HBA-TYH, NLM H.B. 1924 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1924
By: Averitt
Insurance
7/21/1999
Enrolled



BACKGROUND AND PURPOSE 

The Texas Health Insurance Risk Pool (pool) was created by the 71st
Legislature and made operational by the 75th Legislature to provide
uninsurable individuals access to health insurance for medical conditions
or diagnoses that result in ineligibility for private insurance coverage.
The pool is funded by assessing insurers providing health insurance
coverage in this state, including the assessment of insurers providing
long-term care coverage which is not offered under the pool. Federal High
Risk Pool regulations specifically exempt long-term care and disability
insurance from the list of coverage assessed.  H.B. 1924 exempts long-term
care, hospital indemnity, specified disease, and disability income
insurance from the list of coverage assessed in the pool. This bill also
specifies that long-term care, hospital indemnity, specified disease, and
disability income insurance are not included in the term "health insurance"
under Article 3.77 (Texas Health Insurance Risk Pool), Insurance Code. 
  
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of insurance in
SECTION 2 (Article 3.77, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2(7), Article 3.77, Insurance Code, to specify
that hospital indemnity insurance, long-term care insurance, disability
income insurance, and specified disease insurance are included in the term
"health insurance." 

SECTION 2.  Amends Article 3.77, Insurance Code, by adding Section 16, as
follows: 

Sec. 16.  Authorizes an insurer to provide a notification to its insureds
regarding the creation of the Texas Health Insurance Risk Pool and the
address for information on cost, coverage, eligibility, and other
information where an insured can compare his or her current health
insurance with the benefits plan offered by the pool.   Prohibits the
insurer from incurring any liability solely for providing such
notification.   Requires an insurer providing notice to provide such notice
as prescribed by the commissioner of insurance (commissioner). Authorizes
the commissioner to promulgate rules to implement this section.  

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Effective date: September 1, 1999.

SECTION 5.  Emergency clause.