(a) An insurance carrier shall request a refund within 240 days from the date of service or 30 days from completion of an audit performed in accordance with § 133.230 (relating to Insurance Carrier Audit of a Medical Bill), whichever is later, when it determines that inappropriate health care was previously reimbursed, or when an overpayment was made for health care provided.
(b) The insurance carrier shall submit the refund request to the health care provider in an explanation of benefits in the form and manner prescribed by the Division.
(c) A health care provider shall respond to a request for a refund from an insurance carrier by the 45th day after receipt of the request by:
(1) paying the requested amount; or
(2) submitting an appeal to the insurance carrier with a specific explanation of the reason the health care provider has failed to remit payment.
(d) The insurance carrier shall act on a health care provider's appeal within 45 days after the date on which the health care provider filed the appeal. The insurance carrier shall provide the health care provider with notice of its determination, either agreeing that no refund is due, or denying the appeal.
(e) If the insurance carrier denies the appeal, the health provider:
(1) shall remit the refund with any applicable interest within 45 days of receipt of notice of denied appeal; and
(2) may request medical dispute resolution in accordance with § 133.305 of this chapter (relating to Medical Dispute Resolution--General).
(f) The health care provider shall submit a refund to the insurance carrier when the health care provider identifies an overpayment even though the insurance carrier has not submitted a refund request.
(g) When making a refund payment, the health care provider shall include: a copy of the insurance carrier's original request for refund, if any; a copy of the original explanation of benefits containing the overpayment, if available; and a detailed explanation itemizing the refund. The explanation shall:
(1) identify the billing and rendering health care provider;
(2) identify the injured employee;
(3) identify the insurance carrier;
(4) specify the total dollar amount being refunded;
(5) itemize the refund by dollar amount, line item and date of service; and
(6) specify the amount of interest paid, if any, and the number of days on which interest was calculated.
(h) All refunds requested by the insurance carrier and paid by a health care provider on or after the 60th day after the date the health care provider received the request for the refund shall include interest calculated in accordance with § 134.130 of this title (relating to Interest for Late Payment on Medical Bills and Refunds).
The provisions of this § 133.260 adopted to be effective May 2, 2006, 31 TexReg 3544.