SRC-PNG H.B. 1431 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1431
76R6266 AJA-DBy: Averitt (Sibley)
Economic Development
5/2/1999
Engrossed


DIGEST 

Currently, the Texas Health Insurance Risk Pool (THIRP) provides health
insurance to individuals who otherwise are uninsurable in the private
market due to medical conditions or diagnoses.  Current law limits the fees
paid to THIRP's third party administrator to 12.5 percent of the preceding
year's gross premium receipts.  This bill would authorize the commissioner
of insurance to approve a higher amount, not to exceed 15 percent of the
gross premium receipts from the calendar year, if needed. 

PURPOSE

As proposed, H.B. 1431authorizes the commissioner of insurance to approve a
higher amount, not to exceed 15 percent of the gross premium receipts from
the calendar year, if needed. 

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 Section 7(f), Article 3.77, Insurance Code, authorizes
the commissioner of insurance to approve a higher amount in fees, not to
exceed 15 percent of the gross receipts of the Texas Health Insurance Risk
Pool (THIRP) for the calendar year, if the commissioner determines that the
higher amount is necessary to pay the administrative costs and fees of the
pool.  Makes conforming and nonsubstantive changes. 

SECTION 2. Provides that this Act applies to payment made to all insurers
or third party administrators for administration of THIRP for the 1999
calendar year or a subsequent year. 

SECTION 3. Emergency clause.
  Effective date: upon passage.