SRC-DBM C.S.S.B. 497 76(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 497
By: Shapleigh
Economic Development
4/22/1999
Committee Report (Substituted)


DIGEST 

Currently, the Texas Insurance Code allows an individual to enroll in a
health benefit plan within 63 days of the lapse of their prior coverage in
order to avoid being subject to a preexisting condition waiting period.
Recent statistics compiled by the Texas Workforce Commission indicate that
the average worker who loses their job is out of work for an average of 105
days before finding a new job.  C.S.S.B. 497 increases the allowable
coverage from 63 days to 105 days before a preexisting condition waiting
period is instituted. 

PURPOSE

As proposed, C.S.S.B. 497 sets forth provisions regarding the application
of the preexisting condition provisions of certain health benefit plans. 

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 1(H)(4)(a), Article 3.70-1, Insurance Code, to
prohibit a preexisting condition from applying to an individual who was
continuously covered for 18 months by coverage that was in effect up to a
date not more than 105 days, rather than 63 days, before the effective date
of the individual coverage. 

SECTION 2.  Amends Section 10(a), Article 3.77, Insurance Code, to make a
conforming change. 

SECTION 3.  Amends Section 12(b), Article 3.77, Insurance Code, to make
conforming changes. 

SECTION 4.  Amends Article 3.95-4.8(e), Insurance Code, to make a
conforming change. 

SECTION 5.  Amends Article 26.49(e), Insurance Code, to make a conforming
change. 

SECTION 6.  Amends Article 26.90(e), Insurance Code, to make a conforming
change. 

SECTION 7.Effective date: September 1, 1999.
  Makes application of this Act prospective to January 1, 2000.

SECTION 8.Emergency clause.  

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 1(H)(4)(a), Article 3.70-1, Insurance Code, to prohibit a
preexisting condition from applying to an individual who was continuously
covered for 18 months by coverage that was in effect up to a date not more
than 105 days, rather than the proposed 110 days, before the effective date
of the individual coverage. 

 

SECTION 2.

 Amends Section 10(a), Article 3.77, Insurance Code, to make a conforming
change. 

SECTION 3.

 Amends Section 12(b), Article 3.77, Insurance Code, to make conforming
changes. 

SECTION 4.

 Amends Article 3.95-4.8(e), Insurance Code, to make a conforming change.

SECTION 5.

 Amends Article 26.49(e), Insurance Code, to make a conforming change.

SECTION 6.

 Amends Article 26.90(e), Insurance Code, to make a conforming change.