| 1 | 1 | | 89R16189 SCL-D |
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| 2 | 2 | | By: Hagenbuch S.B. No. 2808 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to approval of premium rate increases by the commissioner |
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| 10 | 10 | | of insurance. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. The heading to Subtitle E, Title 5, Insurance |
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| 13 | 13 | | Code, is amended to read as follows: |
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| 14 | 14 | | SUBTITLE E. PREMIUMS AND PREMIUM FINANCING |
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| 15 | 15 | | SECTION 2. Subtitle E, Title 5, Insurance Code, is amended |
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| 16 | 16 | | by adding Chapter 652 to read as follows: |
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| 17 | 17 | | CHAPTER 652. RATE INCREASE LIMITATIONS |
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| 18 | 18 | | Sec. 652.001. DEFINITIONS. In this chapter, "health |
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| 19 | 19 | | maintenance organization" and "insurer" have the meanings assigned |
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| 20 | 20 | | by Section 401.001. |
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| 21 | 21 | | Sec. 652.002. COMMISSIONER APPROVAL REQUIRED. |
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| 22 | 22 | | Notwithstanding any other law and in addition to any other |
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| 23 | 23 | | applicable rating requirements, before an insurer or health |
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| 24 | 24 | | maintenance organization may collect a premium at a rate that has |
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| 25 | 25 | | increased from the rate used by the insurer or health maintenance |
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| 26 | 26 | | organization in the previous 12-month period, the insurer or health |
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| 27 | 27 | | maintenance organization shall: |
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| 28 | 28 | | (1) file the proposed rate with the department along |
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| 29 | 29 | | with any applicable rating manuals, supplementary rating |
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| 30 | 30 | | information, and additional information as required by the |
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| 31 | 31 | | commissioner; and |
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| 32 | 32 | | (2) obtain approval from the commissioner for the |
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| 33 | 33 | | proposed rate in accordance with rating standards applicable to the |
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| 34 | 34 | | line of insurance or the coverage for which the rate is used. |
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| 35 | 35 | | SECTION 3. The changes in law made by this Act apply only to |
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| 36 | 36 | | an insurance policy or health benefit plan delivered, issued for |
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| 37 | 37 | | delivery, or renewed on or after January 1, 2026. |
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| 38 | 38 | | SECTION 4. This Act takes effect September 1, 2025. |
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