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AN ACT
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relating to modification of certain small and large employer health |
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benefit plans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1501.108, Insurance Code, is amended by |
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amending Subsection (a) and adding Subsection (d) to read as |
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follows: |
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(a) Except as provided by this section and Section 1501.109, |
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a small or large employer health benefit plan issuer shall renew the |
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small or large employer health benefit plan for any covered small or |
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large employer, as applicable, at the employer's option, unless: |
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(1) a premium has not been paid as required by the |
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terms of the plan; |
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(2) the employer has committed fraud or has |
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intentionally misrepresented a material fact; |
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(3) the employer has not complied with the terms of the |
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plan; |
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(4) no enrollee in the plan resides or works in the |
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geographic service area of the small or large employer health |
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benefit plan issuer or in the area for which the issuer is |
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authorized to do business; or |
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(5) membership of the employer in an association |
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terminates, but only if coverage is terminated uniformly without |
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regard to a health status related factor of a covered individual. |
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(d) Notwithstanding Subsection (a), a small or large |
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employer health benefit plan issuer may modify a small or large |
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employer health benefit plan if: |
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(1) the modification occurs at the time of coverage |
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renewal; |
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(2) the modification is effective uniformly among all |
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small or large employers covered by that health benefit plan; and |
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(3) the issuer notifies the commissioner and each |
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affected covered small or large employer of the modification not |
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later than the 60th day before the date the modification is |
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effective. |
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SECTION 2. This Act applies only to a small or large |
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employer health benefit plan that is delivered, issued for |
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delivery, or renewed on or after January 1, 2008. A health benefit |
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plan that is delivered, issued for delivery, or renewed before |
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January 1, 2008, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for this purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2467 was passed by the House on May 8, |
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2007, by the following vote: Yeas 146, Nays 0, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2467 was passed by the Senate on May |
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23, 2007, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |