Bill Text: TX HB3752 | 2021-2022 | 87th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the offering of health benefit coverage by subsidiaries of the Texas Mutual Insurance Company.
Spectrum: Slight Partisan Bill (Republican 8-5)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB3752 Detail]
Download: Texas-2021-HB3752-Engrossed.html
Bill Title: Relating to the offering of health benefit coverage by subsidiaries of the Texas Mutual Insurance Company.
Spectrum: Slight Partisan Bill (Republican 8-5)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB3752 Detail]
Download: Texas-2021-HB3752-Engrossed.html
By: Frank, Oliverson, Raymond, White, et al. | H.B. No. 3752 |
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relating to the offering of health benefits by subsidiaries of the | ||
Texas Mutual Insurance Company. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2054.107, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2054.107. CERTAIN RELATIONSHIPS WITH OTHER INSURERS | ||
PROHIBITED. Except as provided by Section 2054.602, the [ |
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company may not have: | ||
(1) an affiliate, spin-off, or subsidiary that writes | ||
a line of insurance other than workers' compensation insurance; or | ||
(2) interlocking boards of directors with an insurer | ||
that writes a line of insurance other than workers' compensation | ||
insurance. | ||
SECTION 2. Chapter 2054, Insurance Code, is amended by | ||
adding Subchapter M to read as follows: | ||
SUBCHAPTER M. SUBSIDIARIES AUTHORIZED TO PROVIDE HEALTH BENEFIT | ||
COVERAGE | ||
Sec. 2054.601. DEFINITION. In this subchapter, | ||
"alternative health benefit coverage" means health benefit | ||
coverage: | ||
(1) provided by a subsidiary of the company that is not | ||
authorized to engage in the business of insurance in this state; | ||
(2) offered only to: | ||
(A) individuals; | ||
(B) small businesses with not more than 250 | ||
full-time equivalent employees; or | ||
(C) the company's policyholders or their | ||
employees; and | ||
(3) that is not: | ||
(A) provided through an insurance policy or other | ||
product the offering or issuance of which constitutes the business | ||
of insurance in this state; or | ||
(B) benefit coverage subject to the laws | ||
governing workers' compensation in this state. | ||
Sec. 2054.602. HEALTH BENEFIT COVERAGE OFFERED BY | ||
SUBSIDIARY AUTHORIZED. (a) The company may create, acquire, or | ||
otherwise own or operate one or more subsidiaries that offer | ||
accident or health insurance or another type of health benefit | ||
coverage or health benefit plan as provided by this subchapter. | ||
(b) A subsidiary of the company may offer in this state: | ||
(1) accident or health insurance or another type of | ||
health benefit plan authorized under this code, in accordance with | ||
a certificate of authority issued to the subsidiary under this | ||
code; or | ||
(2) alternative health benefit coverage as described | ||
by Section 2054.601. | ||
(c) The company may not be held liable for an act or | ||
obligation of a subsidiary of the company operating under this | ||
section. | ||
(d) A subsidiary of the company may not offer or issue any | ||
policy, plan, or benefit coverage under this section before January | ||
1, 2023. This subsection expires September 1, 2023. | ||
Sec. 2054.603. CONSIDERATIONS AND GUIDING PRINCIPLES FOR | ||
DEVELOPING HEALTH BENEFITS OFFERINGS. In developing health | ||
benefits or health benefit plan options to be offered through a | ||
subsidiary of the company, the company shall fully explore all | ||
health coverage options that may be offered under this subchapter | ||
and place emphasis on: | ||
(1) increasing competition in the health insurance | ||
market; | ||
(2) utilizing innovations that improve the quality of | ||
health care while lowering health care costs; | ||
(3) ensuring coverage and access to care for | ||
individuals in this state with preexisting conditions; | ||
(4) leveraging federal tax credits that may be | ||
available for private health benefit coverage to the greatest | ||
extent possible to increase the affordability of health benefit | ||
coverage; | ||
(5) ensuring transparency and coherence of costs and | ||
coverage to inform individuals shopping for health benefits; | ||
(6) reducing incidences of medical debt faced by | ||
individuals in this state and uncompensated care faced by providers | ||
in this state; and | ||
(7) ensuring equitable costs regardless of gender or | ||
prospects of pregnancy or childbirth. | ||
Sec. 2054.604. RULES. Except with respect to alternative | ||
health benefit coverage as described by Section 2054.601 or a | ||
subsidiary of the company offering alternative health benefit | ||
coverage, the commissioner may adopt rules as necessary to | ||
implement this subchapter. | ||
Sec. 2054.605. EXEMPTION FROM OTHER INSURANCE LAWS. A | ||
provision of this code, other than this chapter, does not apply to | ||
alternative health benefit coverage as described by Section | ||
2054.601 unless alternative health benefit coverage is expressly | ||
mentioned in the other law. | ||
SECTION 3. This Act takes effect September 1, 2021. |