1 | 1 | | 81R4816 KCR-F |
---|
2 | 2 | | By: Duncan, Nelson S.B. No. 6 |
---|
3 | 3 | | |
---|
4 | 4 | | |
---|
5 | 5 | | A BILL TO BE ENTITLED |
---|
6 | 6 | | AN ACT |
---|
7 | 7 | | relating to the creation of the Healthy Texas Program. |
---|
8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
---|
9 | 9 | | SECTION 1. Subtitle G, Title 8, Insurance Code, is amended |
---|
10 | 10 | | by adding Chapter 1508 to read as follows: |
---|
11 | 11 | | CHAPTER 1508. HEALTHY TEXAS PROGRAM |
---|
12 | 12 | | SUBCHAPTER A. GENERAL PROVISIONS |
---|
13 | 13 | | Sec. 1508.001. PURPOSE. (a) The purposes of the Healthy |
---|
14 | 14 | | Texas Program are to: |
---|
15 | 15 | | (1) provide access to quality small employer health |
---|
16 | 16 | | benefit plans at an affordable price; |
---|
17 | 17 | | (2) encourage small employers to offer health benefit |
---|
18 | 18 | | plan coverage to employees and the dependents of employees; and |
---|
19 | 19 | | (3) maximize reliance on proven managed care |
---|
20 | 20 | | strategies and procedures. |
---|
21 | 21 | | (b) The Healthy Texas Program is not intended to diminish |
---|
22 | 22 | | the availability of traditional small employer health benefit plan |
---|
23 | 23 | | coverage under Chapter 1501. |
---|
24 | 24 | | Sec. 1508.002. DEFINITIONS. In this chapter: |
---|
25 | 25 | | (1) "Dependent" has the meaning assigned by Section |
---|
26 | 26 | | 1501.002(2). |
---|
27 | 27 | | (2) "Eligible employee" has the meaning assigned by |
---|
28 | 28 | | Section 1501.002(3). |
---|
29 | 29 | | (3) "Fund" means the healthy Texas small employer |
---|
30 | 30 | | premium stabilization fund established under Subchapter F. |
---|
31 | 31 | | (4) "Health benefit plan" and "health benefit plan |
---|
32 | 32 | | issuer" have the meanings assigned by Sections 1501.002(5) and |
---|
33 | 33 | | 1501.002(6), respectively. |
---|
34 | 34 | | (5) "Program" means the Healthy Texas Program |
---|
35 | 35 | | established under this chapter. |
---|
36 | 36 | | (6) "Qualifying health benefit plan" means a health |
---|
37 | 37 | | benefit plan that provides benefits for health care services in the |
---|
38 | 38 | | manner described by this chapter. |
---|
39 | 39 | | (7) "Small employer" has the meaning assigned by |
---|
40 | 40 | | Section 1501.002(14). |
---|
41 | 41 | | Sec. 1508.003. RULES. The commissioner may adopt rules as |
---|
42 | 42 | | necessary to implement this chapter. |
---|
43 | 43 | | [Sections 1508.004-1508.050 reserved for expansion] |
---|
44 | 44 | | SUBCHAPTER B. EMPLOYER ELIGIBILITY; CONTRIBUTIONS |
---|
45 | 45 | | Sec. 1508.051. EMPLOYER ELIGIBILITY TO PARTICIPATE. (a) A |
---|
46 | 46 | | small employer may participate in the program if: |
---|
47 | 47 | | (1) during the 12-month period immediately preceding |
---|
48 | 48 | | the date of application for a qualifying health benefit plan, the |
---|
49 | 49 | | small employer does not offer employees group health benefits on an |
---|
50 | 50 | | expense-reimbursed or prepaid basis; and |
---|
51 | 51 | | (2) at least 30 percent of the small employer's |
---|
52 | 52 | | eligible employees receive annual wages from the employer in an |
---|
53 | 53 | | amount that is equal to or less than 300 percent of the poverty |
---|
54 | 54 | | guidelines for an individual, as defined and updated annually by |
---|
55 | 55 | | the United States Department of Health and Human Services. |
---|
56 | 56 | | (b) A small employer ceases to be eligible to participate in |
---|
57 | 57 | | the program if any health benefit plan that provides employee |
---|
58 | 58 | | benefits on an expense-reimbursed or prepaid basis, other than |
---|
59 | 59 | | another qualifying health benefit plan, is purchased or otherwise |
---|
60 | 60 | | takes effect after the purchase of a qualifying health benefit |
---|
61 | 61 | | plan. |
---|
62 | 62 | | Sec. 1508.052. COMMISSIONER ADJUSTMENTS AUTHORIZED. (a) |
---|
63 | 63 | | The commissioner by rule may adjust the 12-month period described |
---|
64 | 64 | | by Section 1508.051(a)(1) to an 18-month period if the commissioner |
---|
65 | 65 | | determines that the 12-month period is insufficient to prevent |
---|
