SRC-JEC S.B. 415 77(R)
BILL ANALYSIS 


Senate Research Center   S.B. 415
77R4991 PB-DBy: Carona
Health & Human Services
1/31/2001
As Filed


DIGEST AND PURPOSE 

Currently, any Texas health care provider may participate in the Texas
Medical Liability Insurance Underwriting Association.  As proposed, S.B.
415 includes for-profit nursing homes in the list of health care providers,
thereby allowing a for-profit nursing home to participate.  It also ensures
that if in any fiscal year the losses and expenses from a single health
care provider result in a net underwriting loss and exceed a certain
percentage of the stabilization reserve fund, the commissioner of insurance
may direct the initiation or continuation of the charge for physicians or
that category of health care provider until the fund recovers the relevant
amount. 

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 Section 2(6), Article 21.49-3, Insurance Code, to
redefine "health care provider." 

SECTION 2.  Amends Section 4(b)(1), Article 21.49-3, Insurance Code, to
authorize the commissioner of insurance, the commissioner's deputies, or
the State Board of Insurance, as appropriate (commissioner), rather than
the State Board of Insurance of the State of Texas, to require that certain
information be considered in the subjection of certain matters to Chapter
5B.  Provides that for purposes of this article, rates, rating plans,
rating rules, rating classifications, territories, and policy forms for
for-profit nursing homes are subject to the requirements of Article 5.15-1
of this code to the same extent as not-for-profit nursing homes. 

SECTION 3.  Amends Section 4A, Article 21.49-3, Insurance Code, as follows:

(d)  Requires that collections of the stabilization reserve fund charge
continue only until such time as the net balance of the fund reaches a
certain sum, except as provided by Subsection (e) of this section. 

(e) Authorizes the commissioner by order, if in any fiscal year the
incurred losses and defense and cost-containment expenses from physicians
or any single category of health care provider result in a net underwriting
loss and exceed 25 percent of the stabilization reserve fund, as valued for
that year, to direct the initiation or continuation of the stabilization
reserve fund charge for physicians or that category of health care provider
until the fund recovers the amount by which those losses and
cost-containment expenses exceed 25 percent of the fund. 

Makes conforming changes.

SECTION 4.  Makes application of Section 2 and 4, Article 21.49-3,
Insurance Code, as amended by this Act, prospective to January 1, 2002.   
 
SECTION 5.  Effective date:  September 1, 2001.