Bill Text: TX HB2165 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to the establishment of a medical reinsurance system and to certain insurance reforms necessary to the efficient operation of that system; providing an administrative penalty.

Spectrum: Partisan Bill (Republican 9-0)

Status: (Introduced - Dead) 2011-04-12 - Left pending in committee [HB2165 Detail]

Download: Texas-2011-HB2165-Introduced.html
  82R9143 KCR-D
 
  By: Perry H.B. No. 2165
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of a medical reinsurance system and
  to certain insurance reforms necessary to the efficient operation
  of that system; providing an administrative penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Subtitle F, Title 4, Insurance
  Code, is amended to read as follows:
  SUBTITLE F. REINSURANCE; STOP-LOSS INSURANCE
         SECTION 2.  Subtitle F, Title 4, Insurance Code, is amended
  by adding Chapter 495 to read as follows:
  CHAPTER 495. STOP-LOSS INSURANCE FOR CERTAIN SELF-FUNDED ENTITIES
         Sec. 495.001.  DEFINITIONS. In this chapter:
               (1)  "Aggregate stop-loss insurance" means stop-loss
  insurance in which the issuer responds after a self-funded health
  benefit plan has covered:
                     (A)  claims that total a specified dollar amount;
  or
                     (B)  a specified percentage of expected claims,
  which may be modified to account for any applicable individual
  stop-loss insurance coverage.
               (2)  "Health benefit plan" means a plan that provides
  benefits for hospital, medical, surgical, or other treatment
  expenses incurred as a result of a health condition, an accident, or
  sickness, including a group health insurance policy, a group
  hospital service contract, a group evidence of coverage, or any
  other similar coverage document that:
                     (A)  is issued, entered into, or provided by:
                           (i)  an insurance company;
                           (ii)  a group hospital service corporation
  operating under Chapter 842;
                           (iii)  a health maintenance organization
  operating under Chapter 843;
                           (iv)  a multiple employer welfare
  arrangement that holds a certificate of authority under Chapter
  846; or
                           (v)  an employer, union, association,
  trustee, or other self-funded or self-insured welfare or benefit
  plan, program, or arrangement; and
                     (B)  is not limited in scope to only one or more of
  the following types of coverage:
                           (i)  accident-only or disability income
  insurance coverage or a combination of accident-only and disability
  income insurance coverage;
                           (ii)  credit-only insurance coverage;
                           (iii)  disability insurance coverage;
                           (iv)  coverage only for a specified disease
  or illness;
                           (v)  Medicare services under a federal
  contract;
                           (vi)  Medicare supplement and Medicare
  Select policies regulated in accordance with federal law;
                           (vii)  long-term care coverage or benefits,
  nursing home care coverage or benefits, home health care coverage
  or benefits, community-based care coverage or benefits, or any
  combination of those coverages or benefits;
                           (viii)  coverage that provides
  limited-scope dental or vision benefits;
                           (ix)  coverage for an on-site medical
  clinic;
                           (x)  liability insurance coverage,
  including general liability insurance coverage, automobile
  liability insurance coverage, and coverage issued as a supplement
  to liability insurance coverage;
                           (xi)  workers' compensation insurance
  coverage or similar insurance coverage;
                           (xii)  automobile medical payment insurance
  coverage, including coverage issued as a supplement to automobile
  medical payment insurance coverage; or
                           (xiii)  hospital indemnity or other fixed
  indemnity insurance coverage.
               (3)  "Individual stop-loss deductible" means the
  dollar amount of claims that a self-funded health benefit plan must
  cover before the issuer of an individual stop-loss insurance policy
  begins to reimburse the health benefit plan for additional covered
  claims for the remainder of a policy period.
               (4)  "Individual stop-loss insurance" means stop-loss
  insurance in which the issuer responds when the self-funded health
  benefit plan covered by the insurance has covered claims that
  exceed the applicable individual stop-loss deductible for one
  enrollee in the health benefit plan.
               (5)  "Reinsurance" means a contractual arrangement
  between a ceding insurer and an assuming insurer in accordance with
  Chapter 492.
               (6)  "Self-funded health benefit plan" means a health
  benefit plan that:
                     (A)  is established as an employee welfare benefit
  plan under the Employee Retirement Income Security Act of 1974 (29
  U.S.C. Section 1001 et seq.) or offered by an entity, agency, or
  political subdivision of this state under Subtitle H, Title 8;
                     (B)  holds the initial obligation to pay claims
  under the plan; and
                     (C)  is exempt under state or federal law from the
  licensing requirements of this code.
               (7)  "Stop-loss insurance" means an insurance policy
  covering a self-funded health benefit plan.  The term includes
  aggregate stop-loss insurance and individual stop-loss insurance.
         Sec. 495.002.  REINSURANCE PROHIBITED; STOP-LOSS INSURANCE
  REQUIRED. (a) An insurer authorized to write reinsurance in this
  state may not issue a reinsurance policy covering a self-funded
  health benefit plan.
         (b)  Subject to Section 495.003, an insurer authorized to
  write stop-loss insurance in this state may issue a stop-loss
  insurance policy covering a self-funded health benefit plan.
         Sec. 495.003.  PRIOR APPROVAL OF POLICIES. (a) An insurer
  authorized to write stop-loss insurance in this state may not issue
  or issue for delivery a stop-loss insurance policy in this state
  until the policy has been filed with the department and approved by
  the commissioner. The commissioner may not approve an individual
  stop-loss insurance policy filed under this section if the
  individual stop-loss deductible is less than $5,000 or exceeds
  $100,000.
         (b)  The commissioner shall adopt rules under Section 37.001
  to govern the approval of policies filed under this section.
         (c)  If the commissioner disapproves a policy filed under
  this section, the disapproval is subject to judicial review under
  Subchapter D, Chapter 36.
         (d)  In the commissioner's order approving or disapproving a
  policy filed under this section, the commissioner shall state
  whether the stop-loss policy is subject to Chapters 1675 and 1676.
         Sec. 495.004.  REPORTS CONCERNING INDIVIDUAL STOP-LOSS
  INSURANCE. An insurer that issues individual stop-loss insurance
  in this state shall annually file with the department a report that
  contains the annualized gross premium and annual individual
  stop-loss deductible for each individual stop-loss insurance
  policy issued in this state.
         SECTION 3.  Title 8, Insurance Code, is amended by adding
  Subtitle K to read as follows:
  SUBTITLE K.  TEXAS MEDICAL REINSURANCE SYSTEM
  CHAPTER 1675. TEXAS MEDICAL REINSURANCE SYSTEM
         Sec. 1675.001.  DEFINITIONS. In this chapter:
               (1)  "Affiliate" means a person or entity classified as
  an affiliate under Section 823.003.
               (2)  "Aggregate stop-loss insurance" has the meaning
  assigned by Section 495.001.
               (3)  "Board" means the board of directors of the Texas
  Medical Reinsurance System.
               (4)  "Health benefit plan" has the meaning assigned by
  Section 495.001.
               (5)  "Health benefit plan issuer" means an entity that
  issues a health benefit plan.
               (6)  "Independent auditor" means the auditor with whom
  the board contracts under Section 1675.006 to audit the
  administration, management, and operation of the system.
               (7)  "Individual stop-loss insurance" has the meaning
  assigned by Section 495.001.
               (8)  "Management company" means the entity with whom
  the board contracts under Section 1675.006 to administer, manage,
  and operate the system.
               (9)  "Plan of operation" means the plan of operation of
  the system established under Section 1675.007.
               (10)  "Self-funded health benefit plan" has the meaning
  assigned by Section 495.001.
               (11)  "Stop-loss insurance" has the meaning assigned by
  Section 495.001.
               (12)  "Subsidiary" means a person classified as a
  subsidiary under Section 823.003.
               (13)  "System" means the Texas Medical Reinsurance
  System established under this chapter.
