1999R19- HEATH SERVICES
RESOLUTION NO.
9tJ-,R-ltJ
A RESOLUTION
BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
ABSOLVING ALL FORMER SUBSCRIBERS TO COMPREHEN-
SIVE HEALTH SERVICES, d.b.a. WELLCHOICE, UNDER THE
PROVISION OF TEXAS INSURANCE CODE, ARTICLE 20A.
18A(g).
WHEREAS, the City of Schertz, Texas provides health insurance to its
employees and that benefit is established to protect them from undue hardship
related to medical cost; and
WHEREAS, a previous provider of City employees health insurance,
Comprehensive Health Services of Texas, Inc. (WeIlChoice) did go into
receivership; and
WHEREAS, the Texas Insurance Code 20A.18A(g) "Hold Harmless
Clause" has provision for the protection of former subscribers to not be billed
directly for services provided under contractual obligations between the service
provider and the contracted health care system, including downstream providers;
and
WHEREAS, THE City employees are entitled to this protection under
the Insurance Code by definition, and further, some employees have been
recipients of debt collection notices and actions from contracted providers and
downstream providers; NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS:
THAT, the Texas Department of Insurance take the position in favor of
all former WellChoice members and subscribers, absolving them of any claims of
liability to contracted or non-contracted (downstream) providers based on the
contract with WellChoice coupled with the provisions of the Texas Insurance
Code, Article 20A.18(g).
PASSED, APPROVED AND ADOPTED this /66Lday of ~
1999.
~~
Mayor, Ci of Schertz, Texas
ATTEST:
~ t2tL4-a~
City Secretary, City of Schertz
(SEAL OF CITY)