66 | 66 | | inappropriate substitution of other health benefit plans for |
---|
67 | 67 | | qualifying health benefit plan coverage under this chapter. |
---|
68 | 68 | | (b) The commissioner by rule may adjust the percentage of |
---|
69 | 69 | | the poverty guidelines described by Section 1508.051(a)(2) to a |
---|
70 | 70 | | higher or lower percentage if the commissioner determines that the |
---|
71 | 71 | | adjustment is necessary to fulfill the purposes of this chapter. An |
---|
72 | 72 | | adjustment made by the commissioner under this subsection takes |
---|
73 | 73 | | effect on the first July 1 following the adjustment. |
---|
74 | 74 | | Sec. 1508.053. MINIMUM EMPLOYER PARTICIPATION |
---|
75 | 75 | | REQUIREMENTS. A small employer that meets the eligibility |
---|
76 | 76 | | requirements described by Section 1508.051(a) may apply to purchase |
---|
77 | 77 | | a qualifying health benefit plan if 60 percent or more of the |
---|
78 | 78 | | employer's eligible employees elect to participate in the plan. |
---|
79 | 79 | | Sec. 1508.054. EMPLOYER CONTRIBUTION REQUIREMENTS. (a) A |
---|
80 | 80 | | small employer that purchases a qualifying health benefit plan |
---|
81 | 81 | | must: |
---|
82 | 82 | | (1) pay 50 percent or more of the premium for each |
---|
83 | 83 | | employee covered under the qualifying health benefit plan; |
---|
84 | 84 | | (2) offer coverage to all eligible employees receiving |
---|
85 | 85 | | annual wages from the employer in an amount described by Section |
---|
86 | 86 | | 1508.051(a)(2) or 1508.052(b), as applicable; and |
---|
87 | 87 | | (3) contribute the same percentage of premium for each |
---|
88 | 88 | | covered employee. |
---|
89 | 89 | | (b) A small employer that purchases a qualifying health |
---|
90 | 90 | | benefit plan under the program may elect to pay, but is not required |
---|
91 | 91 | | to pay, all or any portion of the premium paid for dependent |
---|
92 | 92 | | coverage under the qualifying health benefit plan. |
---|
93 | 93 | | [Sections 1508.055-1508.100 reserved for expansion] |
---|
94 | 94 | | SUBCHAPTER C. PROGRAM PARTICIPATION; REQUIRED COVERAGE AND |
---|
95 | 95 | | BENEFITS |
---|
96 | 96 | | Sec. 1508.101. PARTICIPATING PLAN ISSUERS. (a) Subject to |
---|
97 | 97 | | Subsection (b), any health benefit plan issuer may participate in |
---|
98 | 98 | | the program. |
---|
99 | 99 | | (b) The commissioner by rule may limit which health benefit |
---|
100 | 100 | | plan issuers may participate in the program if the commissioner |
---|
101 | 101 | | determines that the limitation is necessary to achieve the purposes |
---|
102 | 102 | | of this chapter. |
---|
103 | 103 | | (c) If the commissioner limits participation in the program |
---|
104 | 104 | | under Subsection (b), the commissioner shall contract on a |
---|
105 | 105 | | competitive procurement basis with one or more health benefit plan |
---|
106 | 106 | | issuers to provide qualifying health benefit plan coverage under |
---|
107 | 107 | | the program. |
---|
108 | 108 | | Sec. 1508.102. PREEXISTING CONDITION PROVISION REQUIRED. A |
---|
109 | 109 | | health benefit plan offered under the program must include a |
---|
110 | 110 | | preexisting condition provision that meets the requirements |
---|
111 | 111 | | described by Section 1501.102. |
---|
112 | 112 | | Sec. 1508.103. EXCEPTION FROM MANDATED BENEFIT |
---|
113 | 113 | | REQUIREMENTS. Except as expressly provided by this chapter, a |
---|
114 | 114 | | small employer health benefit plan issued under the program is not |
---|
115 | 115 | | subject to a law of this state that requires coverage or the offer |
---|
116 | 116 | | of coverage of a health care service or benefit. |
---|
117 | 117 | | Sec. 1508.104. CERTAIN COVERAGE PROHIBITED OR REQUIRED. |
---|
118 | 118 | | (a) A qualifying health benefit plan may only provide coverage for |
---|
119 | 119 | | in-plan services and benefits, except for: |
---|
120 | 120 | | (1) emergency care; or |
---|
121 | 121 | | (2) other services not available through a plan |
---|
122 | 122 | | provider. |
---|
123 | 123 | | (b) In-plan services and benefits provided under a |
---|
124 | 124 | | qualifying health benefit plan must include the following: |
