By:  Nelson                                                       S.B. No. 51 


A BILL TO BE ENTITLED

AN ACT

relating to eligibility for coverage of, and payment of premiums 
for, certain individuals covered under certain group health benefit 
plans.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 1301, Insurance Code, as 
effective April 1, 2005, is amended by adding Section 1301.0061 to 
read as follows:
	Sec. 1301.0061.  TERMS OF ENROLLEE ELIGIBILITY.  A contract 
between an insurer and a group policyholder under a preferred 
provider benefit plan must provide that:
		(1)  in addition to any other premiums for which the 
group policyholder is liable, the group policyholder is liable for 
an individual insured's premiums from the time the individual is no 
longer part of the group eligible for coverage under the policy 
until the end of the month in which the policyholder notifies the 
insurer that the individual is no longer part of the group eligible 
for coverage under the policy; and
		(2)  the individual remains covered under the policy 
until the end of that period.
	SECTION 2.  Subchapter F, Chapter 843, Insurance Code, is 
amended by adding Section 843.210 to read as follows:
	Sec. 843.210.  TERMS OF ENROLLEE ELIGIBILITY.  A contract 
between a health maintenance organization and a group contract 
holder must provide that:
		(1)  in addition to any other premiums for which the 
group contract holder is liable, the group contract holder is 
liable for an enrollee's premiums from the time the enrollee is no 
longer part of the group eligible for coverage under the contract 
until the end of the month in which the contract holder notifies the 
health maintenance organization that the enrollee is no longer part 
of the group eligible for coverage by the contract; and
		(2)  the enrollee remains covered by the contract until 
the end of that period.
	SECTION 3.  The change in law made by this Act applies only 
to a contract between an insurer or health maintenance organization 
and a group policy or contract holder that is entered into or 
renewed on or after January 1, 2006.  A contract entered into 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 4.  This Act takes effect September 1, 2005.