Coverage Issued On Group-Type Basis

Sec. 1252.003. COVERAGE ISSUED ON GROUP-TYPE BASIS. (a) For purposes of this chapter, health benefit plan coverage is provided on a group-type basis if: (1) the plan provides coverage under an insurance policy or subscriber contract to a class of employees or a class of members of a labor union or members of an association and the class is determined by conditions relating to their employment or to their membership in the union or association; (2) coverage under the plan is not available to the general public and can be obtained and maintained only because of the covered individual's employment status or membership in a labor union or an association; (3) premiums or subscription charges for the plan are paid to the carrier on an aggregate or bulk-payment basis; and (4) the plan is sponsored by: (A) the employer of the class of employees covered by the plan; or (B) the labor union or an association to which the class of members covered by the plan belongs. (b) Health benefit plan coverage is not provided on a group-type basis if it is a salary-budget plan using individual insurance policies or subscriber contracts that do not meet the conditions for group-type coverage specified by Subsection (a). Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005. SUBCHAPTER B. DISCONTINUATION OF COVERAGE