         Sec. 1675.002.  TEXAS MEDICAL REINSURANCE SYSTEM.  The Texas
  Medical Reinsurance System is an entity that is:
               (1)  administered by a board of directors and
  management company in accordance with this chapter; and
               (2)  subject to the supervision and control of the
  commissioner.
         Sec. 1675.003.  SYSTEM BOARD OF DIRECTORS.  (a)  The board of
  directors of the system is composed of the following nine members:
               (1)  one member appointed by the governor, selected
  from a list of candidates prepared by the lieutenant governor;
               (2)  one member appointed by the governor, selected
  from a list of candidates prepared by the speaker of the house of
  representatives;
               (3)  one member appointed by the governor who is a small
  employer, as defined by Section 1501.002;
               (4)  one member appointed by the governor who is a large
  employer, as defined by Section 1501.002;
               (5)  one member appointed by the governor who
  represents the interests of political subdivisions of this state;
               (6)  one member appointed by the governor who
  represents the interests of physicians in this state;
               (7)  one member appointed by the governor who
  represents the interests of hospitals in this state;
               (8)  one member who is the executive director of the
  Employees Retirement System of Texas or that executive director's
  designee; and
               (9)  one member who is the executive director of the
  Teacher Retirement System of Texas or that executive director's
  designee.
         (b)  A board member may not:
               (1)  be an officer, director, or employee of a health
  benefit plan issuer or an affiliate or subsidiary of a health
  benefit plan issuer;
               (2)  be a person required to register under Chapter
  305, Government Code; or
               (3)  be related to a person described by Subdivision
  (1) or (2) within the second degree by affinity or consanguinity.
         (c)  Members of the board appointed by the governor serve
  two-year terms expiring December 31 of each odd-numbered year. A
  member's term continues until a successor is appointed.
         (d)  A member of the board may not be compensated for serving
  on the board but is entitled to reimbursement for actual expenses
  incurred in performing functions as a member of the board as
  provided by the General Appropriations Act.
         Sec. 1675.004.  OPEN MEETINGS; PUBLIC INFORMATION. The
  board is subject to:
               (1)  the open meetings law, Chapter 551, Government
  Code; and
               (2)  the public information law, Chapter 552,
  Government Code.
         Sec. 1675.005.  BOARD MEMBER IMMUNITY. (a)  A member of the
  board is not liable for an act performed, or omission made, in good
  faith in the performance of powers and duties under this chapter.
         (b)  A cause of action does not arise against a member of the
  board for an act or omission described by Subsection (a).
         Sec. 1675.006.  SELECTION OF MANAGEMENT COMPANY AND
  INDEPENDENT AUDITOR. (a)  The board shall contract with:
               (1)  an entity that is qualified to administer, manage,
  and operate the system; and
               (2)  an entity that is qualified to audit the manner in
  which the entity described by Subdivision (1) performs its duties.
         (b)  An entity with whom the board contracts under Subsection
  (a) may not be a health benefit plan issuer or an affiliate or
  subsidiary of a health benefit plan issuer.
         (c)  A management company with whom the board contracts under
  Subsection (a)(1) must have the capability to gather, compile, and
  securely store information received from health benefit plan
  issuers and health care providers with whom health benefit plan
  issuers contract in a manner that allows the management company to
  prepare reports as requested by the board.
         Sec. 1675.007.  SYSTEM PLAN OF OPERATION. (a)  The
  management company shall submit to the commissioner a plan of
  operation and any amendments to that plan necessary or suitable to
  ensure the fair, reasonable, and equitable administration of the
  system.
         (b)  The commissioner, after notice and hearing, may approve
  the plan of operation if the commissioner determines the plan:
               (1)  is suitable to ensure the fair, reasonable, and
  equitable administration of the system; and
               (2)  provides for the sharing of system gains or losses
  on an equitable and proportionate basis in accordance with this
  chapter.
         (c)  The plan of operation is effective on the written
  approval of the commissioner.
         Sec. 1675.008.  SYSTEM POWERS AND DUTIES. (a)  The system,
  through the board and the management company, has the general
  powers and authority granted under state law to an insurer or a
  health maintenance organization authorized to engage in business,
  except that the system may not directly issue a health benefit plan.
         (b)  The system may:
               (1)  enter into contracts necessary or proper to
  implement this chapter, including, with the commissioner's
  approval, contracts with similar programs of other states for the
  joint performance of common functions or with persons or other
  organizations for the performance of administrative functions;
               (2)  sue or be sued, including taking legal action
  necessary or proper to recover assessments and penalties for, on
  behalf of, or against the system or a reinsured health benefit plan
  issuer;
               (3)  take legal action necessary to avoid the payment
  of improper claims against the system;
               (4)  issue reinsurance contracts in accordance with
  this chapter;
               (5)  establish guidelines, conditions, and procedures
  for reinsuring risks under the plan of operation;
               (6)  establish actuarial and underwriting functions as
  appropriate for the operation of the system;
               (7)  appoint appropriate legal, actuarial, and other
  committees necessary to provide technical assistance in:
                     (A)  the operation of the system;
                     (B)  policy and other contract design; and
                     (C)  any other function within the authority of
  the system; and
               (8)  assess health benefit plan issuers and stop-loss
  insurers in accordance with Section 1675.012.
         Sec. 1675.009.  SYSTEM AUDIT; INDEPENDENT AUDIT AND STATE
  AUDIT. (a)  The transactions of the system are subject to audit by
  the state auditor in accordance with Chapter 321, Government Code.
  The state auditor shall report the cost of each audit conducted
  under this subsection to the board, the management company, and the
  comptroller, and the board shall remit that amount to the
  comptroller.
         (b)  The independent auditor shall annually audit the
  transactions of the system and the manner in which the management
  company is performing the management company's duties.  The
  independent auditor shall deliver to the board the results of an
  audit conducted under this subsection.  An independent audit
  conducted under this subsection must include a budgetary and
  accounting analysis of the system's operation.
         Sec. 1675.010.  REINSURANCE REQUIRED; AMOUNT REQUIRED FOR
  STOP-LOSS INSURANCE.  (a)  The following entities shall purchase
  from the system reinsurance for the following types of health
  benefit plans:
               (1)  a health benefit plan issuer, for each health
  benefit plan issued; and
               (2)  an insurer that is authorized to write stop-loss
  insurance in this state, for each individual stop-loss policy
  covering a self-funded health benefit plan.
         (b)  A health benefit plan issuer required to purchase
  reinsurance under Subsection (a)(1) is not required to and may not
  purchase reinsurance for a health benefit plan issued that covers
  exclusively Medicare services or is a Medicare supplement policy,
  as applicable and as determined by federal law.
         (c)  An insurer required to purchase reinsurance under
  Subsection (a)(2) must purchase reinsurance on each health benefit
  plan and each individual stop-loss insurance policy in a manner and
  amount consistent with Section 1676.002.
         Sec. 1675.011.  PREMIUM RATES FOR REINSURANCE. (a)  As part
  of the plan of operation, the management company shall adopt a
  method to determine premium rates to be charged by the system for
  reinsurance contracts issued under this chapter.
         (b)  The method adopted must:
               (1)  allow premium rate variations based on:
                     (A)  demographic and geographic factors; and
                     (B)  the level of benefits provided under a
  reinsured health benefit plan;
               (2)  be actuarially justifiable and approved by the
  commissioner under Section 1675.007 as part of the system plan of
  operation; and
               (3)  provide for the sharing, on an equitable and
  proportionate basis, of system gains or losses among health benefit
  plan issuers and stop-loss insurers required to purchase
  reinsurance from the system under Section 1675.010.
         Sec. 1675.012.  ASSESSMENTS; DEFERMENT OF ASSESSMENTS. (a)  
  The board shall recover any net loss of the system by assessing each
  reinsured health benefit plan issuer or stop-loss insurer required
  to purchase reinsurance through the system under Section 1675.010
  an amount determined annually by the board based on information in
  annual statements and other reports required by and filed with the
  board.
