Texas 2019 - 86th Regular

Texas Senate Bill SB1852 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1852
	1	+	By: Paxton S.B. No. 1852
	2	+	(Smithee)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to disclosures required in connection with the issuance of
6	8		certain health benefit plans.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Section 1507.006(b), Insurance Code, is amended
9	11		to read as follows:
10	12		(b) Each applicant for initial coverage [and each
11	13		policyholder on renewal of coverage] must sign the disclosure
12	14		statement provided by the health carrier under Subsection (a) and
13	15		return the statement to the health carrier. Under a group policy or
14	16		contract, the term "applicant" means the employer.
15	17		SECTION 2. Section 1507.056(b), Insurance Code, is amended
16	18		to read as follows:
17	19		(b) Each applicant for initial enrollment [and each
18	20		contract holder on renewal] must sign the disclosure statement
19	21		provided by the health maintenance organization under Subsection
20	22		(a) and return the statement to the health maintenance
21	23		organization. Under a group evidence of coverage, the term
22	24		"applicant" means the employer.
23		-	SECTION 3. Subtitle G, Title 8, Insurance Code, is amended
24		-	by adding Chapter 1509 to read as follows:
25		-	CHAPTER 1509. SHORT-TERM LIMITED-DURATION INSURANCE
26		-	Sec. 1509.001. DEFINITION. In this chapter, "short-term
27		-	limited-duration insurance" has the meaning assigned by 26 C.F.R.
28		-	Section 54.9801-2.
29		-	Sec. 1509.002. POLICY DISCLOSURE FORM. (a) The
30		-	commissioner by rule shall prescribe a disclosure form to be
31		-	provided with a short-term limited-duration insurance policy and
32		-	application.
33		-	(b) The disclosure form must be in an easily readable font
34		-	at least 14-point in size and include:
35		-	(1) the duration of coverage;
36		-	(2) a statement:
37		-	(A) of the number of times the policy may be
38		-	renewed or that the policy may not be renewed, as applicable;
39		-	(B) that the expiration of short-term coverage is
40		-	not a qualifying life event that would make a person eligible for a
41		-	special enrollment period; and
42		-	(C) that the policy may expire outside of the
43		-	open enrollment period;
44		-	(3) to the extent the information is available, the
45		-	dates of the next three open enrollment periods under the Patient
46		-	Protection and Affordable Care Act (Pub. L. No. 111-148) following
47		-	the date the policy expires;
48		-	(4) whether the policy contains any limitations or
49		-	exclusions to preexisting conditions;
50		-	(5) the maximum dollar amount payable under the
51		-	policy;
52		-	(6) the deductibles under the policy and the health
53		-	care services to which the deductibles apply;
54		-	(7) whether the following health care services are
55		-	covered, including:
56		-	(A) prescription drug coverage;
57		-	(B) mental health services;
58		-	(C) substance abuse treatment;
59		-	(D) maternity care;
60		-	(E) hospitalization;
61		-	(F) surgery;
62		-	(G) emergency health care; and
63		-	(H) preventive health care; and
64		-	(8) any other information the commissioner determines
65		-	is important for a purchaser of a short-term limited-duration
66		-	insurance policy.
67		-	(c) An insurer issuing a short-term limited-duration
68		-	insurance policy shall adopt procedures in accordance with
69		-	commissioner rule to obtain a signed form from the insured
70		-	acknowledging receipt of the disclosure form described by this
71		-	section. The rule must allow for electronic acknowledgment. The
72		-	insurer shall retain an acknowledgment form until the fifth
73		-	anniversary of the date the insurer receives the form, and the
74		-	insurer shall make the form available to the department on request.
75		-	SECTION 4. Chapter 1507, Insurance Code, as amended by this
76		-	Act, applies only to a policy or evidence of coverage delivered,
77		-	issued for delivery, or renewed on or after the effective date of
78		-	this Act. A policy or evidence of coverage delivered, issued for
79		-	delivery, or renewed before the effective date of this Act is
80		-	governed by the law as it existed immediately before the effective
81		-	date of this Act, and that law is continued in effect for that
82		-	purpose.
83		-	SECTION 5. Not later than January 1, 2020, the commissioner
84		-	of insurance shall prescribe the disclosure form required by
85		-	Section 1509.002, Insurance Code, as added by this Act.
86		-	SECTION 6. Chapter 1509, Insurance Code, as added by this
87		-	Act, applies only to an insurance policy delivered, issued for
88		-	delivery, or renewed on or after January 1, 2020. An insurance
89		-	policy delivered, issued for delivery, or renewed before January 1,
90		-	2020, is governed by the law as it existed immediately before the
91		-	effective date of this Act, and that law is continued in effect for
92		-	that purpose.
93		-	SECTION 7. This Act takes effect September 1, 2019.
94		-	______________________________ ______________________________
95		-	President of the Senate Speaker of the House
96		-	I hereby certify that S.B. No. 1852 passed the Senate on
97		-	April 17, 2019, by the following vote: Yeas 31, Nays 0; and that
98		-	the Senate concurred in House amendment on May 23, 2019, by the
99		-	following vote: Yeas 31, Nays 0.
100		-	______________________________
101		-	Secretary of the Senate
102		-	I hereby certify that S.B. No. 1852 passed the House, with
103		-	amendment, on May 16, 2019, by the following vote: Yeas 134,
104		-	Nays 0, two present not voting.
105		-	______________________________
106		-	Chief Clerk of the House
107		-	Approved:
108		-	______________________________
109		-	Date
110		-	______________________________
111		-	Governor
	25	+	SECTION 3. The change in law made by this Act applies only
	26	+	to a policy or evidence of coverage delivered, issued for delivery,
	27	+	or renewed on or after the effective date of this Act. A policy or
	28	+	evidence of coverage delivered, issued for delivery, or renewed
	29	+	before the effective date of this Act is governed by the law as it
	30	+	existed immediately before the effective date of this Act, and that
	31	+	law is continued in effect for that purpose.
	32	+	SECTION 4. This Act takes effect September 1, 2019.