Bill Text: TX SB2087 | 2017-2018 | 85th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the creation of a temporary health insurance risk pool.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2017-06-12 - Effective immediately [SB2087 Detail]

Download: Texas-2017-SB2087-Engrossed.html
 
 
  By: Hancock S.B. No. 2087
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of a temporary health insurance risk pool.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle G, Title 8, Insurance Code, is amended
  by adding Chapter 1510 to read as follows:
  CHAPTER 1510.  TEMPORARY HEALTH INSURANCE RISK POOL
         Sec. 1510.001.  DEFINITION. In this chapter, "pool" means a
  temporary health insurance risk pool that is established and
  administered by the commissioner under this chapter.
         Sec. 1510.002.  ESTABLISHMENT OF TEMPORARY HEALTH INSURANCE
  RISK POOL. To the extent that federal funds become available under
  federal law, regulation, or executive action after March 1, 2017,
  the commissioner may:
               (1)  apply for such funds; and
               (2)  use such funds to establish and administer a
  temporary health insurance risk pool for the purposes of this
  chapter.
         Sec. 1510.003.  PURPOSE OF POOL. (a)  The exclusive purpose
  of the pool is to provide a temporary mechanism for maximizing
  available federal funding to assist residents of this state in
  obtaining access to quality health care at minimum cost to the
  public.
         (b)  The pool may not be used to expand the Medicaid program,
  including the program administered under Chapter 32, Human
  Resources Code, and the program administered under Chapter 533,
  Government Code.
         Sec. 1510.004.  PROVISION OF COVERAGE. Subject to any
  requirements for obtaining federal funds held in the pool, the
  commissioner may use pool funds:
               (1)  to provide alternative individual health
  insurance coverage to eligible individuals that does not diminish
  the availability of traditional commercial health care coverage;
               (2)  to provide funding to individual health benefit
  plan issuers that cover individuals with certain health or cost
  characteristics in exchange for lower enrollee premium rates; or
               (3)  to provide a reinsurance program for health
  benefit plan issuers in the individual market in exchange for lower
  enrollee premium rates.
         Sec. 1510.005.  CONTRACTS AND AGREEMENTS. (a)  The
  commissioner may enter into a contract or agreement that the
  commissioner determines is appropriate to carry out this chapter,
  including a contract or agreement with:
               (1)  a similar pool in another state for the joint
  performance of common administrative functions;
               (2)  another organization for the performance of
  administrative functions; or
               (3)  a federal agency.
         (b)  The commissioner may contract for stop-loss insurance
  for risks incurred under this chapter.
         Sec. 1510.006.  FUNDING. (a)  The commissioner may use
  funds appropriated to the department to:
               (1)  apply for federal funding and grants; and
               (2)  administer this chapter.
         (b)  Notwithstanding Section 6(e)(2)(B), Chapter 615 (S.B.
  1367), Acts of the 83rd Legislature, Regular Session, 2013, the
  commissioner may use money appropriated to the department from the
  healthy Texas small employer premium stabilization fund for the
  exclusive purposes of this chapter, other than for paying salaries
  and salary related benefits.
         (c)  Notwithstanding Section 6(e)(2)(B), Chapter 615 (S.B.
  1367), Acts of the 83rd Legislature, Regular Session, 2013, the
  commissioner shall transfer money from the healthy Texas small
  employer premium stabilization fund to the Texas Department of
  Insurance operating account in an amount equal to the amount of
  money appropriated to the department from that fund, as described
  by Subsection (b), for the direct and indirect costs of the
  exclusive purposes of this chapter.
         (d)  Except as provided by Subsections (a) and (b), the
  commissioner may not use any state funds to fund the pool unless the
  funds are specifically appropriated for that purpose.
         (e)  The commissioner may use federal funds to administer
  this chapter, as appropriate.
         Sec. 1510.007.  PUBLIC EDUCATION AND OUTREACH. (a)  The
  commissioner may use funds appropriated to the department for the
  exclusive purposes of this chapter to develop and implement public
  education, outreach, and facilitated enrollment strategies under
  this chapter.
         (b)  The commissioner may contract with marketing
  organizations to perform or provide assistance with the strategies
  described by Subsection (a).
         Sec. 1510.008.  WAIVER. (a)  The commissioner may apply to
  the United States secretary of health and human services under 42
  U.S.C. Section 18052 for a waiver of applicable provisions of the
  Patient Protection and Affordable Care Act (Pub. L. No. 111-148)
  and any applicable regulations or guidance with respect to health
  insurance coverage in this state for a plan year beginning on or
  after January 1, 2017.
         (b)  The commissioner may take any action the commissioner
  considers appropriate to make an application under this section.
         (c)  The commissioner may implement a state plan that meets
  the requirements of a waiver granted in response to an application
  under Subsection (a) if the plan is:
               (1)  consistent with state and federal law; and
               (2)  approved by the United States secretary of health
  and human services.
         Sec. 1510.009.  ADDITIONAL AUTHORITY. In addition to the
  powers granted to the commissioner under this chapter, the
  commissioner may exercise any authority that may be exercised under
  the law of this state by:
               (1)  a reinsurer; or
               (2)  a health benefit plan issuer authorized to write
  health benefit plans in this state.
         Sec. 1510.010.  RULES. The commissioner may adopt rules
  necessary to implement this chapter, including rules to administer
  the pool and distribute money from the pool.
         Sec. 1510.011.  EXEMPTION FROM STATE TAXES AND FEES.
  Notwithstanding any other law, a program created under this chapter
  is not subject to any state tax, regulatory fee, or surcharge,
  including a premium or maintenance tax or fee.
         Sec. 1510.012.  ANNUAL REPORT OF POOL ACTIVITIES.
  (a)  Beginning June 1, 2018, not later than June 1 of each year, the
  department shall submit a report to the governor, the lieutenant
  governor, and the speaker of the house of representatives.
         (b)  The report submitted under Subsection (a) must:
               (1)  summarize the activities conducted under this
  chapter in the calendar year preceding the year in which the report
  is submitted; and
               (2)  include information relating to:
                     (A)  net written and earned premiums;
                     (B)  plan enrollment;
                     (C)  administration expenses; and
                     (D)  paid and incurred losses.
         Sec. 1510.013.  EXPIRATION OF CHAPTER. This chapter expires
  August 31, 2019.
         SECTION 2.  Notwithstanding Section 6(d)(2), Chapter 615
  (S.B. 1367), Acts of the 83rd Legislature, Regular Session, 2013,
  on the effective date of this Act, the commissioner of insurance
  shall transfer any money remaining outside the state treasury in
  the Texas Treasury Safekeeping Trust Company account established
  under Section 6(c), Chapter 615 (S.B. 1367), Acts of the 83rd
  Legislature, Regular Session, 2013, to the healthy Texas small
  employer premium stabilization fund.
         SECTION 3.  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, 2017.
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