HBA-DMH H.B. 1466 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1466
By: Maxey
Insurance
8/8/2001
Enrolled



BACKGROUND AND PURPOSE 

The 76th Legislature passed House Bill 1627 to prohibit competitive bids
from stop-loss insurers from containing any qualifications that permit
insurers to modify or limit terms of insurance after the contract is made.
The legislation had the unexpected effect of limiting choices by reducing
the number of bids submitted to the Texas Municipal League
Intergovernmental Risk Pool by stop-loss insurers.  House Bill 1466
authorizes municipalities to waive certain bidding requirements in favor of
the insurer. 

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. 

ANALYSIS

House Bill 1466 amends the Insurance Code to authorize a municipality to
execute a written waiver in favor of an insurer to waive the bidding
requirements for an insurer who contracts with a municipality to provide
stop-loss or other insurance coverage.  With regard to health benefit
insurance, the municipality is authorized to make such a waiver of
requirements regarding the assignment of a higher deductible to an
individual. 

EFFECTIVE DATE

September 1, 2001.