1-1     By:  Chisum (Senate Sponsor - Bivins)                 H.B. No. 2146
 1-2           (In the Senate - Received from the House April 30, 2001;
 1-3     May 1, 2001, read first time and referred to Committee on Business
 1-4     and Commerce; May 11, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 7, Nays 0;
 1-6     May 11, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 2146                  By:  Sibley
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to provision of certain health benefit claims information
1-11     to employers.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-14     amended by adding Article 21.49-19 to read as follows:
1-15           Art. 21.49-19.  HEALTH BENEFIT CLAIM COST INFORMATION
1-16     REQUIRED TO BE PROVIDED TO EMPLOYER
1-17           Sec. 1.  DEFINITION OF GROUP HEALTH BENEFIT PLAN. (a)  In
1-18     this article, "group health benefit plan" means a plan that
1-19     provides benefits for medical or surgical expenses incurred as a
1-20     result of a health condition, accident, or sickness, including a
1-21     group, blanket, or franchise insurance policy or insurance
1-22     agreement, a group hospital service contract, or a group evidence
1-23     of coverage or similar group coverage document that is offered by:
1-24                 (1)  an insurance company;
1-25                 (2)  a group hospital service corporation operating
1-26     under Chapter 20 of this code;
1-27                 (3)  a fraternal benefit society operating under
1-28     Chapter 10 of this code;
1-29                 (4)  a stipulated premium insurance company operating
1-30     under Chapter 22 of this code;
1-31                 (5)  a reciprocal exchange operating under Chapter 19
1-32     of this code;
1-33                 (6)  a health maintenance organization operating under
1-34     the Texas Health Maintenance Organization Act (Chapter 20A,
1-35     Vernon's Texas Insurance Code);
1-36                 (7)  a multiple employer welfare arrangement that holds
1-37     a certificate of authority under Article 3.95-2 of this code; or
1-38                 (8)  an approved nonprofit health corporation that
1-39     holds a certificate of authority under Article 21.52F of this code.
1-40           (b)  The term "group health benefit plan" includes a small
1-41     employer health benefit plan written under Chapter 26 of this code.
1-42           Sec. 2.  APPLICABILITY OF ARTICLE.  This article applies only
1-43     to a group health benefit plan issued to provide health benefits to
1-44     the employees of one or more employers that sponsor the plan.
1-45           Sec. 3.  CLAIM COST INFORMATION.  (a)  On the request of an
1-46     employer sponsoring a group health benefit plan, the issuer of the
1-47     plan shall provide to the employer the claims cost information for
1-48     employees covered by the plan during the preceding calendar year.
1-49     The information must be reported separately for each month during
1-50     which the plan was in effect.
1-51           (b)  Claims cost information provided under this section may
1-52     be provided either in the aggregate or on a detailed basis, but may
1-53     not include:
1-54                 (1)  any information through which a specific
1-55     individual enrolled in the group health benefit plan may be
1-56     identified; or
1-57                 (2)  diagnosis codes or other information through which
1-58     a diagnosis of a specific individual enrolled in the group health
1-59     benefit plan may be identified.
1-60           (c)  Information obtained by the employer under this section
1-61     is confidential and may be used by the employer only for purposes
1-62     relating to obtaining and maintaining group health benefit plan
1-63     coverage for the employer's employees.
1-64           SECTION 2. This Act takes effect September 1, 2001, and
 2-1     applies only to a group health benefit plan that is delivered,
 2-2     issued for delivery, or renewed on or after January 1, 2002.  A
 2-3     plan that is delivered, issued for delivery, or renewed before
 2-4     January 1, 2002, is governed by the law as it existed immediately
 2-5     before the effective date of this Act, and that law is continued in
 2-6     effect for that purpose.
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