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A BILL TO BE ENTITLED
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AN ACT
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relating to required individual health insurance coverage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 8, Insurance Code, is amended |
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by adding Chapter 1220 to read as follows: |
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CHAPTER 1220. INDIVIDUAL HEALTH INSURANCE COVERAGE NOT REQUIRED |
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Sec. 1220.001. COVERAGE MANDATE PROHIBITED; EXCEPTIONS. |
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(a) Except as provided by Subsections (b) and (c), an individual |
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may not be required to obtain or maintain coverage under an |
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individual health insurance policy. |
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(b) Subsection (a) does not apply to an individual who is |
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required to obtain or maintain health benefit plan coverage: |
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(1) by an institution of higher education at which the |
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individual is or will be enrolled as a student; or |
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(2) under an order requiring medical support for a |
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child. |
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(c) Subsection (a) does not apply to an individual |
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voluntarily applying for benefits under a state-administered |
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program under Title XIX, Social Security Act (42 U.S.C. Section |
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1396 et seq.), or Title XXI, Social Security Act (42 U.S.C. Section |
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1397aa et seq.). |
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Sec. 1220.002. PENALTY PROHIBITED. (a) Except as provided |
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by Subsection (b), a fine or penalty may not be imposed on an |
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individual if the individual chooses not to obtain or maintain |
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coverage under an individual health insurance policy. |
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(b) Subsection (a) does not apply to a fine or penalty |
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imposed on an individual described in Section 1220.001(b) for the |
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individual's failure to obtain or maintain health benefit plan |
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coverage. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |