82R10269 SLB-D
By: Walle H.B. No. 2723
A BILL TO BE ENTITLED
AN ACT
relating to notice of premium increase for certain accident and
health insurance policies and small employer health benefit plans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 1201, Insurance Code, is
amended by adding Section 1201.109 to read as follows:
Sec. 1201.109. NOTICE OF RATE INCREASE. (a) Not less than
60 days before the date on which a premium rate increase takes
effect on an individual accident and health insurance policy
delivered or issued for delivery in this state by an insurer, the
insurer shall give written notice to the insured of:
(1) the amount of the increase; and
(2) the effective date of the increase.
(b) The notice required by this section must be based on
coverage in effect on the date of the notice.
(c) This section may not be construed to prevent an insurer,
at the request of an insured, from negotiating a change in benefits
or rates after delivery of the notice required by this section.
(d) An insurer may not require an insured entitled to notice
under this section to respond to the insurer to renew the policy or
take other action relating to the renewal or extension of the policy
before the 45th day after the date the notice described by
Subsection (a) is given.
(e) The notice required by this section must include:
(1) contact information for the department;
(2) information about how to file complaints and
obtain information about coverage options, including contact
information for the Texas Consumer Health Assistance Program; and
(3) the addresses of Internet websites that provide
consumer information related to rate increase justifications,
including the website of the department and the United States
Department of Health and Human Services.
SECTION 2. Subchapter E, Chapter 1501, Insurance Code, is
amended by adding Section 1501.216 to read as follows:
Sec. 1501.216. PREMIUM RATES: NOTICE OF INCREASE. (a) Not
less than 60 days before the date on which a premium rate increase
takes effect on a small employer health benefit plan delivered or
issued for delivery in this state by an insurer, the insurer shall
give written notice to the small employer and each covered employee
of:
(1) the amount of the increase; and
(2) the effective date of the increase.
(b) The notice required by this section must be based on
coverage in effect on the date of the notice.
(c) This section may not be construed to prevent an insurer,
at the request of a small employer, from negotiating a change in
benefits or rates after delivery of the notice required by this
section.
(d) An insurer may not require a small employer or a covered
employee entitled to notice under this section to respond to the
insurer to renew the policy or take other action relating to the
renewal or extension of the policy before the 45th day after the
date the notice described by Subsection (a) is given.
(e) The notice required by this section must include:
(1) contact information for the department;
(2) information about how to file complaints and
obtain information about coverage options, including contact
information for the Texas Consumer Health Assistance Program; and
(3) the addresses of Internet websites that provide
consumer information related to rate increase justifications,
including the website of the department and the United States
Department of Health and Human Services.
SECTION 3. This Act applies only to an accident and health
insurance policy or small employer health benefit plan that is
delivered, issued for delivery, or renewed on or after the
effective date of this Act. A policy or plan delivered, issued for
delivery, or renewed before the effective date of this Act is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 4. This Act takes effect September 1, 2011.