By: Smithee H.B. No. 1570 73R5979 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to availability of group health insurance coverage 1-3 following a change of employment. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-6 amended by adding Article 21.52C to read as follows: 1-7 Art. 21.52C. AVAILABILITY OF GROUP HEALTH INSURANCE COVERAGE 1-8 FOLLOWING CHANGE OF EMPLOYMENT. (a) In this article: 1-9 (1) "Group health insurance policy" means: 1-10 (A) a policy or contract of group health 1-11 insurance, including a policy or contract issued by a group 1-12 hospital service corporation under Chapter 20 of this code; or 1-13 (B) a group evidence of coverage issued by a 1-14 health maintenance organization under the Texas Health Maintenance 1-15 Organization Act (Chapter 20A, Vernon's Texas Insurance Code). 1-16 (2) "Preexisting condition provision" means a group 1-17 health insurance policy provision that excludes benefits for 1-18 expenses incurred during a period after the effective date of 1-19 coverage under the policy resulting from a condition manifested 1-20 during a period preceding the effective date of the coverage. 1-21 (b) An insurer may not refuse to cover an individual under a 1-22 group health insurance policy if the group health insurance policy 1-23 covers the employees of an employer and if: 1-24 (1) the individual is an employee of that employer; 2-1 (2) the individual applied for coverage under the 2-2 group health insurance policy not later than the 30th day after the 2-3 date on which the individual became eligible for coverage as an 2-4 employee of that employer; 2-5 (3) before becoming an employee of that employer, the 2-6 individual was covered under a group health insurance policy as an 2-7 employee of a previous employer; and 2-8 (4) the individual became an employee of the current 2-9 employer not later than the 90th day after the date employment with 2-10 the previous employer terminated. 2-11 (c) The spouse or dependent child of an individual who is 2-12 entitled to coverage under a group health insurance policy under 2-13 Subsection (b) of this article is entitled to coverage if the 2-14 spouse or dependent child was covered under the previous employer's 2-15 group health insurance policy. 2-16 (d) Coverage under a group health insurance policy that is 2-17 required by Subsection (b) or (c) of this article is subject to the 2-18 conditions, restrictions, and limitations of that policy other than 2-19 a preexisting condition provision. 2-20 SECTION 2. (a) This Act takes effect September 1, 1993. 2-21 (b) Subsections (b) and (c), Article 21.52C, Insurance Code, 2-22 as added by this Act, require coverage only under an insurance 2-23 policy that is delivered, issued for delivery, or renewed on or 2-24 after January 1, 1994. A policy that is delivered, issued for 2-25 delivery, or renewed before January 1, 1994, is governed by the law 2-26 as it existed immediately before the effective date of this Act, 2-27 and that law is continued in effect for that purpose. 3-1 SECTION 3. The importance of this legislation and the 3-2 crowded condition of the calendars in both houses create an 3-3 emergency and an imperative public necessity that the 3-4 constitutional rule requiring bills to be read on three several 3-5 days in each house be suspended, and this rule is hereby suspended.