By:  Armbrister                                                   S.B. No. 1284


A BILL TO BE ENTITLED

AN ACT

relating to certain requirements applicable to health maintenance 
organizations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 843.051, Insurance Code, is amended by 
adding Subsections (f) and (g) to read as follows:
	(f)  A health maintenance organization is subject to Chapter 
823 as if the health maintenance organization were an insurer under 
that chapter.
	(g)  The merger of a health maintenance organization with 
another health maintenance organization is subject to Chapter 824 
as if the health maintenance organizations were insurance 
corporations under that chapter.  The commissioner may adopt rules 
as necessary to implement this subsection in a way that reflects the 
nature of health maintenance organizations, health care plans, or 
evidences of coverage.
	SECTION 2.  Subsection (a), Section 843.441, Insurance Code, 
is amended to read as follows:
	(a)  To provide funds for the administrative expenses of the 
commissioner regarding rehabilitation, liquidation, supervision, 
or conservation of an impaired health maintenance organization in 
this state, including expenses incurred by the commissioner acting 
as receiver or by a special deputy receiver, the committee, at the 
commissioner's direction, shall assess each health maintenance 
organization in the proportion that the gross premiums of the 
health maintenance organization that were written in this state 
during the preceding calendar year bear to the aggregate gross 
premiums that were written in this state by all health maintenance 
organizations, as provided to the committee by the commissioner 
after review of annual statements and other reports the 
commissioner considers necessary.
	SECTION 3.  Subsection (b), Section 843.441, Insurance Code, 
is repealed.    
	SECTION 4.  This Act takes effect September 1, 2005.