RES 1182 10/26/1999 RESOLUTION NUMBER tae OF THE CITY OF CIBOLO
TO ABSOLVE ALL FORMER SUBSCRIBERS TO
COMPREHENSIVE HEALTH SERVICES OF TEXAS, d.b.a. WellChoice,
UNDER THE PROVISION OF TEXAS INSURANCE CODE,ARTICLE
20A.18A(g)
WHEREAS, the City of Cibolo provides health care insurance to its employees
and that benefit is established to protect them from undue hardship
related to medical costs.
WHEREAS, a previous provider of City Employees health care insurance,
Comprehensive Health Services of Texas,Inc., (WellChoice), a
health maintenance organization (HMO) did go into receivership.
WHEREAS, the Texas Insurance Code,Article 20A.18A(g), "Hold Harmless
Clause" has provision for the protection of enrollees whereby the
physicians or health care providers agree to "hold an employee
harmless for payment of the cost of covered health care services
in the event the health maintenance organization fails to pay the
provider for health care services".
WHEREAS, the City Employees are entitled to this protection under the Insurance
Code by definition. And further, some employee(s) have been
recipients of debt collection notices from contract providers.
NOW THEREFORE, WE PRAY THAT THE TEXAS DEPARTMENT OF
INSURANCE WILL TAKE THE POSITION IN FAVOR OF ALL CITY
EMPLOYEES WHO WERE FORMER ENROLLEES IN THE WELLCHOICE
HMO,ABSOLVING THEM OF ANY CLAIMS OF LIABILITY TO PROVIDERS
FOR SERVICES RENDERED BASED ON ENROLLMENT IN THE
WELLCHOICE HMO IN ACCORDANCE WITH THE PROVISSION OF THE
TEXAS INSURANCE CODE,ARTICLE 20A.18A(g).
In witness Whereof,I have affixed by signature and seal on this- 'sof October,
1999
Q.4A C4
Sam Bauder
Mayor