Section 1501.104 - Affiliation Period(a) In this section, "affiliation period" means a period that, under a small or large employer health benefit plan offered by a health maintenance organization, must expire before the coverage becomes effective.(b) A health maintenance organization may impose an affiliation period if the period is applied uniformly without regard to any health status related factor. The affiliation period may not exceed: (1) two months for an enrollee, other than a late enrollee; or(2) 90 days for a late enrollee.(c) An affiliation period under a small or large employer health benefit plan must run concurrently with any applicable waiting period under the plan. A health maintenance organization must credit an affiliation period against any preexisting condition provision period.(d) During an affiliation period, a health maintenance organization:(1) is not required to provide health care services or benefits to the participant or beneficiary; and(2) may not charge a premium to the participant or beneficiary.(e) A health maintenance organization may use an alternative method approved by the commissioner to address adverse selection.Tex. Ins. Code § 1501.104
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. 4/1/2005.