---|
125 | 125 | | (1) inpatient hospital services; |
---|
126 | 126 | | (2) outpatient hospital services; |
---|
127 | 127 | | (3) physician services; and |
---|
128 | 128 | | (4) prescription drug benefits. |
---|
129 | 129 | | (c) The commissioner may approve in-plan benefits other |
---|
130 | 130 | | than those required under Subsection (b) or emergency care or other |
---|
131 | 131 | | services not available through a plan provider if the commissioner |
---|
132 | 132 | | determines the inclusion to be essential to achieve the purposes of |
---|
133 | 133 | | this chapter. |
---|
134 | 134 | | (d) The commissioner may, with respect to the categories of |
---|
135 | 135 | | services and benefits described by Subsections (b) and (c): |
---|
136 | 136 | | (1) prepare specifications for a coverage provided |
---|
137 | 137 | | under this chapter; |
---|
138 | 138 | | (2) determine the methods and procedures of claims |
---|
139 | 139 | | administration; |
---|
140 | 140 | | (3) establish procedures to decide contested cases |
---|
141 | 141 | | arising from coverage provided under this chapter; |
---|
142 | 142 | | (4) study, on an ongoing basis, the operation of all |
---|
143 | 143 | | coverages provided under this chapter, including gross and net |
---|
144 | 144 | | costs, administration costs, benefits, utilization of benefits, |
---|
145 | 145 | | and claims administration; |
---|
146 | 146 | | (5) administer the healthy Texas small employer |
---|
147 | 147 | | premium stabilization fund established under Subchapter F; |
---|
148 | 148 | | (6) provide the beginning and ending dates of |
---|
149 | 149 | | coverages for enrollees in a qualifying health benefit plan; |
---|
150 | 150 | | (7) develop basic group coverage plans applicable to |
---|
151 | 151 | | all individuals eligible to participate in the program; |
---|
152 | 152 | | (8) provide for optional group coverage plans in |
---|
153 | 153 | | addition to the basic group coverage plans described by Subdivision |
---|
154 | 154 | | (7); |
---|
155 | 155 | | (9) provide, as determined to be appropriate by the |
---|
156 | 156 | | commissioner, additional statewide optional coverage plans; |
---|
157 | 157 | | (10) develop specific health benefit plans that permit |
---|
158 | 158 | | access to high-quality, cost-effective health care; |
---|
159 | 159 | | (11) design, implement, and monitor health benefit |
---|
160 | 160 | | plan features intended to discourage excessive utilization, |
---|
161 | 161 | | promote efficiency, and contain costs for qualifying health benefit |
---|
162 | 162 | | plans; |
---|
163 | 163 | | (12) develop and refine, on an ongoing basis, a health |
---|
164 | 164 | | benefit strategy for the program that is consistent with evolving |
---|
165 | 165 | | benefits delivery systems; |
---|
166 | 166 | | (13) develop a funding strategy that efficiently uses |
---|
167 | 167 | | employer contributions to achieve the purposes of this chapter; and |
---|
168 | 168 | | (14) modify the copayment and deductible amounts for |
---|
169 | 169 | | prescription drug benefits under a qualifying health benefit plan, |
---|
170 | 170 | | if the commissioner determines that the modification is necessary |
---|
171 | 171 | | to achieve the purposes of this chapter. |
---|
172 | 172 | | [Sections 1508.105-1508.150 reserved for expansion] |
---|
173 | 173 | | SUBCHAPTER D. PROGRAM ADMINISTRATION |
---|
174 | 174 | | Sec. 1508.151. EMPLOYER CERTIFICATION. (a) At the time of |
---|
175 | 175 | | initial application, a health benefit plan issuer shall obtain from |
---|
176 | 176 | | a small employer that seeks to purchase a qualifying health benefit |
---|
177 | 177 | | plan a written certification that the employer meets the |
---|
178 | 178 | | eligibility requirements described by Section 1508.051 and the |
---|
179 | 179 | | minimum employer participation requirements described by Section |
---|
180 | 180 | | 1508.053. |
---|
181 | 181 | | (b) Not later than the 90th day before the renewal date of a |
---|
182 | 182 | | qualifying health benefit plan, a health benefit plan issuer shall |
---|
183 | 183 | | obtain from the small employer that purchased the qualifying health |
