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Texas Department of Insurance
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Subchapter A. Small Employer Health Insurance

Portability and Availability Act Regulations

28 TAC §§26.14 and 26.27

The Texas Department of Insurance proposes repeal of §§26.14 and 26.27 concerning small and large employer health insurance regulations. The repeal of the sections is necessary so that Chapter 26 of the department´s rules will conform to current statutory requirements.

Contemporaneously with this proposed repeal, proposed new §§26.14 and 26.27 and amendments to §§26.4 ­ 26.11, 26.13, 26.15, 26.16, 26.18 ­ 26.20, 26.22, 26.24, 26.26, 26.301 ­ 26.309 and 26.311 ­ 26.312 are published elsewhere in this issue of the Texas Register.

Kim Stokes, Senior Associate Commissioner for the Life, Health and Licensing Program, has determined that during the first five years that the proposed repeal is in effect, there will be no fiscal impact on state or local government as a result of enforcing or administering the sections. There will be no measurable effect on local employment or the local economy as a result of the proposal.

Ms. Stokes has also determined that for each year of the first five years the repeal of the sections is in effect, the public benefit anticipated as a result of administration and enforcement of the repealed sections will be that Chapter 26 of the department´s rules will be up to date and conform to current statutory requirements. There is no anticipated economic cost to persons who are required to comply with the proposed repeal. There is no anticipated difference in cost of compliance between small and large businesses.

To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on December 13, 2004 to Gene C. Jarmon, General Counsel and Chief Clerk, Mail Code 113-1C, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An additional copy of the comment must be simultaneously submitted to Bill Bingham, Deputy for Regulatory Matters, Life, Health and Licensing Program, Mail Code 107-2A, Texas Department of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. A request for a public hearing must be submitted separately to the Office of Chief Clerk.

Repeal of §§26.14 and 26.27 is proposed pursuant to Insurance Code Chapter 1153, and §36.001. Chapter 1153 gives the Commissioner of Insurance authority to set presumptive premium rates by rule for credit life and accident and health policies. Section 36.001 provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state.

The proposed repeal affects regulation pursuant to the following statutes: Insurance Code, Chapter 1153

§26.14. Coverage.

§26.27. Forms.

For more information, contact: ChiefClerk@tdi.texas.gov