By:  Menendez (Senate Sponsor - Van de Putte)                     H.B. No. 765
	(In the Senate - Received from the House April 14, 2005; 
April 18, 2005, read first time and referred to Committee on State 
Affairs; May 21, 2005, reported favorably, as amended, by the 
following vote:  Yeas 7, Nays 0; May 21, 2005, sent to printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Harris


Amend H.B. 765 as follows:                                                  

In Section 2 of the bill, delete subsection c in its entirety.                


A BILL TO BE ENTITLED

AN ACT


relating to notice of coverage under certain group health insurance 
policies and standard health benefit plans.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 1251.201, Insurance Code, as effective 
April 1, 2005, is amended to read as follows:
	Sec. 1251.201.  CERTIFICATE OF INSURANCE; NOTICE OF SEPARATE 
AVAILABLE COVERAGE.  (a)  An insurer issuing a group policy under 
this chapter shall provide to the policyholder for delivery to each 
employee or member of the insured group:
		(1)  a certificate of insurance that:                                  
			(A)  [(1)]  summarizes the essential features of 
the insurance coverage of the employee or member, including the 
annual deductibles, annual and lifetime policy limits, and maximum 
out-of-pocket expenses under the policy; and
			(B) [(2)]  states the person to whom benefits are 
payable; and
		(2)  a notice that informs the employee or member of the 
availability of and premiums for a rider or separate insurance 
policy that would provide coverage in addition to the coverage 
provided under the policy.
	(b)  If dependents are included in the coverage, an insurer 
is not required to provide more than one certificate or notice for 
each family unit.
	SECTION 2.  Subchapter E, Chapter 1251, Insurance Code, is 
amended by adding Section 1251.202 to read as follows:
	Sec. 1251.202.  NOTICE REGARDING CERTAIN EMPLOYER HEALTH 
BENEFIT PLANS.  (a)  In this section, "standard health benefit 
plan" means a plan offered under Article 3.80, Article 20A.09N, or 
Chapter 1507.
	(b)  If an employer offers to employees a standard health 
benefit plan, the employer shall:
		(1)  provide a copy of the disclosure statement 
provided to the employer by the plan issuer under Section 6, Article 
3.80, Article 20A.09N(g), Section 1507.006, or Section 1507.056 to:
			(A)  each employee:                                                   
				(i)  before the employee initially enrolls 
in the plan, unless the employee received notice under Paragraph 
(B) on or after the 90th day before the date the employee initially 
enrolls; and
				(ii)  not later than the 30th day before the 
date the employee renews enrollment in the plan; and
			(B)  each prospective employee before the 
prospective employee is hired by the employer; and
		(2)  obtain a copy of the notice signed by the employee 
or prospective employee at the time the notice is provided.
	(c)  The employer must:                                                 
		(1)  retain the signed disclosure statement in the 
employer's records; and
		(2)  on request of the commissioner, provide the signed 
disclosure statement to the department.
	SECTION 3.  The change in law made by this Act applies only 
to an insurance policy that is delivered, issued for delivery, or 
renewed on or after January 1, 2006.  An insurance policy that is 
delivered, issued for delivery, or renewed before January 1, 2006, 
is covered by the law in effect at the time the policy was 
delivered, issued for delivery, or renewed, and that law is 
continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.                           



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