---|
184 | 184 | | benefit plan a written certification that the employer continues to |
---|
185 | 185 | | meet the eligibility requirements described by Section 1508.051 and |
---|
186 | 186 | | the minimum employer participation requirements described by |
---|
187 | 187 | | Section 1508.053. |
---|
188 | 188 | | (c) A participating health benefit plan issuer may require a |
---|
189 | 189 | | small employer to submit appropriate documentation in support of a |
---|
190 | 190 | | certification described by Subsection (a) or (b). |
---|
191 | 191 | | Sec. 1508.152. APPLICATION PROCESS. (a) Subject to |
---|
192 | 192 | | Subsection (b), a health benefit plan issuer shall accept |
---|
193 | 193 | | applications for qualifying health benefit plan coverage from small |
---|
194 | 194 | | employers at all times throughout the calendar year. |
---|
195 | 195 | | (b) The commissioner may limit the dates on which a health |
---|
196 | 196 | | benefit plan issuer must accept applications for qualifying health |
---|
197 | 197 | | benefit plan coverage if the commissioner determines the limitation |
---|
198 | 198 | | to be necessary to achieve the purposes of this chapter. |
---|
199 | 199 | | Sec. 1508.153. EMPLOYEE ENROLLMENT; WAITING PERIOD. (a) A |
---|
200 | 200 | | qualifying health benefit plan must provide employees with an |
---|
201 | 201 | | initial enrollment period that is 31 days or longer, and annually at |
---|
202 | 202 | | least one open enrollment period that is 31 days or longer. The |
---|
203 | 203 | | commissioner by rule may require an additional open enrollment |
---|
204 | 204 | | period if the commissioner determines that the additional open |
---|
205 | 205 | | enrollment period is necessary to achieve the purposes of this |
---|
206 | 206 | | chapter. |
---|
207 | 207 | | (b) A small employer may establish a waiting period for |
---|
208 | 208 | | employees during which an employee is not eligible for coverage |
---|
209 | 209 | | under a qualifying health benefit plan. The last day of a waiting |
---|
210 | 210 | | period established under this subsection may not be later than the |
---|
211 | 211 | | 90th day after the date on which the employee begins employment |
---|
212 | 212 | | with the small employer. |
---|
213 | 213 | | (c) A health benefit plan issuer may not deny coverage under |
---|
214 | 214 | | a qualifying health benefit plan to a new employee of a small |
---|
215 | 215 | | employer that purchased the qualifying health benefit plan if the |
---|
216 | 216 | | health benefit plan issuer receives an application for coverage |
---|
217 | 217 | | from the employee not later than the 31st day after the latter of: |
---|
218 | 218 | | (1) the first day of the employee's employment; or |
---|
219 | 219 | | (2) the first day after the expiration of a waiting |
---|
220 | 220 | | period established under Subsection (b). |
---|
221 | 221 | | (d) Subject to Subsection (e), a health benefit plan issuer |
---|
222 | 222 | | may deny coverage under a qualifying health benefit plan to an |
---|
223 | 223 | | employee of a small employer who applies for coverage after the |
---|
224 | 224 | | period described by Subsection (c). |
---|
225 | 225 | | (e) A health benefit plan issuer that denies an employee |
---|
226 | 226 | | coverage under Subsection (d): |
---|
227 | 227 | | (1) may only deny the employee coverage until the next |
---|
228 | 228 | | open enrollment period; and |
---|
229 | 229 | | (2) may subject the enrollee to a one-year preexisting |
---|
230 | 230 | | condition provision, as described by Section 1508.102, if the |
---|
231 | 231 | | period during which the preexisting condition provision applies |
---|
232 | 232 | | does not exceed 18 months from the date of the initial application |
---|
233 | 233 | | for coverage under the qualifying health benefit plan. |
---|
234 | 234 | | Sec. 1508.154. REPORTS. A health benefit plan issuer that |
---|
235 | 235 | | participates in the program shall submit reports to the department |
---|
236 | 236 | | in the form and at the time the commissioner prescribes. |
---|
237 | 237 | | [Sections 1508.155-1508.200 reserved for expansion] |
---|
238 | 238 | | SUBCHAPTER E. RATING OF QUALIFIED HEALTH BENEFIT PLANS |
---|
239 | 239 | | Sec. 1508.201. RATING; PREMIUM PRACTICES IN GENERAL. (a) A |
---|
240 | 240 | | health benefit plan issuer participating in the program must: |
---|
241 | 241 | | (1) use rating practices for qualifying health benefit |
---|
242 | 242 | | plans that are consistent with the purposes of this chapter; and |
---|
243 | 243 | | (2) in setting premiums for qualifying health benefit |
---|
244 | 244 | | plans, consider the availability of reimbursement from the fund. |
---|
245 | 245 | | (b) A health benefit plan issuer participating in the |
---|
246 | 246 | | program shall apply rating factors consistently with respect to all |
---|
247 | 247 | | small employers in a class of business. |
---|
248 | 248 | | (c) Differences in premium rates charged for qualifying |
---|
249 | 249 | | health benefit plans must be reasonable and reflect objective |
---|
250 | 250 | | differences in plan design. |
---|
251 | 251 | | Sec. 1508.202. PREMIUM RATE DEVELOPMENT AND CALCULATION. |
---|
252 | 252 | | (a) Rating factors used to underwrite qualifying health benefit |
---|
253 | 253 | | plans must produce premium rates for identical groups that: |
---|
254 | 254 | | (1) differ only by the amounts attributable to health |
---|
255 | 255 | | benefit plan design; and |
---|
256 | 256 | | (2) do not reflect differences because of the nature |
---|
257 | 257 | | of the groups assumed to select a particular health benefit plan. |
---|
258 | 258 | | (b) A health benefit plan issuer shall treat each qualifying |
---|
259 | 259 | | health benefit plan that is issued or renewed in a calendar month as |
---|
260 | 260 | | having the same rating period. |
---|
261 | 261 | | (c) A health benefit plan issuer may use only age and gender |
---|
262 | 262 | | as case characteristics, as defined by Section 1501.201(2), in |
---|
263 | 263 | | setting premium rates for a qualifying health benefit plan. |
---|
264 | 264 | | (d) The commissioner by rule may establish additional |
---|
265 | 265 | | rating criteria and requirements for qualifying health benefit |
---|
266 | 266 | | plans if the commissioner determines that the criteria and |
---|
267 | 267 | | requirements are necessary to achieve the purposes of this chapter. |
---|
268 | 268 | | Sec. 1508.203. FILING; APPROVAL. (a) A health benefit plan |
---|
269 | 269 | | issuer shall file with the department, for review and approval by |
---|
270 | 270 | | the commissioner, premium rates to be charged for qualifying health |
---|
271 | 271 | | benefit plans. |
---|
272 | 272 | | (b) If the commissioner limits health benefit plan issuer |
---|
273 | 273 | | participation in the program under Section 1508.101(b), premium |
---|
274 | 274 | | rates proposed to be charged for each qualifying health benefit |
---|
275 | 275 | | plan will be considered as an element in the contract procurement |
---|
276 | 276 | | process required under that section. |
---|
277 | 277 | | [Sections 1508.204-1508.250 reserved for expansion] |
---|
278 | 278 | | SUBCHAPTER F. HEALTHY TEXAS SMALL EMPLOYER PREMIUM STABILIZATION |
---|
279 | 279 | | FUND |
---|
280 | 280 | | Sec. 1508.251. ESTABLISHMENT OF FUND. (a) To the extent |
---|
281 | 281 | | that funds appropriated to the department are available for this |
---|
282 | 282 | | purpose, the commissioner shall establish a fund from which health |
---|
283 | 283 | | benefit plan issuers may receive reimbursement for claims paid by |
---|
284 | 284 | | the health benefit plan issuers for individuals covered under |
---|
285 | 285 | | qualifying group health plans. |
---|
286 | 286 | | (b) The fund established under this section shall be known |
---|
287 | 287 | | as the healthy Texas small employer premium stabilization fund. |
---|
288 | 288 | | (c) The commissioner shall adopt rules necessary to |
---|
289 | 289 | | implement and administer the fund, including rules that set out the |
---|
290 | 290 | | procedures for operation of the fund and distribution of money from |
---|
291 | 291 | | the fund. |
---|
292 | 292 | | Sec. 1508.252. OPERATION OF FUND; CLAIM ELIGIBILITY. (a) A |
---|
293 | 293 | | health benefit plan issuer is eligible to receive reimbursement in |
---|
294 | 294 | | an amount that is equal to 80 percent of the dollar amount of claims |
---|
295 | 295 | | paid between $5,000 and $75,000 in a calendar year for an enrollee |
---|
296 | 296 | | in a qualifying health benefit plan. |
---|
297 | 297 | | (b) A health benefit plan issuer is eligible for |
---|
298 | 298 | | reimbursement from the fund only for the calendar year in which |
---|
299 | 299 | | claims are paid. |
---|
300 | 300 | | (c) Once the dollar amount of claims paid on behalf of a |
---|
301 | 301 | | covered individual reaches or exceeds $75,000 in a given calendar |
---|
302 | 302 | | year, a health benefit plan issuer may not receive reimbursement |
---|
303 | 303 | | for any other claims paid on behalf of the individual in that |
---|
304 | 304 | | calendar year. |
---|
305 | 305 | | Sec. 1508.253. REIMBURSEMENT REQUEST SUBMISSION. (a) A |
---|
306 | 306 | | health benefit plan issuer seeking reimbursement from the fund |
---|
307 | 307 | | shall submit a request for reimbursement in the form prescribed by |
---|
308 | 308 | | the commissioner by rule. |
---|
309 | 309 | | (b) A health benefit plan issuer must request reimbursement |
---|
310 | 310 | | from the fund annually, not later than the date determined by the |
---|
311 | 311 | | commissioner, following the end of the calendar year for which the |
---|
312 | 312 | | reimbursement requests are made. |
---|
313 | 313 | | (c) The commissioner may require a health benefit plan |
---|
314 | 314 | | issuer participating in the program to submit claims data in |
---|
315 | 315 | | connection with reimbursement requests as the commissioner |
---|
316 | 316 | | determines to be necessary to ensure appropriate distribution of |
---|
317 | 317 | | reimbursement funds and oversee the operation of the fund. The |
---|
318 | 318 | | commissioner may require that the data be submitted on a per covered |
---|
319 | 319 | | individual, aggregate, or categorical basis. |
---|
320 | 320 | | Sec. 1508.254. FUND AVAILABILITY. (a) The commissioner |
---|
321 | 321 | | shall compute the total claims reimbursement amount for all health |
---|
322 | 322 | | benefit plan issuers participating in the program for the calendar |
---|
323 | 323 | | year for which claims are reported and reimbursement requested. |
---|
324 | 324 | | (b) If the total amount requested by health benefit plan |
---|
325 | 325 | | issuers participating in the program for reimbursement for a |
---|
326 | 326 | | calendar year exceeds the amount of funds available for |
---|
327 | 327 | | distribution for claims paid during that same calendar year, the |
---|
328 | 328 | | commissioner shall provide for the pro rata distribution of any |
---|
329 | 329 | | available funds. A health benefit plan issuer participating in the |
---|
330 | 330 | | program is eligible to receive a proportional amount of any |
---|
331 | 331 | | available funds that is equal to the proportion of total eligible |
---|
332 | 332 | | claims paid by all participating health benefit plan issuers that |
---|
333 | 333 | | the requesting health benefit plan issuer paid. |
---|
334 | 334 | | (c) If the amount of funds available for distribution for |
---|
335 | 335 | | claims paid by all health benefit plan issuers participating in the |
---|
336 | 336 | | program during a calendar year exceeds the total amount requested |
---|
337 | 337 | | for reimbursement by all participating health benefit plan issuers |
---|
338 | 338 | | during that calendar year, the commissioner shall carry forward any |
---|
339 | 339 | | excess funds and make those excess funds available for distribution |
---|
340 | 340 | | in the next calendar year. Excess funds carried over under this |
---|
341 | 341 | | section are added to the fund in addition to any other money |
---|
342 | 342 | | appropriated for the fund for the calendar year into which the funds |
---|
343 | 343 | | are carried forward. |
---|
344 | 344 | | Sec. 1508.255. PROGRAM REPORTING. (a) Each health benefit |
---|
345 | 345 | | plan issuer participating in the program shall provide the |
---|
346 | 346 | | department, in the form prescribed by the commissioner, monthly |
---|
347 | 347 | | reports of total enrollment under qualifying health benefit plans. |
---|
348 | 348 | | (b) On the request of the commissioner, each health benefit |
---|
349 | 349 | | plan issuer participating in the program shall furnish to the |
---|
350 | 350 | | department, in the form prescribed by the commissioner, data other |
---|
351 | 351 | | than data described by Subsection (a) that the commissioner |
---|
352 | 352 | | determines necessary to oversee the operation of the fund. |
---|
353 | 353 | | Sec. 1508.256. CLAIMS EXPERIENCE DATA. (a) Based on |
---|
354 | 354 | | available data and appropriate actuarial assumptions, the |
---|
355 | 355 | | commissioner shall separately estimate the per covered individual |
---|
356 | 356 | | annual cost of total claims reimbursement from the fund for |
---|
357 | 357 | | qualifying health benefit plans. |
---|
358 | 358 | | (b) On request, a health benefit plan issuer participating |
---|
359 | 359 | | in the program shall furnish to the department claims experience |
---|
360 | 360 | | data for use in the estimates described by Subsection (a). |
---|
361 | 361 | | Sec. 1508.257. TOTAL ELIGIBLE ENROLLMENT DETERMINATION. |
---|
362 | 362 | | The commissioner shall determine total eligible enrollment under |
---|
363 | 363 | | qualifying health benefit plans by dividing the total funds |
---|
364 | 364 | | available for distribution from the fund by the estimated per |
---|
365 | 365 | | covered individual annual cost of total claims reimbursement from |
---|
366 | 366 | | the fund. |
---|
367 | 367 | | Sec. 1508.258. EVALUATION AND PROTECTION OF FUND; EMPLOYER |
---|
368 | 368 | | ENROLLMENT SUSPENSION. (a) The commissioner shall suspend the |
---|
369 | 369 | | enrollment of new employers in qualifying health benefit plans if |
---|
370 | 370 | | the commissioner determines that the total enrollment reported by |
---|
371 | 371 | | all health benefit plan issuers under qualifying health benefit |
---|
372 | 372 | | plans exceeds the total eligible enrollment determined under |
---|
373 | 373 | | Section 1508.257 and is likely to result in anticipated annual |
---|
374 | 374 | | expenditures from the fund in excess of the total funds available |
---|
375 | 375 | | for distribution from the fund. |
---|
376 | 376 | | (b) The commissioner shall provide a health benefit plan |
---|
377 | 377 | | issuer participating in the program with notification of any |
---|
378 | 378 | | enrollment suspension under Subsection (a) as soon as practicable |
---|
379 | 379 | | after: |
---|
380 | 380 | | (1) receipt of all enrollment data; and |
---|
381 | 381 | | (2) determination of the need to suspend enrollment. |
---|
382 | 382 | | (c) A suspension of issuance of qualifying health benefit |
---|
383 | 383 | | plans to employers under Subsection (a) does not preclude the |
---|
384 | 384 | | addition of new employees of an employer already covered under a |
---|
385 | 385 | | qualifying health benefit plan or new dependents of employees |
---|
386 | 386 | | already covered under a qualifying health benefit plan. |
---|
387 | 387 | | Sec. 1508.259. EMPLOYER ENROLLMENT REACTIVATION. If, at |
---|
388 | 388 | | any point during a suspension of enrollment under Section 1508.258, |
---|
389 | 389 | | the commissioner determines that funds are sufficient to provide |
---|
390 | 390 | | for the addition of new enrollments, the commissioner: |
---|
391 | 391 | | (1) may reactivate new enrollments; and |
---|
392 | 392 | | (2) shall notify all participating group health |
---|
393 | 393 | | benefit plan issuers that enrollment of new employers may be |
---|
394 | 394 | | resumed. |
---|
395 | 395 | | Sec. 1508.260. FUND ADMINISTRATOR. (a) The commissioner |
---|
396 | 396 | | may obtain the services of an independent organization to |
---|
397 | 397 | | administer the fund. |
---|
398 | 398 | | (b) The commissioner shall establish guidelines for the |
---|
399 | 399 | | submission of proposals by organizations for the purposes of |
---|
400 | 400 | | administering the fund and may approve, disapprove, or recommend |
---|
401 | 401 | | modification to the proposal of an applicant to administer the |
