Senator Jane Nelson
P.O. Box 12068, State Capitol
Austin, Texas 78711
Tel. (512) 463-0112
Fax (512) 463-0923

FOR IMMEDIATE RELEASE
March 25, 2003
Contact: Dave Nelson
(512) 463-0112

PROMPT PAY BILL UNANIMOUSLY APPROVED BY SENATE HEALTH PANEL

AUSTIN -- Health insurers would be required to pay health care providers in an accurate, timely manner under SB 418 by Senator Jane Nelson, R-Lewisville, that was approved by the Texas Senate today by a vote of 30-0. The bill now moves to the House for consideration.

""This boils down to a very simple principle of doing business. If you perform a service, you ought to be paid for that service -- on time and at the rates agreed to in your contract. This legislation will mitigate some of the serious payment problems that exist between health care providers and insurers to ensure timeliness and fairness for all parties involved," Senator Nelson, who chairs the Health & Human Services Committee, said.

SB 418, the so-called "prompt pay bill," follows months of testimony from physicians, hospitals and other health care providers who said they have been systematically denied payments owed to them because of billing technicalities. SB 418 aims to standardize the billing & payment system via the following provisions:

Senator Jane Nelson represents District 12, which includes the growing suburban communities of Denton and Tarrant counties and parts of the city of Fort Worth. Her email address is jane.nelson@senate.state.tx.us

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