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A BILL TO BE ENTITLED
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AN ACT
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Relating to the creation of the Temporary Texas Health Insurance |
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Risk Pool |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle G, Insurance Code, is amended by adding |
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Chapter 1510 to read as follows: |
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CHAPTER 1510. TEXAS TEMPORARY HEALTH INSURANCE POOL |
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Sec. 1510.101 ESTABLISHMENT OF TEMPORARY HEALTH INSURANCE |
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RISK POOL. To the extent that federal funds become available under |
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federal law, regulation, or executive action after March 1, 2017, |
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the commissioner may apply for such funds and use such funds to |
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establish and administer a temporary health insurance risk pool |
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from which funds may be used for the purposes of this chapter. |
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Sec. 1510.102. PURPOSES OF TEMPORARY POOL. (a) The purpose |
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of the pool is to provide a temporary mechanism for maximizing |
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available federal funding to assist Texas residents in obtaining |
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access to quality health care at minimum cost to the public. |
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(b) The pool may not be used to expand the Medicaid program |
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under Chapter 32 of the Human Resources Code. |
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Sec. 1510.103. PROVIDING COVERAGE. (a) Subject to any |
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requirements for obtaining federal funds held within the pool, the |
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commissioner may use pool funds to provide alternative individual |
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health insurance coverage to eligible individuals without |
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diminishing the availability of traditional commercial health care |
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coverage, provide funding to individual health benefit plan |
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insurers covering individuals with certain health or cost |
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characteristics in exchange for lower individual health plan |
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premium rates, or provide a reinsurance program for carriers in the |
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individual market in exchange for lower individual health plan |
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premium rates. |
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Sec. 1510.104. CONTRACTS. (a) The commissioner may enter |
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into any contract or agreement that the commissioner considers |
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appropriate to carry out this chapter, including a contract or |
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agreement with: |
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(1) a similar pool in another state for the joint |
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performance of common administrative functions; |
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(2) another organization for the performance of |
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administrative functions; or |
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(3) with a federal agency. |
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(b) The commissioner may contract for stop-loss insurance |
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for risks incurred under this Chapter. |
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Sec. 1510.105. FUNDING. (a) The commissioner may use funds |
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appropriated to the department to apply for federal funding and |
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grants and to administer this Chapter. |
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(b) The commissioner may use federal funds to administer |
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this Chapter, as appropriate. |
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(c) Except as provided in this section, the commissioner may |
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not use any state funds to fund the Pool unless they are |
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specifically appropriated for that purpose. |
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(d) Notwithstanding Section 6(d)(2,) Chapter 615 (S.B. |
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1367), Acts of the 83rd Legislature, Regular Session, 2013, on or |
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after the effective date of this bill, the commissioner of |
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insurance shall transfer any funds remaining in the Texas Treasury |
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Safekeeping Trust Company account created under the provisions of |
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Section 6(c) of Chapter 615 (S.B. 1367), Acts of the 83rd |
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Legislature, Regular Session, 2013, to the fund established under |
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Subchapter F, Chapter 1508, Insurance Code. |
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(e) Notwithstanding Section 6(e)(2)(B), Chapter 615 (S.B. |
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1367), Acts of the 83rd Legislature, Regular Session, 2013, the |
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commissioner of insurance may use funds appropriated to the |
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department from the fund established under Subchapter F, Chapter |
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1508, Insurance Code, for the purposes of this chapter but |
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excluding salaries and salary related benefits. |
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(f) Notwithstanding Section 6(e)(2)(B), Chapter 615 (S.B. |
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1367), Acts of the 83rd Legislature, Regular Session, 2013, on or |
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after the effective date of this bill, the commissioner of |
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insurance shall transfer funds from the fund established under |
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Subchapter F, Chapter 1508, Insurance Code, to the General |
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Revenue-Dedicated Texas Department of Insurance Operating Fund 36 |
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to cover the appropriations for direct and indirect costs for the |
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purposes of this chapter. |
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Sec. 1510.106. PUBLIC EDUCATION AND OUTREACH. (a) The |
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commissioner may use any funds appropriated to the department for |
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the purposes of this chapter to develop and implement public |
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education, outreach, and facilitated enrollment strategies under |
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this chapter. |
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(b) The commissioner may contract with marketing |
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organizations to perform or provide assistance with education, |
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outreach, and enrollment strategies described by Subsection (a). |
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Sec. 1510.107. WAIVER. The commissioner is authorized, and |
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may take any action the commissioner considers appropriate, to |
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apply to the United States Secretary of Health and Human Services |
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under 42 U.S.C. §18052 for a waiver of applicable provisions of P.L. |
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111-148 (Patient Protection and Affordable Care Act) and any |
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applicable regulations or guidance with respect to health insurance |
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coverage in the state for a plan year beginning on or after January |
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1, 2017. The commissioner may implement a state plan meeting the |
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waiver requirements in a manner consistent with state and federal |
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law and as approved by the United States Secretary of Health and |
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Human Services. |
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Sec. 1510.108. ADDITIONAL AUTHORITY. In addition to the |
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other powers granted under this chapter, the commissioner may |
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exercise any authority that a reinsurer, or a health benefit plan |
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issuer authorized to write health benefit plans in this state, may |
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exercise under the law of this state. |
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Sec. 1510.198. RULES. The commissioner may adopt rules |
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necessary and appropriate to implement this chapter, including the |
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administration of the pool and distribution of money from the pool. |
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Sec. 1510.110. EXEMPTION FROM STATE TAXES AND FEES. The |
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programs created under this Chapter are not subject to any state |
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tax, regulatory fee, or surcharge, including a premium or |
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maintenance tax or fee. |
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Sec. 1510.111. ANNUAL REPORT OF POOL'S ACTIVITIES. (a) |
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Beginning in June of 2018, not later than June 1 of each year, the |
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Department shall submit a report to the governor, the lieutenant |
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governor, and the speaker of the house of representatives. |
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(b) The report must summarize the activities conducted |
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under this chapter in the calendar year preceding the year in which |
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the report is submitted and must include information relating to |
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net written and earned premiums, plan enrollment, administration |
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expenses, and paid and incurred losses. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the votes necessary for immediate effect, this |
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Act takes effect September 1, 2017. This Chapter expires August 31, |
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2019, unless extended by the Legislature. |