By Thompson H.B. No. 2051
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to classes of business for small employer health benefit
1-3 plans.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 26.02(5), Insurance Code, is amended to
1-6 read as follows:
1-7 (5) "Case characteristics" means, with respect to a
1-8 small employer, the geographic area in which that employer's
1-9 employees reside, the age and gender of the individual employees
1-10 and their dependents, the appropriate industry classification as
1-11 determined by the small employer carrier, [the number of employees
1-12 and dependents,] and other objective criteria as established by the
1-13 small employer carrier that are considered by the small employer
1-14 carrier in setting premium rates for that small employer. The term
1-15 does not include the number of employees and dependents, health
1-16 status related factors, duration of coverage since the date of
1-17 issuance of a health benefit plan, or whether a covered person is
1-18 or may become pregnant.
1-19 SECTION 2. Article 26.73, Insurance Code, is amended by
1-20 adding Subsection (c) to read as follows:
1-21 (c) Except as provided under Subsection (a) of this article,
1-22 a small employer carrier may vary the agent commission rates paid
1-23 on small employer premiums, but only if:
1-24 (1) the only factor that is used to differentiate
2-1 agent commission levels is the number of employees covered under
2-2 the small employer plan; and
2-3 (2) the commission levels are inversely related to the
2-4 number of employees covered under the small employer plan.
2-5 SECTION 3. This Act takes effect September 1, 1999, and
2-6 applies only to a small employer health benefit plan that is
2-7 delivered, issued for delivery, or renewed on or after January 1,
2-8 2000. A health benefit plan delivered, issued for delivery, or
2-9 renewed before January 1, 2000, is governed by the law as it
2-10 existed immediately before the effective date of this Act, and that
2-11 law is continued in effect for that purpose.
2-12 SECTION 4. The importance of this legislation and the
2-13 crowded condition of the calendars in both houses create an
2-14 emergency and an imperative public necessity that the
2-15 constitutional rule requiring bills to be read on three several
2-16 days in each house be suspended, and this rule is hereby suspended.