By: Frank, Oliverson, Raymond, White, et al. H.B. No. 3752
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the offering of health benefits by subsidiaries of the
  Texas Mutual Insurance Company.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2054.107, Insurance Code, is amended to
  read as follows:
         Sec. 2054.107.  CERTAIN RELATIONSHIPS WITH OTHER INSURERS
  PROHIBITED. Except as provided by Section 2054.602, the [The]
  company may not have:
               (1)  an affiliate, spin-off, or subsidiary that writes
  a line of insurance other than workers' compensation insurance; or
               (2)  interlocking boards of directors with an insurer
  that writes a line of insurance other than workers' compensation
  insurance.
         SECTION 2.  Chapter 2054, Insurance Code, is amended by
  adding Subchapter M to read as follows:
  SUBCHAPTER M. SUBSIDIARIES AUTHORIZED TO PROVIDE HEALTH BENEFIT
  COVERAGE
         Sec. 2054.601.  DEFINITION. In this subchapter,
  "alternative health benefit coverage" means health benefit
  coverage:
               (1)  provided by a subsidiary of the company that is not
  authorized to engage in the business of insurance in this state;
               (2)  offered only to:
                     (A)  individuals;
                     (B)  small businesses with not more than 250
  full-time equivalent employees; or
                     (C)  the company's policyholders or their
  employees; and
               (3)  that is not:
                     (A)  provided through an insurance policy or other
  product the offering or issuance of which constitutes the business
  of insurance in this state; or
                     (B)  benefit coverage subject to the laws
  governing workers' compensation in this state.
         Sec. 2054.602.  HEALTH BENEFIT COVERAGE OFFERED BY
  SUBSIDIARY AUTHORIZED. (a) The company may create, acquire, or
  otherwise own or operate one or more subsidiaries that offer
  accident or health insurance or another type of health benefit
  coverage or health benefit plan as provided by this subchapter.
         (b)  A subsidiary of the company may offer in this state:
               (1)  accident or health insurance or another type of
  health benefit plan authorized under this code, in accordance with
  a certificate of authority issued to the subsidiary under this
  code; or
               (2)  alternative health benefit coverage as described
  by Section 2054.601.
         (c)  The company may not be held liable for an act or
  obligation of a subsidiary of the company operating under this
  section.
         (d)  A subsidiary of the company may not offer or issue any
  policy, plan, or benefit coverage under this section before January
  1, 2023.  This subsection expires September 1, 2023.
         Sec. 2054.603.  CONSIDERATIONS AND GUIDING PRINCIPLES FOR
  DEVELOPING HEALTH BENEFITS OFFERINGS. In developing health
  benefits or health benefit plan options to be offered through a
  subsidiary of the company, the company shall fully explore all
  health coverage options that may be offered under this subchapter
  and place emphasis on:
               (1)  increasing competition in the health insurance
  market;
               (2)  utilizing innovations that improve the quality of
  health care while lowering health care costs;
               (3)  ensuring coverage and access to care for
  individuals in this state with preexisting conditions;
               (4)  leveraging federal tax credits that may be
  available for private health benefit coverage to the greatest
  extent possible to increase the affordability of health benefit
  coverage;
               (5)  ensuring transparency and coherence of costs and
  coverage to inform individuals shopping for health benefits;
               (6)  reducing incidences of medical debt faced by
  individuals in this state and uncompensated care faced by providers
  in this state; and
               (7)  ensuring equitable costs regardless of gender or
  prospects of pregnancy or childbirth.
         Sec. 2054.604.  RULES. Except with respect to alternative
  health benefit coverage as described by Section 2054.601 or a
  subsidiary of the company offering alternative health benefit
  coverage, the commissioner may adopt rules as necessary to
  implement this subchapter.
         Sec. 2054.605.  EXEMPTION FROM OTHER INSURANCE LAWS. A
  provision of this code, other than this chapter, does not apply to
  alternative health benefit coverage as described by Section
  2054.601 unless alternative health benefit coverage is expressly
  mentioned in the other law.
         SECTION 3.  This Act takes effect September 1, 2021.