By Thompson H.B. No. 2051
76R6255 AJA-F
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 26.31, Insurance Code, is amended by
1-6 adding Subsection (g) to read as follows:
1-7 (g) Notwithstanding Subsection (a) of this article, a
1-8 small employer carrier may divide small employer groups with
1-9 similar case characteristics into different classes of business
1-10 based on the number of employees covered under the small employer
1-11 plan.
1-12 SECTION 2. Article 26.73, Insurance Code, is amended by
1-13 adding Subsection (c) to read as follows:
1-14 (c) Except as provided under Subsection (a) of this article,
1-15 a small employer carrier may vary the agent commission rates paid
1-16 on small employer premiums, but only if:
1-17 (1) the only factor that is used to differentiate
1-18 agent commission levels is the number of employees covered under
1-19 the small employer plan; and
1-20 (2) the commission levels are inversely related to the
1-21 number of employees covered under the small employer plan.
1-22 SECTION 3. This Act takes effect September 1, 1999, and
1-23 applies only to a small employer health benefit plan that is
1-24 delivered, issued for delivery, or renewed on or after January 1,
2-1 2000. A health benefit plan delivered, issued for delivery, or
2-2 renewed before January 1, 2000, is governed by the law as it
2-3 existed immediately before the effective date of this Act, and that
2-4 law is continued in effect for that purpose.
2-5 SECTION 4. The importance of this legislation and the
2-6 crowded condition of the calendars in both houses create an
2-7 emergency and an imperative public necessity that the
2-8 constitutional rule requiring bills to be read on three several
2-9 days in each house be suspended, and this rule is hereby suspended.