Bill Text: TX HB2723 | 2011-2012 | 82nd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to notice of premium increase for certain health benefit plans.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2011-05-09 - Referred to State Affairs [HB2723 Detail]
Download: Texas-2011-HB2723-Introduced.html
Bill Title: Relating to notice of premium increase for certain health benefit plans.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2011-05-09 - Referred to State Affairs [HB2723 Detail]
Download: Texas-2011-HB2723-Introduced.html
82R10269 SLB-D | ||
By: Walle | H.B. No. 2723 |
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relating to notice of premium increase for certain accident and | ||
health insurance policies and small employer health benefit plans. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter C, Chapter 1201, Insurance Code, is | ||
amended by adding Section 1201.109 to read as follows: | ||
Sec. 1201.109. NOTICE OF RATE INCREASE. (a) Not less than | ||
60 days before the date on which a premium rate increase takes | ||
effect on an individual accident and health insurance policy | ||
delivered or issued for delivery in this state by an insurer, the | ||
insurer shall give written notice to the insured of: | ||
(1) the amount of the increase; and | ||
(2) the effective date of the increase. | ||
(b) The notice required by this section must be based on | ||
coverage in effect on the date of the notice. | ||
(c) This section may not be construed to prevent an insurer, | ||
at the request of an insured, from negotiating a change in benefits | ||
or rates after delivery of the notice required by this section. | ||
(d) An insurer may not require an insured entitled to notice | ||
under this section to respond to the insurer to renew the policy or | ||
take other action relating to the renewal or extension of the policy | ||
before the 45th day after the date the notice described by | ||
Subsection (a) is given. | ||
(e) The notice required by this section must include: | ||
(1) contact information for the department; | ||
(2) information about how to file complaints and | ||
obtain information about coverage options, including contact | ||
information for the Texas Consumer Health Assistance Program; and | ||
(3) the addresses of Internet websites that provide | ||
consumer information related to rate increase justifications, | ||
including the website of the department and the United States | ||
Department of Health and Human Services. | ||
SECTION 2. Subchapter E, Chapter 1501, Insurance Code, is | ||
amended by adding Section 1501.216 to read as follows: | ||
Sec. 1501.216. PREMIUM RATES: NOTICE OF INCREASE. (a) Not | ||
less than 60 days before the date on which a premium rate increase | ||
takes effect on a small employer health benefit plan delivered or | ||
issued for delivery in this state by an insurer, the insurer shall | ||
give written notice to the small employer and each covered employee | ||
of: | ||
(1) the amount of the increase; and | ||
(2) the effective date of the increase. | ||
(b) The notice required by this section must be based on | ||
coverage in effect on the date of the notice. | ||
(c) This section may not be construed to prevent an insurer, | ||
at the request of a small employer, from negotiating a change in | ||
benefits or rates after delivery of the notice required by this | ||
section. | ||
(d) An insurer may not require a small employer or a covered | ||
employee entitled to notice under this section to respond to the | ||
insurer to renew the policy or take other action relating to the | ||
renewal or extension of the policy before the 45th day after the | ||
date the notice described by Subsection (a) is given. | ||
(e) The notice required by this section must include: | ||
(1) contact information for the department; | ||
(2) information about how to file complaints and | ||
obtain information about coverage options, including contact | ||
information for the Texas Consumer Health Assistance Program; and | ||
(3) the addresses of Internet websites that provide | ||
consumer information related to rate increase justifications, | ||
including the website of the department and the United States | ||
Department of Health and Human Services. | ||
SECTION 3. This Act applies only to an accident and health | ||
insurance policy or small employer health benefit plan that is | ||
delivered, issued for delivery, or renewed on or after the | ||
effective date of this Act. A policy or plan delivered, issued for | ||
delivery, or renewed before the effective date of this Act is | ||
governed by the law as it existed immediately before the effective | ||
date of this Act, and that law is continued in effect for that | ||
purpose. | ||
SECTION 4. This Act takes effect September 1, 2011. |