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.