exclusive dealing and tying clauses banned in network contracts

The text as introduced · 432 words

By: Pierson
H.B. No. 4992

A BILL TO BE ENTITLED

AN ACT

relating to the inclusion of an exclusive dealing or tying clause in

a health care provider network contract.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1458.001, Insurance Code, is amended by

adding Subdivisions (3-a) and (9) to read as follows:

(3-a) "Exclusive dealing clause" means a provision in

a provider network contract that implicitly or explicitly restricts

or places conditions on the ability of a general contracting entity

to freely contract with another provider for any period.

(9) "Tying clause" means a provision in a provider

network contract that requires the contract to include one or more

specified members of a provider group, including medical practice

groups and facilities, in:

(A) the general contracting entity's network of

participating providers;

(B) the same network; or

(C) each product offered by the general

contracting entity.

SECTION 2. Sections 1458.101(g) and (h), Insurance Code,

are amended to read as follows:

(g) A provider may not:

(1) offer to a general contracting entity a written

provider network contract that includes an anti-steering,

anti-tiering, exclusive dealing, gag, [ or ] most favored nation , or

tying clause;

(2) enter into a provider network contract that

includes an anti-steering, anti-tiering, exclusive dealing, gag,

[ or ] most favored nation , or tying clause; or

(3) amend or renew an existing provider network

contract previously entered into with a general contracting entity

so that the contract as amended or renewed adds or retains an

anti-steering, anti-tiering, exclusive dealing, gag, [ or ] most

favored nation , or tying clause.

(h) Any provision in a provider network contract that is an

anti-steering, anti-tiering, exclusive dealing, gag, [ or ] most

favored nation , or tying clause is void and unenforceable. The

remaining provisions in the provider network contract remain in

effect and are enforceable.

SECTION 3. The changes in law made by this Act apply 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 4. 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, 2025.