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AN ACT
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relating to the powers and duties of certain small and large |
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employer health cooperatives. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1501.0581, Insurance Code, is amended by |
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amending Subsections (a), (b), and (c) and adding Subsection (a-1) |
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to read as follows: |
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(a) The membership of a health group cooperative may consist |
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of only [of] small employers, [or may consist] only [of] large |
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employers, or [but may not consist of] both small and large |
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employers. To participate as a member of a health group |
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cooperative, an employer must be a small or large employer as |
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described by this chapter. |
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(a-1) Notwithstanding Subsections (b) and (c), membership |
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in a health group cooperative may be restricted to small and large |
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employers within a single industry grouping as defined by the most |
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recent edition of the United States Census Bureau's North American |
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Industry Classification System. |
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(b) Subject to the requirements imposed on small employer |
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health benefit plan issuers under Section 1501.101 and subject to |
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Subsections (a-1) and (o), a health group cooperative: |
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(1) shall allow a small employer to join a health group |
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cooperative consisting of only [of] small employers or both small |
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and large employers and enroll in health benefit plan coverage[,
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subject to Subsection (o)]; and |
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(2) may allow a large employer to join the [a] health |
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group cooperative [consisting only of large employers] and enroll |
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in health benefit plan coverage. |
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(c) Subject to Subsections (a-1) and [Subsection] (o), a |
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health group cooperative consisting of only [of] small employers or |
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both small and large employers shall allow any small employer to |
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join the health group cooperative and enroll in the cooperative's |
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health benefit plan coverage during the initial enrollment and |
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annual open enrollment periods. |
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SECTION 2. Subsections (b) and (b-2), Section 1501.063, |
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Insurance Code, are amended to read as follows: |
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(b) A health group cooperative that is composed of only |
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small employers, only large employers, or both small and large |
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employers is considered a single employer under this code. |
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(b-2) A health group cooperative that is composed only of |
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small employers and that has not made the election described by |
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Section 1501.0581(o)(1) in accordance with Subsection (p) of that |
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section, or a health group cooperative that is composed [only] of |
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both small and large employers, may [shall] be treated in the same |
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manner as a large employer for the purposes of this chapter, |
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including for the purposes of any provision relating to premium |
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rates and issuance and renewal of coverage. |
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SECTION 3. Section 1501.063, Insurance Code, as amended by |
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this Act, applies only to an election made under that section on or |
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after the effective date of this Act. An election made before the |
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effective date of this Act is governed by the law in effect on the |
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date the election was made, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1255 passed the Senate on |
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May 3, 2007, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1255 passed the House on |
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May 23, 2007, by the following vote: Yeas 144, Nays 0, two
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |