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A BILL TO BE ENTITLED
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AN ACT
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relating to insurance coverage for the disposition of embryonic and |
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fetal tissue remains. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 9, Insurance Code, is amended by adding |
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Chapter 1702 to read as follows: |
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CHAPTER 1702. CERTAIN COVERAGE REQUIRED FOR DISPOSITION OF |
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EMBRYONIC AND FETAL TISSUE REMAINS |
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Sec. 1702.001. APPLICABILITY. (a) This chapter applies to |
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any issuer, sponsor, trustee, or third-party administrator of any |
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insurance policy, annuity or other contract, or group benefit plan |
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that provides a death benefit payable for the costs of cremation or |
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burial of a child of a named insured or beneficiary, including: |
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(1) an insurance company operating under Chapter 841; |
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(2) a statewide mutual assessment company operating |
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under Chapter 881; |
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(3) a mutual life insurance company operating under |
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Chapter 882; |
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(4) a stipulated premium insurance company operating |
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under Chapter 884; |
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(5) a fraternal benefit society operating under |
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Chapter 885; |
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(6) a local mutual aid association operating under |
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Chapter 886; |
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(7) a burial association operating under Chapter 888; |
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(8) an employer or other group benefit plan sponsor, |
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regardless of whether the death benefit is provided through an |
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insurance policy or is self-insured; |
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(9) a voluntary association that holds a group life |
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insurance policy under Chapter 1578; |
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(10) a third-party administrator under Chapter 4151 |
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for group benefits that include a death benefit; and |
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(11) a trustee of a trust-funded prepaid funeral |
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benefits contract regulated under Subchapter F, Chapter 154, |
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Finance Code. |
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(b) This chapter applies to a health benefit plan that |
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provides benefits for medical or surgical expenses incurred as a |
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result of a health condition, accident, or sickness, including an |
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individual, group, blanket, or franchise insurance policy or |
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insurance agreement, a group hospital service contract, or an |
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individual or group evidence of coverage or similar coverage |
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document that is issued in this state by: |
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(1) an insurance company; |
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(2) a group hospital service corporation operating |
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under Chapter 842; |
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(3) a health maintenance organization operating under |
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Chapter 843; |
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(4) an approved nonprofit health corporation that |
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holds a certificate of authority under Chapter 844; |
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(5) a multiple employer welfare arrangement that holds |
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a certificate of authority under Chapter 846; |
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(6) a stipulated premium company operating under |
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Chapter 884; |
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(7) a fraternal benefit society operating under |
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Chapter 885; |
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(8) a Lloyd's plan operating under Chapter 941; or |
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(9) an exchange operating under Chapter 942. |
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(c) Notwithstanding any other law, this chapter applies to: |
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(1) a small employer health benefit plan subject to |
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Chapter 1501, including coverage provided through a health group |
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cooperative under Subchapter B of that chapter; |
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(2) a standard health benefit plan issued under |
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Chapter 1507; |
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(3) nonprofit agricultural organization health |
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benefits offered by a nonprofit agricultural organization under |
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Chapter 1682; |
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(4) alternative health benefit coverage offered by a |
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subsidiary of the Texas Mutual Insurance Company under Subchapter |
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M, Chapter 2054; |
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(5) a regional or local health care program operated |
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under Section 75.104, Health and Safety Code; and |
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(6) a self-funded health benefit plan sponsored by a |
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professional employer organization under Chapter 91, Labor Code. |
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(d) This chapter does not apply to: |
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(1) a plan that provides coverage: |
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(A) for wages or payments in lieu of wages for a |
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period during which an employee is absent from work because of |
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sickness or injury; |
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(B) as a supplement to a liability insurance |
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policy; |
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(C) for credit insurance; |
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(D) only for dental or vision care; |
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(E) only for hospital expenses; or |
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(F) only for indemnity for hospital confinement; |
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(2) a Medicare supplemental policy as defined by |
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Section 1882(g)(1), Social Security Act (42 U.S.C. Section |
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1395ss(g)(1)); |
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(3) a workers' compensation insurance policy; |
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(4) medical payment insurance coverage provided under |
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a motor vehicle insurance policy; |
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(5) a long-term care policy, including a nursing home |
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fixed indemnity policy, unless the commissioner determines that the |
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policy provides benefit coverage so comprehensive that the policy |
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is a health benefit plan as described by Subsection (b) or (c); or |
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(6) the state Medicaid program, including the Medicaid |
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managed care program operated under Chapter 533, Government Code. |
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Sec. 1702.002. REQUIRED COVERAGE. (a) An entity to which |
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this chapter applies must provide a benefit or coverage for up to |
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$7,500 of the cost of disposition of embryonic and fetal tissue |
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remains with a post-fertilization age of 20 weeks or more. |
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(b) The manner of disposition for which coverage is required |
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by Subsection (a) includes: |
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(1) interment; |
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(2) cremation; |
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(3) incineration followed by interment; and |
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(4) steam disinfection followed by interment. |
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SECTION 2. Chapter 1702, Insurance Code, as added by this |
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Act, applies only to an insurance policy, evidence of coverage, |
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annuity or other contract, or group benefit plan that is delivered, |
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issued for delivery, or renewed on or after January 1, 2024. A |
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policy, evidence of coverage, annuity or other contract, or group |
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benefit plan delivered, issued for delivery, or renewed before |
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January 1, 2024, is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |