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A BILL TO BE ENTITLED
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AN ACT
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relating to notice of premium increase for certain accident and |
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health insurance policies and 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. Subchapter C, Chapter 1201, Insurance Code, is |
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amended by adding Section 1201.109 to read as follows: |
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Sec. 1201.109. NOTICE OF RATE INCREASE. (a) Not less than |
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60 days before the date on which a premium rate increase takes |
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effect on an individual accident and health insurance policy |
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delivered or issued for delivery in this state by an insurer, the |
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insurer shall give written notice to the insured of: |
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(1) the amount of the increase; and |
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(2) the effective date of the increase. |
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(b) The notice required by this section must be based on |
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coverage in effect on the date of the notice. |
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(c) This section may not be construed to prevent an insurer, |
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at the request of an insured, from negotiating a change in benefits |
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or rates after delivery of the notice required by this section. |
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(d) An insurer may not require an insured entitled to notice |
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under this section to respond to the insurer to renew the policy or |
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take other action relating to the renewal or extension of the policy |
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before the 45th day after the date the notice described by |
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Subsection (a) is given. |
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(e) The notice required by this section must include: |
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(1) contact information for the department; |
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(2) information about how to file complaints and |
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obtain information about coverage options, including contact |
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information for the Texas Consumer Health Assistance Program; and |
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(3) the addresses of Internet websites that provide |
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consumer information related to rate increase justifications, |
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including the website of the department and the United States |
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Department of Health and Human Services. |
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SECTION 2. Subchapter E, Chapter 1501, Insurance Code, is |
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amended by adding Section 1501.216 to read as follows: |
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Sec. 1501.216. PREMIUM RATES: NOTICE OF INCREASE. (a) Not |
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less than 60 days before the date on which a premium rate increase |
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takes effect on a small employer health benefit plan delivered or |
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issued for delivery in this state by an insurer, the insurer shall |
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give written notice to the small employer and each covered employee |
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of: |
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(1) the amount of the increase; and |
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(2) the effective date of the increase. |
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(b) The notice required by this section must be based on |
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coverage in effect on the date of the notice. |
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(c) This section may not be construed to prevent an insurer, |
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at the request of a small employer, from negotiating a change in |
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benefits or rates after delivery of the notice required by this |
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section. |
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(d) An insurer may not require a small employer or a covered |
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employee entitled to notice under this section to respond to the |
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insurer to renew the policy or take other action relating to the |
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renewal or extension of the policy before the 45th day after the |
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date the notice described by Subsection (a) is given. |
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(e) The notice required by this section must include: |
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(1) contact information for the department; |
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(2) information about how to file complaints and |
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obtain information about coverage options, including contact |
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information for the Texas Consumer Health Assistance Program; and |
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(3) the addresses of Internet websites that provide |
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consumer information related to rate increase justifications, |
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including the website of the department and the United States |
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Department of Health and Human Services. |
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SECTION 3. This Act applies only to an accident and health |
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insurance policy or small employer health benefit plan that is |
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delivered, issued for delivery, or renewed on or after the |
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effective date of this Act. A policy or plan delivered, issued for |
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delivery, or renewed before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |