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A BILL TO BE ENTITLED
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AN ACT
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Relating to requiring the charging of fair and reasonable premiums |
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for health care coverage of Texans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1201.050, Texas Insurance Code, is added |
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to read as follows: |
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(a) No policy of insurance as defined in Title 8 of this Code |
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shall be issued in the State of Texas unless the premium charged |
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shall be approved by the Texas Department of Insurance as fair and |
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reasonable for the issued policy or health maintenance certificate |
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or contract sold. |
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(b) No insurer shall charge a premium that allows an |
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excessive rate of return beyond the cost of services and benefits. |
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(c) No health maintenance organization shall sell a health |
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maintenance certificate or contract that allows an excessive rate |
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of return beyond the cost of services and benefits. |
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SECTION 2. Chapter 222.003, Insurance Code amended to add |
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section 222.0031: |
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(a) An additional tax not to exceed 0.10% of the insurer's |
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gross premium or of a health maintenance organization's gross |
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revenues from the sale of health maintenance certificates or |
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contracts. |
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(b) This tax shall pay for the cost of the Department in |
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determining premiums to be fair and reasonable as set forth in |
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section 1201.001 of this Code. |
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(c) Each year the Department shall refund all amounts of |
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this tax to insurers and health maintenance organizations |
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determined by the Department to be unnecessary for determining |
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premiums to be fair and reasonable as set forth in section 1201.001 |
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of this Code. |
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SECTION 3. This Act takes effect September 1, 2013. |