HBA-TBM H.B. 1000 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1000 By: Naishtat Insurance 3/2/2001 Introduced BACKGROUND AND PURPOSE Escalating liability insurance costs are making it difficult for nursing homes to obtain coverage. In addition, the number of underwriters for nursing home liability insurance has decreased over the past two years. While the commissioner of insurance took action this interim to allow non-profit nursing homes to purchase insurance from the Texas Medical Liability Insurance Underwriting Association, commonly referred to as the Joint Underwriting Association (JUA), law prohibits for-profit nursing homes from joining JUA to purchase liability insurance. House Bill 1000 authorizes for-profit nursing homes to purchase liability insurance from JUA. 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. ANALYSIS House Bill 1000 amends the Insurance Code to modify the operation of the Texas Medical Liability Insurance Underwriting Association, commonly referred to as the Joint Underwriting Association (JUA) and the participation of nursing homes in JUA. The bill adds for-profit nursing homes to the definition of health care provider under the Texas Medical Liability Insurance Underwriting Association Act. The bill provides that the commissioner of insurance (commissioner) rather than the State Board of Insurance may require any other information to be given due consideration by JUA for applicability to the insurance written by JUA. The bill subjects the rates for for-profit nursing homes to the same requirements as not-for-profit nursing homes. The bill provides that if in any fiscal year the incurred losses and defense and costcontainment expenses from physicians or any single category of health care provider result in a net underwriting loss and exceed 25 percent of the stabilization reserve fund, as valued for that year, the commissioner is authorized to direct the initiation or continuation of the stabilization reserve fund charge for physicians or that category of health care provider until the fund recovers the amount by which those losses and cost-containment expenses exceed 25 percent of the fund. EFFECTIVE DATE September 1, 2001. This Act applies only to an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2002.