Texas 2009 - 81st Regular

Texas Senate Bill SB901 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R1591 AJA-D
2	2	By: Deuell S.B. No. 901
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to regulation of health benefit plans.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle A, Title 8, Insurance Code, is amended
10	10	by adding Chapter 1220 to read as follows:
11	11	CHAPTER 1220. HEALTH BENEFIT PLAN LEGISLATIVE OVERSIGHT COMMITTEE
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 1220.001. DEFINITION. In this chapter, "committee"
14	14	means the health benefit plan legislative oversight committee.
15	15	[Sections 1220.002-1220.050 reserved for expansion]
16	16	SUBCHAPTER B. LEGISLATIVE OVERSIGHT COMMITTEE
17	17	Sec. 1220.051. COMPOSITION OF COMMITTEE. (a) The health
18	18	benefit plan legislative oversight committee is composed of seven
19	19	members as follows:
20	20	(1) the chair of the Senate State Affairs Committee
21	21	and the chair of the House Committee on Insurance, who shall serve
22	22	as joint presiding officers of the committee;
23	23	(2) two members of the senate appointed by the
24	24	lieutenant governor;
25	25	(3) two members of the house of representatives
26	26	appointed by the speaker of the house of representatives; and
27	27	(4) the public insurance counsel.
28	28	(b) An appointed member of the committee serves at the
29	29	pleasure of the appointing official.
30	30	(c) In making appointments to the committee, the appointing
31	31	officials shall attempt to appoint persons who represent the gender
32	32	composition, minority population, and geographic regions of this
33	33	state.
34	34	Sec. 1220.052. MEETINGS. The committee shall meet with the
35	35	commissioner at least annually.
36	36	Sec. 1220.053. POWERS AND DUTIES OF COMMITTEE. (a) The
37	37	committee shall:
38	38	(1) receive information about rules proposed by the
39	39	department relating to health benefit plans and may submit comments
40	40	to the commissioner on the proposed rules;
41	41	(2) monitor the progress of health benefit plan
42	42	regulation reform, including:
43	43	(A) the fairness of rates, underwriting
44	44	guidelines, and rating manuals; and
45	45	(B) the availability of coverage;
46	46	(3) review recommendations for legislation proposed
47	47	by the department; and
48	48	(4) review the necessity of having the department
49	49	periodically examine the market conduct of a health benefit plan
50	50	issuer or group of issuers, including the issuer's or group's:
51	51	(A) business practices;
52	52	(B) performance; and
53	53	(C) operations.
54	54	(b) The committee may request reports and other information
55	55	from the department as necessary to implement this chapter.
56	56	Sec. 1220.054. REPORT. (a) Not later than November 15 of
57	57	each even-numbered year, the committee shall report on the
58	58	committee's activities under Sections 1220.052 and 1220.053(a) to:
59	59	(1) the governor;
60	60	(2) the lieutenant governor; and
61	61	(3) the speaker of the house of representatives.
62	62	(b) The report must include:
63	63	(1) an analysis of any problems caused by health
64	64	benefit plan regulation reform; and
65	65	(2) recommendations of any legislative action
66	66	necessary to address those problems and to foster stability,
67	67	availability, and competition within the health benefit plan
68	68	industry.
69	69	SECTION 2. Title 8, Insurance Code, is amended by adding
70	70	Subtitle K to read as follows:
71	71	SUBTITLE K. RATEMAKING IN GENERAL
72	72	CHAPTER 1670. RATES
73	73	SUBCHAPTER A. GENERAL PROVISIONS
74	74	Sec. 1670.001. APPLICABILITY OF CHAPTER. (a) This chapter
75	75	applies only to a health benefit plan that provides benefits for
76	76	medical or surgical expenses incurred as a result of a health
77	77	condition, accident, or sickness, including an individual, group,
78	78	blanket, or franchise insurance policy or insurance agreement, a
79	79	group hospital service contract, or an individual or group evidence
80	80	of coverage or similar coverage document that is offered by:
81	81	(1) an insurance company;
82	82	(2) a group hospital service corporation operating
83	83	under Chapter 842;
84	84	(3) a fraternal benefit society operating under
85	85	Chapter 885;
86	86	(4) a stipulated premium company operating under
87	87	Chapter 884;
88	88	(5) an exchange operating under Chapter 942;
89	89	(6) a health maintenance organization operating under
90	90	Chapter 843;
91	91	(7) a multiple employer welfare arrangement that holds
92	92	a certificate of authority under Chapter 846; or
93	93	(8) an approved nonprofit health corporation that
94	94	holds a certificate of authority under Chapter 844.
