TITLE 28.INSURANCE

Part 1. TEXAS DEPARTMENT OF INSURANCE

Chapter 21. TRADE PRACTICES

Subchapter T. SUBMISSION OF CLEAN CLAIMS

28 TAC §21.2802, §21.2803

The Commissioner of Insurance adopts amendments to §21.2802 and §21.2803, concerning required data elements for non-electronic clean claims submitted to health maintenance organizations (HMOs) by dental providers. The amendments are adopted with changes to the proposed text as published in the October 31, 2003, issue of the Texas Register (28 TexReg 9396).

The adopted amendments are the result of Senate Bill (SB) 418, 78th Regular Session, which contained numerous provisions regarding the prompt payment of claims by HMOs, as well as preferred provider carriers. Among other things, SB 418 added new Insurance Code §843.336(d) concerning the adoption of required data fields on HMO claim forms that must be completed by a physician or provider in order for a claim to be considered clean. The purpose of this adoption is to implement those provisions, as described more fully herein. Pursuant to Insurance Code §843.336(d), on July 4, 2003, the department proposed rules implementing major portions of SB 418, including amendments to §21.2803 that listed required elements for non-electronic clean claims. Comments the department received on the proposed rules, as well as discussions with the Technical Advisory Committee on Claims Processing, indicated, among other things, that those rules did not reflect dental-specific requirements for clean claims submitted to HMOs. As a result, the department committed to work with interested parties to develop required data elements necessary to accommodate dental claims that are subject to SB 418, and this adoption is meant to achieve that purpose. The adoption includes changes to the amendments as proposed. In response to a comment, the department removed the phrase "if shown on the patient's identification card" from the clean claim element at §21.2803(c)(6). As a result, clean claims will require sufficient identifying information relating to a subscriber that is not the patient, but will not require information not readily available to the patient unless otherwise included on the patient's identification card by the HMO. The adoption also includes other minor changes to §21.2802 and §21.2803 to reletter and change references throughout the section to reflect the addition of the new subsection (c) and the inclusion of dental-specific elements.

Adopted §21.2802(5) and (9), and §21.2803(g) reflect changes in references to subsections of §21.2803, which are being relettered. The adopted amendment adds new subsection (c) to §21.2803 which lists the elements of a clean claim that must be included on a claim form submitted by a dental provider to an HMO. As previously explained in this adoption order, the proposal does not prescribe a claim form or list the fields on which the information must be provided. The department has referenced commonly-used American Dental Association claim forms, specifically the ADA-J515 and the ADA-J512. Subsection (a) of §21.2803 adds language reflecting the addition of adopted new subsection (c), and reletters existing §21.2803(c)-(g). In addition, references to §21.2803(c) in existing §21.2803(b) have been changed to §21.2803(d) to reflect addition of new subsection (c) and subsequent relettering of the subsections.

Comment: A commenter requests clarification that the reference in these rules to the ASC X12N 837 format (§21.2802(5)(B) and §21.2803(f)) includes the dental-specific ASC X12N 837D format.

Agency Response: The department clarifies that the references within the rules to the ASC X12N 837 format include the professional, institutional and dental claim formats.

Comment: A commenter requests removal of the phrase "if shown on the patient's ID card" from §21.2803(c)(10). The commenter suggests that this information is critical in claims processing and the absence of this information from a claim would substantially delay or halt claims processing. The commenter further indicates that an HMO's attempts to tie a patient to a subscriber could create a violation of privacy laws if the attempt proves to be incorrect. The commenter also notes that not requiring this information is inconsistent with medical claims in subsection (b) of §21.2803 and HIPAA Administrative Simplification requirements.

Agency Response: The department declines to make the requested change, but has removed the phrase "if shown on the patient's identification card" from the element at §21.2803(c)(6). As a result, carriers will be given sufficient information to tie a patient to a subscriber. A carrier will always be furnished with information that is commonly known to a patient: the name, gender and address of the subscriber. This should allow a carrier to access information to tie the patient to the subscriber. If a carrier wishes to have further information that is not commonly known to a patient, such as the subscriber's identification number or group/plan number, the carrier may include this information on the patient's identification card and guarantee that this information will be available on clean claims.

Comment: A commenter expresses support for the elements at §21.2803(c)(35) and (36) and specifically opposes any changes to these requirements.

Agency Response: The department is adopting these elements as proposed.

For With Changes: National Association of Dental Plans.

The amendments are adopted under the Insurance Code §36.001 and §843.336(d). Section 843.336(d) permits the commissioner to adopt rules that specify the information that must be entered into the appropriate fields on the applicable claim form for a claim to be a clean claim. Section 36.001 provides that the commissioner of insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

§21.2802.Definitions.

The following words and terms when used in this subchapter shall have the following meanings:

(1) Audit--A procedure authorized and described in §21.2809 of this title (relating to Audit Procedures) under which an HMO or preferred provider carrier may investigate a claim beyond the statutory claims payment period without incurring penalties under §21.2815 of this title (relating to Failure to Meet the Statutory Claims Payment Period).

(2) Billed charges--The charges for medical care or health care services included on a claim submitted by a physician or provider. For purposes of this subchapter, billed charges must comply with all other applicable requirements of law, including Texas Health and Safety Code §311.0025, Texas Occupations Code §105.002, and Texas Insurance Code Art. 21.79F.

