1-1     By:  Maxey (Senate Sponsor - Cain)                    H.B. No. 1628
 1-2           (In the Senate - Received from the House May 11, 1999;
 1-3     May 12, 1999, read first time and referred to Committee on Economic
 1-4     Development; May 14, 1999, reported favorably by the following
 1-5     vote:  Yeas 5, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to requiring a health insurer to provide certain
 1-9     information to governmental entities with which the insurer
1-10     contracts.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
1-13     amended by adding Article 21.49-15 to read as follows:
1-14           Art. 21.49-15.  INFORMATION REQUIRED TO BE PROVIDED BY
1-15     INSURER TO GOVERNMENTAL ENTITY WITH WHICH INSURER CONTRACTS
1-16           Sec. 1.  DEFINITIONS.  In this article:
1-17                 (1)  "Governmental entity" means a state agency or
1-18     political subdivision of this state.
1-19                 (2)  "Insurer" means:
1-20                       (A)  an insurance company;
1-21                       (B)  a health maintenance organization operating
1-22     under the Texas Health Maintenance Organization Act (Chapter 20A,
1-23     Vernon's Texas Insurance Code); or
1-24                       (C)  an approved nonprofit health corporation
1-25     that holds a certificate of authority issued by the commissioner
1-26     under Article 21.52F of this code.
1-27                 (3)  "Political subdivision" means a county,
1-28     municipality, school district, special purpose district, or other
1-29     subdivision of state government that has jurisdiction limited to a
1-30     geographic portion of the state.
1-31           Sec. 2.  REQUIRED INFORMATION.  (a)  Each insurer that enters
1-32     into a contract with a governmental entity that is subject to
1-33     competitive bidding requirements and under which the insurer
1-34     delivers, issues for delivery, or renews a policy or contract for
1-35     health insurance or an evidence of coverage shall provide to the
1-36     governmental entity a detailed report that includes:
1-37                 (1)  the claims experience of the governmental entity
1-38     during the preceding calendar year; and
1-39                 (2)  the dollar amount of each large claim, as defined
1-40     by the governmental entity, paid by the insurer under the contract
1-41     during the preceding calendar year.
1-42           (b)  Claim information provided by an insurer to the
1-43     governmental entity under this section:
1-44                 (1)  shall be provided in the aggregate, without
1-45     information through which a specific individual covered by the
1-46     health insurance or evidence of coverage may be identified;
1-47                 (2)  may be viewed or used only for contract bidding
1-48     purposes; and
1-49                 (3)  is confidential for purposes of Chapter 552,
1-50     Government Code.
1-51           SECTION 2.  Article 21.49-15, Insurance Code, as added by
1-52     this Act, applies only to a contract entered into on or after the
1-53     effective date of this Act.  A contract entered into before that
1-54     date is governed by the law as it existed immediately before the
1-55     effective date of this Act, and that law is continued in effect for
1-56     that purpose.
1-57           SECTION 3.  This Act takes effect September 1, 1999.
1-58           SECTION 4.  The importance of this legislation and the
1-59     crowded condition of the calendars in both houses create an
1-60     emergency and an imperative public necessity that the
1-61     constitutional rule requiring bills to be read on three several
1-62     days in each house be suspended, and this rule is hereby suspended.
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