1-1 By: Averitt (Senate Sponsor - Sibley) H.B. No. 1431
1-2 (In the Senate - Received from the House April 26, 1999;
1-3 April 27, 1999, read first time and referred to Committee on
1-4 Economic Development; May 6, 1999, reported favorably by the
1-5 following vote: Yeas 5, Nays 0; May 6, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to payment of an administering insurer or third party
1-9 administrator by the Texas Health Insurance Risk Pool.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 7(f), Article 3.77, Insurance Code, is
1-12 amended to read as follows:
1-13 (f) The pool shall pay an administering insurer or third
1-14 party administrator for its expenses incurred in performing its
1-15 duties and functions as provided by the plan of operation. Except
1-16 as otherwise provided by this subsection, the [The] total amount of
1-17 administrative costs and fees paid in a calendar year to all
1-18 administering insurers or a third party administrator may not
1-19 exceed 12.5 percent of the gross premium receipts of the pool for
1-20 the [preceding] calendar year. The commissioner may approve
1-21 payment of a higher amount, not to exceed 15 percent of the gross
1-22 premium receipts of the pool for the calendar year, if the
1-23 commissioner determines that the higher amount is necessary to pay
1-24 the administrative costs and fees of the pool.
1-25 SECTION 2. This Act applies to payment made to all insurers
1-26 or third party administrators for administration of the Texas
1-27 Health Insurance Risk Pool for the 1999 calendar year or a
1-28 subsequent year.
1-29 SECTION 3. The importance of this legislation and the
1-30 crowded condition of the calendars in both houses create an
1-31 emergency and an imperative public necessity that the
1-32 constitutional rule requiring bills to be read on three several
1-33 days in each house be suspended, and this rule is hereby suspended,
1-34 and that this Act take effect and be in force from and after its
1-35 passage, and it is so enacted.
1-36 * * * * *