By: Delisi H.B. No. 3550
A BILL TO BE ENTITLED
AN ACT
relating to the definition of gross premiums for certain health
insurance providers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2(c), Article 4.11, Texas Insurance
Code, is amended to read as follows:
(c) "Gross premiums are the total gross amount of all
premiums, membership fees, assessments, dues and any other
considerations for such insurance received during the taxable year
on each and every kind of such insurance policy of contract covering
persons located in the State of Texas and arising from the types of
insurance specified in Section 1 of this article, but deducting
returned premiums, any dividends applied to purchase paid-up
additions to insurance or to shorten the endowment or premium
payment period, and excluding those premiums received from
insurance carriers for reinsurance and there shall be no deduction
for premiums paid for reinsurance. For purposes of this article, a
stop-loss or excess loss insurance policy issued to a health
maintenance organization, as defined under the Texas Health
Maintenance Organization Act (Chapter 20A, Vernon's Texas
Insurance Code), shall be considered reinsurance. Such gross
premiums shall not include premiums received from the [Treasury of
the State of Texas or from the] Treasury of the United States for
[insurance contracted for by the state or federal government for
the purpose of providing welfare benefits to designated welfare
recipients or for] insurance contracted by [the state or] federal
government in accordance with or in furtherance of the provisions
of [Title 2, Human Resources Code, or] Title XVIII of the Federal
Social Security Act. The gross premiums receipts so reported shall
not include the amount of premiums paid on group health, accident,
and life policies in which the group covered by the policy consists
of a single nonprofit trust established to provide coverage
primarily for employees of:
(1) a municipality, county, or hospital district in
this state; or
(2) a county of municipal hospital, without regard to
whether the employees are employees of the county or municipality
or another entity operating the hospital on behalf of the county or
municipality.
SECTION 2. Article 4.17(a), Insurance Code, is amended to
read as follows:
(a) The commissioner shall annually determine the rate of
assessment of a maintenance tax to be paid on an annual, semiannual,
or other periodic basis, as determined by the comptroller. The rate
of assessment may not exceed .04 percent of the correctly reported
gross premiums of life, health, and accident insurance coverages
and the gross considerations for annuity and endowment contracts
collected by all authorized insurers writing life, health, and
accident insurance, annuity, or endowment contracts in this state.
The comptroller shall collect the maintenance tax. For purposes of
this article, the gross premiums on which an assessment is based may
not include premiums received from [this state or] the United
States for insurance contracted for by [this state or] the United
States [for the purpose of providing welfare benefits to designated
welfare recipients or for insurance contracted for by this state or
the United States in accordance with or] in furtherance of [Title 2,
Human Resources Code, or] Title XVIII of the federal Social
Security Act [(42 U.S.C. Section 301 et seq.)].
SECTION 3. Article 20A.33, Texas Insurance Code, is amended
by amending Subsection (d) to read as follows:
(d) The commissioner shall annually determine the rate of
assessment of a per capita maintenance tax to be paid on an annual
or semiannual basis, on the correctly reported gross revenues for
the issuance of health maintenance certificates or contracts
collected by all authorized health maintenance organizations
issuing such coverages in this state. The rate of assessment may
not exceed $2 for each enrollee. The rate of assessment may differ
between basic health care plans, limited health care service plans,
and single health care service plans and shall equitably reflect
any differences in regulatory resources attributable to each type
of plan. The comptroller shall collect the maintenance tax. For
purposes of this section, the amount of maintenance tax assessed
may not be computed on enrollees who as individual certificate
holders or their dependents are covered by a master group policy
paid for by revenues received from [this state or] the United States
for insurance contracted for by [this state or] the United States
[for the purpose of providing welfare benefits to designated
welfare recipients or for insurance contracted for by this state or
the United States in accordance with or] in furtherance of [Title 2,
Human Resources Code, or] Title XVIII of the federal Social
Security Act [(42 U.S.C. Section 301 et seq.)].
SECTION 4. REPEALER. Article 27.05, Texas Insurance Code,
is repealed.
SECTION 5. EFFECTIVE DATE. This Act takes effect September
1, 2003 and applies to an insurance policy or certificate of
coverage that is delivered, issued for delivery, or renewed on or
after January 1, 2004. A policy delivered, issued for delivery, or
renewed before January 1, 2004, is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.