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78R4625 KCR-D

By:  Alonzo                                                       H.B. No. 968



A BILL TO BE ENTITLED

AN ACT

relating to limiting increases in premiums paid for certain 
individual health insurance policies or plans.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 397, Acts of the 54th Legislature, 
Regular Session, 1955 (Article 3.70-1 et seq., Vernon's Texas 
Insurance Code), is amended by adding Section 15 to read as follows:
	Sec. 15.  LIMITATION ON PREMIUM INCREASES.  (a)  An insurer 
authorized to engage in the business of accident and sickness 
insurance in this state may not increase the premium a retired 
policyholder is charged for a term of the policy by an amount 
greater than the amount equal to 30 percent of the premium the 
retired policyholder was charged for the immediately preceding term 
of the policy.
	(b)  For purposes of this section, "retired policyholder" 
means a policyholder who has retired from full-time employment but 
is not yet eligible to receive benefits under the Medicare program.
	SECTION 2.  The Texas Health Maintenance Organization Act 
(Chapter 20A, Vernon's Texas Insurance Code) is amended by adding 
Section 9R to read as follows:
	Sec. 9R.  LIMITATION ON PREMIUM INCREASES.  (a)  A health 
maintenance organization may not increase the premium a retired 
enrollee enrolled in an individual health care plan is charged for a 
term of the evidence of coverage by an amount greater than the 
amount equal to 30 percent of the premium the retired enrollee was 
charged for the immediately preceding term of the evidence of 
coverage.
	(b)  For purposes of this section, "retired enrollee" means 
an enrollee who has retired from full-time employment but is not yet 
eligible to receive benefits under the Medicare program.
	SECTION 3.  This Act takes effect September 1, 2003, and 
applies only to a policy of accident and sickness insurance or 
evidence of coverage that is delivered, issued for delivery, or 
renewed on or after January 1, 2004.  A policy of accident and 
sickness insurance or evidence of coverage that is delivered, 
issued for delivery, or renewed before January 1, 2004, is governed 
by the law in effect immediately before the effective date of this 
Act, and the former law is continued in effect for that purpose.