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Texas Department of Insurance
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SUBCHAPTER D. Health Group Cooperatives

28 TAC §26.412

1. INTRODUCTION . The Texas Department of Insurance proposes repeal of §26.412, concerning the refusal to renew employer health benefit plans delivered or issued to a health group cooperative. Repeal of §26.412 is necessary because the enactment of Senate Bill (SB) 805, 79th Legislature, Regular Session, obviates the need for the section, since health group cooperatives under its provisions are treated as either large employers or small employers and are regulated under refusal-to-renew provisions applicable to such large employers or small employers.

2. FISCAL NOTE . Ana Smith-Daley, Acting Associate Commissioner for the Life, Health & 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. There will be no measurable effect on local employment or the local economy as a result of the proposal.

3. PUBLIC BENEFIT/COST NOTE . Ms. Smith-Daley also has determined that for each year of the first five years the proposed repeal is in effect, the anticipated public benefit will be greater regulatory efficiency in administering regulations under Chapter 26, consistent with amendments to Insurance Code Chapter 1501 enacted by the 79th Legislature, Regular Session, in SB 805. 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.

4. REQUEST FOR PUBLIC COMMENT . To be considered, written comments on the proposal must be submitted no later than 5:00 p.m. on December 19, 2005 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 Ana Smith-Daley, Acting Associate Commissioner for the Life, Health & 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.

5. STATUTORY AUTHORITY . The repeal is proposed under the Insurance Code §§1501.010, 1501.058, 1501.0581, and 36.001, and SECTION 7 of SB 805 as enacted by the 79th Legislature, Regular Session. Section 1501.010 authorizes the commissioner of insurance to adopt rules as necessary to implement Chapter 1501. Section 1501.058 requires compliance with federal laws applicable to cooperatives and health benefit plans issued through cooperatives, to the extent required by state law or rules adopted by the commissioner. Section 1501.0581 requires a carrier to make an informational filing with the commissioner concerning intended offers of coverage to a cooperative and requires that the commissioner by rule prescribe the form and the time of the filing. SECTION 7 of SB 805 requires the commissioner, not later than January 1, 2006 , to adopt rules under §1501.010 as necessary to implement the change in law made by SB 805. 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.

6. CROSS REFERENCE TO STATUTE . The proposed repeal affects regulation pursuant to the following statutes: Insurance Code Chapter 1501, §§1501.0575, 1501.058, 1501.0581 and 1501.063

7. TEXT .

§26.412. Refusal to Renew and Application to Reenter Health Group Cooperative Market.

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