|
|
|
|
AN ACT
|
|
relating to the powers and duties of certain small and large |
|
employer health cooperatives. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 1501.0581, Insurance Code, is amended by |
|
amending Subsections (a), (b), and (c) and adding Subsection (a-1) |
|
to read as follows: |
|
(a) The membership of a health group cooperative may consist |
|
of only [of] small employers, [or may consist] only [of] large |
|
employers, or [but may not consist of] both small and large |
|
employers. To participate as a member of a health group |
|
cooperative, an employer must be a small or large employer as |
|
described by this chapter. |
|
(a-1) Notwithstanding Subsections (b) and (c), membership |
|
in a health group cooperative may be restricted to small and large |
|
employers within a single industry grouping as defined by the most |
|
recent edition of the United States Census Bureau's North American |
|
Industry Classification System. |
|
(b) Subject to the requirements imposed on small employer |
|
health benefit plan issuers under Section 1501.101 and subject to |
|
Subsections (a-1) and (o), a health group cooperative: |
|
(1) shall allow a small employer to join a health group |
|
cooperative consisting of only [of] small employers or both small |
|
and large employers and enroll in health benefit plan coverage[,
|
|
subject to Subsection (o)]; and |
|
(2) may allow a large employer to join the [a] health |
|
group cooperative [consisting only of large employers] and enroll |
|
in health benefit plan coverage. |
|
(c) Subject to Subsections (a-1) and [Subsection] (o), a |
|
health group cooperative consisting of only [of] small employers or |
|
both small and large employers shall allow any small employer to |
|
join the health group cooperative and enroll in the cooperative's |
|
health benefit plan coverage during the initial enrollment and |
|
annual open enrollment periods. |
|
SECTION 2. Subsections (b) and (b-2), Section 1501.063, |
|
Insurance Code, are amended to read as follows: |
|
(b) A health group cooperative that is composed of only |
|
small employers, only large employers, or both small and large |
|
employers is considered a single employer under this code. |
|
(b-2) A health group cooperative that is composed only of |
|
small employers and that has not made the election described by |
|
Section 1501.0581(o)(1) in accordance with Subsection (p) of that |
|
section, or a health group cooperative that is composed [only] of |
|
both small and large employers, may [shall] be treated in the same |
|
manner as a large employer for the purposes of this chapter, |
|
including for the purposes of any provision relating to premium |
|
rates and issuance and renewal of coverage. |
|
SECTION 3. Section 1501.063, Insurance Code, as amended by |
|
this Act, applies only to an election made under that section on or |
|
after the effective date of this Act. An election made before the |
|
effective date of this Act is governed by the law in effect on the |
|
date the election was made, and the former law is continued in |
|
effect for that purpose. |
|
SECTION 4. This Act takes effect September 1, 2007. |
|
|
|
|
|
|
|
|
______________________________ |
______________________________ |
|
President of the Senate |
Speaker of the House |
|
|
I hereby certify that S.B. No. 1255 passed the Senate on |
|
May 3, 2007, by the following vote: Yeas 31, Nays 0. |
|
|
|
|
______________________________ |
|
Secretary of the Senate |
|
|
I hereby certify that S.B. No. 1255 passed the House on |
|
May 23, 2007, by the following vote: Yeas 144, Nays 0, two
|
|
present not voting. |
|
|
|
|
______________________________ |
|
Chief Clerk of the House |
|
|
|
|
|
Approved: |
|
|
|
______________________________ |
|
Date |
|
|
|
|
|
______________________________ |
|
Governor |