---|
402 | 402 | | fund. |
---|
403 | 403 | | (c) An organization approved to administer the fund shall |
---|
404 | 404 | | submit reports to the commissioner, in the form and at the times |
---|
405 | 405 | | required by the commissioner, as necessary to facilitate evaluation |
---|
406 | 406 | | and ensure orderly operation of the fund, including an annual |
---|
407 | 407 | | report of the affairs and operations of the fund. The annual report |
---|
408 | 408 | | must also be delivered to the governor, the lieutenant governor, |
---|
409 | 409 | | and the speaker of the house of representatives. |
---|
410 | 410 | | (d) An organization approved to administer the fund shall |
---|
411 | 411 | | maintain records in the form prescribed by the commissioner and |
---|
412 | 412 | | make those records available for inspection by or at the request of |
---|
413 | 413 | | the commissioner. |
---|
414 | 414 | | (e) The commissioner shall determine the amount of |
---|
415 | 415 | | compensation to be allocated to an approved organization as payment |
---|
416 | 416 | | for fund administration. Compensation is payable only from the |
---|
417 | 417 | | fund. |
---|
418 | 418 | | (f) The commissioner may remove an organization approved to |
---|
419 | 419 | | administer the fund from fund administration. An organization |
---|
420 | 420 | | removed from fund administration under this subsection must |
---|
421 | 421 | | cooperate in the orderly transition of services to another approved |
---|
422 | 422 | | organization or to the commissioner. |
---|
423 | 423 | | Sec. 1508.261. STOP-LOSS INSURANCE; REINSURANCE. (a) The |
---|
424 | 424 | | administrator of the fund, on behalf of and with the prior approval |
---|
425 | 425 | | of the commissioner, may purchase stop-loss insurance or |
---|
426 | 426 | | reinsurance from an insurance company licensed to write that |
---|
427 | 427 | | coverage in this state. |
---|
428 | 428 | | (b) Stop-loss insurance or reinsurance may be purchased to |
---|
429 | 429 | | the extent that the commissioner determines funds are available for |
---|
430 | 430 | | the purchase of that insurance. |
---|
431 | 431 | | Sec. 1508.262. PUBLIC EDUCATION AND OUTREACH. (a) The |
---|
432 | 432 | | commissioner may use an amount of the fund, not to exceed eight |
---|
433 | 433 | | percent of the annual amount of the fund, for purposes of developing |
---|
434 | 434 | | and implementing public education, outreach, and facilitated |
---|
435 | 435 | | enrollment strategies targeted to small employers who do not |
---|
436 | 436 | | provide health insurance. |
---|
437 | 437 | | (b) The commissioner may contract with marketing |
---|
438 | 438 | | organizations to perform or provide assistance with education, |
---|
439 | 439 | | outreach, and enrollment strategies described by Subsection (a). |
---|
440 | 440 | | SECTION 2. The commissioner of insurance shall adopt any |
---|
441 | 441 | | rules necessary to implement the change in law made by this Act not |
---|
442 | 442 | | later than January 4, 2010. |
---|
443 | 443 | | SECTION 3. (a) The commissioner of insurance shall make an |
---|
444 | 444 | | initial determination concerning limitation of health benefit plan |
---|
445 | 445 | | issuer participation in the program established under Chapter 1508, |
---|
446 | 446 | | Insurance Code, as added by this Act, not later than January 18, |
---|
447 | 447 | | 2010. If the commissioner determines that limited participation is |
---|
448 | 448 | | necessary to achieve the purposes of Chapter 1508, Insurance Code, |
---|
449 | 449 | | as added by this Act, the commissioner shall issue a request for |
---|
450 | 450 | | proposal from health benefit plan issuers to participate in the |
---|
451 | 451 | | program not later than May 1, 2010. |
---|
452 | 452 | | (b) The commissioner shall ensure that the Healthy Texas |
---|
453 | 453 | | Program is fully operational in a manner that allows health benefit |
---|
454 | 454 | | plan issuers participating in the program to make the first annual |
---|
455 | 455 | | request for reimbursement on January 1, 2011. |
---|
456 | 456 | | SECTION 4. This Act takes effect September 1, 2009. |
---|