         (b)  The board shall establish, as part of the plan of
  operation, a formula by which to make assessments that are made
  under Subsection (a). With the approval of the commissioner, the
  board may periodically change the assessment formula as
  appropriate. The board shall base the assessment formula on each
  reinsured health benefit plan issuer's or stop-loss insurer's share
  of the total premiums earned in the preceding calendar year from
  health benefit plans and policies of individual stop-loss insurance
  described by Section 1675.010.
         (c)  A reinsured health benefit plan issuer or stop-loss
  insurer may petition the commissioner for a deferment in whole or in
  part of an assessment imposed by the board.
         (d)  The commissioner may defer all or part of the assessment
  if the commissioner determines that payment of the assessment would
  endanger the ability of the reinsured health benefit plan issuer or
  stop-loss insurer to fulfill its contractual obligations.
         (e)  The board shall assess the amount of any deferred
  assessment against other reinsured health benefit plan issuers and
  stop-loss insurers in a manner consistent with the basis for
  assessment established by this chapter.
         Sec. 1675.013.  EFFECT OF DEFERRAL.  A reinsured health
  benefit plan issuer or stop-loss insurer that receives a deferral
  under Section 1675.012(d):
               (1)  remains liable to the system for the amount
  deferred; and
               (2)  until the deferred assessment is paid, may not
  advertise, market, deliver, or issue for delivery:
                     (A)  a health benefit plan or insurance policy of
  the type for which the deferral is received; or
                     (B)  any other health benefit plan or insurance
  policy subject to this chapter.
         Sec. 1675.014.  RULES. The commissioner may adopt rules
  necessary to implement this chapter.
  CHAPTER 1676.  CERTAIN HEALTH SERVICES AND SUPPLIES PROVIDED UNDER
  REINSURED PLANS AND POLICIES
         Sec. 1676.001.  DEFINITIONS.  (a)  In this chapter:
               (1)  "Health benefit plan claim" means a claim
  reimbursable under a reinsured plan or policy.
               (2)  "Health care provider" means a practitioner,
  institutional provider, or other person or organization that
  furnishes health care services or supplies and that is licensed or
  otherwise authorized to practice in this state. The term includes a
  physician.
               (3)  "Hospital" means a licensed public or private
  institution as defined by Chapter 241, Health and Safety Code, or
  Subtitle C, Title 7, Health and Safety Code.
               (4)  "Institutional provider" means a hospital,
  nursing home, or other medical or health-related service facility
  that provides care for the sick or injured or other care that may be
  covered in a reinsured plan or policy.
               (5)  "Plan claim administrator" means the individual or
  entity responsible for paying claims under a reinsured plan or
  policy.
               (6)  "Policy period" means the period during which a
  reinsured plan or policy provides coverage.
               (7)  "Practitioner" means an individual who practices a
  healing art. The term includes a practitioner described by Section
  1451.001 or 1451.101.
               (8)  "Qualified health benefit plan claim" means a
  health benefit plan claim that has been repriced and adjusted by the
  plan claim administrator under Section 1676.003(b).
               (9)  "Reinsurance attachment point" means the point at
  which the system begins to reimburse a reinsured plan or policy
  under Section 1676.002.
               (10)  "Reinsurance extension period" means the
  applicable period in which the system provides reinsurance coverage
  for a reinsured plan or policy under Section 1676.006.
               (11)  "Reinsured entity" means:
                     (A)  for a health benefit plan claim under a plan
  that is insured, the health benefit plan issuer; or
                     (B)  for a health benefit plan claim under a
  self-funded health benefit plan that is self-insured, the insurer
  issuing the stop-loss insurance covering the plan.
               (12)  "Reinsured plan or policy" means a health benefit
  plan or individual stop-loss insurance policy that is reinsured
  under the system as provided by Section 1675.010.
