79R4047 KCR-D

By:  Taylor                                                       H.B. No. 2284



A BILL TO BE ENTITLED

AN ACT

relating to implementation of a study concerning health insurance 
and medical professional liability insurance issues affecting this 
state.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  (a)  The Texas Department of Insurance shall 
conduct a study analyzing the historical and potential effects of 
the following factors on the cost of health insurance premiums in 
this state:
		(1)  catastrophic claims filed by an insured and paid 
by an insurer;        
		(2)  reinsurance of certain risks by insurers who 
engage in the business of health insurance in this state; and
		(3)  civil causes of action against health care 
providers.                  
	(b)  The study conducted under Subsection (a) must include an 
assessment of: 
		(1)  the effect, if any, that a claim exceeding $50,000 
paid by an insurer under a health insurance policy, certificate of 
coverage, or other similar document has on the premiums paid by 
other insureds or enrollees;
		(2)  the effect, if any, that mandatory reinsurance of 
all claims exceeding $50,000 may have on health insurance premiums 
in this state;
		(3)  the feasibility of establishing a mandatory 
reinsurance program for claims described by Subdivision (2);
		(4)  the effect, if any, that establishing statewide 
best practice standards for health care providers may have on 
premiums for medical professional liability insurance and health 
insurance;
		(5)  the feasibility of establishing and enforcing 
statewide best practice standards for health care providers;
		(6)  the connection, if any, between premiums paid for 
health insurance and premiums paid for medical professional 
liability insurance; and
		(7)  the effect, if any, that the use of deductible 
arrangements other than application of an annual deductible may 
have on premiums for health insurance in this state.
	(c)  In conducting the study under Subsection (a), the Texas 
Department of Insurance may cooperate as necessary with any 
appropriate state agency.
	(d)  The Texas Department of Insurance shall complete the 
study conducted under Subsection (a) not later than September 1, 
2006.
	SECTION 2.  Not later than September 1, 2006, the Texas 
Department of Insurance shall submit a written report to the 
governor, the lieutenant governor, the speaker of the house, and 
the chair of the house and senate legislative committees that have 
primary jurisdiction over insurance matters.  The report shall:
		(1)  summarize the findings of the study; and                                 
		(2)  propose any legislation necessary to implement a 
program or address an issue included in the study.
	SECTION 3.  This Act expires September 1, 2007.                                
	SECTION 4.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.