SRC-DBM H.B. 3020 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3020
76R11922  DB-DBy: Smithee (Sibley)
Economic Development
5/10/1999
Engrossed


DIGEST 

Currently, health maintenance organizations (HMOs) are not subject to an
existing Texas law which requires insurance companies to file withdrawal
plans with the Texas Department of Insurance before exiting the Texas
market.  The statute related to withdrawal plans helps to stabilize the
Texas insurance industry by protecting against abrupt market disruptions
which may result if insurers haphazardly leave the state.  The exclusion of
HMOs from the withdrawal plan statute is a concern because the Texas HMO
industry has been suffering substantial financial losses.   In addition, no
protection currently exists to pay the claims of an HMO that goes into
receivership.  H.B. 3020 would set forth provisions regarding the
withdrawal of a health maintenance organization from operations in this
state. 

PURPOSE

As proposed, H.B. 3020 sets forth provisions regarding the withdrawal of a
health maintenance organization from operations. 

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 26(i), Article 20A.26, V.T.I.C. (Texas Health
Maintenance Organization Act), to provide that a health maintenance
organization authorized under this Act is subject to, rather than shall be
subject to, Article 21.49-2C, Insurance Code, and is an authorized insurer
for the purposes of that article.  Makes conforming changes. 

SECTION 2.Effective date: September 1, 1999.

SECTION 3.Emergency clause.