Texas 2021 - 87th Regular

Texas House Bill HB3752 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3752
	1	+	By: Frank, et al. (Senate Sponsor - Hancock) H.B. No. 3752
	2	+	(In the Senate - Received from the House May 5, 2021;
	3	+	May 10, 2021, read first time and referred to Committee on Business &
	4	+	Commerce; May 21, 2021, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 9, Nays 0;
	6	+	May 21, 2021, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 3752 By: Hancock
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the offering of health benefit coverage by subsidiaries
6	14		of the Texas Mutual Insurance Company.
7	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	16		SECTION 1. Section 2054.107, Insurance Code, is amended to
9	17		read as follows:
10	18		Sec. 2054.107. CERTAIN RELATIONSHIPS WITH OTHER INSURERS
11	19		PROHIBITED. Except as provided by Section 2054.602, the [The]
12	20		company may not have:
13	21		(1) an affiliate, spin-off, or subsidiary that writes
14	22		a line of insurance other than workers' compensation insurance; or
15	23		(2) interlocking boards of directors with an insurer
16	24		that writes a line of insurance other than workers' compensation
17	25		insurance.
18	26		SECTION 2. Chapter 2054, Insurance Code, is amended by
19	27		adding Subchapter M to read as follows:
20	28		SUBCHAPTER M. SUBSIDIARIES AUTHORIZED TO PROVIDE HEALTH BENEFIT
21	29		COVERAGE
22	30		Sec. 2054.601. DEFINITION. In this subchapter,
23	31		"alternative health benefit coverage" means health benefit
24	32		coverage:
25	33		(1) provided by a subsidiary of the company that is not
26	34		authorized to engage in the business of insurance in this state;
27	35		(2) offered only to:
28	36		(A) individuals;
29	37		(B) small businesses with not more than 250
30	38		full-time equivalent employees; or
31	39		(C) the company's policyholders or their
32	40		employees; and
33	41		(3) that is not:
34	42		(A) provided through an insurance policy or other
35	43		product the offering or issuance of which constitutes the business
36	44		of insurance in this state; or
37	45		(B) benefit coverage subject to the laws
38	46		governing workers' compensation in this state.
39	47		Sec. 2054.602. HEALTH BENEFIT COVERAGE OFFERED BY
40	48		SUBSIDIARY AUTHORIZED. (a) The company may create, acquire, or
41	49		otherwise own or operate one or more subsidiaries that offer
42	50		accident or health insurance or another type of health benefit
43	51		coverage or health benefit plan as provided by this subchapter.
44	52		(b) A subsidiary of the company may offer in this state:
45	53		(1) accident or health insurance or another type of
46	54		health benefit plan authorized under this code, in accordance with
47	55		a certificate of authority issued to the subsidiary under this
48	56		code; or
49	57		(2) alternative health benefit coverage as described
50	58		by Section 2054.601.
51	59		(c) A subsidiary of the company may not offer or issue an
52	60		occupational policy for an employer or an employer's employees
53	61		covering an occupational bodily injury, disease, or death that
54	62		explicitly provides liability coverage to an employer that elects
55	63		not to maintain workers' compensation insurance coverage under
56	64		Chapter 406, Labor Code.
57	65		(d) A subsidiary of the company may not offer or issue any
58	66		policy, plan, or benefit coverage under this section before
59	67		September 1, 2023. This subsection expires September 1, 2023.
60	68		Sec. 2054.603. CONSIDERATIONS AND GUIDING PRINCIPLES FOR
61	69		DEVELOPING HEALTH BENEFIT COVERAGE OFFERINGS. (a) In developing
62	70		health benefit coverage or health benefit plan options to be
63	71		offered through a subsidiary of the company, the company shall
64	72		fully explore all health coverage options that may be offered under
65	73		this subchapter and place emphasis on:
66	74		(1) increasing competition in the health insurance
67	75		market;
68	76		(2) utilizing innovations that improve the quality of
69	77		health care while lowering health care costs;
70	78		(3) ensuring adequacy of benefits and access to care
71	79		for individuals in this state with preexisting conditions;
72	80		(4) issuing coverage in a manner that does not
73	81		discriminate against individuals with preexisting conditions;
74	82		(5) leveraging federal tax credits that may be
75	83		available for private health benefit plans to the greatest extent
76	84		possible to increase the affordability of health benefit plans;
77	85		(6) ensuring transparency and coherence of costs and
78	86		coverage to inform individuals shopping for health benefits;
79	87		(7) reducing incidences of medical debt faced by
80	88		individuals in this state and uncompensated care faced by providers
81	89		in this state; and
82	90		(8) ensuring equitable costs regardless of gender or
83	91		prospects of pregnancy or childbirth.
