78R4252 KCR-D

By:  Madden                                                       H.B. No. 3197



A BILL TO BE ENTITLED

AN ACT

relating to premium rate adjustments for certain health benefit 
plans.      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Article 26.33(a), Insurance Code, is amended to 
read as follows: 
	(a)  The percentage increase in the premium rate charged to a 
small employer for a new rating period may not exceed the sum of:
		(1)  the percentage change in the new business premium 
rate measured from the first day of the prior rating period to the 
first day of the new rating period;
		(2)  any adjustment, not to exceed 33 [15] percent 
annually and adjusted pro rata for rating periods of less than one 
year, due to the claim experience, health status, or duration of 
coverage of the employees or dependents of the small employer as 
determined from the small employer carrier's rate manual for the 
class of business;  and
		(3)  any adjustment due to change in coverage or change 
in the case characteristics of the small employer as determined 
from the small employer carrier's rate manual for the class of 
business.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to a small employer health benefit plan that is 
delivered, issued for delivery, or renewed after the effective date 
of this Act.  A small employer health benefit plan that is 
delivered, issued for delivery, or renewed before the effective 
date of this Act is governed by the law as it existed before the 
effective date of this Act, and that law is continued in effect for 
that purpose.