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A BILL TO BE ENTITLED
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AN ACT
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relating to approval of premium rate increases by the commissioner |
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of insurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subtitle E, Title 5, Insurance |
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Code, is amended to read as follows: |
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SUBTITLE E. PREMIUMS AND PREMIUM FINANCING |
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SECTION 2. Subtitle E, Title 5, Insurance Code, is amended |
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by adding Chapter 652 to read as follows: |
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CHAPTER 652. RATE INCREASE LIMITATIONS |
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Sec. 652.001. DEFINITIONS. In this chapter, "health |
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maintenance organization" and "insurer" have the meanings assigned |
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by Section 401.001. |
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Sec. 652.002. COMMISSIONER APPROVAL REQUIRED. |
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Notwithstanding any other law and in addition to any other |
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applicable rating requirements, before an insurer or health |
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maintenance organization may collect a premium at a rate that has |
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increased from the rate used by the insurer or health maintenance |
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organization in the previous 12-month period, the insurer or health |
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maintenance organization shall: |
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(1) file the proposed rate with the department along |
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with any applicable rating manuals, supplementary rating |
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information, and additional information as required by the |
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commissioner; and |
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(2) obtain approval from the commissioner for the |
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proposed rate in accordance with rating standards applicable to the |
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line of insurance or the coverage for which the rate is used. |
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SECTION 3. The changes in law made by this Act apply only to |
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an insurance policy or health benefit plan delivered, issued for |
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delivery, or renewed on or after January 1, 2026. |
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SECTION 4. This Act takes effect September 1, 2025. |