By Maxey H.B. No. 1466
77R6073 PB-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to waiver of certain requirements for insurers who
1-3 contract with municipalities.
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) A municipality may waive the requirements of this
2-2 section by executing a written waiver in favor of the insurer.
2-3 SECTION 2. Article 21.49-16, Insurance Code, as amended by
2-4 this Act, applies only to a contract entered into on or after the
2-5 effective date of this Act. A contract entered into before that
2-6 date is governed by the law as it existed immediately before the
2-7 effective date of this Act, and that law is continued in effect for
2-8 that purpose.
2-9 SECTION 3. This Act takes effect September 1, 2001.