By: Duncan S.B. No. 1367
(In the Senate - Filed March 7, 2013; March 18, 2013, read
first time and referred to Committee on State Affairs;
April 4, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 4, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1367 By: Duncan
A BILL TO BE ENTITLED
AN ACT
relating to abolishing the Texas Health Insurance Pool.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DEFINITIONS. In this Act:
(1) "Board" means the board of directors of the pool.
(2) "Commissioner" means the commissioner of
insurance.
(3) "Department" means the Texas Department of
Insurance.
(4) "Health benefit exchange" has the meaning assigned
by Section 1369.201, Insurance Code.
(5) "Pool" means the Texas Health Insurance Pool
established under Chapter 1506, Insurance Code, as that chapter
existed before its repeal by this Act.
SECTION 2. PLAN FOR DISSOLUTION. As soon as practicable
after the effective date of this Act, the board shall:
(1) develop a plan for:
(A) dissolving the board and the pool after the
pool's obligations to issue and continue health benefit coverage
terminate under Sections 3 and 4 of this Act; and
(B) transferring to the commissioner and the
department:
(i) any continuing obligations of the board
and the pool;
(ii) any assets of the pool;
(iii) any rights of the board or the pool
that accrued before the dissolution of the board or the pool or that
accrue with respect to coverage issued by the pool before the pool's
dissolution; and
(iv) any authority previously held by the
board the continuation of which is necessary or appropriate; and
(2) submit the plan to the commissioner for the
commissioner's approval.
SECTION 3. ACCEPTANCE OF ENROLLEES. The latest date on
which the pool may issue health benefit coverage is the later of:
(1) December 31, 2013; or
(2) the earliest date on which health benefit coverage
is reasonably available on a guaranteed issue basis to each class of
individuals eligible for health benefit coverage through the pool
immediately before the effective date of this Act, as determined by
the commissioner.
SECTION 4. TERMINATION OF POOL COVERAGE. Health benefit
coverage that is issued to an individual by the pool and that is
otherwise in force terminates on the later of:
(1) January 1, 2014; or
(2) the earliest date on which the individual:
(A) is enrolled in comparable health benefit
coverage; or
(B) could reasonably be expected to have obtained
health benefit coverage on a guaranteed issue basis, as determined
by the commissioner.
SECTION 5. EXERCISE OF POOL'S RECOVERY RIGHTS. The
department may exercise any authority to recover overpayments or
other amounts the pool would have been authorized to recover or
collect had the pool not been dissolved, including amounts
recoverable under the pool's subrogation rights.
SECTION 6. TRANSFER OF CERTAIN FUNDS; ASSESSMENT AUTHORITY
CONTINUED. (a) Any fund in which money belonging to the pool is
kept and any other assets of the pool shall be transferred to the
department on dissolution of the pool. That money and any other
money recovered or otherwise collected by the department under this
Act on behalf of the pool shall be used by the department to satisfy
obligations of the pool in accordance with this Act, Chapter 1506,
Insurance Code, as that chapter existed before its repeal by this
Act, and the dissolution plan.
(b) The authority of the board to make assessments under
Subchapter F, Chapter 1506, Insurance Code, as that subchapter
existed before its repeal by this Act, is continued and may be
exercised by the commissioner until the commissioner determines
that all financial obligations of the board and the pool have been
satisfied.
(c) Money collected by the department under Subsections (a)
and (b) of this section shall be deposited to an account in the
Texas Treasury Safekeeping Trust Company to be used for the
purposes described by this Act. The money deposited to the account
may be used to pay fees for the Texas Treasury Safekeeping Trust
Company account. The department may transfer money into the
treasury local operating fund to disburse the money as required by
this Act.
(d) When the commissioner determines that all financial
obligations of the board and the pool have been satisfied, the
commissioner shall make a final accounting with respect to pool
finances and:
(1) make any necessary final assessment under this
section; or
(2) refund any surplus assessments or other surplus
money collected on behalf of the pool, other than money described by
Subsection (e) of this section:
(A) on a pro rata basis to the health benefit plan
issuers that paid the assessments to the extent possible; or
(B) on another equitable basis to the extent pro
rata refunds are not possible.
(e) If money paid or payable under Subsection (m), Section
843.342 and Subsection (l), Section 1301.137, Insurance Code, is no
longer necessary to finance premium discounts as prescribed by
Section 1506.260, Insurance Code, as that section existed
immediately before the effective date of this Act, and no other use
is prescribed for that money by another Act of the legislature, the
money shall be directed, at the commissioner's discretion, to the
fund established under Subchapter F, Chapter 1508, Insurance Code,
for a purpose provided by that subchapter or to the corporation
established under Chapter 182, Health and Safety Code, for a
purpose provided by that chapter.
SECTION 7. DELAYED IMPLEMENTATION. The commissioner by
rule may delay the implementation of any part of Sections 1 through
6 of this Act or the pool dissolution plan established under this
Act if:
(1) the guaranteed issue of health benefit coverage is
delayed;
(2) the operation of a health benefit exchange in this
state is delayed; or
(3) the commissioner determines that health benefit
coverage expected to be available on a guaranteed issue basis to a
class of individuals eligible for coverage under Chapter 1506,
Insurance Code, immediately before the effective date of this Act,
is not reasonably available to those individuals in this state.
SECTION 8. REPEALER. (a) Effective January 1, 2014, the
following laws are repealed:
(1) Subsections (a-1) and (a-2), Section 1506.007,
Insurance Code;
(2) Subsections (b) and (c), Section 1506.205,
Insurance Code;
(3) Subsection (b), Section 1251.255, Insurance Code;
and
(4) Section 1271.305, Insurance Code.
(b) Effective September 1, 2015, Chapter 1506, Insurance
Code, is repealed.
SECTION 9. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2013.
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