By Averitt                                            H.B. No. 1866
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain definitions related to health benefits
 1-3     purchasing cooperatives and their classes of membership.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. SUBCHAPTER A., Chapter 26, Article 26.02,
 1-6     Insurance Code, is amended to read as follows:
 1-7                 (3)  "Ancillary product" means life insurance,
 1-8     accident-only or disability income insurance or a combination of
 1-9     accident-only and disability income insurance, disability insurance
1-10     coverage, coverage for a specified disease or illness, long-term
1-11     care coverage or benefits, nursing home care coverage or benefits,
1-12     home health care coverage or benefits, coverage that provides
1-13     limited-scope dental or vision benefits, hospital indemnity or
1-14     other fixed indemnity insurance or other similar or related
1-15     products.
1-16                 (5)  "Benefit election" means an eligible employee or
1-17     individual electing to be covered under a health benefit plan or
1-18     ancillary products or services, an employer electing a mandated
1-19     benefit offering in relation to a health benefit plan or electing
1-20     to be covered under a small or large employer health benefit plan
1-21     issued under the guaranteed availability requirements of this
1-22     Chapter or electing coverage under ancillary products or services.
 2-1           SECTION 2.  Chapter 26, Subchapter B., Insurance Code,
 2-2     Article 26.15(a)(10) and (b) are amended to read as follows,
 2-3     Article 26.15 is further amended by adding Subsection (e) and
 2-4     Article 26.16(b) is amended to read as follows:
 2-5                 (10)  may offer such other ancillary products and
 2-6     services to its members as are customarily offered in conjunction
 2-7     with health benefit plans or offered to small or large employers.
 2-8           (b)  The Texas [A] cooperative may contract only with small
 2-9     or large employer carriers who desire to offer coverage through the
2-10     cooperative and a class of membership of a private purchasing
2-11     cooperative may contract for the small or large employer health
2-12     benefit plans with small or large employer carriers who
2-13     demonstrate:
2-14           (e)  A private purchasing cooperative may establish separate,
2-15     distinct and unaffiliated classes of membership.
2-16           (b)  The Texas [A] cooperative is considered an employer and
2-17     a class of membership of a cooperative is considered a single small
2-18     or large employer solely for the purposes of benefit elections
2-19     under the code.
2-20           SECTION 3.  This Act takes effect September 1, 2001, and
2-21     applies only to a health benefit plan that is delivered, issued for
2-22     delivery, or renewed on or after January 1, 2002.  A health benefit
2-23     plan that is delivered, issued for delivery, or renewed before
2-24     January 1, 2002, is governed by the law as it existed immediately
2-25     before the effective date of this Act, and that law is continued in
2-26     effect for that purpose.