Sec. 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.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.