HBA-EVB, DMD S.B. 497 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 497 By: Shapleigh Insurance 5/19/1999 Engrossed BACKGROUND AND PURPOSE Currently, the Texas Insurance Code allows an individual to enroll in a health benefit plan within 63 days of the lapse of the individual's prior coverage in order to avoid being subject to a preexisting condition waiting period. Recent statistics compiled by the Texas Workforce Commission indicate that the average worker who loses a job is out of work for an average of 105 days before finding a new job. S.B. 497 increases the allowable coverage from 63 days to 105 days before a preexisting condition waiting period is instituted. 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 Subdivision 4(a), Subsection (H), Section 1, Chapter 397, Acts of the 54th Legislature, Regular Session, 1955 (Article 3.70-1, V.T.I.C.), to prohibit a preexisting condition provision in an individual health insurance policy from applying to an individual who was continuously covered for an aggregate period of 18 months by creditable coverage that was in effect up to a date not more than 105, rather than 63 days, before the effective date of the individual coverage. 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 Subsection (e), Article 3.95-4.8, Insurance Code, to make a conforming change. SECTION 5. Amends Subsection (e), Article 26.49, Insurance Code, to make a conforming change. SECTION 6. Amends Subsection (e), Article 26.90, Insurance Code, to make a conforming change. SECTION 7. Effective date: September 1, 1999. Makes application of this Act prospective with respect to a preexisting condition provision in a health benefit plan delivered, issued for delivery, or renewed on or after January 1, 2000. SECTION 8. Emergency clause.