H.B. 1798 78(R)    BILL ANALYSIS


H.B. 1798
By: Farabee
Insurance
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Under current state law, insurers, group hospital service corporations, or
health maintenance organizations 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 efficient
manner and may reduce administrative expenses.  H.B. 1798 authorizes the
electronic delivery of an evidence of coverage by agreement.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution.  

ANALYSIS

House Bill 1798 amends the Insurance Code to authorize the electronic
transfer of an evidence of coverage, 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.   

EFFECTIVE DATE

September 1, 2003.