HBA-TYH H.B. 1628 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1628
By: Maxey
Insurance
3/11/1999
Introduced



BACKGROUND AND PURPOSE 

Governmental entities (entities) must make competitive bids for health
insurance each year.  In order to have a fair and efficient bid process,
bidders need claims experience data from the entities.  In the past,
entities' current insurers have withheld the needed claims experience and
consequently have hampered the bidding process.  H.B. 1628 requires
insurers to provide the entities with quarterly reports that include claims
experience for the previous quarter and a description of each large claim
paid by the insurer in the previous quarter. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends  Subchapter E, Chapter 21, Insurance Code, by adding
Article 21.49-15, as follows: 

 Art. 21.49-15.  INFORMATION REQUIRED TO BE PROVIDED BY INSURER TO
GOVERNMENTAL ENTITY WITH WHICH INSURER CONTRACTS 
 
Sec. 1.  DEFINITIONS.  Defines "governmental entity,"  "insurer," and
"political subdivision" for this article. 

Sec. 2.  REQUIRED INFORMATION; QUARTERLY REPORT.  (a)  Requires each
insurer that enters into a contract with a governmental entity (entity)
that is subject to competitive bidding requirements to provide to the
entity, in the manner prescribed by the entity and on a quarterly basis, a
detailed report that includes: 

(1)  the claims experience of the entity during the preceding calendar
quarter; and 
  
(2)  a description of each large claim, as defined by the entity, paid by
the insurer under the contract during the preceding calendar quarter.  
 
(b)  Provides that information provided by an insurer to the entity under
this section is confidential for purposes of Chapter 552 (Public
Information), Government Code.  

SECTION 2.Makes application of this Act prospective.

SECTION 3.Effective date: September 1, 1999.

SECTION 4.Emergency clause.