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.