SRC-JBJ S.B. 1376 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1376
76R8732 DLF-DBy: Shapleigh
Economic Development
4/19/1999
As Filed


DIGEST 

Currently, many Mexican citizens visit Texas for medical treatment.
Despite the market potential for selling health insurance to the citizens,
state law provides no incentive for Texas-based insurers to sell health
insurance coverage to foreign nationals.  S.B. 1376 would provide a premium
tax exemption for a health care provider in Texas who sells insurance
coverage to foreign nationals. 

PURPOSE

As proposed, S.B. 1376 provides an incentive for selling health benefit
plan coverage to certain individuals who are not residents of this state. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of the Texas Department
of Insurance in SECTION 1 (Section 5, Article 21.52I, Chapter 21E,
Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 21E, Insurance Code, by adding Article 21.52I,
as follows: 

Art. 21.52I.  HEALTH BENEFIT PLAN COVERAGE FOR CERTAIN NONRESIDENTS

 Sec. 1.  DEFINITION.  Defines "health benefit plan."

Sec. 2.  SCOPE OF ARTICLE.  Applies this article only to certain health
benefit plans that provide benefits for certain medical or surgical
expenses. 

Sec. 3.  COVERAGE FOR CERTAIN NONRESIDENTS.  Authorizes a health benefit
plan to provide nonresident coverage under this article for certain
individuals.  Authorizes nonresident coverage to be issued to those
individuals and certain other individuals. 

Sec. 4.  APPLICATION OF OTHER LAW.  Provides that the nonresident coverage
is subject to this code and certain other state laws on insurance, except
that non-emergency care coverage under the plan may be limited to benefits
for goods and services provided in the state. 

 Sec. 5.  RULES.  Authorizes the commissioner to adopt rules to implement
this article. 

SECTION 2.  Amends Section 2(c), Article 4.11, Insurance Code, to prohibit
a gross premium receipt described by Subdivision (1) of this subsection
from including the amount of premium paid on certain insurance policies.
Prohibits the gross premium receipts from including the amount of premium
that are attributable to nonresident coverage issued under Article 21.52I.
Provides that this subdivision expires on December 31, 2005.  Makes
conforming changes.  

SECTION 3. (a)  Effective date: September 1, 1999, except as provided by
Subsection (b). 

 (b)  Effective date for SECTION 2:  January 1, 2000.

 (c)-(d)  Makes application of this Act prospective to January 1, 2000.

SECTION 4.Emergency clause.