HBA-TBM H.B. 2127 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2127
By: Craddick
Insurance
7/3/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, health coverage providers were legally able
to deny benefits to an applicant enlisted in another health benefit plan
until the applicant's membership in the previous plan was terminated. This
conduct may have caused complications for a person trying to change health
insurance plans.  House Bill 2127 prohibits a health benefit plan provider
from refusing to cover a member of another health benefit plan.   

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 2127 amends the Insurance Code to prohibit the issuer of a
health benefit plan from refusing to enroll a person in the plan solely
because the person is enrolled in another health benefit plan at the time
the person applies for the coverage.  An issuer of a health benefit plan
who violates the article engages in unfair discrimination.  The bill sets
forth health benefit plan applicability standards.  

EFFECTIVE DATE

September 1, 2001.