95	95	(b) Notwithstanding any other law, this chapter applies to a
96	96	health benefit plan issuer with respect to a standard health
97	97	benefit plan provided under Chapter 1507.
98	98	Sec. 1670.002. EXCEPTION. (a) This chapter does not apply
99	99	with respect to:
100	100	(1) a plan that provides coverage:
101	101	(A) for wages or payments in lieu of wages for a
102	102	period during which an employee is absent from work because of
103	103	sickness or injury;
104	104	(B) as a supplement to a liability insurance
105	105	policy;
106	106	(C) for credit insurance;
107	107	(D) only for dental or vision care;
108	108	(E) only for hospital expenses; or
109	109	(F) only for indemnity for hospital confinement;
110	110	(2) a Medicare supplemental policy as defined by
111	111	Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);
112	112	(3) a workers' compensation insurance policy; or
113	113	(4) medical payment insurance coverage provided under
114	114	a motor vehicle insurance policy.
115	115	(b) This chapter does not apply to:
116	116	(1) coverage provided through the Texas Health
117	117	Insurance Risk Pool subject to Section 1506.105; or
118	118	(2) coverage provided under Subtitle H.
119	119	Sec. 1670.003. APPLICABILITY OF OTHER LAWS GOVERNING RATES.
120	120	The requirements of this chapter are in addition to any other
121	121	provision of this code governing health benefit plan rates. Except
122	122	as otherwise provided by this chapter, in the case of a conflict
123	123	between this chapter and another provision of this code, this
124	124	chapter controls.
125	125	Sec. 1670.004. NOTICE OF RATE INCREASE. (a) In addition
126	126	to any notice required to be provided under Section 1254.001, a
127	127	health benefit plan issuer shall notify each person responsible for
128	128	paying any part of an individual's premium or charge for coverage
129	129	under the health benefit plan, other than a person who receives
130	130	notice under Section 1254.001, of a rate increase scheduled to take
131	131	effect on the renewal of the individual's coverage that will result
132	132	in a total premium or charge amount for covering that individual
133	133	that is at least 10 percent greater than the lesser of:
134	134	(1) the total premium or charge amount paid for the
135	135	individual's coverage under the health benefit plan during the
136	136	12-month period preceding the coverage's renewal date; or
137	137	(2) the total premium or charge amount paid for the
138	138	individual's coverage under the health benefit plan during the
139	139	policy or contract period preceding the coverage's renewal date.
140	140	(b) A health benefit plan issuer shall send the notice
141	141	required by Subsection (a) before the renewal date and not later
142	142	than the 30th day before the date the rate increase is scheduled to
143	143	take effect.
144	144	(c) The commissioner by rule may exempt a health benefit
145	145	plan issuer from the notice requirements of this section for a
146	146	short-term policy, contract, or evidence of coverage, as defined by
147	147	the commissioner, that is issued by the plan issuer.
148	148	Sec. 1670.005. CONSIDERATION OF CERTAIN OTHER LAW. In
149	149	reviewing rates under this chapter, the commissioner shall consider
150	150	any state or federal law that may affect rates for health benefit
151	151	plan coverage included in a policy, contract, or evidence of
152	152	coverage subject to this chapter.
153	153	Sec. 1670.006. ADMINISTRATIVE PROCEDURE ACT APPLICABLE.
154	154	Chapter 2001, Government Code, applies to all rate hearings under
155	155	this chapter.
156	156	Sec. 1670.007. QUARTERLY REPORT OF PLAN ISSUER; LEGISLATIVE
157	157	REPORT. (a) The commissioner shall require each health benefit
158	158	plan issuer subject to this chapter to quarterly file with the
159	159	commissioner information relating to changes in losses, premiums or
160	160	other charges for coverage, and market share since January 1,
161	161	2010. The commissioner may require a health benefit plan issuer
162	162	subject to this chapter to report to the commissioner, in the form
163	163	and in the time required by the commissioner, any other information
164	164	the commissioner determines is necessary to comply with this
165	165	section.
166	166	(b) Quarterly, the commissioner shall report to the
167	167	governor, the lieutenant governor, the speaker of the house of
168	168	representatives, the legislature, and the public regarding:
169	169	(1) the information provided to the commissioner,
170	170	other than information made confidential by law, in the health
171	171	benefit plan issuers' reports under Subsection (a); and
172	172	(2) market conduct, especially rates and consumer
173	173	complaints.
174	174	(c) The report required by Subsection (b) must:
175	175	(1) cover a calendar quarter;
176	176	(2) for each health benefit plan issuer that writes a
177	177	line of health benefit plan coverage subject to this chapter,
178	178	state:
179	179	(A) the plan issuer's market share;
180	180	(B) the plan issuer's profits and losses;
181	181	(C) the plan issuer's average medical loss ratio;
182	182	and
183	183	(D) whether the plan issuer submitted a rate
184	184	filing during the quarter covered in the report; and
185	185	(3) for each rate filing described by Subdivision
186	186	(2)(D), indicate any significant impact on holders of policies,
187	187	contracts, or evidences of coverage, the overall rate change from
188	188	the rate previously used by the plan issuer stated as a percentage,
189	189	and any rate changes for the previous 12, 24, and 36 months.
190	190	(d) Except as provided by Subsection (e), the quarterly
191	191	report required by Subsection (b) must be made available to the
192	192	governor, lieutenant governor, speaker of the house of
193	193	representatives, legislature, and public not later than the 90th
194	194	day after the last day of the calendar quarter covered by the
195	195	report.
196	196	(e) If the commissioner determines that it is not feasible
197	197	to provide the report required by this section within the period
198	198	specified by Subsection (d) for all types of health benefit plan
199	199	coverage subject to this chapter, the department:
200	200	(1) shall make the quarterly report, as applicable to
201	201	individual health benefit plan coverage, available within the
202	202	period specified by Subsection (d); and
203	203	(2) may delay publication of the quarterly report as
204	204	it relates to other types of health benefit plan coverage subject to
205	205	this chapter until a date specified by the commissioner.
206	206	[Sections 1670.008-1670.050 reserved for expansion]
207	207	SUBCHAPTER B. RATE STANDARDS
208	208	Sec. 1670.051. EXCESSIVE, INADEQUATE, AND UNFAIRLY
209	209	DISCRIMINATORY RATES. (a) A rate is excessive, inadequate, or
210	210	unfairly discriminatory for purposes of this chapter as provided by
211	211	this section.
212	212	(b) A rate is excessive if the rate is likely to produce a
213	213	long-term profit that is unreasonably high in relation to the
214	214	health benefit plan coverage provided.
215	215	(c) A rate is inadequate if:
216	216	(1) the rate is insufficient to sustain projected
217	217	losses and expenses to which the rate applies; and
218	218	(2) continued use of the rate:
219	219	(A) endangers the solvency of a health benefit
220	220	plan issuer using the rate; or
221	221	(B) has the effect of substantially lessening
222	222	competition or creating a monopoly in a market.
223	223	(d) A rate is unfairly discriminatory if the rate:
224	224	(1) is not based on sound actuarial principles;
225	225	(2) does not bear a reasonable relationship to the
226	226	expected loss and expense experience among risks; or
227	227	(3) is based wholly or partly on the race, creed,
228	228	color, ethnicity, or national origin of an individual or group
229	229	sponsoring coverage under or covered by the health benefit plan.
230	230	Sec. 1670.052. RATE STANDARDS. (a) In setting rates, a
231	231	health benefit plan issuer shall consider:
232	232	(1) past and prospective loss experience:
233	233	(A) inside this state; and
234	234	(B) outside this state if the data from this
235	235	state are not credible;
236	236	(2) the peculiar hazards and experiences of individual
237	237	risks, past and prospective, inside and outside this state, except
238	238	to the extent specifically prohibited by law;
239	239	(3) the plan issuer's actuarially credible historical
240	240	premium or charge, exposure, loss, and expense experience;
241	241	(4) catastrophe hazards in this state;
242	242	(5) operating expenses, excluding disallowed
243	243	expenses;
244	244	(6) investment income;
245	245	(7) a reasonable margin for profit; and
246	246	(8) any other factors inside and outside this state:
247	247	(A) determined to be relevant by the health
248	248	benefit plan issuer; and
249	249	(B) not disallowed by the commissioner.
250	250	(b) A rate may not be excessive, inadequate, or unfairly
251	251	discriminatory for the risks to which the rate applies.
252	252	(c) Except to the extent limited by other law, the health
253	253	benefit plan issuer may:
254	254	(1) group risks by classification to establish rates
255	255	and minimum premiums or charges for coverage; and
256	256	(2) modify classification rates to produce rates for
257	257	individual risks in accordance with rating plans that establish
258	258	standards for measuring variations in those risks on the basis of
259	259	any factor listed in Subsection (a).
260	260	(d) In setting rates that apply only to holders of policies,
261	261	contracts, or evidences of coverage in this state, a health benefit
262	262	plan issuer shall use available premium or charge, loss, claim, and
263	263	exposure information from this state to the full extent of the
264	264	actuarial credibility of that information. The plan issuer may use
265	265	experience from outside this state as necessary to supplement
266	266	information from this state that is not actuarially credible.
267	267	(e) In determining rating territories and territorial
268	268	rates, an insurer shall use methods based on sound actuarial
269	269	principles.
270	270	(f) Rates for a small employer health benefit plan subject
271	271	to Chapter 1501 must comply with this chapter and Chapter 1501. In
272	272	the case of a conflict between this chapter and Chapter 1501,
273	273	Chapter 1501 controls.
274	274	[Sections 1670.053-1670.100 reserved for expansion]
275	275	SUBCHAPTER C. RATE FILINGS
276	276	Sec. 1670.101. RATE FILINGS AND SUPPORTING INFORMATION.
277	277	(a) Except as provided by Subchapter D, for risks written in this
278	278	state, each health benefit plan issuer shall file with the
279	279	commissioner all rates, applicable rating manuals, supplementary
280	280	rating information, and additional information as required by the
281	281	commissioner or another provision of this code.
282	282	(b) The commissioner by rule shall determine the
283	283	information required to be included in the filing, including:
284	284	(1) categories of supporting information and
285	285	supplementary rating information;
286	286	(2) statistics or other information to support the
287	287	rates to be used by the health benefit plan issuer, including
288	288	information necessary to evidence that the computation of the rate
289	289	does not include disallowed expenses; and
290	290	(3) information concerning policy fees, service fees,
291	291	and other fees that are charged or collected by the plan issuer
292	292	under Section 550.001.
293	293	Sec. 1670.102. FILING REQUIREMENTS FOR PLAN ISSUERS WITH
294	294	LESS THAN FIVE PERCENT OF MARKET. In determining filing
295	295	requirements under Section 1670.101 for a health benefit plan
296	296	issuer with less than five percent of the market, the commissioner
297	297	shall consider specific attributes of the plan issuer and the plan
298	298	issuer's market, as applicable. The commissioner shall determine
299	299	filing requirements for those plan issuers accordingly to
300	300	accommodate premium or charge volume and loss experience, targeted
301	301	markets, limitations on coverage, and any potential barriers to
302	302	market entry or growth.
303	303	Sec. 1670.103. DISAPPROVAL OF RATE IN RATE FILING; HEARING.
304	304	(a) The commissioner shall disapprove a rate if the commissioner
305	305	determines that the rate filing made under this chapter does not
306	306	meet the standards established under Subchapter B or another
307	307	provision of this code governing the setting of rates by the health
308	308	benefit plan issuer.
309	309	(b) If the commissioner disapproves a filing, the
310	310	commissioner shall issue an order specifying in what respects the
311	311	filing fails to meet the requirements of this chapter or another
312	312	provision of this code governing the setting of rates by the health
313	313	benefit plan issuer.
314	314	(c) The filer is entitled to a hearing on written request
315	315	made to the commissioner not later than the 30th day after the date
316	316	the order disapproving the rate filing takes effect.
317	317	Sec. 1670.104. DISAPPROVAL OF RATE IN EFFECT; HEARING.
318	318	(a) The commissioner may disapprove a rate that is in effect only
319	319	after a hearing. The commissioner shall provide the filer at least
320	320	20 days' written notice.
321	321	(b) The commissioner must issue an order disapproving a rate
322	322	under Subsection (a) not later than the 15th day after the close of
323	323	the hearing. The order must:
324	324	(1) specify in what respects the rate fails to meet the
325	325	requirements of this chapter or another provision of this code
326	326	governing the setting of rates by the health benefit plan issuer;
327	327	and
328	328	(2) state the date on which further use of the rate is
329	329	prohibited, which may not be earlier than the 45th day after the
330	330	close of the hearing under this section.
331	331	Sec. 1670.105. GRIEVANCE. (a) An individual or group who
332	332	sponsors coverage under or is covered by a health benefit plan and
333	333	who is aggrieved with respect to any filing under this chapter that
334	334	is in effect, or the public insurance counsel, may apply to the
335	335	commissioner in writing for a hearing on the filing. The
336	336	application must specify the grounds for the applicant's grievance.
337	337	(b) The commissioner shall hold a hearing on an application
338	338	filed under Subsection (a) not later than the 30th day after the
339	339	date the commissioner receives the application if the commissioner
340	340	determines that:
341	341	(1) the application is made in good faith;
342	342	(2) the applicant would be aggrieved as alleged if the
343	343	grounds specified in the application were established; and
344	344	(3) the grounds specified in the application otherwise
345	345	justify holding the hearing.
346	346	(c) The commissioner shall provide written notice of a
347	347	hearing under Subsection (b) to the applicant and each health
348	348	benefit plan issuer that made the filing not later than the 10th day
349	349	before the date of the hearing.
350	350	(d) If, after the hearing, the commissioner determines that
351	351	the filing does not meet the requirements of this chapter and other
352	352	provisions of this code governing the setting of rates by the health
353	353	benefit plan issuer, the commissioner shall issue an order:
354	354	(1) specifying in what respects the filing fails to
355	355	meet those requirements; and
356	356	(2) stating the date on which the filing is no longer
357	357	in effect, which must be within a reasonable period after the order
358	358	date.
359	359	(e) The commissioner shall send copies of the order issued
360	360	under Subsection (d) to the applicant and each affected.
361	361	Sec. 1670.106. ROLE OF PUBLIC INSURANCE COUNSEL. (a) On
362	362	request to the commissioner, the public insurance counsel may
363	363	review all rate filings and additional information provided by a
364	364	health benefit plan issuer under this chapter. Confidential
365	365	information reviewed under this subsection remains confidential.
366	366	(b) The public insurance counsel, not later than the 30th
367	367	day after the date of a rate filing under this chapter, may file
368	368	with the commissioner a written objection to:
369	369	(1) a health benefit plan issuer's rate filing; or
370	370	(2) the criteria on which the plan issuer relied to
371	371	determine the rate.
372	372	(c) A written objection filed under Subsection (b) must
373	373	contain the reasons for the objection.
374	374	Sec. 1670.107. PUBLIC INSPECTION OF INFORMATION. Each
375	375	filing made, and any supporting information filed, under this
376	376	chapter is open to public inspection as of the date of the filing.
377	377	[Sections 1670.108-1670.150 reserved for expansion]
378	378	SUBCHAPTER D. PRIOR APPROVAL OF RATES UNDER CERTAIN CIRCUMSTANCES
379	379	Sec. 1670.151. REQUIREMENT TO FILE RATES FOR PRIOR APPROVAL
380	380	UNDER CERTAIN CIRCUMSTANCES. (a) The commissioner by order may
381	381	require a health benefit plan issuer to file with the department for
382	382	the commissioner's approval all rates, supplementary rating
383	383	information, and any supporting information in accordance with this
384	384	subchapter if the commissioner determines that:
385	385	(1) the plan issuer's rates require supervision
386	386	because of the plan issuer's financial condition or rating
387	387	practices; or
388	388	(2) a statewide health benefit coverage emergency
389	389	exists.
390	390	(b) If a health benefit plan issuer files a petition under
391	391	Subchapter D, Chapter 36, for judicial review of an order
392	392	disapproving a rate under this chapter, the plan issuer must use the
393	393	rates in effect for the plan issuer at the time the petition is
394	394	filed and may not file and use any higher rate for the same type of
395	395	health benefit plan coverage subject to this chapter before the
396	396	matter subject to judicial review is finally resolved unless the
397	397	health benefit plan issuer, in accordance with this subchapter,
398	398	files the new rate with the department, along with any applicable
399	399	supplementary rating information and supporting information, and
400	400	obtains the commissioner's approval of the rate.
401	401	(c) From the date of the filing of the rate with the
402	402	department to the effective date of the new rate, the health benefit
403	403	plan issuer's previously filed rate that is in effect on the date of
404	404	the filing remains in effect.
405	405	(d) The commissioner may require a health benefit plan
406	406	issuer to file the plan issuer's rates under this section until the
407	407	commissioner determines that the conditions described by
408	408	Subsection (a) no longer exist.
409	409	(e) For purposes of this section, a rate is filed with the
410	410	department on the date the department receives the rate filing.
411	411	(f) If the commissioner requires a health benefit plan
412	412	issuer to file the plan issuer's rates under this section, the
413	413	commissioner shall issue an order specifying the commissioner's
414	414	reasons for requiring the rate filing. An affected plan issuer is
415	415	entitled to a hearing on written request made to the commissioner
416	416	not later than the 30th day after the date the order is issued.
