before the effective date of this Act are governed by the 
law in effect immediately before that date, and that law is 
continued in effect for that purpose.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 500 passed the Senate on 
April 14, 2005, by the following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 500 passed the House on 
May 20, 2005, by the following vote:  Yeas 139, Nays 0, two 
present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor