| 1 | 1 | | 81R2288 PB-D |
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| 2 | 2 | | By: Watson S.B. No. 813 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the eligibility of certain sole proprietors to |
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| 8 | 8 | | participate in small employer health benefit plans. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 1501.003, Insurance Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 1501.003. APPLICABILITY: SMALL EMPLOYER HEALTH |
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| 13 | 13 | | BENEFIT PLANS. (a) An individual or group health benefit plan is |
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| 14 | 14 | | a small employer health benefit plan subject to Subchapters C-H if |
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| 15 | 15 | | it provides health care benefits covering two or more eligible |
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| 16 | 16 | | employees of a small employer and: |
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| 17 | 17 | | (1) the employer pays a portion of the premium or |
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| 18 | 18 | | benefits; |
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| 19 | 19 | | (2) the employer or a covered individual treats the |
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| 20 | 20 | | health benefit plan as part of a plan or program for purposes of |
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| 21 | 21 | | Section 106 or 162, Internal Revenue Code of 1986 (26 U.S.C. Section |
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| 22 | 22 | | 106 or 162); or |
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| 23 | 23 | | (3) the health benefit plan is an employee welfare |
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| 24 | 24 | | benefit plan under 29 C.F.R. Section 2510.3-1(j). |
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| 25 | 25 | | (b) An individual health benefit plan is a small employer |
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| 26 | 26 | | health benefit plan subject to Subchapters C-H if it provides |
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| 27 | 27 | | health care benefits to a sole proprietor under Section 1501.012. |
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| 28 | 28 | | SECTION 2. Section 1501.011, Insurance Code, is amended by |
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| 29 | 29 | | adding Subsection (c) to read as follows: |
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| 30 | 30 | | (c) This section does not apply to a sole proprietor who |
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| 31 | 31 | | elects to participate in a small employer health benefit plan under |
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| 32 | 32 | | Section 1501.012. |
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| 33 | 33 | | SECTION 3. Subchapter A, Chapter 1501, Insurance Code, is |
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| 34 | 34 | | amended by adding Section 1501.012 to read as follows: |
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| 35 | 35 | | Sec. 1501.012. PARTICIPATION IN SMALL EMPLOYER HEALTH |
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| 36 | 36 | | BENEFIT PLAN BY SOLE PROPRIETOR WITHOUT EMPLOYEES. (a) |
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| 37 | 37 | | Notwithstanding any other provision of this chapter or other law, a |
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| 38 | 38 | | business entity established as a sole proprietorship that has no |
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| 39 | 39 | | employees other than the sole proprietor is eligible to participate |
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| 40 | 40 | | in a small employer health benefit plan as if the sole proprietor |
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| 41 | 41 | | were a small employer under this chapter. |
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| 42 | 42 | | (b) The commissioner shall adopt rules under Section |
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| 43 | 43 | | 1501.010 as necessary to implement this section. |
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| 44 | 44 | | SECTION 4. This Act applies only to a small employer health |
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| 45 | 45 | | benefit plan that is delivered, issued for delivery, or renewed on |
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| 46 | 46 | | or after January 1, 2010. A small employer health benefit plan |
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| 47 | 47 | | delivered, issued for delivery, or renewed before January 1, 2010, |
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| 48 | 48 | | is governed by the law as it existed immediately before the |
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| 49 | 49 | | effective date of this Act, and that law is continued in effect for |
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| 50 | 50 | | that purpose. |
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| 51 | 51 | | SECTION 5. This Act takes effect September 1, 2009. |
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