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A BILL TO BE ENTITLED
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AN ACT
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relating to the eligibility of certain sole proprietors to |
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participate in small employer health benefit plans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1501.003, Insurance Code, is amended to |
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read as follows: |
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Sec. 1501.003. APPLICABILITY: SMALL EMPLOYER HEALTH |
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BENEFIT PLANS. (a) An individual or group health benefit plan is |
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a small employer health benefit plan subject to Subchapters C-H if |
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it provides health care benefits covering two or more eligible |
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employees of a small employer and: |
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(1) the employer pays a portion of the premium or |
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benefits; |
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(2) the employer or a covered individual treats the |
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health benefit plan as part of a plan or program for purposes of |
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Section 106 or 162, Internal Revenue Code of 1986 (26 U.S.C. Section |
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106 or 162); or |
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(3) the health benefit plan is an employee welfare |
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benefit plan under 29 C.F.R. Section 2510.3-1(j). |
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(b) An individual health benefit plan is a small employer |
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health benefit plan subject to Subchapters C-H if it provides |
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health care benefits to a sole proprietor under Section 1501.012. |
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SECTION 2. Section 1501.011, Insurance Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) This section does not apply to a sole proprietor who |
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elects to participate in a small employer health benefit plan under |
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Section 1501.012. |
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SECTION 3. Subchapter A, Chapter 1501, Insurance Code, is |
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amended by adding Section 1501.012 to read as follows: |
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Sec. 1501.012. PARTICIPATION IN SMALL EMPLOYER HEALTH |
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BENEFIT PLAN BY SOLE PROPRIETOR WITHOUT EMPLOYEES. (a) |
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Notwithstanding any other provision of this chapter or other law, a |
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business entity established as a sole proprietorship that has no |
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employees other than the sole proprietor is eligible to participate |
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in a small employer health benefit plan as if the sole proprietor |
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were a small employer under this chapter. |
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(b) The commissioner shall adopt rules under Section |
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1501.010 as necessary to implement this section. |
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SECTION 4. This Act applies only to a small employer health |
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benefit plan that is delivered, issued for delivery, or renewed on |
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or after January 1, 2010. A small employer health benefit plan |
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delivered, issued for delivery, or renewed before January 1, 2010, |
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is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 5. This Act takes effect September 1, 2009. |