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A BILL TO BE ENTITLED
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AN ACT
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relating to assessments for the Texas Health Insurance Risk Pool. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 1506, Insurance Code, is |
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amended by adding Section 1506.2523 to read as follows: |
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Sec. 1506.2523. ANNUAL REPORT TO BOARD: GROSS PREMIUMS. |
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(a) Each health benefit plan issuer shall report to the board the |
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gross premiums collected for the preceding calendar year for health |
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benefit plans. |
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(b) For purposes of this section, gross health benefit plan |
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premiums do not include premiums collected for: |
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(1) coverage under a Medicare supplement benefit plan |
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subject to Chapter 1652; |
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(2) coverage under a small employer health benefit |
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plan subject to Subchapters A-H, Chapter 1501; or |
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(3) coverage or insurance listed in Section |
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1506.002(b). |
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SECTION 2. Section 1506.253(b), Insurance Code, is amended |
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to read as follows: |
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(b) The board shall use the total number of enrolled |
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individuals reported by all health benefit plan issuers under |
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Section 1506.2522 as of the preceding December 31 to [To] compute |
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the amount of a health benefit plan issuer's assessment, if any, in |
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accordance with this subsection. The [the] board shall allocate [:
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[(1) divide] the total amount to be assessed based on |
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[by] the total number of enrolled individuals covered by excess |
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loss, stop-loss, or reinsurance policies and on the total number of |
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other enrolled individuals as determined [reported by all health
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benefit plan issuers] under Section 1506.2522. To compute the |
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amount of a health benefit plan issuer's assessment: |
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(1) for the issuer's enrolled individuals covered by |
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an excess loss, stop-loss, or reinsurance policy, the board shall: |
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(A) divide the allocated amount to be assessed by |
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the total number of enrolled individuals covered by excess loss, |
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stop-loss, or reinsurance policies, as determined under Section |
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1506.2522, [as of the preceding December 31] to determine the per |
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capita amount; and |
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(B) multiply the number of a health benefit plan |
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issuer's enrolled individuals covered by an excess loss, stop-loss, |
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or reinsurance policy, as determined under Section 1506.2522, by |
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the per capita amount to determine the amount assessed to that |
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health benefit plan issuer; and |
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(2) for the issuer's enrolled individuals not covered |
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by excess loss, stop-loss, or reinsurance policies, the board, |
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using the gross health benefit plan premiums reported for the |
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preceding calendar year by health benefit plan issuers under |
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Section 1506.2523, shall: |
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(A) divide the gross premium collected by a |
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health benefit plan issuer by the gross premium collected by all |
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health benefit plan issuers; and |
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(B) multiply the allocated amount to be assessed |
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by the fraction computed under Paragraph (A) [number of enrolled
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individuals reported by the health benefit plan issuer under
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Section 1506.2522 as of the preceding December 31 by the per capita
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amount] to determine the amount assessed to that health benefit |
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plan issuer. |
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SECTION 3. Subchapter F, Chapter 1506, Insurance Code, is |
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amended by adding Section 1506.259 to read as follows: |
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Sec. 1506.259. TAX CREDIT. (a) A health benefit plan issuer |
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is entitled to a credit against the issuer's premium tax under |
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Chapter 222 for the total amount of an assessment paid by the issuer |
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under Section 1506.253. |
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(b) The tax credit applies to the premium tax due in the |
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calendar year following the calendar year in which the assessment |
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is paid. An unused credit may be carried over to apply to the |
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premium tax due in the five consecutive calendar years that follow |
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the calendar year in which the credit may first be applied. |
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(c) The balance of a tax credit not claimed in a particular |
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calendar year may be reflected in the books and records of the |
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issuer as an admitted asset of the issuer. |
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(d) Available credit against premium tax allowed under this |
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section may be transferred or assigned among health benefit plan |
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issuers if: |
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(1) a merger, acquisition, or total assumption of |
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reinsurance among the issuers occurs; or |
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(2) the commissioner by order approves the transfer or |
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assignment. |
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SECTION 4. The change in law made by this Act to Section |
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1506.253, Insurance Code, applies to an assessment under Subchapter |
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F, Chapter 1506, Insurance Code, for a calendar year or portion of a |
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calendar year beginning on the effective date of this Act. An |
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assessment for any portion of a calendar year before the effective |
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date of this Act is governed by the law in effect during the period |
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for which the assessment is made, and the former law is continued in |
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effect for that purpose. |
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SECTION 5. A health benefit plan issuer may apply a tax |
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credit under Section 1506.259, Insurance Code, as added by this |
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Act, beginning with the first premium tax payment that is due on or |
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after January 1, 2008. |
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SECTION 6. This Act takes effect June 30, 2007, if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary to take effect on |
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that date, this Act takes effect September 30, 2007. |