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.