79R5810 AJA-F
By: Rose H.B. No. 3408
A BILL TO BE ENTITLED
AN ACT
relating to notice to employees and prospective employees that an
employer-sponsored health benefit plan does not provide certain
benefits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article 3.80, Insurance Code, is amended by
adding Section 6A to read as follows:
Sec. 6A. NOTICE REGARDING EMPLOYER HEALTH BENEFIT PLAN.
(a) If an employer offers a standard health benefit plan to
employees, the employer shall provide a written disclosure meeting
the requirements of this section to:
(1) each employee at the time the employee:
(A) initially enrolls in the plan; and
(B) renews enrollment in the plan; and
(2) each prospective employee before the prospective
employee is hired by the employer.
(b) The notice required by this section must read as
follows:
"The Consumer Choice of Benefits Health Insurance
Plan offered by this employer, either in whole or in
part, does not provide state-mandated health benefits
normally required in accident and sickness insurance
policies in Texas. This standard health benefit plan
may provide a more affordable health insurance policy
for you, although, at the same time, it may provide you
with fewer health benefits than those normally
included as state-mandated health benefits in policies
in Texas. A list of state-mandated health benefits
excluded from this plan is available on request."
SECTION 2. Section 9N, Texas Health Maintenance
Organization Act (Article 20A.09N, Vernon's Texas Insurance Code),
is amended by adding Subsections (m) and (n) to read as follows:
(m) If an employer offers a standard health benefit plan to
employees, the employer shall provide a written disclosure meeting
the requirements of this section to:
(1) each employee at the time the employee:
(A) initially enrolls in the plan; and
(B) renews enrollment in the plan; and
(2) each prospective employee before the prospective
employee is hired by the employer.
(n) The notice required by Subsection (m) of this section
must read as follows:
"This Consumer Choice of Benefits Health
Maintenance Organization health care plan, either in
whole or in part, does not provide state-mandated
health benefits normally required in evidences of
coverage in Texas. This standard health benefit plan
may provide a more affordable health plan for you,
although, at the same time, it may provide you with
fewer health plan benefits than those normally
included as state-mandated health benefits in Texas.
A list of state-mandated health benefits excluded from
this plan is available on request."
SECTION 3. Subchapter A, Chapter 1507, Insurance Code, is
amended by adding Section 1507.0051 to read as follows:
Sec. 1507.0051. NOTICE REGARDING EMPLOYER HEALTH BENEFIT
PLAN. (a) If an employer offers a standard health benefit plan to
employees, the employer shall provide a written disclosure meeting
the requirements of this section to:
(1) each employee at the time the employee:
(A) initially enrolls in the plan; and
(B) renews enrollment in the plan; and
(2) each prospective employee before the prospective
employee is hired by the employer.
(b) The notice required by this section must read as
follows:
"The Consumer Choice of Benefits Health Insurance
Plan offered by this employer, either in whole or in
part, does not provide state-mandated health benefits
normally required in accident and sickness insurance
policies in Texas. This standard health benefit plan
may provide a more affordable health insurance policy
for you, although, at the same time, it may provide you
with fewer health benefits than those normally
included as state-mandated health benefits in policies
in Texas. A list of state-mandated health benefits
excluded from this plan is available on request."
SECTION 4. Subchapter B, Chapter 1507, Insurance Code, is
amended by adding Section 1507.0551 to read as follows:
Sec. 1507.0551. NOTICE REGARDING EMPLOYER HEALTH BENEFIT
PLAN. (a) If an employer offers a standard health benefit plan to
employees, the employer shall provide a written disclosure meeting
the requirements of this section to:
(1) each employee at the time the employee:
(A) initially enrolls in the plan; and
(B) renews enrollment in the plan; and
(2) each prospective employee before the prospective
employee is hired by the employer.
(b) The notice required by this section must read as
follows:
"This Consumer Choice of Benefits Health
Maintenance Organization health care plan, either in
whole or in part, does not provide state-mandated
health benefits normally required in evidences of
coverage in Texas. This standard health benefit plan
may provide a more affordable health plan for you,
although, at the same time, it may provide you with
fewer health plan benefits than those normally
included as state-mandated health benefits in Texas.
A list of state-mandated health benefits excluded from
this plan is available on request."
SECTION 5. Sections 1 and 2 of this Act take effect only if
the Act of the 79th Legislature, Regular Session, 2005, relating to
nonsubstantive additions to and corrections in enacted codes does
not become law. If the Act of the 79th Legislature, Regular
Session, 2005, relating to nonsubstantive additions to and
corrections in enacted codes becomes law, Sections 1 and 2 of this
Act have no effect.
SECTION 6. Sections 3 and 4 of this Act take effect only if
the Act of the 79th Legislature, Regular Session, 2005, relating to
nonsubstantive additions to and corrections in enacted codes
becomes law. If the Act of the 79th Legislature, Regular Session,
2005, relating to nonsubstantive additions to and corrections in
enacted codes does not become law, Sections 3 and 4 of this Act have
no effect.
SECTION 7. To the extent of any conflict, this Act prevails
over another Act of the 79th Legislature, Regular Session, 2005,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 8. This Act takes effect September 1, 2005.