(3) CMS--The Centers for Medicare and Medicaid Services of the U.S. Department of Health and Human Services.

(4) Catastrophic Event--An event, including acts of God, civil or military authority, acts of public enemy, war, accidents, fires, explosions, earthquake, windstorm, flood or organized labor stoppages, that cannot reasonably be controlled or avoided and that causes an interruption in the claims submission or processing activities of an entity for more than two consecutive business days.

(5) Clean claim--

(A) For non-electronic claims, a claim submitted by a physician or provider for medical care or health care services rendered to an enrollee under a health care plan or to an insured under a health insurance policy that includes:

(i) the required data elements set forth in §21.2803(b) or (c) of this title (relating to Elements of a Clean Claim); and

(ii) if applicable, the amount paid by the primary plan or other valid coverage pursuant to §21.2803(d) of this title (relating to Elements of a Clean Claim);

(B) For electronic claims, a claim submitted by a physician or provider for medical care or health care services rendered to an enrollee under a health care plan or to an insured under a health insurance policy using the ASC X12N 837 format and in compliance with all applicable federal laws related to electronic health care claims, including applicable implementation guides, companion guides and trading partner agreements.

(6) Condition code--The code utilized by CMS to identify conditions that may affect processing of the claim.

(7) Contracted rate--Fee or reimbursement amount for a preferred provider's services, treatments, or supplies as established by agreement between the preferred provider and the HMO or preferred provider carrier.

(8) Corrected Claim--A claim containing clarifying or additional information necessary to correct a previously submitted claim.

(9) Deficient claim--A submitted claim that does not comply with the requirements of §21.2803(b), (c) or (e) of this title.

(10) Diagnosis code--Numeric or alphanumeric codes from the International Classification of Diseases (ICD-9-CM), Diagnostic and Statistical Manual (DSM-IV), or their successors, valid at the time of service.

(11) Duplicate Claim--Any claim submitted by a physician or provider for the same health care service provided to a particular individual on a particular date of service that was included in a previously submitted claim. The term does not include corrected claims, or claims submitted by a physician or provider at the request of the HMO or preferred provider carrier.

(12) HMO--A health maintenance organization as defined by Insurance Code §843.002(14).

(13) HMO delivery network--As defined by Insurance Code §843.002(15).

(14) Institutional provider--An institution providing health care services, including but not limited to hospitals, other licensed inpatient centers, ambulatory surgical centers, skilled nursing centers and residential treatment centers.

(15) Occurrence span code--The code utilized by CMS to define a specific event relating to the billing period.

(16) Patient control number--A unique alphanumeric identifier assigned by the institutional provider to facilitate retrieval of individual financial records and posting of payment.

(17) Patient-status-at-discharge code--The code utilized by CMS to indicate the patient's status at time of discharge or billing.

(18) Physician--Anyone licensed to practice medicine in this state.

(19) Place of service code--The codes utilized by CMS that identify the place at which the service was rendered.

(20) Preferred provider--

(A) with regard to a preferred provider carrier, a preferred provider as defined by Insurance Code Article 3.70-3C, §1(10) (Preferred Provider Benefit Plans) or Article 3.70-3C, §1(1) (Use of Advanced Practice Nurses and Physician Assistants by Preferred Provider Plans).

(B) with regard to an HMO,

(i) a physician, as defined by Insurance Code §843.002(22), who is a member of that HMO's delivery network; or

(ii) a provider, as defined by Insurance Code §843.002(24), who is a member of that HMO's delivery network.

(21) Preferred provider carrier--An insurer that issues a preferred provider benefit plan as provided by Insurance Code Article 3.70-3C, Section 2 (Preferred Provider Benefit Plans).

(22) Primary plan--As defined in §3.3506 of this title (relating to Use of the Terms "Plan," "Primary Plan," "Secondary Plan," and "This Plan" in Policies, Certificates and Contracts).

(23) Procedure code--Any alphanumeric code representing a service or treatment that is part of a medical code set that is adopted by CMS as required by federal statute and valid at the time of service. In the absence of an existing federal code, and for non-electronic claims only, this definition may also include local codes developed specifically by Medicaid, Medicare, an HMO, or a preferred provider carrier to describe a specific service or procedure.

(24) Provider--any practitioner, institutional provider, or other person or organization that furnishes health care services and that is licensed or otherwise authorized to practice in this state, other than a physician.

(25) Revenue code--The code assigned by CMS to each cost center for which a separate charge is billed.

(26) Secondary plan--As defined in §3.3506 of this title.

(27) Source of admission code--The code utilized by CMS to indicate the source of an inpatient admission.

(28) Statutory claims payment period--

(A) the 45-calendar-day period in which an HMO or preferred provider carrier shall make claim payment or denial, in whole or in part, after receipt of a non-electronic clean claim pursuant to Insurance Code Article 3.70-3C, §3A (Preferred Provider Benefit Plans) and Chapter 843;

(B) the 30-calendar-day period in which an HMO or preferred provider carrier shall make claim payment or denial, in whole or in part, after receipt of an electronically submitted clean claim pursuant to Insurance Code Article 3.70-3C, §3A (Preferred Provider Benefit Plans) and Chapter 843; or

(C) the 21-calendar-day period in which an HMO or preferred provider carrier shall make claim payment after affirmative adjudication of an electronically submitted clean claim for a prescription benefit pursuant to Insurance Code Article 3.70-3C, §3A(f) (Preferred Provider Benefit Plans) and §843.339, and §21.2814 of this title (relating to Electronic Adjudication of Prescription Benefits).

(29) Subscriber--If individual coverage, the individual who is the contract holder and is responsible for payment of premiums to the HMO or preferred provider carrier; or if group coverage, the individual who is the certificate holder and whose employment or other membership status, except for family dependency, is the basis for eligibility for enrollment in a group health benefit plan issued by the HMO or the preferred provider carrier.

(30) Type of bill code--The three-digit alphanumeric code utilized by CMS to identify the type of facility, the type of care, and the sequence of the bill in a particular episode of care.

§21.2803.Elements of a Clean Claim.

(a) Filing a Clean Claim. A physician or provider submits a clean claim by providing to an HMO, preferred provider carrier, or any other entity designated for receipt of claims pursuant to §21.2811 of this title (related to Disclosure of Processing Procedures):

(1) for non-electronic claims, the required data elements specified in subsection (b) of this section, or for non-electronic dental claims filed with an HMO, the required data elements specified in subsection (c) of this section;

(2) for electronic claims and for electronic dental claims filed with an HMO, the required data elements specified in subsections (e) and (f) of this subsection; and

(3) if applicable, any coordination of benefits or non-duplication of benefits information pursuant to subsection (d) of this section.

(b) Required data elements. CMS has developed claim forms which provide much of the information needed to process claims. Two of these forms, HCFA 1500 and UB-82/HCFA, and their successor forms, have been identified by Insurance Code Article 21.52C as required for the submission of certain claims. The terms in paragraphs (1) and (2) of this subsection are based upon the terms used by CMS on successor forms CMS-1500 and UB-92 CMS-1450 claim forms. The parenthetical information following each term refers to the applicable CMS claim form, and the field number to which that term corresponds on the CMS claim form.

(1) Required data elements for physicians or noninstitutional providers. The data elements described in this paragraph are required as indicated and must be completed in accordance with the special instructions applicable to the data element for clean claims filed by physicians and noninstitutional providers.

(A) subscriber's/patient's plan ID number (CMS 1500, field 1a) is required;

(B) patient's name (CMS 1500, field 2) is required;

(C) patient's date of birth and gender (CMS 1500, field 3) is required;

(D) subscriber's name (CMS 1500, field 4) is required, if shown on the patient's ID card;

(E) patient's address (street or P.O. Box, city, state, zip) (CMS 1500, field 5) is required;

(F) patient's relationship to subscriber (CMS 1500, field 6) is required;

(G) subscriber's address (street or P.O. Box, city, state, zip) (CMS 1500, field 7) is required, but physician or provider may enter "same" if the subscriber's address is the same as the patient's address required by subparagraph (E) of this paragraph;

(H) other insured's or enrollee's name (CMS 1500, field 9), is required if patient is covered by more than one health benefit plan, generally in situations described in subsection (d) of this section. If the required data element specified in paragraph (1)(Q) of this subsection, "disclosure of any other health benefit plans," is answered "yes," this element is required unless the physician or provider submits with the claim documented proof to the HMO or preferred provider carrier that the physician or provider has made a good faith but unsuccessful attempt to obtain from the enrollee or insured any of the information needed to complete this data element;

(I) other insured's or enrollee's policy/group number (CMS 1500, field 9a), is required if patient is covered by more than one health benefit plan, generally in situations described in subsection (d) of this section. If the required data element specified in paragraph (1)(Q) of this subsection, "disclosure of any other health benefit plans," is answered "yes," this element is required unless the physician or provider submits with the claim documented proof to the HMO or preferred provider carrier that the physician or provider has made a good faith but unsuccessful attempt to obtain from the enrollee or insured any of the information needed to complete this data element;

(J) other insured's or enrollee's date of birth (CMS 1500, field 9b), is required if patient is covered by more than one health benefit plan, generally in situations described in subsection (d) of this section. If the required data element specified in paragraph (1)(Q) of this subsection, "disclosure of any other health benefit plans," is answered "yes," this element is required unless the physician or provider submits with the claim documented proof to the HMO or preferred provider carrier that the physician or provider has made a good faith but unsuccessful attempt to obtain from the enrollee or insured any of the information needed to complete this data element;

(K) other insured's or enrollee's plan name (employer, school, etc.) (CMS 1500, field 9c), is required if patient is covered by more than one health benefit plan, generally in situations described in subsection (d) of this section. If the required data element specified in paragraph (1)(Q) of this subsection, "disclosure of any other health benefit plans," is answered "yes," this element is required unless the physician or provider submits with the claim documented proof to the HMO or preferred provider carrier that the physician or provider has made a good faith but unsuccessful attempt to obtain from the enrollee or insured any of the information needed to complete this data element. If the field is required and the physician or provider is a facility based radiologist, pathologist or anesthesiologist with no direct patient contact, the physician or provider must either enter the information or enter NA (not available) if the information is unknown;

(L) other insured's or enrollee's HMO or insurer name (CMS 1500, field 9d), is required if patient is covered by more than one health benefit plan, generally in situations described in subsection (d) of this section. If the required data element specified in paragraph (1)(Q) of this subsection, "disclosure of any other health benefit plans," is answered "yes," this element is required unless the physician or provider submits with the claim documented proof to the HMO or preferred provider carrier that the physician or provider has made a good faith but unsuccessful attempt to obtain from the enrollee or insured any of the information needed to complete this data element;

(M) whether patient's condition is related to employment, auto accident, or other accident (CMS 1500, field 10) is required, but facility based radiologists, pathologists, or anesthesiologists shall enter "N" if the answer is "No" or if the information is not available;

(N) if the claim is a duplicate claim, a "D" is required, if the claim is a corrected claim, a "C" is required (CMS 1500, field 10d);

(O) subscriber's policy number (CMS 1500, field 11) is required;

(P) HMO or insurance company name (CMS 1500, field 11c) is required;

(Q) disclosure of any other health benefit plans (CMS 1500, field 11d) is required;

(i) if respond "yes", then

(I) data elements specified in paragraph (1)(H)-(L) of this subsection are required unless the physician or provider submits with the claim documented proof to the HMO or preferred provider carrier that the physician or provider has made a good faith but unsuccessful attempt to obtain from the enrollee or insured any of the information needed to complete the data elements in paragraph (1)(H)-(L) of this subsection;

(II) the data element specified in paragraph (1)(II) of this subsection is required when submitting claims to secondary payor HMOs or preferred provider carriers;

(ii) if respond "no," the data elements specified in paragraph (1)(H)-(L) of this subsection are not required if the physician or provider has on file a document signed within the past 12 months by the patient or authorized person stating that there is no other health care coverage; although the submission of the signed document is not a required data element, a copy of the signed document shall be provided to the HMO or preferred provider carrier upon request.

(R) patient's or authorized person's signature or notation that the signature is on file with the physician or provider (CMS 1500, field 12) is required;

(S) subscriber's or authorized person's signature or notation that the signature is on file with the physician or provider (CMS 1500, field 13) is required;

(T) date of injury (HCFA 1500, field 14) is required, if due to an accident;

(U) name of referring physician or other source (CMS 1500, field 17) is required for primary care physicians, specialty physicians and hospitals; however, if there is no referral, the physician or provider shall enter "Self-referral" or "None";

(V) I.D. Number of referring physician (CMS 1500, field 17a) is required for primary care physicians, specialty physicians and hospitals; however, if there is no referral, the physician or provider shall enter "Self-referral" or "None";

(W) narrative description of procedure (CMS 1500, field 19) is required when a physician or provider uses an unlisted or not classified procedure code or an NDC code for drugs;

(X) for diagnosis codes or nature of illness or injury (CMS 1500, field 21), up to four diagnosis codes may be entered, but at least one is required (primary diagnosis must be entered first);

(Y) verification number (CMS 1500, field 23), is required if services have been verified pursuant to §19.1724 of this title (relating to Verification). If no verification has been provided, a prior authorization number (CMS 1500, field 23), is required when prior authorization is required and granted;

(Z) date(s) of service (CMS 1500, field 24A) is required;

(AA) place of service codes (CMS 1500, field 24B) is required;

(BB) procedure/modifier code (CMS 1500, field 24D) is required;

(CC) diagnosis code by specific service (CMS 1500, field 24E) is required with the first code linked to the applicable diagnosis code for that service in field 21;

(DD) charge for each listed service (CMS 1500, field 24F) is required;

(EE) number of days or units (CMS 1500, field 24G) is required;

(FF) physician's or provider's federal tax ID number (CMS 1500, field 25) is required;

(GG) whether assignment was accepted (CMS 1500, field 27), is required if assignment under Medicare has been accepted;

(HH) total charge (CMS 1500, field 28) is required;

(II) amount paid (CMS 1500, field 29), is required if an amount has been paid to the physician or provider submitting the claim by the patient or subscriber, or on behalf of the patient or subscriber or by a primary plan in accordance with paragraph (1)(P) of this subsection and as required by subsection (d) of this section;

(JJ) signature of physician or provider or notation that the signature is on file with the HMO or preferred provider carrier (CMS 1500, field 31) is required;

(KK) name and address of facility where services rendered (if other than home or office) (CMS 1500, field 32) is required; and

(LL) physician's or provider's billing name, address and telephone number is required, and the provider number (CMS 1500, field 33) is required if the HMO or preferred provider carrier required provider numbers and gave notice of that requirement to physicians and providers prior to June 17, 2003.

(2) Required data elements for institutional providers. The data elements described in this paragraph are required as indicated and must be completed in accordance with the special instructions applicable to the data elements for clean claims filed by institutional providers.

(A) provider's name, address and telephone number (UB-92, field 1) is required;

(B) patient control number (UB-92, field 3) is required;

(C) type of bill code (UB-92, field 4) is required and shall include a "7" in the third position if the claim is a corrected claim;

(D) provider's federal tax ID number (UB-92, field 5) is required;

(E) statement period (beginning and ending date of claim period) (UB-92, field 6) is required;

(F) covered days (UB-92, field 7), is required if Medicare is a primary or secondary payor;

(G) noncovered days (UB-92, field 8), is required if Medicare is a primary or secondary payor;

(H) coinsurance days (UB-92, field 9), is required if Medicare is a primary or secondary payor;

(I) lifetime reserve days (UB-92, field 10), is required if Medicare is a primary or secondary payor, and the patient was an inpatient;

(J) patient's name (UB-92, field 12) is required;

(K) patient's address (UB-92, field 13) is required;

