SRC-TAG H.B. 1798 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1798
By: Farabee (Averitt)
State Affairs
5/21/2003
Engrossed


DIGEST AND PURPOSE 

Under current state law, insurers, group hospital service corporations, or
health maintenance organization are required to provide each enrollee
residing in this state evidence of coverage under a health care plan.
Electronic transfer of an evidence of coverage would enable essential
health care plan coverage information to be provided in a more effecient
manner and might reduce administrative expenses.  H.B. 1798 authorizes the
electronic delivery of an evidence of coverage by agreement. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 9(a), Texas Health Maintenance Organization Act
(Article 20A.09, V.T.C.S), to provide that by agreement between the
insurer, group hospital service corporation, or health maintenance
organization and the subscriber, or the person entitled to receive the
policy, contract, or evidence of coverage, the evidence of coverage
required by this section may be delivered by electronic transfer. 

SECTION 2.  Effective date: September 1, 2003.