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. 1-63 * * * * *