1-1 AN ACT
1-2 relating to waiver of certain requirements for insurers who
1-3 contract with municipalities of this state.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2, Article 21.49-16, Insurance Code, is
1-6 amended to read as follows:
1-7 Sec. 2. REQUIREMENTS; EXCEPTION. (a) Except as provided by
1-8 Subsection (c) of this section, an [An] insurer who bids on a
1-9 contract subject to the competitive bidding and competitive
1-10 proposal requirements adopted under Section 252.021, Local
1-11 Government Code, may not submit a bid for a contract to provide
1-12 stop-loss or other insurance coverage that is subject to any
1-13 qualification imposed by the insurer that permits the insurer to
1-14 modify or limit the terms of insurance coverage to be provided
1-15 after the contract has been made. An insurer's bid submitted under
1-16 Section 252.021, Local Government Code, must contain the entire
1-17 offer made by the insurer.
1-18 (b) Except as provided by Subsection (c) of this section, an
1-19 [An] insurer who provides stop-loss or other insurance coverage for
1-20 health benefits under a contract subject to this article may not,
1-21 based on an individual's prior medical history, exclude an
1-22 individual who is otherwise eligible for the health benefits
1-23 coverage from coverage or assign a higher deductible to the
1-24 individual.
2-1 (c) By executing a written waiver in favor of the insurer, a
2-2 municipality may waive the requirements of:
2-3 (1) Subsection (a) of this section; or
2-4 (2) Subsection (b) of this section regarding the
2-5 assignment of a higher deductible to the individual.
2-6 SECTION 2. Section 2, Article 21.49-16, Insurance Code, as
2-7 amended by this Act, applies only to a contract entered into on or
2-8 after the effective date of this Act. A contract entered into
2-9 before that date is governed by the law as it existed immediately
2-10 before the effective date of this Act, and that law is continued in
2-11 effect for that purpose.
2-12 SECTION 3. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1466 was passed by the House on April
5, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1466 on May 15, 2001, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1466 was passed by the Senate, with
amendments, on May 10, 2001, by the following vote: Yeas 29, Nays
0, 1 present, not voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor