1-1 By: Maxey (Senate Sponsor - Cain) H.B. No. 1466
1-2 (In the Senate - Received from the House April 9, 2001;
1-3 April 9, 2001, read first time and referred to Committee on
1-4 Business and Commerce; May 3, 2001, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 5, Nays
1-6 0; May 3, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1466 By: Jackson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to waiver of certain requirements for insurers who
1-11 contract with municipalities of this state.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 2, Article 21.49-16, Insurance Code, is
1-14 amended to read as follows:
1-15 Sec. 2. REQUIREMENTS; EXCEPTION. (a) Except as provided by
1-16 Subsection (c) of this section, an [An] insurer who bids on a
1-17 contract subject to the competitive bidding and competitive
1-18 proposal requirements adopted under Section 252.021, Local
1-19 Government Code, may not submit a bid for a contract to provide
1-20 stop-loss or other insurance coverage that is subject to any
1-21 qualification imposed by the insurer that permits the insurer to
1-22 modify or limit the terms of insurance coverage to be provided
1-23 after the contract has been made. An insurer's bid submitted under
1-24 Section 252.021, Local Government Code, must contain the entire
1-25 offer made by the insurer.
1-26 (b) Except as provided by Subsection (c) of this section, an
1-27 [An] insurer who provides stop-loss or other insurance coverage for
1-28 health benefits under a contract subject to this article may not,
1-29 based on an individual's prior medical history, exclude an
1-30 individual who is otherwise eligible for the health benefits
1-31 coverage from coverage or assign a higher deductible to the
1-32 individual.
1-33 (c) By executing a written waiver in favor of the insurer, a
1-34 municipality may waive the requirements of:
1-35 (1) Subsection (a) of this section; or
1-36 (2) Subsection (b) of this section regarding the
1-37 assignment of a higher deductible to the individual.
1-38 SECTION 2. Section 2, Article 21.49-16, Insurance Code, as
1-39 amended by this Act, applies only to a contract entered into on or
1-40 after the effective date of this Act. A contract entered into
1-41 before that date is governed by the law as it existed immediately
1-42 before the effective date of this Act, and that law is continued in
1-43 effect for that purpose.
1-44 SECTION 3. This Act takes effect September 1, 2001.
1-45 * * * * *