Texas 2009 - 81st Regular

Texas Senate Bill SB76 Compare Versions

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Old	New	Differences
1	1	81R2325 PMO-D
2	2	By: Nelson S.B. No. 76
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to authorizing a children's health benefit plan for
8	8	certain small employers.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1501.002, Insurance Code, is amended by
11	11	adding Subdivision (1-a) and amending Subdivision (15) to read as
12	12	follows:
13	13	(1-a) "Children's health benefit plan" means a health
14	14	benefit plan offered in accordance with Section 1501.2525.
15	15	(15) "Small employer health benefit plan" means a
16	16	health benefit plan developed by the commissioner under Subchapter
17	17	F or any other health benefit plan offered to a small employer in
18	18	accordance with Section 1501.252(c) or 1501.255. The term includes
19	19	a children's health benefit plan.
20	20	SECTION 2. Section 1501.003, Insurance Code, is amended to
21	21	read as follows:
22	22	Sec. 1501.003. APPLICABILITY: SMALL EMPLOYER HEALTH
23	23	BENEFIT PLANS. (a) An individual or group health benefit plan is a
24	24	small employer health benefit plan subject to Subchapters C-H if it
25	25	provides health care benefits covering two or more eligible
26	26	employees of a small employer and:
27	27	(1) the employer pays a portion of the premium or
28	28	benefits;
29	29	(2) the employer or a covered individual treats the
30	30	health benefit plan as part of a plan or program for purposes of
31	31	Section 106 or 162, Internal Revenue Code of 1986 (26 U.S.C. Section
32	32	106 or 162); or
33	33	(3) the health benefit plan is an employee welfare
34	34	benefit plan under 29 C.F.R. Section 2510.3-1(j).
35	35	(b) A children's health benefit plan is a small employer
36	36	benefit plan and, except as specifically provided by Section
37	37	1501.2525, is subject to Subchapters C-H in the same manner as any
38	38	other small employer health benefit plan.
39	39	SECTION 3. Section 1501.154(b), Insurance Code, is amended
40	40	to read as follows:
41	41	(b) If a small employer offers multiple health benefit
42	42	plans, the collective participation in those plans, including any
43	43	children's health benefit plan, must be at least:
44	44	(1) 75 percent of the employer's eligible employees;
45	45	or
46	46	(2) if applicable, the lower participation level
47	47	offered by the small employer health benefit plan issuer under
48	48	Section 1501.155.
49	49	SECTION 4. Subchapter F, Chapter 1501, Insurance Code, is
50	50	amended by adding Section 1501.2525 to read as follows:
51	51	Sec. 1501.2525. CHILDREN'S HEALTH BENEFIT PLAN. (a) A
52	52	small employer health benefit plan issuer may offer to a small
53	53	employer a children's health benefit plan in accordance with this
54	54	section.
55	55	(b) A children's health benefit plan provides coverage to
56	56	children younger than 25 years of age:
57	57	(1) who are dependents of eligible employees; and
58	58	(2) whose family income is at or below 400 percent of
59	59	the federal poverty level as determined by rules adopted by the
60	60	commissioner.
61	61	(c) A children's health benefit plan may not provide
62	62	coverage to an eligible employee or the spouse of an eligible
63	63	employee.
64	64	(d) The commissioner by rule shall adopt minimum benefits
65	65	required to be provided under a children's health benefit plan.
66	66	This subchapter applies to a children's health benefit plan except
67	67	to the extent the commissioner by rule determines that a provision
68	68	of this subchapter is inappropriate as applied to a children's
69	69	health benefit plan.
70	70	SECTION 5. Subchapter B, Chapter 1502, Insurance Code, is
71	71	amended by adding Section 1502.054 to read as follows:
72	72	Sec. 1502.054. INAPPLICABILITY OF OTHER LAW. A children's
73	73	health benefit plan offered under this chapter is not subject to
74	74	Section 1501.2525.
75	75	SECTION 6. The commissioner of insurance shall adopt any
76	76	rules necessary to implement the change in law made by this Act not
77	77	later than December 1, 2009. A small employer health benefit plan
78	78	issuer may not offer a children's health benefit plan under Section
79	79	1501.2525, Insurance Code, as added by this Act, before January 1,
80	80	2010.
81	81	SECTION 7. This Act takes effect September 1, 2009.