79R14068 AJA-D


By:  Hochberg                                                     H.B. No. 2810



A BILL TO BE ENTITLED

AN ACT

relating to certain inquiries relating to an applicant for 
individual health benefit plan coverage.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 544, Insurance Code, is amended by 
adding Subchapter G to read as follows:
	SUBCHAPTER G.  PREVIOUS DENIAL OF HEALTH BENEFIT PLAN COVERAGE
	Sec. 544.301.  DEFINITION.  In this subchapter, "individual 
health benefit plan" means:
		(1)  an individual accident and health insurance policy 
to which Chapter 1201 applies; or
		(2)  individual health maintenance organization 
coverage.            
	Sec. 544.302.  LIMITATION ON CERTAIN INQUIRIES.  A health 
benefit plan issuer may ask an individual who is an applicant for an 
individual health benefit plan or any other person or entity 
whether the applicant has previously been denied health benefit 
plan coverage only for the purpose of determining whether to ask for 
other information relating to a factor used by the insurer in 
underwriting the coverage.  The insurer may not consider a 
determination that the applicant has or has not previously been 
denied health benefit plan coverage in underwriting the coverage 
for which the applicant has applied.
	Sec. 544.303.  VIOLATION OF SUBCHAPTER; UNFAIR 
DISCRIMINATION.  A health benefit plan issuer who violates this 
subchapter engages in unfair discrimination under Subchapter B.
	SECTION 2.  The change in law made by this Act applies only 
to an application for health benefit plan coverage made on or after 
January 1, 2006.  An application made 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.