84	92		(b) Not later than September 1, 2022, the company shall
85	93		submit to the legislature a report explaining how any anticipated
86	94		health benefit coverage offerings would comply with all
87	95		considerations and guiding principles for developing health
88	96		benefit coverage offerings under Subsection (a). This subsection
89	97		expires January 1, 2023.
90	98		Sec. 2054.604. RULES. Except with respect to alternative
91	99		health benefit coverage as described by Section 2054.601 or a
92	100		subsidiary of the company offering alternative health benefit
93	101		coverage, the commissioner may adopt rules as necessary to
94	102		implement this subchapter.
95	103		Sec. 2054.605. EXEMPTION FROM OTHER INSURANCE LAWS. A
96	104		provision of this code, other than this chapter, does not apply to
97	105		alternative health benefit coverage as described by Section
98	106		2054.601 unless alternative health benefit coverage is expressly
99	107		mentioned in the other law.
100	108		Sec. 2054.606. SUBSIDIARY NOT ENGAGED IN BUSINESS OF
101	109		INSURANCE. Notwithstanding any other provision of this code, for
102	110		the purposes of offering alternative health benefit coverage as
103	111		described by Section 2054.601, a subsidiary of the company that
104	112		acts in accordance with this subchapter is not an insurer and is not
105	113		engaging in the business of insurance in this state.
106	114		Sec. 2054.607. RISK TRANSFER OR COVERAGE. A subsidiary of
107	115		the company that offers health benefit coverage under this
108	116		subchapter may contract with an outside company authorized to
109	117		engage in the business of insurance in this state that is not under
110	118		common control with the company or the subsidiary to:
111	119		(1) transfer to the outside company all or a portion of
112	120		the subsidiary's risks arising from health benefit coverage offered
113	121		under this subchapter; or
114	122		(2) obtain insurance coverage from the outside company
115	123		guarantying the subsidiary's obligations arising from health
116	124		benefit coverage offered under this subchapter.
	125	+	Sec. 2054.608. EXPIRATION OF SUBCHAPTER. This subchapter
	126	+	expires August 31, 2023.
117	127		SECTION 3. This Act takes effect September 1, 2021.
118		-	______________________________ ______________________________
119		-	President of the Senate Speaker of the House
120		-	I certify that H.B. No. 3752 was passed by the House on May 5,
121		-	2021, by the following vote: Yeas 100, Nays 46, 1 present, not
122		-	voting; that the House refused to concur in Senate amendments to
123		-	H.B. No. 3752 on May 28, 2021, and requested the appointment of a
124		-	conference committee to consider the differences between the two
125		-	houses; and that the House adopted the conference committee report
126		-	on H.B. No. 3752 on May 30, 2021, by the following vote: Yeas 89,
127		-	Nays 53, 2 present, not voting.
128		-	______________________________
129		-	Chief Clerk of the House
130		-	I certify that H.B. No. 3752 was passed by the Senate, with
131		-	amendments, on May 25, 2021, by the following vote: Yeas 31, Nays
132		-	0; at the request of the House, the Senate appointed a conference
133		-	committee to consider the differences between the two houses; and
134		-	that the Senate adopted the conference committee report on H.B. No.
135		-	3752 on May 30, 2021, by the following vote: Yeas 31, Nays 0.
136		-	______________________________
137		-	Secretary of the Senate
138		-	APPROVED: __________________
139		-	Date
140		-	__________________
141		-	Governor
	128	+	* * * * *