Amend SB 23 by inserting the following new article,
appropriately numbered, and renumbering subsequent articles and
sections of the bill accordingly:
ARTICLE ____. REINSURANCE FOR SMALL EMPLOYER HEALTH BENEFIT PLANS
SECTION ____.01. Section 1501.3241, Insurance Code, is
amended to read as follows:
Sec. 1501.3241. TEMPORARY LIMIT ON TOTAL ASSESSMENTS.
Notwithstanding Section 1501.324, the maximum assessment amount
payable for a calendar year may not exceed 10 percent of the total
premiums earned in the preceding calendar year from small employer
health benefit plans delivered or issued for delivery by reinsured
health benefit plan issuers in this state. This section expires
September 1, 2009 [2007].
SECTION ____.02. Subsections (d-1) and (e-1), Section
1501.325, Insurance Code, are amended to read as follows:
(d-1) During the period that this subsection is effective,
Subsection (d) is not effective. A reinsured health benefit plan
issuer may not cede additional eligible lives to the system during a
calendar year if the assessment amount payable for the preceding
calendar year is at least 10 percent of the total premiums earned in
that calendar year from small employer health benefit plans
delivered or issued for delivery by reinsured health benefit plan
issuers in this state. This subsection expires September 1, 2009
[2007].
(e-1) During the period that this subsection is effective,
Subsection (e) is not effective. A reinsured health benefit plan
issuer may not cede additional eligible lives to the system after
the board determines that the expected loss from the reinsurance
system for a year will exceed the total amount of assessments
payable at a rate of 10 percent of the total premiums earned for the
preceding calendar year. A reinsured health benefit plan issuer
may not resume ceding additional eligible lives to the system until
the board determines that the expected loss will be less than the
maximum established by this subsection. This subsection expires
September 1, 2009 [2007].