S.B. No. 1940
AN ACT
relating to the administration of a temporary health insurance risk
pool.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1510.002, Insurance Code, is amended to
read as follows:
Sec. 1510.002. ESTABLISHMENT OF TEMPORARY HEALTH INSURANCE
RISK POOL. To the extent that federal funds are [become] available
under federal law[, regulation, or executive action after March 1,
2017], the commissioner may:
(1) apply for such funds; and
(2) use such funds to establish and administer a
temporary health insurance risk pool for the purposes of this
chapter.
SECTION 2. Section 1510.003, Insurance Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) The exclusive purpose of the pool is to provide a
temporary mechanism [for maximizing available federal funding] to
assist residents of this state in obtaining access to quality,
guaranteed issue health coverage [care] at minimum cost to the
public.
(c) The pool may not be used in a manner that requires this
state to assume functions currently performed by the United States
Department of Health and Human Services or the United States
Internal Revenue Service under the Patient Protection and
Affordable Care Act (Pub. L. No. 111-148), including establishing
an exchange or administering premium tax credits.
SECTION 3. Section 1510.004, Insurance Code, is amended to
read as follows:
Sec. 1510.004. PROVISION OF GUARANTEED ISSUE HEALTH
COVERAGE. (a) Subject to any requirements for obtaining federal
funds [held in the pool], the commissioner may increase access to
guaranteed issue health coverage by [use pool funds]:
(1) establishing a high risk pool to provide
alternative individual health insurance coverage to eligible
individuals that does not diminish enrollment in [the availability
of] traditional commercial health care coverage;
(2) providing [to provide] funding to individual
health benefit plan issuers that cover individuals with certain
health or cost characteristics in exchange for lower enrollee
premium rates; or
(3) providing [to provide] a reinsurance program for
health benefit plan issuers in the individual market in exchange
for lower enrollee premium rates.
(b) If necessary to ensure access to quality individual
health insurance coverage for individuals with preexisting
conditions, the commissioner may take actions necessary to
establish a temporary high risk pool substantially similar to the
risk pool authorized by former Chapter 1506, Insurance Code,
repealed by Chapter 615 (S.B. 1367), Acts of the 83rd Legislature,
Regular Session, 2013, including:
(1) appointing a board of directors to govern the
temporary high risk pool;
(2) adopting rules or a plan of operation for the
temporary high risk pool; and
(3) contracting with a third party.
(c) Any rule or plan of operation adopted under Subsection
(b) remains in effect only until 30 days following the end of the
next regular session of the legislature unless a law is enacted that
authorizes coverage to be issued by the temporary risk pool and
provides for funding for coverage under the temporary risk pool.
SECTION 4. Section 1510.008(a), Insurance Code, is amended
to read as follows:
(a) The commissioner may apply to the United States
secretary of health and human services:
(1) under 42 U.S.C. Section 18052 for a waiver of
applicable provisions of the Patient Protection and Affordable Care
Act (Pub. L. No. 111-148) and any applicable regulations or
guidance; or
(2) under any applicable provision of federal law
[enacted on or after May 1, 2017,] for a waiver of applicable
provisions of any federal law, regulations, or guidance with
respect to health insurance coverage consistent with Section
1510.003.
SECTION 5. Section 1510.012(a), Insurance Code, is amended
to read as follows:
(a) Beginning June 1, 2020 [2018], not later than June 1 of
each year, the department shall submit a report to the governor, the
lieutenant governor, and the speaker of the house of
representatives.
SECTION 6. Section 1510.013, Insurance Code, is amended to
read as follows:
Sec. 1510.013. EXPIRATION OF CHAPTER. This chapter expires
August 31, 2021 [2019].
SECTION 7. 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, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1940 passed the Senate on
April 26, 2019, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1940 passed the House on
May 21, 2019, by the following vote: Yeas 146, Nays 1, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor