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.