By:  Smithee (Senate Sponsor - Seliger)                           H.B. No. 2678
	(In the Senate - Received from the House May 10, 2005; 
May 12, 2005, read first time and referred to Committee on State 
Affairs; May 17, 2005, reported favorably by the following vote:  
Yeas 8, Nays 0; May 17, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the use of certain information to underwrite 
professional liability insurance for physicians and health care 
providers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Article 5.15-1, Insurance Code, is amended by 
adding Section 12 to read as follows:
	Sec. 12.  PROHIBITION OF USE OF CERTAIN INFORMATION FOR 
PHYSICIAN OR HEALTH CARE PROVIDER.  (a)  For the purpose of writing 
professional liability insurance for physicians and health care 
providers, an insurer may not consider whether, or the extent to 
which, a physician or health care provider provides services in 
this state to individuals who are recipients of Medicaid or covered 
by the state child health plan program established by Chapter 62, 
Health and Safety Code, including any consideration resulting in:
		(1)  denial of coverage;                                               
		(2)  refusal to renew coverage;                                        
		(3)  cancellation of coverage;                                         
		(4)  limitation of the amount, extent, or kind of 
coverage available; or
		(5)  a determination of the rate or premium to be paid.                
	(b)  The commissioner may adopt rules as necessary to 
implement this section.
	SECTION 2.  The change in law made by this Act applies only 
to policies of professional liability insurance for physicians and 
health care providers delivered, issued for delivery, or renewed on 
or after January 1, 2006.  A policy delivered, issued for delivery, 
or renewed before January 1, 2006, is governed by the law in effect 
immediately before the effective date of this Act, and that law is 
continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.                           



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