Texas Administrative Code

Texas Administrative Code

TITLE 28	INSURANCE
PART 1	TEXAS DEPARTMENT OF INSURANCE
CHAPTER 26	EMPLOYER-RELATED HEALTH BENEFIT PLAN REGULATIONS
SUBCHAPTER D	COOPERATIVES
DIVISION 1	NONPROFIT HEALTH GROUP COOPERATIVES
RULE §26.405	Premium Tax Exemption for Previously Uninsured

(a) In accordance with Insurance Code §1501.0581(g)(4) (concerning Special Provisions Relating to Health Group Cooperatives), a health carrier providing coverage through a health group cooperative is exempt from premium tax and retaliatory tax for two years for premiums received for a previously uninsured employee or dependent. The two-year period for the exemption begins on the first date of coverage for the previously uninsured employee or dependent.

(b) For the purposes of this section and Insurance Code §1501.0581(g)(4), a previously uninsured employee or dependent is an employee or the dependent of an employee of an employer member of a health group cooperative who did not have creditable coverage for the 63 days preceding the effective date of coverage purchased through the health group cooperative.

(c) A health carrier must maintain documentation for four years for each insured that demonstrates that coverage of the insured or enrollee qualifies the health carrier for a tax exemption under subsection (b) of this section. The documentation must comply with any applicable rules or procedures adopted by the Comptroller of Public Accounts related to the tax exemption.

Source Note: The provisions of this §26.405 adopted to be effective August 31, 2004, 29 TexReg 8360; amended to be effective January 31, 2006, 31 TexReg 512; amended to be effective May 17, 2017, 42 TexReg 2539