| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the application of certain insurance regulations to |
|
|
certain small employer health reimbursement arrangements. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 1501.003, Insurance Code, is amended to |
|
|
read as follows: |
|
|
Sec. 1501.003. APPLICABILITY: SMALL EMPLOYER HEALTH |
|
|
BENEFIT PLANS; EXCEPTION. (a) Except as provided by Subsection |
|
|
(b), an [An] individual or group health benefit plan is a small |
|
|
employer health benefit plan subject to Subchapters C-H if it |
|
|
provides health care benefits covering two or more employees of a |
|
|
small employer and: |
|
|
(1) the employer pays a portion of the premium or |
|
|
benefits; |
|
|
(2) the employer or a covered individual treats the |
|
|
health benefit plan as part of a plan or program for purposes of |
|
|
Section 106 or 162, Internal Revenue Code of 1986 (26 U.S.C. Section |
|
|
106 or 162); or |
|
|
(3) the health benefit plan is an employee welfare |
|
|
benefit plan under 29 C.F.R. Section 2510.3-1(j). |
|
|
(b) This chapter does not apply to a qualified small |
|
|
employer health reimbursement arrangement as defined by 26 U.S.C. |
|
|
Section 9831(d)(2). |
|
|
SECTION 2. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2019. |