3 | 2 | | |
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4 | 3 | | |
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5 | 4 | | A BILL TO BE ENTITLED |
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6 | 5 | | AN ACT |
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7 | 6 | | relating to the application of certain insurance regulations to |
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8 | 7 | | certain small employer health reimbursement arrangements. |
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9 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 9 | | SECTION 1. Section 1501.003, Insurance Code, is amended to |
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11 | 10 | | read as follows: |
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12 | 11 | | Sec. 1501.003. APPLICABILITY: SMALL EMPLOYER HEALTH |
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13 | 12 | | BENEFIT PLANS; EXCEPTION. (a) Except as provided by Subsection |
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14 | 13 | | (b), an [An] individual or group health benefit plan is a small |
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15 | 14 | | employer health benefit plan subject to Subchapters C-H if it |
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16 | 15 | | provides health care benefits covering two or more employees of a |
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17 | 16 | | small employer and: |
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18 | 17 | | (1) the employer pays a portion of the premium or |
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19 | 18 | | benefits; |
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20 | 19 | | (2) the employer or a covered individual treats the |
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21 | 20 | | health benefit plan as part of a plan or program for purposes of |
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22 | 21 | | Section 106 or 162, Internal Revenue Code of 1986 (26 U.S.C. Section |
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23 | 22 | | 106 or 162); or |
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24 | 23 | | (3) the health benefit plan is an employee welfare |
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25 | 24 | | benefit plan under 29 C.F.R. Section 2510.3-1(j). |
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26 | 25 | | (b) This chapter does not apply to a qualified small |
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27 | 26 | | employer health reimbursement arrangement as defined by 26 U.S.C. |
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28 | 27 | | Section 9831(d)(2). |
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29 | 28 | | SECTION 2. This Act takes effect immediately if it receives |
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30 | 29 | | a vote of two-thirds of all the members elected to each house, as |
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31 | 30 | | provided by Section 39, Article III, Texas Constitution. If this |
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32 | 31 | | Act does not receive the vote necessary for immediate effect, this |
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33 | 32 | | Act takes effect September 1, 2019. |
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