SRC-TBR H.B. 2127 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2127
77R7060 AJA-DBy: Craddick (Bivins)
Business & Commerce
5/10/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, health coverage providers are legally able to deny
benefits to an applicant enlisted in another health benefit plan until the
applicant's membership in the previous plan is terminated. This conduct may
cause complications for a person trying to change health insurance plans.
H.B. 2127 prohibits a health benefit plan provider from refusing to cover a
member of another health benefit plan.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 21E, Insurance Code, by adding Article 21.52L,
as follows: 

Art. 21.52L.  DENIAL OF HEALTH BENEFIT PLAN ENROLLMENT BASED ON EXISTING
COVERAGE PROHIBITED 

Sec. 1.  APPLICABILITY OF ARTICLE.  (a)  Provides that this article applies
only to a health benefit plan that provides benefits for medical or
surgical expenses incurred as a result of a health condition, accident, or
sickness, including an individual, group, blanket, or franchise insurance
policy or insurance agreement, a group hospital service contract, or an
individual or group evidence of coverage or similar coverage document that
is offered by certain groups. 

 (b)  Provides that this article applies to a small employer health benefit
plan written under Chapter 26 of this code. 

  (c)  Provides that this article does not apply to certain plans.

Sec. 2.  PROHIBITION.  Prohibits the issuer of a health benefit plan from
refusing to enroll a person in the plan solely because the person is
enrolled in another health benefit plan at the time the person applies for
the coverage. 

Sec. 3.  VIOLATION.  Provides that an issuer of a health benefit plan who
violates the article engages in unfair discrimination under Article 21.21-8
of this code. 

SECTION 2.  Effective date: September 1, 2001.