SRC-JBJ, SLL H.B. 1628 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1628
76R13495 PB-DBy: Maxey (Cain)
Economic Development
5/13/1999
Engrossed


DIGEST 

Governmental entities (entities) must make competitive bids for health
insurance each year.  In order to have a fair and efficient bid process,
bidders need claims experience data from the entities.  In the past,
entities' current insurers have withheld the needed claims experience and
consequently have hampered the bidding process.  H.B. 1628 requires
insurers to provide the entities with reports that include claims
experience for the previous year and the dollar amount of each large claim
paid by the insurer in the previous year.  

PURPOSE

As proposed, H.B. 1628 requires insurers to provide the entities with
reports that include claims experience for the previous year and the dollar
amount of each large claim paid by the insurer in the previous year.  

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  Subchapter E, Chapter 21, Insurance Code, by adding
Article 21.49-15, as follows:  

Art. 21.49-15.  INFORMATION REQUIRED TO BE PROVIDED BY INSURER TO
GOVERNMENTAL ENTITY WITH WHICH INSURER CONTRACTS  
 
Sec. 1.  DEFINITIONS.  Defines "governmental entity," "insurer," and
"political subdivision" for this article.  

Sec. 2.  REQUIRED INFORMATION.  (a)  Requires each insurer that enters into
a contract with a governmental entity (entity) that is subject to
competitive bidding requirements to provide to the entity a detailed report
that includes certain information.   Provides that claim information
provided by an insurer to the entity under this section: is required to be
provided in the aggregate, without information through which a specific
individual covered by the health insurance or evidence of coverage may be
identified; is authorized to be viewed or used only for contract bidding
purposes; and is confidential for purposes of Chapter 552 (Public
Information), Government Code. 
  
SECTION 2.Makes application of this Act prospective.

SECTION 3.Effective date: September 1, 1999.

SECTION 4.Emergency clause.