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.