(a) A health group cooperative may elect to treat each member as a separate employer for purposes of rating small and large employer health benefit plans subject to the rating requirements Insurance Code Chapter 843 (concerning Health Maintenance Organizations), as applicable.
(b) An existing health group cooperative must file its election with TDI not later than the 90th day before the date on which the election is to become effective. The election filing must include:
  (1) the election date;
  (2) the effective date of the election; and
  (3) a signature by an authorized officer of the cooperative.
(c) When applicable, a health group cooperative must provide all members written notice at least 90 days before the effective date of the election. The notice must include statements:
  (1) that the cooperative is electing to treat each member as a separate employer for the purpose of rating small and large employer health benefit plans; and
  (2) specifying each employer's applicable premium rate as of the date the plan is renewed.
(d) When a prospective member applies to join a health group cooperative, the cooperative must provide written notice to the applicant that the cooperative has elected to treat each member as a separate employer for the purpose of rating small and large employer health benefit plans.
(e) Subject to the notice requirements in subsection (c) of this section, an election under this section is effective on the earliest date after the election when the plan is next issued or renewed. The election may not become effective before full compliance with this section's requirements. Once effective, the election remains in effect for not less than 12 months after the effective date.

Source Note: The provisions of this §26.431 adopted to be effective May 17, 2017, 42 TexReg 2539