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AN ACT
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relating to disclosures required in connection with the issuance of |
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certain 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 1507.006(b), Insurance Code, is amended |
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to read as follows: |
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(b) Each applicant for initial coverage [and each
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policyholder on renewal of coverage] must sign the disclosure |
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statement provided by the health carrier under Subsection (a) and |
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return the statement to the health carrier. Under a group policy or |
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contract, the term "applicant" means the employer. |
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SECTION 2. Section 1507.056(b), Insurance Code, is amended |
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to read as follows: |
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(b) Each applicant for initial enrollment [and each
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contract holder on renewal] must sign the disclosure statement |
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provided by the health maintenance organization under Subsection |
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(a) and return the statement to the health maintenance |
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organization. Under a group evidence of coverage, the term |
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"applicant" means the employer. |
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SECTION 3. Subtitle G, Title 8, Insurance Code, is amended |
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by adding Chapter 1509 to read as follows: |
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CHAPTER 1509. SHORT-TERM LIMITED-DURATION INSURANCE |
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Sec. 1509.001. DEFINITION. In this chapter, "short-term |
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limited-duration insurance" has the meaning assigned by 26 C.F.R. |
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Section 54.9801-2. |
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Sec. 1509.002. POLICY DISCLOSURE FORM. (a) The |
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commissioner by rule shall prescribe a disclosure form to be |
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provided with a short-term limited-duration insurance policy and |
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application. |
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(b) The disclosure form must be in an easily readable font |
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at least 14-point in size and include: |
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(1) the duration of coverage; |
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(2) a statement: |
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(A) of the number of times the policy may be |
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renewed or that the policy may not be renewed, as applicable; |
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(B) that the expiration of short-term coverage is |
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not a qualifying life event that would make a person eligible for a |
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special enrollment period; and |
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(C) that the policy may expire outside of the |
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open enrollment period; |
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(3) to the extent the information is available, the |
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dates of the next three open enrollment periods under the Patient |
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Protection and Affordable Care Act (Pub. L. No. 111-148) following |
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the date the policy expires; |
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(4) whether the policy contains any limitations or |
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exclusions to preexisting conditions; |
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(5) the maximum dollar amount payable under the |
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policy; |
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(6) the deductibles under the policy and the health |
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care services to which the deductibles apply; |
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(7) whether the following health care services are |
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covered, including: |
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(A) prescription drug coverage; |
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(B) mental health services; |
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(C) substance abuse treatment; |
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(D) maternity care; |
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(E) hospitalization; |
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(F) surgery; |
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(G) emergency health care; and |
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(H) preventive health care; and |
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(8) any other information the commissioner determines |
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is important for a purchaser of a short-term limited-duration |
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insurance policy. |
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(c) An insurer issuing a short-term limited-duration |
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insurance policy shall adopt procedures in accordance with |
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commissioner rule to obtain a signed form from the insured |
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acknowledging receipt of the disclosure form described by this |
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section. The rule must allow for electronic acknowledgment. The |
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insurer shall retain an acknowledgment form until the fifth |
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anniversary of the date the insurer receives the form, and the |
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insurer shall make the form available to the department on request. |
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SECTION 4. Chapter 1507, Insurance Code, as amended by this |
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Act, applies only to a policy or evidence of coverage delivered, |
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issued for delivery, or renewed on or after the effective date of |
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this Act. A policy or evidence of coverage 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 5. Not later than January 1, 2020, the commissioner |
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of insurance shall prescribe the disclosure form required by |
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Section 1509.002, Insurance Code, as added by this Act. |
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SECTION 6. Chapter 1509, Insurance Code, as added by this |
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Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2020. An insurance |
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policy delivered, issued for delivery, or renewed before January 1, |
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2020, 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 7. This Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1852 passed the Senate on |
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April 17, 2019, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendment on May 23, 2019, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1852 passed the House, with |
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amendment, on May 16, 2019, by the following vote: Yeas 134, |
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Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |