By Maxey H.B. No. 355
75R2995 DLF-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain individual health benefit plans issued to
1-3 employees of certain small employers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Articles 26.06(a) and (b), Insurance Code, are
1-6 amended to read as follows:
1-7 (a) An individual or group health benefit plan is subject to
1-8 this chapter if it provides health care benefits covering three or
1-9 more eligible employees of a small employer and if it meets any one
1-10 of the following conditions:
1-11 (1) a portion of the premium or benefits is paid by a
1-12 small employer; [or]
1-13 (2) a portion of the premium for the plan is paid
1-14 through a payroll deduction; or
1-15 (3) the health benefit plan is treated by the employer
1-16 or by a covered individual as part of a plan or program for the
1-17 purposes of Section 106 or 162, Internal Revenue Code of 1986 (26
1-18 U.S.C. Section 106 or 162).
1-19 (b) Except as provided by Subsection (a) of this article,
1-20 this chapter does not apply to an individual health insurance
1-21 policy that is subject to individual underwriting[, even if the
1-22 premium is remitted through a payroll deduction method].
1-23 SECTION 2. This Act takes effect September 1, 1997, and
1-24 applies only to an insurance policy that is delivered, issued for
2-1 delivery, or renewed on or after January 1, 1998. A policy that is
2-2 delivered, issued for delivery, or renewed before January 1, 1998,
2-3 is governed by the law as it existed immediately before the
2-4 effective date of this Act, and that law is continued in effect for
2-5 that purpose.
2-6 SECTION 3. The importance of this legislation and the
2-7 crowded condition of the calendars in both houses create an
2-8 emergency and an imperative public necessity that the
2-9 constitutional rule requiring bills to be read on three several
2-10 days in each house be suspended, and this rule is hereby suspended.