By Wilson H.B. No. 2711 77R9026 DLF-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to financial requirements applicable to certain health 1-3 maintenance organizations. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. The Texas Health Maintenance Organization Act 1-6 (Chapter 20A, Vernon's Texas Insurance Code) is amended by adding 1-7 Section 13D to read as follows: 1-8 Sec. 13D. FINANCIAL REQUIREMENTS FOR CERTAIN HEALTH 1-9 MAINTENANCE ORGANIZATIONS. (a) The commissioner by rule may waive 1-10 all or part of the applicable financial requirements, including the 1-11 minimum net worth required under Sections 13A, 13B, and 13C of this 1-12 Act, for a health maintenance organization that, under contract 1-13 with another health maintenance organization, provides health care 1-14 services to enrollees if, under the contract, the other health 1-15 maintenance organization remains financially responsible for those 1-16 services. 1-17 (b) In adopting rules under this section, the commissioner 1-18 may consider the factors listed by Sections 13C(a)(1)-(3) of this 1-19 Act. 1-20 (c) Rules adopted under this section must be designed to 1-21 ensure the financial solvency of health maintenance organizations 1-22 for the protection of enrollees and to ensure that the financial 1-23 requirements imposed on health maintenance organizations are 1-24 reasonable in relation to the risk assumed by the health 2-1 maintenance organizations. 2-2 SECTION 2. This Act takes effect immediately if it receives 2-3 a vote of two-thirds of all the members elected to each house, as 2-4 provided by Section 39, Article III, Texas Constitution. If this 2-5 Act does not receive the vote necessary for immediate effect, this 2-6 Act takes effect September 1, 2001.