By: Hancock S.B. No. 2087     (Phillips)           A BILL TO BE ENTITLED   AN ACT   relating to the creation of a temporary health insurance risk pool.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle G, Title 8, Insurance Code, is amended   by adding Chapter 1510 to read as follows:   CHAPTER 1510.  TEMPORARY HEALTH INSURANCE RISK POOL          Sec. 1510.001.  DEFINITION. In this chapter, "pool" means a   temporary health insurance risk pool that is established and   administered by the commissioner under this chapter.          Sec. 1510.002.  ESTABLISHMENT OF TEMPORARY HEALTH INSURANCE   RISK POOL. To the extent that federal funds become available under   federal law, regulation, or executive action after March 1, 2017,   the commissioner may:                (1)  apply for such funds; and                (2)  use such funds to establish and administer a   temporary health insurance risk pool for the purposes of this   chapter.          Sec. 1510.003.  PURPOSE OF POOL. (a)  The exclusive purpose   of the pool is to provide a temporary mechanism for maximizing   available federal funding to assist residents of this state in   obtaining access to quality health care at minimum cost to the   public.          (b)  The pool may not be used to expand the Medicaid program,   including the program administered under Chapter 32, Human   Resources Code, and the program administered under Chapter 533,   Government Code.          Sec. 1510.004.  PROVISION OF COVERAGE. Subject to any   requirements for obtaining federal funds held in the pool, the   commissioner may use pool funds:                (1)  to provide alternative individual health   insurance coverage to eligible individuals that does not diminish   the availability of traditional commercial health care coverage;                (2)  to provide funding to individual health benefit   plan issuers that cover individuals with certain health or cost   characteristics in exchange for lower enrollee premium rates; or                (3)  to provide a reinsurance program for health   benefit plan issuers in the individual market in exchange for lower   enrollee premium rates.          Sec. 1510.005.  CONTRACTS AND AGREEMENTS. (a)  The   commissioner may enter into a contract or agreement that the   commissioner determines is appropriate to carry out this chapter,   including a contract or agreement with:                (1)  a similar pool in another state for the joint   performance of common administrative functions;                (2)  another organization for the performance of   administrative functions; or                (3)  a federal agency.          (b)  The commissioner may contract for stop-loss insurance   for risks incurred under this chapter.          Sec. 1510.006.  FUNDING. (a)  The commissioner may use   funds appropriated to the department to:                (1)  apply for federal funding and grants; and                (2)  administer this chapter.          (b)  Notwithstanding Section 6(e)(2)(B), Chapter 615 (S.B.   1367), Acts of the 83rd Legislature, Regular Session, 2013, the   commissioner may use money appropriated to the department from the   healthy Texas small employer premium stabilization fund for the   exclusive purposes of this chapter, other than for paying salaries   and salary related benefits.          (c)  Notwithstanding Section 6(e)(2)(B), Chapter 615 (S.B.   1367), Acts of the 83rd Legislature, Regular Session, 2013, the   commissioner shall transfer money from the healthy Texas small   employer premium stabilization fund to the Texas Department of   Insurance operating account in an amount equal to the amount of   money appropriated to the department from that fund, as described   by Subsection (b), for the direct and indirect costs of the   exclusive purposes of this chapter.          (d)  Except as provided by Subsections (a) and (b), the   commissioner may not use any state funds to fund the pool unless the   funds are specifically appropriated for that purpose.          (e)  The commissioner may use federal funds to administer   this chapter, as appropriate.          Sec. 1510.007.  PUBLIC EDUCATION AND OUTREACH. (a)  The   commissioner may use funds appropriated to the department for the   exclusive purposes of this chapter to develop and implement public   education, outreach, and facilitated enrollment strategies under   this chapter.          (b)  The commissioner may contract with marketing   organizations to perform or provide assistance with the strategies   described by Subsection (a).          Sec. 1510.008.  WAIVER. (a)  The commissioner may apply to   the United States secretary of health and human services under 42   U.S.C. Section 18052 for a waiver of applicable provisions of the   Patient Protection and Affordable Care Act (Pub. L. No. 111-148)   and any applicable regulations or guidance with respect to health   insurance coverage in this state for a plan year beginning on or   after January 1, 2017.          (b)  The commissioner may take any action the commissioner   considers appropriate to make an application under this section.          (c)  The commissioner may implement a state plan that meets   the requirements of a waiver granted in response to an application   under Subsection (a) if the plan is:                (1)  consistent with state and federal law; and                (2)  approved by the United States secretary of health   and human services.          Sec. 1510.009.  ADDITIONAL AUTHORITY. In addition to the   powers granted to the commissioner under this chapter, the   commissioner may exercise any authority that may be exercised under   the law of this state by:                (1)  a reinsurer; or                (2)  a health benefit plan issuer authorized to write   health benefit plans in this state.          Sec. 1510.010.  RULES. The commissioner may adopt rules   necessary to implement this chapter, including rules to administer   the pool and distribute money from the pool.          Sec. 1510.011.  EXEMPTION FROM STATE TAXES AND FEES.   Notwithstanding any other law, a program created under this chapter   is not subject to any state tax, regulatory fee, or surcharge,   including a premium or maintenance tax or fee.          Sec. 1510.012.  ANNUAL REPORT OF POOL ACTIVITIES.   (a)  Beginning June 1, 2018, not later than June 1 of each year, the   department shall submit a report to the governor, the lieutenant   governor, and the speaker of the house of representatives.          (b)  The report submitted under Subsection (a) must:                (1)  summarize the activities conducted under this   chapter in the calendar year preceding the year in which the report   is submitted; and                (2)  include information relating to:                      (A)  net written and earned premiums;                      (B)  plan enrollment;                      (C)  administration expenses; and                      (D)  paid and incurred losses.          Sec. 1510.013.  EXPIRATION OF CHAPTER. This chapter expires   August 31, 2019.          SECTION 2.  Notwithstanding Section 6(d)(2), Chapter 615   (S.B. 1367), Acts of the 83rd Legislature, Regular Session, 2013,   on the effective date of this Act, the commissioner of insurance   shall transfer any money remaining outside the state treasury in   the Texas Treasury Safekeeping Trust Company account established   under Section 6(c), Chapter 615 (S.B. 1367), Acts of the 83rd   Legislature, Regular Session, 2013, to the healthy Texas small   employer premium stabilization fund.          SECTION 3.  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, 2017.