RS S.B. 682 75(R)    BILL ANALYSIS


INSURANCE
S.B. 682
By: Armbrister (Eiland)
5-12-97
Committee Report (Unamended)


BACKGROUND

Currently, Texas Department of Insurance rules require advertisements that
refer to rates for health insurance coverage to disclose exclusions,
reductions, and limitations.  This interpretation may restrict the
advertising of rates because most policies contain the standard laundry
list of exclusions, such as cosmetic surgery and self-inflicted injuries.
This bill clarifies the ability to advertise rates for health insurance
coverage, without the listing of all exclusions and benefit limitations if
accompanied by disclaimers of insurers and health maintenance
organizations. 

PURPOSE

As proposed, S.B. 682 clarifies the ability to advertise rates for health
insurance coverage, without the listing of all exclusions and benefit
limitations if accompanied by disclaimers of insurers and health
maintenance organizations. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 21B. Insurance Code, by adding Article 21.20-2,
as follows: 

Art. 21.20-2. ADVERTISEMENTS FOR CERTAIN HEALTH BENEFIT PLANS.

Sec. 1. SCOPE OF ARTICLE.  Provides that this article applies to health
benefit plans which provide benefits for medical or surgical expenses as a
result of a health condition, accident, or sickness or an individual or
group evidence of coverage issued by certain entities.  Sets forth
policies to which this plan is not applicable.  

Sec. 2. DISCLAIMERS.  Authorizes an advertisement for a health benefit
plan to include certain information,  subject to Article 21.21 of this
code.  Sets forth requirements for rates mentioned in an advertisement. 

SECTION 2. Emergency clause.
  Effective date: upon passage.