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A BILL TO BE ENTITLED
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AN ACT
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relating to a group health benefit plan policy or contract holder's |
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obligation to pay premiums on behalf of an individual after the |
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individual's eligibility for group coverage terminates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 843.210, Insurance Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) If the group contract holder notifies the health |
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maintenance organization of the termination of an enrollee's |
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eligibility for coverage later than the end of the month in which |
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the enrollee's eligibility for the group coverage terminated, the |
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health maintenance organization may waive the contract holder's |
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liability for premiums on the enrollee for any subsequent months, |
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provided that no covered services were provided to the enrollee |
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after the end of the month in which the enrollee's eligibility |
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terminated. |
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SECTION 2. Section 1301.0061, Insurance Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) If the group policyholder notifies the insurer of the |
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termination of an individual's eligibility for coverage later than |
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the end of the month in which the individual's eligibility for the |
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group coverage terminated, the insurer may waive the policyholder's |
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liability for premiums on the individual for any subsequent months, |
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provided that no covered services were provided to the individual |
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after the end of the month in which the individual's eligibility |
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terminated. |
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SECTION 3. 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, 2025. |