Texas 2009 - 81st Regular

Texas House Bill HB2064 Compare Versions

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1	1	81R3266 TJS-D
2	2	By: Smithee H.B. No. 2064
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to premium discounts for certain participants in the Texas
8	8	Health Insurance Risk Pool and to related tax credits for health
9	9	benefit plan issuers.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 1506.105, Insurance Code, is amended by
12	12	amending Subsection (e) and adding Subsections (e-1) and (e-2) to
13	13	read as follows:
14	14	(e) Premium rates shall be established to provide fully for
15	15	all of the expected costs of claims, including recovery of prior
16	16	losses, expenses of operation, investment income from claim
17	17	reserves, and any other cost factors, subject to the limitations
18	18	[limitation] described in this subsection and Subsection (e-1). In
19	19	no event may pool premium rates exceed 200 percent of the standard
20	20	risk rate described by Subsection (d) [rates applicable to
21	21	individual standard risks].
22	22	(e-1) Subject to Subsection (e-2), discounted premiums
23	23	shall be offered on a sliding scale, based on financial need, as
24	24	follows:
25	25	(1) for an individual whose household income is below
26	26	200 percent of the federal poverty measure, determined under the
27	27	United States Department of Health and Human Services poverty
28	28	guidelines in effect at the time coverage is provided, premium
29	29	rates shall equal the standard risk rate described by Subsection
30	30	(d); and
31	31	(2) for an individual whose household income is at or
32	32	below 300 percent, but not less than 200 percent, of the federal
33	33	poverty measure, determined under the United States Department of
34	34	Health and Human Services poverty guidelines in effect at the time
35	35	coverage is provided, premium rates shall equal 140 percent of the
36	36	standard risk rate described by Subsection (d).
37	37	(e-2) The aggregate premium discount under Subsection
38	38	(e-1), determined by subtracting the dollar amount of premiums
39	39	collected under Subsection (e-1) from the dollar amount that would
40	40	have been collected if a discount was not available under
41	41	Subsection (e-1), may not exceed $20 million for the two-year
42	42	period beginning January 1, 2010, and ending December 31, 2011.
43	43	SECTION 2. Subchapter F, Chapter 1506, Insurance Code, is
44	44	amended by adding Section 1506.260 to read as follows:
45	45	Sec. 1506.260. TAX CREDIT. (a) A health benefit plan
46	46	issuer is entitled to a credit against the issuer's premium tax
47	47	under Chapter 222 for premium discounts granted under Section
48	48	1506.105(e-1). Each issuer's share of the premium discounts is
49	49	based on the method described by Section 1506.253 as calculated by
50	50	the pool.
51	51	(b) The tax credit applies to the premium tax due in the
52	52	calendar year following the calendar year in which the assessment
53	53	is paid. An unused credit may be carried over to apply to the
54	54	premium tax due in the five consecutive calendar years that follow
55	55	the calendar year in which the credit may first be applied.
56	56	(c) The balance of a tax credit not claimed in a particular
57	57	calendar year may be reflected in the books and records of the
58	58	issuer as an admitted asset of the issuer.
59	59	(d) Available credit against premium tax allowed under this
60	60	section may be transferred or assigned among health benefit plan
61	61	issuers if:
62	62	(1) a merger, acquisition, or total assumption of
63	63	reinsurance among the issuers occurs; or
64	64	(2) the commissioner by order approves the transfer or
65	65	assignment.
66	66	SECTION 3. (a) This Act applies only to premium rates for
67	67	coverage through the Texas Health Insurance Risk Pool under Chapter
68	68	1506, Insurance Code, as amended by this Act, that is in effect on
69	69	or after January 1, 2010. Premium rates for coverage in effect
70	70	before January 1, 2010, are governed by the law in effect
71	71	immediately before the effective date of this Act, and the former
72	72	law is continued in effect for that purpose.
73	73	(b) A health benefit plan issuer may apply a tax credit
74	74	under Section 1506.260, Insurance Code, as added by this Act,
75	75	beginning with the first premium tax payment that is due on or after
76	76	January 1, 2012.
77	77	SECTION 4. This Act takes effect September 1, 2009.