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A BILL TO BE ENTITLED
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AN ACT
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relating to coverage limitations in health benefit plans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (b), Section 1201.154, Insurance |
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Code, is amended as follows: |
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(b) A preexisting condition provision in an individual |
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accident and health insurance policy may not apply to an |
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individual[:
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(1)] who was continuously covered for an aggregate |
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period of 18 months by creditable coverage that was in effect up to |
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a date not more than 63 days before the effective date of the |
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individual coverage, excluding any waiting period[; and
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(2)whose most recent creditable coverage was under:
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(A)a group health plan;
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(B)a governmental plan; or
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(C)a church plan]. |
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SECTION 2. Section 1506.153, Insurance Code, text of |
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section as amended by Acts 2005, 79th Leg., ch. 728, Sec. 11.071(a), |
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is amended to read as follows: |
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Sec. 1506.153. INELIGIBILITY FOR COVERAGE. |
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(a) Notwithstanding Section [Sections] 1506.152 (a)--(c) [(d)], |
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an individual is not eligible for coverage from the pool if: |
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(1) on the date pool coverage is to take effect, the |
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individual has health benefit plan coverage from a health benefit |
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plan issuer or health benefit arrangement in effect, except as |
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provided by Section 1506.152(a)(3)(E); |
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(2) at the time the individual applies to the pool, |
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except as provided in subsection (b), the individual is eligible |
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for other health care benefits, including benefits from the |
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continuation of coverage under Title X, Consolidated Omnibus Budget |
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Reconciliation Act of 1985 (29 U.S.C. Section 1161 et seq.), as |
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amended (COBRA), other than: |
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(A) coverage, including COBRA or other |
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continuation coverage or conversion coverage, maintained for any |
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preexisting condition waiting period under a pool policy; |
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(B) employer group coverage conditioned by a |
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limitation of the kind described by Section 1506.152(a)(3)(A) or |
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(C); or |
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(C) individual coverage conditioned by a |
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limitation described by Section 1506.152(a)(3)(C) or (D); |
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(3) within 12 months before the date the individual |
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applies to the pool, the individual terminated coverage in the |
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pool, unless the individual demonstrates a good faith reason for |
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the termination; |
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(4) the individual is confined in a county jail or |
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imprisoned in a state prison; |
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(5) any of the individual's premiums are paid for or |
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reimbursed under a government-sponsored program or by a government |
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agency or health care provider, other than as an otherwise |
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qualifying full-time employee of a government agency or health care |
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provider or as a dependent of such an employee; |
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(6) the individual's prior coverage with the pool was |
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terminated: |
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(A) during the 12-month period preceding the date |
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of application for nonpayment of premiums; or |
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(B) for fraud; or |
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(7) the individual is eligible for health benefit plan |
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coverage provided in connection with a policy, plan, or program |
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paid for or sponsored by an employer, even though the employer |
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coverage is declined. This paragraph (7) does not apply to an |
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individual who is a part-time employee eligible to participate in |
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an employer plan which provides health benefit coverage: |
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(A) which is more limited or restricted than |
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coverage with the pool; and |
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(B) for which there is no employer contribution |
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to the premium, either directly or indirectly. |
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(b) An individual eligible for benefits from the |
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continuation of coverage under Title X, Consolidated Omnibus Budget |
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Reconciliation Act of 1985 (29 U.S.C. Section 1161 et seq.), as |
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amended (COBRA), who did not elect continuation of coverage during |
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the election period, is eligible for pool coverage; provided, |
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however, that such eligibility is subject to a 180-day exclusion of |
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coverage pursuant to Section 1506.155(a-1). |
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SECTION 3. Section 1506.155, Insurance Code, is amended by |
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adding subsection (a-1) to read as follows: |
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(a-1) Except as provided by Section 1506.056, pool coverage |
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for an individual eligible pursuant to Section 1506.153(b) excludes |
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charges or expenses incurred before the expiration of 180 days from |
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the effective date of coverage with regard to any condition for |
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which: |
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(1) the existence of symptoms would cause an |
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ordinarily prudent person to seek diagnosis, care, or treatment |
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within the six-month period preceding the effective date of |
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coverage; or |
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(2) medical advice, care, or treatment was recommended |
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or received during the six-month period preceding the effective |
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date of coverage. |
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SECTION 4. Section 1506.153, Insurance Code, text of |
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section as amended by Acts 2005, 79th Leg., ch. 824, Sec. 4, is |
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repealed. |
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SECTION 5. 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. |