1-1 AN ACT
1-2 relating to payment of an administering insurer or third party
1-3 administrator by the Texas Health Insurance Risk Pool.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 7(f), Article 3.77, Insurance Code, is
1-6 amended to read as follows:
1-7 (f) The pool shall pay an administering insurer or third
1-8 party administrator for its expenses incurred in performing its
1-9 duties and functions as provided by the plan of operation. Except
1-10 as otherwise provided by this subsection, the [The] total amount of
1-11 administrative costs and fees paid in a calendar year to all
1-12 administering insurers or a third party administrator may not
1-13 exceed 12.5 percent of the gross premium receipts of the pool for
1-14 the [preceding] calendar year. The commissioner may approve
1-15 payment of a higher amount, not to exceed 15 percent of the gross
1-16 premium receipts of the pool for the calendar year, if the
1-17 commissioner determines that the higher amount is necessary to pay
1-18 the administrative costs and fees of the pool.
1-19 SECTION 2. This Act applies to payment made to all insurers
1-20 or third party administrators for administration of the Texas
1-21 Health Insurance Risk Pool for the 1999 calendar year or a
1-22 subsequent year.
1-23 SECTION 3. The importance of this legislation and the
1-24 crowded condition of the calendars in both houses create an
2-1 emergency and an imperative public necessity that the
2-2 constitutional rule requiring bills to be read on three several
2-3 days in each house be suspended, and this rule is hereby suspended,
2-4 and that this Act take effect and be in force from and after its
2-5 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1431 was passed by the House on April
23, 1999, by the following vote: Yeas 141, Nays 0, 2 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1431 was passed by the Senate on May
13, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor