SRC-JEC H.B. 1800 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1800
By: Farabee (Averitt)
State Affairs
5/21/2003
Engrossed


DIGEST AND PURPOSE 

Under current state law, insurers, group hospital service corporations,
and health maintenance organizations are required to provide each enrollee
residing in this state evidence of coverage under a health care plan.
Current state law also requires a health maintenance organization to
provide disclosure of information about health care plan terms in written
format. Electronic transfer of an evidence of coverage and of disclosures
would enable essential health care plan coverage information to be
provided in a more efficient manner and might reduce administrative
expenses.  H.B. 1800 authorizes the electronic delivery of an evidence of
coverage by agreement and allows for electronic disclosures of information
about health care plan terms.  

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), Article 20A.09, Insurance Code, to
authorize the evidence of coverage required by this section to be
delivered electronically, 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. 

SECTION 2.  Amends Section 843.201, Insurance Code, to make conforming
changes. 

SECTION 3.  Effective date:  September 1, 2003.