By:  Farabee                                                      H.B. No. 1798



A BILL TO BE ENTITLED

AN ACT

relating to health maintenance organizations.                                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 9(a), Texas Health Maintenance 
Organization Act (Article 20A.09, Vernon's Texas Insurance Code), 
is amended to read as follows:
	(a)  Every enrollee residing in this state is entitled to 
evidence of coverage under a health care plan.  If the enrollee 
obtains coverage under a health care plan through an insurance 
policy or a contract issued by a group hospital service 
corporation, whether by option or otherwise, the insurer or the 
group hospital service corporation shall issue the evidence of 
coverage.  Otherwise, the health maintenance organization shall 
issue the 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, the evidence of 
coverage required by this section may be delivered by electronic 
transfer.
	SECTION 2.  This Act takes effect September 1, 2003.