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.