(L) patient's date of birth (UB-92, field 14) is required;

(M) patient's gender (UB-92, field 15) is required;

(N) patient's marital status (UB-92, field 16) is required;

(O) date of admission (UB-92, field 17) is required for admissions, observation stays, and emergency room care;

(P) admission hour (UB-92, field 18) is required for admissions, observation stays, and emergency room care;

(Q) type of admission (e.g., emergency, urgent, elective, newborn) (UB-92, field 19) is required for admissions;

(R) source of admission code (UB-92, field 20) is required;

(S) discharge hour (UB-92, field 21), is required for admissions, outpatient surgeries or observation stays;

(T) patient-status-at-discharge code (UB-92, field 22) is required for admissions, observation stays, and emergency room care;

(U) condition codes (UB-92, fields 24-30), are required if the CMS UB-92 manual contains a condition code appropriate to the patient's condition;

(V) occurrence codes and dates (UB-92, fields 32-35), are required if the CMS UB-92 manual contains an occurrence code appropriate to the patient's condition;

(W) occurrence span code, from and through dates (UB-92, field 36), are required if the CMS UB-92 manual contains an occurrence span code appropriate to the patient's condition;

(X) value code and amounts (UB-92, fields 39-41) are required for inpatient admissions. If no value codes are applicable to the inpatient admission, the provider may enter value code 01;

(Y) revenue code (UB-92, field 42) is required;

(Z) revenue description (UB-92, field 43) is required;

(AA) HCPCS/Rates (UB-92, field 44), are required if Medicare is a primary or secondary payor;

(BB) Service date (UB-92, field 45) is required if the claim is for outpatient services;

(CC) units of service (UB-92, field 46) are required;

(DD) total charge (UB-92, field 47) is required;

(EE) HMO or preferred provider carrier name (UB-92, field 50) is required;

(FF) provider number (UB-92, field 51), is required if the HMO or preferred provider carrier, prior to June 17, 2003, required provider numbers and gave notice of that requirement to physicians and providers.

(GG) prior payments-payor and patient (UB-92, field 54), are required if payments have been made to the physician or provider by the patient or another payor or subscriber, on behalf of the patient or subscriber, or by a primary plan as required by subsection (d) of this section;

(HH) subscriber's name (UB-92, field 58), is required if shown on the patient's ID card;

(II) patient's relationship to subscriber (UB-92, field 59) is required;

(JJ) patient's/subscriber's certificate number, health claim number, ID number (UB-92, field 60), is required if shown on the patient's ID card;

(KK) insurance group number (UB-92, field 62), is required if a group number is shown on the patient's ID card;

(LL) verification number (UB-92, field 63), is required if services have been verified pursuant to §19.1724 of this title (relating to Verification). If no verification has been provided, treatment authorization codes (UB-92, field 63) are required when authorization is required and granted;

(MM) principal diagnosis code (UB-92, field 67) is required;

(NN) diagnoses codes other than principal diagnosis code (UB-92, fields 68-75), are required if there are diagnoses other than the principal diagnosis;

(OO) admitting diagnosis code (UB-92, field 76) is required;

(PP) procedure coding methods used (UB-92, field 79), is required if the CMS UB-92 manual indicates a procedural coding method appropriate to the patient's condition;

(QQ) principal procedure code (UB-92, field 80), is required if the patient has undergone an inpatient or outpatient surgical procedure;

(RR) other procedure codes (UB-92, field 81), are required as an extension of subparagraph (QQ) of this paragraph if additional surgical procedures were performed;

(SS) attending physician ID (UB-92, field 82) is required;

(TT) signature of provider representative, electronic signature or notation that the signature is on file with the HMO or preferred provider carrier (UB-92, field 85) is required; and

(UU) date bill submitted (UB-92, field 86) is required.

(c) Required data elements-dental claims. The data elements described in this subsection are required as indicated and must be completed or provided in accordance with the special instructions applicable to the data elements for non-electronic clean claims filed by dental providers with HMOs.

(1) Patient's name is required;

(2) Patient's address is required;

(3) Patient's date of birth is required;

(4) Patient's gender is required;

(5) Patient's relationship to subscriber is required;

(6) Subscriber's name is required, if shown on the patient's ID card;

(7) Subscriber's address is required, but provider may enter "same" if the subscriber's address is the same as the patient's address required by paragraph (2) of this subsection;

(8) Subscriber's date of birth is required, if shown on the patient's ID card;

(9) Subscriber's gender is required;

(10) Subscriber's identification number is required, if shown on the patient's ID card;

(11) Subscriber's plan/group number is required, if shown on the patient's ID card;

(12) HMO's name is required;

(13) HMO's address is required;

(14) Disclosure of any other plan providing dental benefits is required and shall include a "no" if the patient is not covered by another plan providing dental benefits. If the patient does have other coverage, the provider shall indicate "yes" and the elements in paragraphs (15)- (20) of this subsection are required unless the provider submits with the claim documented proof to the HMO that the provider has made a good faith but unsuccessful attempt to obtain from the enrollee any of the information needed to complete the data elements;

(15) Other insured's or enrollee's name is required in accordance with the response to and requirements of paragraph (14) of this subsection;

(16) Other insured's or enrollee's date of birth is required in accordance with the response to and requirements of the element in paragraph (15) of this subsection;

