Enrolled Bill Summary

            Senate Bill 240 amends the Health and Safety Code to make changes to the health insurance premium payment reimbursement program for children eligible for the child health plan program (CHIP). Under previous law, the reimbursement program was administered by the Texas Department of Health and required children otherwise eligible for CHIP to apply for a group health benefit plan if it was determined to be cost-effective. The program provided for the payment of premiums for coverage of a child enrolled in a plan and authorized additional payments to cover the premiums of a parent or family member if that person's enrollment was necessary for the child to be eligible for the plan. Senate Bill 240 transfers administration of the program to the Health and Human Services Commission and authorizes the commission to determine the cost-effectiveness of the program on an aggregate basis. (Previous law required that the cost-effectiveness be determined for each child.) On determination of cost-effectiveness, the commission is to inform the child and the child's parent or guardian of the premium assistance program, to offer a payment to assist with premiums for a group health benefit plan, and to determine the amount of the premium assistance payment. Senate Bill 240 provides that an assistance payment may be used for the payment of a premium that includes a member of the child's family. The bill deletes the provision that enrollment in a group health benefit plan does not affect eligibility for benefits under CHIP.