Bill Text: TX SB1367 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to abolishing the Texas Health Insurance Pool.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-06-14 - See remarks for effective date [SB1367 Detail]
Download: Texas-2013-SB1367-Enrolled.html
S.B. No. 1367 |
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relating to abolishing the Texas Health Insurance Pool. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. DEFINITIONS. In this Act: | ||
(1) "Board" means the board of directors of the pool. | ||
(2) "Commissioner" means the commissioner of | ||
insurance. | ||
(3) "Department" means the Texas Department of | ||
Insurance. | ||
(4) "Health benefit exchange" has the meaning assigned | ||
by Section 1369.201, Insurance Code. | ||
(5) "Pool" means the Texas Health Insurance Pool | ||
established under Chapter 1506, Insurance Code, as that chapter | ||
existed before its repeal by this Act. | ||
SECTION 2. PLAN FOR DISSOLUTION. As soon as practicable | ||
after the effective date of this Act, the board shall: | ||
(1) develop a plan for: | ||
(A) dissolving the board and the pool after the | ||
pool's obligations to issue and continue health benefit coverage | ||
terminate under Sections 3 and 4 of this Act; and | ||
(B) transferring to the commissioner and the | ||
department: | ||
(i) any continuing obligations of the board | ||
and the pool; | ||
(ii) any assets of the pool; | ||
(iii) any rights of the board or the pool | ||
that accrued before the dissolution of the board or the pool or that | ||
accrue with respect to coverage issued by the pool before the pool's | ||
dissolution; and | ||
(iv) any authority previously held by the | ||
board the continuation of which is necessary or appropriate; and | ||
(2) submit the plan to the commissioner for the | ||
commissioner's approval. | ||
SECTION 3. ACCEPTANCE OF ENROLLEES. The latest date on | ||
which the pool may issue health benefit coverage is the later of: | ||
(1) December 31, 2013; or | ||
(2) the earliest date on which health benefit coverage | ||
is reasonably available on a guaranteed issue basis to each class of | ||
individuals eligible for health benefit coverage through the pool | ||
immediately before the effective date of this Act, as determined by | ||
the commissioner. | ||
SECTION 4. TERMINATION OF POOL COVERAGE. Health benefit | ||
coverage that is issued to an individual by the pool and that is | ||
otherwise in force terminates on the later of: | ||
(1) January 1, 2014; or | ||
(2) the earliest date on which the individual: | ||
(A) is enrolled in comparable health benefit | ||
coverage; or | ||
(B) could reasonably be expected to have obtained | ||
health benefit coverage on a guaranteed issue basis, as determined | ||
by the commissioner. | ||
SECTION 5. EXERCISE OF POOL'S RECOVERY RIGHTS. The | ||
department may exercise any authority to recover overpayments or | ||
other amounts the pool would have been authorized to recover or | ||
collect had the pool not been dissolved, including amounts | ||
recoverable under the pool's subrogation rights. | ||
SECTION 6. TRANSFER OF CERTAIN FUNDS; ASSESSMENT AUTHORITY | ||
CONTINUED. (a) Any fund in which money belonging to the pool is | ||
kept and any other assets of the pool shall be transferred to the | ||
department on dissolution of the pool. That money and any other | ||
money recovered or otherwise collected by the department under this | ||
Act on behalf of the pool shall be used by the department to satisfy | ||
obligations of the pool in accordance with this Act, Chapter 1506, | ||
Insurance Code, as that chapter existed before its repeal by this | ||
Act, and the dissolution plan. | ||
(b) The authority of the board to make assessments under | ||
Subchapter F, Chapter 1506, Insurance Code, as that subchapter | ||
existed before its repeal by this Act, is continued and may be | ||
exercised by the commissioner until the commissioner determines | ||
that all financial obligations of the board and the pool have been | ||
satisfied. | ||
(c) Money collected by the department under Subsections (a) | ||
and (b) of this section shall be deposited to an account in the | ||
Texas Treasury Safekeeping Trust Company to be used for the | ||
purposes described by this Act. The money deposited to the account | ||
may be used to pay fees for the Texas Treasury Safekeeping Trust | ||
Company account. The department may transfer money into the | ||
treasury local operating fund to disburse the money as required by | ||
this Act. | ||
(d) When the commissioner determines that all financial | ||
obligations of the board and the pool have been satisfied, the | ||
commissioner shall make a final accounting with respect to pool | ||
finances and: | ||
(1) make any necessary final assessment under this | ||
section; or | ||
(2) refund any surplus assessments or other surplus | ||
money collected on behalf of the pool, other than money described by | ||
Subsection (e) of this section: | ||
(A) on a pro rata basis to the health benefit plan | ||
issuers that paid the assessments to the extent possible; or | ||
(B) on another equitable basis to the extent pro | ||
rata refunds are not possible. | ||
(e) If money paid or payable under Subsection (m), Section | ||
843.342 and Subsection (l), Section 1301.137, Insurance Code, is no | ||
longer necessary to finance premium discounts as prescribed by | ||
Section 1506.260, Insurance Code, as that section existed | ||
immediately before the effective date of this Act, the money shall | ||
be distributed and used as follows: | ||
(1) $5 million shall be distributed to the corporation | ||
established under Chapter 182, Health and Safety Code, to be used | ||
for a purpose provided by that chapter; and | ||
(2) any money available after the amount required by | ||
Subdivision (1) of this subsection has been distributed in | ||
accordance with that subdivision shall be distributed to the fund | ||
established under Subchapter F, Chapter 1508, Insurance Code, to be | ||
used: | ||
(A) before January 1, 2014, for a purpose | ||
provided by that subchapter; and | ||
(B) on and after January 1, 2014, for any other | ||
purpose authorized by the commissioner by rule to improve access to | ||
health benefit coverage for individuals without coverage. | ||
(f) Money paid or payable under Subsection (m), Section | ||
843.342 and Subsection (l), Section 1301.137, Insurance Code, is | ||
subject to audit by the State Auditor's Office. | ||
SECTION 7. DELAYED IMPLEMENTATION. The commissioner by | ||
rule may delay the implementation of any part of Sections 1 through | ||
6 of this Act or the pool dissolution plan established under this | ||
Act if: | ||
(1) the guaranteed issue of health benefit coverage is | ||
delayed; | ||
(2) the operation of a health benefit exchange in this | ||
state is delayed; or | ||
(3) the commissioner determines that health benefit | ||
coverage expected to be available on a guaranteed issue basis to a | ||
class of individuals eligible for coverage under Chapter 1506, | ||
Insurance Code, immediately before the effective date of this Act, | ||
is not reasonably available to those individuals in this state. | ||
SECTION 8. REPEALER. (a) Effective January 1, 2014, the | ||
following laws are repealed: | ||
(1) Subsections (a-1) and (a-2), Section 1506.007, | ||
Insurance Code; | ||
(2) Subsections (b) and (c), Section 1506.205, | ||
Insurance Code; | ||
(3) Subsection (b), Section 1251.255, Insurance Code; | ||
and | ||
(4) Section 1271.305, Insurance Code. | ||
(b) Effective September 1, 2015, Chapter 1506, Insurance | ||
Code, is repealed. | ||
SECTION 9. EFFECTIVE DATE. 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, 2013. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1367 passed the Senate on | ||
April 9, 2013, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendment on May 21, 2013, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1367 passed the House, with | ||
amendment, on May 16, 2013, by the following vote: Yeas 126, | ||
Nays 1, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |