By De La Garza H.B. No. 491 74R3390 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to denial of or limitation on health insurance coverage 1-3 because of a preexisting condition. 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 21.49-2E to read as follows: 1-7 Art. 21.49-2E. PROHIBITION ON DENIAL OR EXCLUSION OF 1-8 COVERAGE FOR PREEXISTING CONDITION 1-9 Sec. 1. DEFINITIONS. In this article: 1-10 (1) "Health insurance contract" means a health 1-11 insurance policy, agreement, contract, or evidence of coverage that 1-12 is delivered or issued for delivery by a health insurer. 1-13 (2) "Health insurer" means an insurance company, group 1-14 hospital service corporation, or health maintenance organization 1-15 that delivers or issues for delivery an individual, group, blanket, 1-16 or franchise insurance policy or insurance agreement, a group 1-17 hospital service contract, or an evidence of coverage that provides 1-18 benefits for medical or surgical expenses incurred as a result of 1-19 an accident or sickness. 1-20 (3) "Preexisting condition" means a medical condition 1-21 of an applicant for coverage under a health insurance contract that 1-22 manifested itself before a determination on the application for 1-23 coverage is made. 1-24 Sec. 2. DENIAL PROHIBITED. A health insurer may not refuse 2-1 to issue a health insurance contract to an applicant because of a 2-2 preexisting condition. 2-3 Sec. 3. EXCLUSION PROHIBITED. A health insurer may not 2-4 issue a health insurance contract that excludes coverage for a 2-5 preexisting condition. 2-6 SECTION 2. This Act takes effect September 1, 1995, and 2-7 applies only to a health insurance contract that is delivered, 2-8 issued for delivery, or renewed on or after January 1, 1996. A 2-9 health insurance contract that is delivered, issued for delivery, 2-10 or renewed before January 1, 1996, is governed by the law as it 2-11 existed immediately before the effective date of this Act, and that 2-12 law is continued in effect for that purpose. 2-13 SECTION 3. The importance of this legislation and the 2-14 crowded condition of the calendars in both houses create an 2-15 emergency and an imperative public necessity that the 2-16 constitutional rule requiring bills to be read on three several 2-17 days in each house be suspended, and this rule is hereby suspended.