By: De la Garza H.B. No. 970 73R4094 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to continuation of group health insurance coverage after 1-3 termination of group contract. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Article 3.51-6, Insurance Code, is amended by 1-6 adding Section 3G to read as follows: 1-7 Sec. 3G. CONTINUATION ON TERMINATION OF GROUP CONTRACT. (a) 1-8 In this section, "group health insurance contract" means a group 1-9 policy or contract, including a group contract issued by a group 1-10 hospital service corporation or a health maintenance organization, 1-11 that provides insurance or medical or surgical expenses incurred as 1-12 a result of an accident or sickness. 1-13 (b) A group health insurance contract issued under Section 1-14 (1)(a)(6) of this article must include an option for each person 1-15 covered by the contract to be covered under an individual contract 1-16 providing identical coverage if the group health insurance contract 1-17 is not renewed for any reason. The premium for the coverage 1-18 required by this section must be equal to the amount of premium 1-19 attributable for that person under the group health insurance 1-20 contract. 1-21 (c) The rights of a covered person to continuation of 1-22 coverage under this section are in addition to any rights the 1-23 person may have under Section 1(d) of this article. 1-24 (d) The board may adopt rules to implement this section. 2-1 SECTION 2. This Act takes effect September 1, 1993, and 2-2 applies only to a group health insurance contract that is 2-3 delivered, issued for delivery, or renewed on or after January 1, 2-4 1994. A group health insurance contract that is delivered, issued 2-5 for delivery, or renewed before January 1, 1994, is governed by the 2-6 law as it existed immediately before the effective date of this 2-7 Act, and that law is continued in effect for that purpose. 2-8 SECTION 3. The importance of this legislation and the 2-9 crowded condition of the calendars in both houses create an 2-10 emergency and an imperative public necessity that the 2-11 constitutional rule requiring bills to be read on three several 2-12 days in each house be suspended, and this rule is hereby suspended.