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.