Bill Text: TX HB2723 | 2011-2012 | 82nd Legislature | Engrossed
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-Engrossed.html
| 82R20428 PMO-F | ||
| By: Walle | H.B. No. 2723 | |
|
|
||
|
|
||
| relating to notice of premium increase for certain health benefit | ||
| plans. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter F, Chapter 843, Insurance Code, is | ||
| amended by adding Section 843.2071 to read as follows: | ||
| Sec. 843.2071. NOTICE OF INCREASE IN CHARGE FOR COVERAGE. | ||
| (a) Not less than 60 days before the date on which an increase in a | ||
| charge for coverage under this chapter takes effect, a health | ||
| maintenance organization shall: | ||
| (1) give to each enrollee under an individual evidence | ||
| of coverage written notice of the effective date of the increase; | ||
| and | ||
| (2) provide the enrollee a table that clearly lists: | ||
| (A) the actual dollar amount of the charge for | ||
| coverage on the date of the notice; | ||
| (B) the actual dollar amount of the charge for | ||
| coverage after the charge increase; and | ||
| (C) the percentage change between the amounts | ||
| described by Paragraphs (A) and (B). | ||
| (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 a health | ||
| maintenance organization, at the request of an enrollee, from | ||
| negotiating a change in benefits or rates after delivery of the | ||
| notice required by this section. | ||
| (d) A health maintenance organization may not require an | ||
| enrollee entitled to notice under this section to respond to the | ||
| health maintenance organization to renew the coverage or take other | ||
| action relating to the renewal or extension of the coverage 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, including | ||
| information concerning how to file a complaint with the department; | ||
| (2) contact information for the Texas Consumer Health | ||
| Assistance Program, including information concerning how to | ||
| request from the program consumer protection information or | ||
| assistance with filing a complaint; and | ||
| (3) the addresses of Internet websites that provide | ||
| consumer information related to rate increase justifications, | ||
| including the websites of the department and the United States | ||
| Department of Health and Human Services. | ||
| SECTION 2. 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: | ||
| (1) give written notice to the insured of the | ||
| effective date of the increase; and | ||
| (2) provide the insured a table that clearly lists: | ||
| (A) the actual dollar amount of the premium on | ||
| the date of the notice; | ||
| (B) the actual dollar amount of the premium after | ||
| the premium rate increase; and | ||
| (C) the percentage change between the amounts | ||
| described by Paragraphs (A) and (B). | ||
| (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, including | ||
| information concerning how to file a complaint with the department; | ||
| (2) contact information for the Texas Consumer Health | ||
| Assistance Program, including information concerning how to | ||
| request from the program consumer protection information or | ||
| assistance with filing a complaint; and | ||
| (3) the addresses of Internet websites that provide | ||
| consumer information related to rate increase justifications, | ||
| including the websites of the department and the United States | ||
| Department of Health and Human Services. | ||
| SECTION 3. 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: | ||
| (1) give written notice to the small employer of the | ||
| effective date of the increase; and | ||
| (2) provide the small employer a table that clearly | ||
| lists: | ||
| (A) the actual dollar amount of the premium on | ||
| the date of the notice; | ||
| (B) the actual dollar amount of the premium after | ||
| the premium rate increase; and | ||
| (C) the percentage change between the amounts | ||
| described by Paragraphs (A) and (B). | ||
| (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 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, including | ||
| information concerning how to file a complaint with the department; | ||
| (2) contact information for the Texas Consumer Health | ||
| Assistance Program, including information concerning how to | ||
| request from the program consumer protection information or | ||
| assistance with filing a complaint; and | ||
| (3) the addresses of Internet websites that provide | ||
| consumer information related to rate increase justifications, | ||
| including the websites of the department and the United States | ||
| Department of Health and Human Services. | ||
| SECTION 4. This Act applies to a health maintenance | ||
| organization individual evidence of coverage, an individual | ||
| accident and health insurance policy, or a small employer health | ||
| benefit plan that is delivered, issued for delivery, or renewed on | ||
| or after the effective date of this Act. An evidence of coverage, | ||
| 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 5. This Act takes effect September 1, 2011. | ||