417	417	Sec. 1670.152. RATE APPROVAL REQUIRED; EXCEPTION. (a) A
418	418	health benefit plan issuer subject to this subchapter may not use a
419	419	rate until the rate has been filed with the department and approved
420	420	by the commissioner in accordance with this subchapter.
421	421	(b) Notwithstanding Subsection (a), after a rate filing is
422	422	approved under this subchapter, a health benefit plan issuer,
423	423	without prior approval of the commissioner, may use any rate
424	424	subsequently filed by the plan issuer if the subsequently filed
425	425	rate does not exceed the lesser of:
426	426	(1) 107.5 percent of the rate approved by the
427	427	commissioner; or
428	428	(2) 110 percent of any rate used by the plan issuer in
429	429	the previous 12-month period.
430	430	(c) Filed rates under Subsection (b) take effect on the date
431	431	specified by the insurer.
432	432	Sec. 1670.153. COMMISSIONER ACTION. (a) Not later than
433	433	the 30th day after the date a rate is filed with the department
434	434	under this subchapter, the commissioner shall:
435	435	(1) approve the rate if the commissioner determines
436	436	that the rate complies with the requirements of this chapter and
437	437	other provisions of this code governing the setting of rates by the
438	438	health benefit plan issuer; or
439	439	(2) disapprove the rate if the commissioner determines
440	440	that the rate does not comply with the requirements of this chapter
441	441	and other provisions of this code governing the setting of rates by
442	442	the plan issuer.
443	443	(b) Except as provided by Subsection (c), if a rate has not
444	444	been approved or disapproved by the commissioner before the
445	445	expiration of the 30-day period described by Subsection (a), the
446	446	rate is considered approved and the health benefit plan issuer may
447	447	use the rate unless the rate proposed in the filing represents an
448	448	increase of 12.5 percent or more from the plan issuer's previously
449	449	filed rate.
450	450	(c) For good cause, the commissioner may, on the expiration
451	451	of the 30-day period described by Subsection (a), extend the period
452	452	for approval or disapproval of a rate for one additional 30-day
453	453	period. The commissioner and the health benefit plan issuer may
454	454	not by agreement extend the 30-day period described by Subsection
455	455	(a).
456	456	Sec. 1670.154. ADDITIONAL INFORMATION. (a) If the
457	457	department determines that the information filed by a health
458	458	benefit plan issuer under this chapter is incomplete or otherwise
459	459	deficient, the department may request additional information from
460	460	the plan issuer. If the department requests additional
461	461	information from the plan issuer during the 30-day period provided
462	462	by Section 1670.153(a) or under a second 30-day period provided
463	463	under Section 1670.153(c), the time between the date the department
464	464	submits the request to the plan issuer and the date the department
465	465	receives the information requested is not included in the
466	466	computation of the first 30-day period or the second 30-day period,
467	467	as applicable.
468	468	(b) For purposes of this section, the date of the
469	469	department's submission of a request for additional information is:
470	470	(1) the date of the department's electronic mailing or
471	471	telephone call relating to the request for additional information;
472	472	or
473	473	(2) the postmarked date on the department's letter
474	474	relating to the request for additional information.
475	475	Sec. 1670.155. NOTICE OF COMMISSIONER APPROVAL; USE OF
476	476	RATE. If the commissioner approves a rate filing under Section
477	477	1670.153, the commissioner shall provide the health benefit plan
478	478	issuer with a written or electronic notice of the approval. The
479	479	plan issuer may use the rate on receipt of the approval notice.
480	480	Sec. 1670.156. RATE FILING DISAPPROVAL BY COMMISSIONER;
481	481	HEARING. (a) If the commissioner disapproves a rate filing under
482	482	Section 1670.153(a)(2), the commissioner shall issue an order
483	483	disapproving the filing in accordance with Section 1670.103(b).
484	484	(b) A health benefit plan issuer whose rate filing is
485	485	disapproved is entitled to a hearing in accordance with Section
486	486	1670.103(c).
487	487	SECTION 3. Sections 1507.008 and 1507.058, Insurance Code,
488	488	are repealed.
489	489	SECTION 4. Subtitle K, Title 8, Insurance Code, as added by
490	490	this Act, applies only to rates for health benefit plan coverage
491	491	delivered, issued for delivery, or renewed on or after January 1,
492	492	2010. Rates for health benefit plan coverage delivered, issued for
493	493	delivery, or renewed before January 1, 2010, are governed by the law
494	494	in effect immediately before the effective date of this Act, and
495	495	that law is continued in effect for that purpose.
496	496	SECTION 5. This Act takes effect September 1, 2009.