(17) Other insured's or enrollee's gender is required in accordance with the response to and requirements of the element in paragraph (15) of this subsection;

(18) Other insured's or enrollee's identification number is required in accordance with the response to and requirements of the element in paragraph (15) of this subsection;

(19) Patient's relationship to other insured or enrollee is required in accordance with the response to and requirements of the element in paragraph (15) of this subsection;

(20) Name of other HMO or insurer is required in accordance with the response to and requirements of the element in paragraph (15) of this subsection;

(21) Verification or preauthorization number is required, if a verification or preauthorization number was issued by an HMO to the provider;

(22) Date(s) of service(s) or procedure(s) is required;

(23) Area of oral cavity is required, if applicable;

(24) Tooth system is required, if applicable;

(25) Tooth number(s) or letter(s) are required, if applicable;

(26) Tooth surface is required, if applicable;

(27) Procedure code for each service is required;

(28) Description of procedure for each service is required, if applicable;

(29) Charge for each listed service is required;

(30) Total charge for the claim is required;

(31) Missing teeth information is required, if a prosthesis constitutes part of the claim. A provider that provides information for this element shall include the tooth number(s) or letter(s) of the missing teeth;

(32) Notification of whether the services were for orthodontic treatment is required. If the services were for orthodontic treatment, the elements in paragraphs (34) and (35) of this subsection are required;

(33) Date of orthodontic appliance placement is required, if applicable;

(34) Months of orthodontic treatment remaining is required, if applicable;

(35) Notification of placement of prosthesis is required, if applicable. If the services included placement of a prosthesis, the element in paragraph (36) of this subsection is required;

(36) Date of prior prosthesis placement is required, if applicable;

(37) Name of billing provider is required;

(38) Address of billing provider is required;

(39) Billing provider's provider identification number is required, if applicable;

(40) Billing provider's license number is required;

(41) Billing provider's social security number or federal tax identification number is required;

(42) Billing provider's telephone number is required; and

(43) Treating provider's name and license number are required if the treating provider is not the billing provider.

(d) Coordination of benefits or non-duplication of benefits. If a claim is submitted for covered services or benefits in which coordination of benefits pursuant to §§3.3501-3.3511 of this title (relating to Group Coordination of Benefits) and §11.511(1) of this title (relating to Optional Provisions) is necessary, the amount paid as a covered claim by the primary plan is a required element of a clean claim for purposes of the secondary plan's processing of the claim and CMS 1500, field 29 or UB-92, field 54 must be completed pursuant to subsection (b)(1)(II) and (b)(2)(GG) of this section. If a claim is submitted for covered services or benefits in which non-duplication of benefits pursuant to §3.3053 of this title (relating to Non-duplication of Benefits Provision) is an issue, the amounts paid as a covered claim by all other valid coverage is a required element of a clean claim and CMS 1500, field 29 or UB-92, field 54 must be completed pursuant to subsection (b)(1)(II) and (b)(2)(GG) of this section. If a claim is submitted for covered services or benefits and the policy contains a variable deductible provision as set forth in §3.3074(a)(4) of this title (relating to Minimum Standards for Major Medical Expense Coverage) the amount paid as a covered claim by all other health insurance coverages, except for amounts paid by individually underwritten and issued hospital confinement indemnity, specified disease, or limited benefit plans of coverage, is a required element of a clean claim and CMS 1500, field 29 or UB-92, field 54 must be completed pursuant to subsection (b)(1)(II) and (b)(2)(GG) of this section. Notwithstanding these requirements, an HMO or preferred provider carrier may not require a physician or provider to investigate coordination of other health benefit plan coverage.

(e) A physician or provider submits an electronic clean claim by submitting a claim using the applicable format that complies with all applicable federal laws related to electronic health care claims, including applicable implementation guides, companion guides and trading partner agreements.

(f) If a physician or provider submits an electronic clean claim that requires coordination of benefits pursuant to §§3.3501-3.3511 of this title (relating to Group Coordination of Benefits) or §11.511(1) of this title (relating to Optional Provisions), the HMO or preferred provider carrier processing the claim as a secondary payor shall rely on the primary payor information submitted on the claim by the physician or provider. The primary payor may submit primary payor information electronically to the secondary payor using the ASC X12N 837 format and in compliance with federal laws related to electronic health care claims, including applicable implementation guides, companion guides and trading partner agreements.

(g) Format of elements. The elements of a clean claim set forth in subsections (b), (c), (d), (e) and (f), if applicable, of this section must be complete, legible and accurate.

(h) Additional data elements or information. The submission of data elements or information on or with a claim form by a physician or provider in addition to those required for a clean claim under this section shall not render such claim deficient.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 12, 2004.

TRD-200400186

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: February 1, 2004

Proposal publication date: October 31, 2003

For further information, please call: (512) 463-6327


28 TAC §21.2820

The Commissioner of Insurance adopts new §21.2820 concerning identification (ID) cards issued by insurers who issue preferred provider benefit plans and health maintenance organizations (HMOs) (hereinafter "carriers"). The section is adopted with changes to the proposed text as published in the October 31, 2003, issue of the Texas Register (28 TexReg 9398).

The new section is necessary to implement certain provisions of Senate Bill (SB) 418, 78th Regular Legislative Session, concerning the content of ID cards issued by carriers. Among other things, SB 418 added new Texas Insurance Code Art. 3.70-3C, Sec. 11, and §843.209. These sections contain provisions concerning ID cards issued by carriers regulated under the Insurance Code and subject to the provisions of SB 418, that basically require carriers that issue ID cards to display certain information on the cards. In developing this rule, the department discussed the provisions with the Technical Advisory Committee on Claims Processing (TACCP) appointed by the commissioner of insurance pursuant to SB 418, and drafted the proposal after receiving comments from members of the TACCP.

Pursuant to the emergency adoption provisions of Senate Bill (SB) 418, 78th Regular Session, the department adopted §21.2820 on an emergency basis effective August 16, 2003, which was the date that certain provisions of SB 418 went into effect. The emergency section will be withdrawn at the time this adoption becomes effective.

In response to a comment, §21.2820(b)(2) was changed to eliminate the requirement that the ID card contain both a toll-free number and a statement or other indication that a preferred provider may use the number to obtain the enrollee’s first date of eligibility. The adopted section’s language conforms more closely to the language of the statute. In addition, a change was made to §21.2820(b)(3) for purposes of consistency, and the effective date was modified to accommodate the transition from the application of the emergency rule to the final adopted rule.

The adopted section requires carriers that are subject to the applicable subchapter and that issue ID cards to display the first date of coverage or, in the alternative, to give a toll-free number by which a physician or provider may obtain this information. Because these provisions only apply to carriers and health plans subject to SB 418, they also contemplate that such cards identify applicability of the statute. Therefore, the adopted section also requires that the letters "TDI" or "DOI" be prominently displayed on the front of the card or document. As noted in the proposal, because a slightly different emergency rule has been in effect since August 16, 2003 (requiring that ID cards contain a symbol consisting of a star containing the letters "TDI"), any plans that have already printed cards containing the symbol as required by the emergency rule will be deemed to be in compliance with this adopted rule.

Finally, the adoption states that the requirements of the section apply to any HMO evidence of coverage or preferred provider benefit plan issued or renewed on or after February 1, 2004. The department believes that the adoption implements the ID card provisions of SB 418 consistent with the law's intent that the cards be as uniform and useful as possible for enrollees, insureds, carriers, and physicians and providers. The emergency rule relating to identification cards in effect prior to this adoption functioned similarly to this adopted rule and applied to any HMO evidence of coverage or preferred provider benefit plan issued or renewed on or after February 1, 2004. As noted earlier, the emergency rule will be withdrawn at the time this adoption becomes effective. The adoption of this permanent rule does not relieve a carrier's obligation to comply with the emergency rule nor does the adoption provide a delay or break in a carrier's requirement to comply with the identification card requirements.

Comment: Two commenters requested that the proposed effective date of January 1, 2004, be delayed by either one or two months to give plans more time to comply. One commenter urged that the department retain the January 1 date, as many health plans begin or renew their plan year on that date, and a later compliance date would defer the issuance of compliant ID cards for up to 11 months for such plans.

Agency Response: Because January 1, 2004 was the date contained in emergency rules that went into effect on August 16, 2003, carriers have had several months' notice and opportunity to prepare for the changes. The effective date has been changed in this adopted rule from the date included in the proposal, but only to accommodate the transition from the application of the emergency rule to the final adopted rule. Due to the substantially similar requirements in the emergency and adopted rules, the department expects that identification cards relating to plans issued or renewed on or after January 1, 2004 pursuant to the provisions of the emergency rule will effectively be in compliance with the requirements of this rule. Identification cards for plans issued or renewed on and after February 1, 2004 must be in compliance with this rule.

Comment: A commenter disagrees with the rule's requirement that the front of ID cards contain the words "TDI" or "DOI." The carrier contends that this will be costly and will have no measurable impact on two of the most critical health care issues: improving the quality of health care and making coverage more affordable.

Agency Response: The department disagrees, as inclusion of information identifying regulated plans was a provision of SB 418. Nevertheless, the department has been sensitive to costs of implementation. As a result of discussions with the TACCP, the proposed rule eliminated the emergency rule's requirement of a symbol in order to make compliance as simple as possible. The proposed rule also stated that carriers that had already printed cards containing the symbol would be deemed to be in compliance with the adopted final rule.

Comment: A commenter complains that the proposed rules on elements of a dental claim (§21.2803) make the subscriber ID number (Social Security Number or unique number) a required element if included on the ID card, yet this rule does not require inclusion of that number.

Agency Response: The department disagrees that this rule should mandate inclusion of a subscriber ID number, as SB 418 does not contain such a requirement. However, carriers are free to include that number on the ID cards.

Comment: One commenter urged removing the requirement that the card contain both a toll-free number and a statement or other indication that a preferred provider may use the number to obtain the enrollee's first date of eligibility for benefits. The commenter claimed a statement would further clutter up the card, and said the rule should track the statutory language requiring that the card contain the first date on which the enrollee or insured became eligible for benefits under the plan or a toll-free number a physician or provider may use to obtain that date. Another commenter supported the rule as proposed, stating that general statements like "For customer service" or "For member information" would not be sufficiently explicit to meet the statutory requirement.

Agency Response: The department believes that the first commenter's suggested change more closely complies with the statute, and has changed this part of the rule accordingly. The department is mindful of the limited space on ID cards, and believes that a more abbreviated notation, such as "Member information" is sufficiently explanatory.

