HBA-TYH H.B. 3275 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3275 By: Averitt Insurance 3/25/1999 Introduced BACKGROUND AND PURPOSE During the 104th Congress, the passage of H.R. 3103 (Kassebaum/Kennedy) instituted several major health insurance reforms related to insurance portability and availability. The federal law required the state of Texas to adopt certain provisions of the law in order to comply with reforms related to preexisting condition restrictions, portability, and availability of health insurance. As a result, the Texas Insurance Code now has a provision requiring an individual to enroll in a health benefit plan within 63 days of lapse of prior coverage to avoid a preexisting condition waiting period. H.B. 3275 increases the allowable time between coverage from 63 days to 110 days for large employer plans. This allows the insurance consumer additional days within which to seek and purchase a health benefit package. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1(H)(4)(a), Chapter 397, Acts of the 54th Legislature, Regular Session, 1995 (Article 3.70-1, V.T.I.C.), to allow an individual who was continuously covered for a specified aggregate period by health insurance that was in effect up to a date not more than 110, rather than 63, days before the effective date of coverage under the pool. SECTION 2. Amends Section 10(a), Article 3.77, Insurance Code, to make a conforming change. SECTION 3. Amends Section 12(b), Article 3.77, Insurance Code, to make conforming changes. SECTION 4. Amends Article 3.95-4.8(e), Insurance Code, to make a conforming change. SECTION 5. Amends Article 26.49(e), Insurance Code, to make a conforming change. SECTION 6. Amends Article 26.90(e), Insurance Code, to make a conforming change. SECTION 7.Effective date: September 1, 1999. Makes application of this Act prospective, as of January 1, 2000. SECTION 8. Emergency clause.