               (13)  "Repricing schedule" means the schedule
  established by the system under Section 1676.004 for the purpose of
  determining whether a health benefit plan claim is a qualified
  health benefit plan claim and, if applicable, the amount of
  reimbursement to which a reinsured entity may be entitled.
         (b)  In this chapter, "board," "management company," and
  "system" have the meanings assigned by Section 1675.001.
         Sec. 1676.002.  REINSURANCE ATTACHMENT POINT. (a) The
  board of the system, after consulting with the management company,
  shall annually establish the aggregated dollar amount of qualified
  health benefit claims at which the system begins to reimburse a
  reinsured entity.
         (b)  The system shall submit the reinsurance attachment
  point to the commissioner as an amendment to the system plan of
  operation for approval under Section 1675.007.
         (c)  The reinsurance attachment point may not be less than:
               (1)  $50,000 per enrollee in a policy period, if the
  reinsured plan or policy is not described by Subdivision (2); and
               (2)  $50,000 above the individual stop-loss deductible
  of an individual stop-loss insurance policy in a policy period.
         Sec. 1676.003.  DETERMINATION THAT CLAIM IS REINSURED;
  NOTICE TO SYSTEM.  (a)  A plan claim administrator shall determine,
  at the time of receipt of a claim under a reinsured plan or policy,
  whether the claim is potentially a reinsured claim.
         (b)  On receipt of a potentially reinsured claim, the plan
  claim administrator shall adjust the amount of the claim to the
  lesser of:
               (1)  the amount charged for the service by the health
  care provider;
               (2)  the amount payable for the claim, without regard
  to whether it is a reinsured claim, under the reinsured plan or
  policy in accordance with any contract entered into by the health
  care provider; or
               (3)  the amount payable for the claim under the
  repricing schedule established under Section 1676.004.
         (c)  At the end of a policy period during which a health
  benefit plan claim occurs, the plan claim administrator shall
  calculate the total dollar amount of qualified health benefit plan
  claims for an individual.
         (d)  If a plan claim administrator determines that the total
  dollar amount of qualified health benefit plan claims for an
  individual exceeds the applicable reinsurance attachment point,
  the plan claim administrator, not later than the 30th day after the
  last day of the policy period, shall notify the system in writing of
  that determination and submit the claim to the system.
         Sec. 1676.004.  REPRICING SCHEDULE.  (a)  The system shall
  establish and maintain a repricing schedule for reinsured claims in
  accordance with the plan of operation and this section.
         (b)  The repricing schedule established under Subsection (a)
  must provide for certain reimbursement rates as follows:
               (1)  for a practitioner, a rate that is not less than
  110 percent of Medicare reimbursement rates for the practitioner;
  and
               (2)  for an institutional provider, a rate that is not
  less than 140 percent of Medicare reimbursement rates for the
  institutional provider.
         Sec. 1676.005.  AMOUNT OF REINSURANCE; REINSURANCE
  REIMBURSEMENT.  The system must provide for the reimbursement of
  aggregated qualified health benefit plan claims that exceed the
  reinsurance attachment point and that are originally submitted to
  the system under Section 1676.003(d), or during any applicable
  reinsurance extension period, as follows:
               (1)  for a reinsured health benefit plan, an amount
  that is equal to the lesser of:
                     (A)  95 percent of the aggregated dollar amount of
  health benefit plan claims that exceed the reinsurance attachment
  point for the respective period, before those claims have been
  repriced and adjusted under Section 1676.003(b); or
                     (B)  the aggregated dollar amount of qualified
  health benefit plan claims that were submitted to the system under
  Section 1676.003(d) that exceed the reinsurance attachment point
  for the respective period; and
               (2)  for a reinsured stop-loss insurance policy, an
  amount that is equal to the lesser of:
                     (A)  95 percent of the aggregated dollar amount of
  health benefit plan claims that exceed the applicable reinsurance
  attachment point for the respective period and for which the
  reinsured entity is responsible under the individual stop-loss
  insurance policy, before those claims have been repriced and
  adjusted under Section 1676.003(b); or
                     (B)  the aggregated dollar amount of qualified
  health benefit plan claims that were submitted to the system under
  Section 1676.003(d) for the respective period and for which the
  insurer issuing the individual stop-loss insurance is responsible.
         Sec. 1676.006.  PERIOD OF REINSURANCE COVERAGE; CLAIMS
  BASIS. (a) The reinsurance policy issued by the system shall cover
  a reinsured plan or policy for:
               (1)  subject to Subsection (b), a period that is
  concomitant with the policy period of the reinsured plan or policy;
  and
               (2)  a claims basis that is consistent with the claims
  basis of the reinsured plan or policy, regardless of whether the
  reinsured plan or policy is an insured plan or a self-funded plan.
         (b)  A reinsurance policy issued by the system may not
  provide coverage for an initial period that exceeds 12 months.
         Sec. 1676.007.  REINSURANCE EXTENSION PERIOD. (a) The
  policy period that immediately follows the initial policy period
  during which the aggregated dollar amount of qualified reinsurance
  claims exceeds the reinsurance attachment point is the first
  reinsurance extension period. A reinsurance extension period under
  this subsection is automatic and applies regardless of whether a
  different health benefit plan issuer is responsible for the
  reinsured claims or a different stop-loss insurance carrier is
  responsible for the stop-loss insurance policy.
         (b)  If, during the first reinsurance extension period
  described by Subsection (a), the system reimburses a reinsured
  entity for qualified health benefit claims that, if submitted
  during the initial policy period would have exceeded the
  reinsurance attachment point, the system shall extend reinsurance
  coverage from the first dollar of claims to the reinsured entity for
  a second reinsurance extension period.
         (c)  A reinsured entity may not receive a third or subsequent
  reinsurance extension period, and the period following the first
  reinsurance extension period is considered a new initial policy
  period.
         Sec. 1676.008.  DATA CALL FOR REIMBURSEMENT SCHEDULE.  (a)  
  The commissioner shall provide the system the information required
  by the system to establish and maintain the repricing schedule
  under Section 1676.004.
         (b)  The commissioner may request information necessary to
  comply with this section from any individual or entity that holds a
  license or certificate of authority under this code.
         (c)  An individual or entity that fails to comply with a
  request for information under this section violates this code and
  is subject to sanctions under Chapters 82, 83, and 84.
         (d)  Information that is obtained by the commissioner under
  this section and that is exempt from disclosure under Chapter 552,
  Government Code, including information exempt from disclosure
  under Section 552.104 or 552.110, Government Code:
               (1)  may be disclosed by the commissioner only to the
  system for the purposes of the reimbursement schedule; and
               (2)  may not be disclosed by the commissioner or the
  system to any other individual or entity.
         SECTION 4.  Effective September 1, 2014, Subchapter G,
  Chapter 1501, Insurance Code, is repealed.
         SECTION 5.  As soon as practicable after the effective date
  of this Act, the commissioner of insurance by rule shall develop a
  transition plan for implementation of Chapters 1675 and 1676,
  Insurance Code, as added by this Act, and for the orderly
  termination of the Texas Health Reinsurance System established
  under Subchapter G, Chapter 1501, Insurance Code. The transition
  plan must include a timetable with specific steps and deadlines
  needed to fully implement Chapters 1675 and 1676, Insurance Code.
  The transition plan must ensure that Chapters 1675 and 1676,
  Insurance Code, are fully implemented not later than September 1,
  2012.
         SECTION 6.  (a)  The governor shall make the appointments
  described by Section 1675.003, Insurance Code, as added by this
  Act, as soon as possible after the effective date of this Act, and
  in no event later than April 1, 2012.
         (b)  The lieutenant governor and the speaker of the house of
  representatives shall submit the lists of candidates described by
  Sections 1675.003(a)(1) and (2), Insurance Code, as added by this
  Act, to the governor not later than January 1, 2012.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.
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