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.