Texas 2009 - 81st Regular

Texas Senate Bill SB879 Compare Versions

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1	1	By: Averitt, Duncan S.B. No. 879
2	2	(In the Senate - Filed February 17, 2009; March 9, 2009, read
3	3	first time and referred to Committee on State Affairs;
4	4	April 6, 2009, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 8, Nays 0; April 6, 2009,
6	6	sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 879 By: Van de Putte
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to premium discounts for certain participants in the Texas
13	13	Health Insurance Risk Pool and to related tax credits for health
14	14	benefit plan issuers.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Section 1506.105, Insurance Code, is amended by
17	17	amending Subsection (e) and adding Subsections (e-1) and (e-2) to
18	18	read as follows:
19	19	(e) Premium rates shall be established to provide fully for
20	20	all of the expected costs of claims, including recovery of prior
21	21	losses, expenses of operation, investment income from claim
22	22	reserves, and any other cost factors, subject to the limitations
23	23	[limitation] described in this subsection and Subsection (e-1). In
24	24	no event may pool premium rates exceed 200 percent of the standard
25	25	risk rate described by Subsection (d) [rates applicable to
26	26	individual standard risks].
27	27	(e-1) Subject to Subsection (e-2), discounted premiums
28	28	shall be offered on a sliding scale, based on financial need, as
29	29	follows:
30	30	(1) for an individual whose household income is below
31	31	200 percent of the federal poverty measure, determined under the
32	32	United States Department of Health and Human Services poverty
33	33	guidelines in effect at the time coverage is provided, premium
34	34	rates shall equal the standard risk rate described by Subsection
35	35	(d); and
36	36	(2) for an individual whose household income is at or
37	37	below 300 percent, but not less than 200 percent, of the federal
38	38	poverty measure, determined under the United States Department of
39	39	Health and Human Services poverty guidelines in effect at the time
40	40	coverage is provided, premium rates shall equal 140 percent of the
41	41	standard risk rate described by Subsection (d).
42	42	(e-2) The aggregate premium discount under Subsection
43	43	(e-1), determined by subtracting the dollar amount of premiums
44	44	collected under Subsection (e-1) from the dollar amount that would
45	45	have been collected if a discount was not available under
46	46	Subsection (e-1), may not exceed $20 million in any two-year
47	47	period, beginning with the two-year period that begins January 1,
48	48	2010, and ends December 31, 2011.
49	49	SECTION 2. Subchapter F, Chapter 1506, Insurance Code, is
50	50	amended by adding Section 1506.260 to read as follows:
51	51	Sec. 1506.260. TAX CREDIT. (a) A health benefit plan
52	52	issuer is entitled to a credit against the issuer's premium tax
53	53	under Chapter 222 for premium discounts granted under Section
54	54	1506.105(e-1). Each issuer's share of the premium discounts is
55	55	based on the method described by Section 1506.253 as calculated by
56	56	the pool.
57	57	(b) The tax credit applies to the premium tax due in the
58	58	calendar year following the calendar year in which the assessment
59	59	is paid. An unused credit may be carried over to apply to the
60	60	premium tax due in the five consecutive calendar years that follow
61	61	the calendar year in which the credit may first be applied.
62	62	(c) The balance of a tax credit not claimed in a particular
63	63	calendar year may be reflected in the books and records of the
64	64	issuer as an admitted asset of the issuer.
65	65	(d) Available credit against premium tax allowed under this
66	66	section may be transferred or assigned among health benefit plan
67	67	issuers if:
68	68	(1) a merger, acquisition, or total assumption of
69	69	reinsurance among the issuers occurs; or
70	70	(2) the commissioner by order approves the transfer or
71	71	assignment.
72	72	SECTION 3. (a) This Act applies only to premium rates for
73	73	coverage through the Texas Health Insurance Risk Pool under Chapter
74	74	1506, Insurance Code, as amended by this Act, that is in effect on
75	75	or after January 1, 2010. Premium rates for coverage in effect
76	76	before January 1, 2010, are governed by the law in effect
77	77	immediately before the effective date of this Act, and the former
78	78	law is continued in effect for that purpose.
79	79	(b) A health benefit plan issuer may apply a tax credit
80	80	under Section 1506.260, Insurance Code, as added by this Act,
81	81	beginning with the first premium tax payment that is due on or after
82	82	January 1, 2012.
83	83	SECTION 4. This Act takes effect September 1, 2009.
84	84	* * * * *