By: Perry S.B. No. 439
(Davis of Harris)
A BILL TO BE ENTITLED
AN ACT
relating to the application of certain insurance regulations to
certain small employer health reimbursement arrangements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1501.003, Insurance Code, is amended to
read as follows:
Sec. 1501.003. APPLICABILITY: SMALL EMPLOYER HEALTH
BENEFIT PLANS; EXCEPTION. (a) Except as provided by Subsection
(b), an [An] individual or group health benefit plan is a small
employer health benefit plan subject to Subchapters C-H if it
provides health care benefits covering two or more employees of a
small employer and:
(1) the employer pays a portion of the premium or
benefits;
(2) the employer or a covered individual treats the
health benefit plan as part of a plan or program for purposes of
Section 106 or 162, Internal Revenue Code of 1986 (26 U.S.C. Section
106 or 162); or
(3) the health benefit plan is an employee welfare
benefit plan under 29 C.F.R. Section 2510.3-1(j).
(b) This chapter does not apply to a qualified small
employer health reimbursement arrangement as defined by 26 U.S.C.
Section 9831(d)(2).
SECTION 2. 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.