H.B. No. 2467
 
 
 
 
AN ACT
  relating to modification of certain small and large employer health
  benefit plans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1501.108, Insurance Code, is amended by
  amending Subsection (a) and adding Subsection (d) to read as
  follows:
         (a)  Except as provided by this section and Section 1501.109,
  a small or large employer health benefit plan issuer shall renew the
  small or large employer health benefit plan for any covered small or
  large employer, as applicable, at the employer's option, unless:
               (1)  a premium has not been paid as required by the
  terms of the plan;
               (2)  the employer has committed fraud or has
  intentionally misrepresented a material fact;
               (3)  the employer has not complied with the terms of the
  plan;
               (4)  no enrollee in the plan resides or works in the
  geographic service area of the small or large employer health
  benefit plan issuer or in the area for which the issuer is
  authorized to do business; or
               (5)  membership of the employer in an association
  terminates, but only if coverage is terminated uniformly without
  regard to a health status related factor of a covered individual.
         (d)  Notwithstanding Subsection (a), a small or large
  employer health benefit plan issuer may modify a small or large
  employer health benefit plan if:
               (1)  the modification occurs at the time of coverage
  renewal;
               (2)  the modification is effective uniformly among all
  small or large employers covered by that health benefit plan; and
               (3)  the issuer notifies the commissioner and each
  affected covered small or large employer of the modification not
  later than the 60th day before the date the modification is
  effective.
         SECTION 2.  This Act applies only to a small or large
  employer health benefit plan that is delivered, issued for
  delivery, or renewed on or after January 1, 2008. A health benefit
  plan that is delivered, issued for delivery, or renewed before
  January 1, 2008, is governed by the law as it existed immediately
  before the effective date of this Act, and that law is continued in
  effect for this purpose.
         SECTION 3.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2467 was passed by the House on May 8,
  2007, by the following vote:  Yeas 146, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2467 was passed by the Senate on May
  23, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor