1-1 By: Craddick (Senate Sponsor - Bivins) H.B. No. 2127 1-2 (In the Senate - Received from the House April 30, 2001; 1-3 April 30, 2001, read first time and referred to Committee on 1-4 Business and Commerce; May 11, 2001, reported favorably by the 1-5 following vote: Yeas 7, Nays 0; May 11, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to unfair discrimination by the issuer of a health benefit 1-9 plan; providing penalties. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is 1-12 amended by adding Article 21.52L to read as follows: 1-13 Art. 21.52L. DENIAL OF HEALTH BENEFIT PLAN ENROLLMENT BASED 1-14 ON EXISTING COVERAGE PROHIBITED 1-15 Sec. 1. APPLICABILITY OF ARTICLE. (a) This article 1-16 applies only to a health benefit plan that provides benefits for 1-17 medical or surgical expenses incurred as a result of a health 1-18 condition, accident, or sickness, including an individual, group, 1-19 blanket, or franchise insurance policy or insurance agreement, a 1-20 group hospital service contract, or an individual or group evidence 1-21 of coverage or similar coverage document that is offered by: 1-22 (1) an insurance company; 1-23 (2) a group hospital service corporation operating 1-24 under Chapter 20 of this code; 1-25 (3) a fraternal benefit society operating under 1-26 Chapter 10 of this code; 1-27 (4) a stipulated premium insurance company operating 1-28 under Chapter 22 of this code; 1-29 (5) a reciprocal exchange operating under Chapter 19 1-30 of this code; 1-31 (6) a health maintenance organization operating under 1-32 the Texas Health Maintenance Organization Act (Chapter 20A, 1-33 Vernon's Texas Insurance Code); 1-34 (7) a multiple employer welfare arrangement that holds 1-35 a certificate of authority under Article 3.95-2 of this code; or 1-36 (8) an approved nonprofit health corporation that 1-37 holds a certificate of authority under Article 21.52F of this code. 1-38 (b) This article applies to a small employer health benefit 1-39 plan written under Chapter 26 of this code. 1-40 (c) This article does not apply to: 1-41 (1) a plan that provides coverage: 1-42 (A) only for benefits for a specified disease or 1-43 for another limited benefit; 1-44 (B) only for accidental death or dismemberment; 1-45 (C) for wages or payments in lieu of wages for a 1-46 period during which an employee is absent from work because of 1-47 sickness or injury; 1-48 (D) as a supplement to a liability insurance 1-49 policy; 1-50 (E) for credit insurance; 1-51 (F) only for dental or vision care; 1-52 (G) only for hospital expenses; or 1-53 (H) only for indemnity for hospital confinement; 1-54 (2) a Medicare supplemental policy as defined by 1-55 Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss), 1-56 as amended; 1-57 (3) a workers' compensation insurance policy; 1-58 (4) medical payment insurance coverage provided under 1-59 a motor vehicle insurance policy; or 1-60 (5) a long-term care insurance policy, including a 1-61 nursing home fixed indemnity policy, unless the commissioner 1-62 determines that the policy provides benefit coverage so 1-63 comprehensive that the policy is a health benefit plan as described 1-64 by Subsection (a) of this section. 2-1 Sec. 2. PROHIBITION. The issuer of a health benefit plan may 2-2 not refuse to enroll a person in the plan solely because the person 2-3 is enrolled in another health benefit plan at the time the person 2-4 applies for the coverage. 2-5 Sec. 3. VIOLATION. An issuer of a health benefit plan who 2-6 violates the article engages in unfair discrimination under Article 2-7 21.21-8 of this code. 2-8 SECTION 2. This Act takes effect September 1, 2001. 2-9 * * * * *