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.