Enrolled Bill Summary

Senate Bill 1367	Senate Author:  Duncan
Effective:  See below	House Sponsor:  Smithee

            Senate Bill 1367 requires the board of directors of the Texas Health Insurance Pool to develop a plan for dissolving the board and the pool after the pool's obligations to issue and continue health benefit coverage terminate under the bill's provisions and to submit the plan to the commissioner of insurance for approval.

            Senate Bill 1367 establishes as the latest date on which the pool may issue health benefit coverage the later of December 31, 2013, or the earliest date on which health benefit coverage is reasonably available on a guaranteed issue basis to each class of individuals eligible for health benefit coverage through the pool immediately before the bill's effective date, as determined by the commissioner. The bill establishes that health benefit coverage that is issued to an individual by the pool and that is otherwise in force terminates on the later of January 1, 2014, or the earliest date on which the individual is enrolled in comparable health benefit coverage or could reasonably be expected to have obtained health benefit coverage on a guaranteed issue basis. The bill sets out transitional provisions relating to dissolution of the pool and authorizes the commissioner by rule to delay the implementation of the bill or the pool dissolution plan under certain conditions.

            Senate Bill 1367's provisions providing for the dissolution of the pool take effect June 14, 2013. Effective January 1, 2014, the bill repeals Insurance Code provisions requiring notice to be provided to certain individuals regarding the availability of coverage under the pool and also repeals Insurance Code provisions governing the maximum total amount of administrative costs and fees paid in a calendar year to all pool administrators. The bill repeals other Insurance Code provisions relating to the pool effective September 1, 2015.