For: Texas Medical Association. For, with changes: PacifiCare of Texas and PacifiCare Life Assurance Company; UNICARE Life & Health Insurance Company; Humana, Inc.; National Association of Dental Plans.

The new section is adopted under the Texas Insurance Code Article 3.70-3C, Sec. 11, and §36.001 and §843.209. Article 3.70-3C, Sec. 11, and §843.209 contain provisions concerning ID cards issued by carriers regulated under the Insurance Code and subject to the provisions of SB 418. Section 36.001 of the Insurance Code provides that the commissioner of insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

§21.2820.Identification Cards.

(a) An identification card, or other similar document that includes information necessary to allow enrollees and insureds to access services or coverage under an HMO evidence of coverage or a preferred provider benefit plan, that is issued by an HMO or preferred provider carrier subject to this subchapter pursuant to §21.2801 of this title (relating to Scope) shall comply with the requirements of this section.

(b) An identification card or other similar document issued to enrollees or insureds shall include the following information:

(1) the name of the enrollee or insured;

(2) the first date on which the enrollee or insured became eligible for benefits under the plan or a toll-free number that a preferred provider may use to obtain such information; and

(3) the letters "TDI" or "DOI" prominently displayed on the front of the card or document.

(c) The requirements of this section apply to an HMO evidence of coverage or a preferred provider benefit plan issued or renewed on or after February 1, 2004.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 12, 2004.

TRD-200400184

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: February 1, 2004

Proposal publication date: October 31, 2003

For further information, please call: (512) 463-6327


28 TAC §21.2826

The Commissioner of Insurance adopts new §21.2826, concerning waiver of certain statutory provisions regarding prompt payment of claims as to Medicaid and Children’s Health Insurance Program (CHIP) plans. The section is adopted without changes to the proposed text as published in the October 31, 2003, issue of the Texas Register (28 TexReg 9400) and will not be republished.

The new section is necessary to implement, in part, SB 418, which contained numerous provisions regarding the prompt payment of claims by health maintenance organizations (HMOs) and preferred provider carriers (hereinafter collectively "carriers"). Among other things, SB 418 added new Texas Insurance Code Article 21.30 concerning waiver of requirements for certain programs administered by the Health and Human Services Commission (HHSC). The purpose of this section is to implement this provision as requested by HHSC.

Pursuant to the emergency adoption provisions of Senate Bill (SB) 418, 78th Regular Session, the department adopted §21.2826 on an emergency basis effective August 16, 2003, which was the date that certain provisions of SB 418 went into effect. The emergency section will be withdrawn at the time this adoption becomes effective.

Article 21.30 provides that if the commissioner of insurance, in consultation with the HHSC commissioner, determines that any of the stated provisions of Texas Insurance Code Article 3.70-3C, Chapter 843, or Article 21.52Z will cause a negative fiscal impact to the state with respect to providing benefits or services under the Medicaid or CHIP programs, the insurance commissioner shall by rule waive application of those provisions. The HHSC commissioner has advised the commissioner of insurance that application of the provisions of SB 418 to Medicaid and CHIP plans would have a negative fiscal impact on the state and has requested a waiver of the statute and rules for those plans. Based on this, the commissioner has determined that there would be a negative fiscal impact on the state and has adopted §21.2826, which provides that the provisions of the statute and rules stated therein do not apply to Medicaid and CHIP plans provided by a carrier to persons enrolled in those programs.

Comment: A commenter is concerned with the application of a waiver to a for-profit HMO administering Texas Medicaid benefits. The commenter states that it has experienced claim payment delays and poor responses to inquiries from for-profit HMOs and the only incentive for these HMOs to pay claims promptly is the potential penalty of SB 418. The commenter states its belief that existing contracts between HHSC and for-profit HMOs supersede HB 610 and SB 418 and therefore no prompt payment language exists. Exempting for-profit HMOs from the provisions of SB 418, the commenter asserts, would greatly jeopardize the commenter’s ability to continue to treat a segment of society in need of health care.

Agency Response: SB 418 provides that the commissioner "shall" waive application of the provisions of SB 418 if, after consultation with the HHSC commissioner, he determines the provisions of SB 418 would have a negative fiscal impact on the state with respect to the provision of benefits or services under Medicaid or CHIP. The HHSC commissioner indicated the bill’s requirements would have a negative fiscal impact on the state with respect to the provision of those benefits and services. SB 418 does not exclude for-profit HMOs from application of the waiver. Therefore, as directed by statute, the commissioner is adopting the waiver provision in this rule that applies to all HMOs providing benefits and services under Medicaid and CHIP programs, including for-profit HMOs.

Against: Texas Health Care, P.L.L.C.

The new section is adopted under Texas Insurance Code Article 21.30 and §36.001. Article 21.30 requires the commissioner of insurance, in consultation with the HHSC commissioner, to determine whether certain provisions of SB 418 will have a negative fiscal impact on the state with respect to the provision of benefits or services under Medicaid or CHIP programs and, if so, to waive application of those provisions as to the Medicaid or CHIP plans. Section 36.001 of the Insurance Code provides that the commissioner of insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on January 12, 2004.

TRD-200400185

Gene C. Jarmon

General Counsel and Chief Clerk

Texas Department of Insurance

Effective date: February 1, 2004

Proposal publication date: October 31, 2003

For further information, please call: (512) 463-6327