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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Health Reinsurance System. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1501.3241, Insurance Code, is amended to |
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read as follows: |
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Sec. 1501.3241. TEMPORARY LIMIT ON TOTAL ASSESSMENTS. |
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Notwithstanding Section 1501.324, the maximum assessment amount |
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payable for a calendar year may not exceed 10 percent of the total |
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premiums earned in the preceding calendar year from small employer |
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health benefit plans delivered or issued for delivery by reinsured |
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health benefit plan issuers in this state. This section expires |
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September 1, 2009 [2007]. |
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SECTION 2. Subsections (d-1) and (e-1), Section 1501.325, |
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Insurance Code, are amended to read as follows: |
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(d-1) During the period that this subsection is effective, |
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Subsection (d) is not effective. A reinsured health benefit plan |
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issuer may not cede additional eligible lives to the system during a |
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calendar year if the assessment amount payable for the preceding |
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calendar year is at least 10 percent of the total premiums earned in |
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that calendar year from small employer health benefit plans |
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delivered or issued for delivery by reinsured health benefit plan |
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issuers in this state. This subsection expires September 1, 2009 |
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[2007]. |
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(e-1) During the period that this subsection is effective, |
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Subsection (e) is not effective. A reinsured health benefit plan |
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issuer may not cede additional eligible lives to the system after |
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the board determines that the expected loss from the reinsurance |
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system for a year will exceed the total amount of assessments |
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payable at a rate of 10 percent of the total premiums earned for the |
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preceding calendar year. A reinsured health benefit plan issuer may |
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not resume ceding additional eligible lives to the system until the |
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board determines that the expected loss will be less than the |
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maximum established by this subsection. This subsection expires |
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September 1, 2009 [2007]. |
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SECTION 3. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2007. |