By:  Patterson                                         S.B. No. 555
       73R5804 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to provision of certain mental health and substance abuse
    1-3  services through single service health maintenance organizations.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 5, Texas Health Maintenance Organization
    1-6  Act (Article 20A.05, Vernon's Texas Insurance Code), is amended by
    1-7  adding Subsection (e) to read as follows:
    1-8        (e)  For purposes of issuing a certificate of authority to a
    1-9  single health care service plan under this section, a plan that
   1-10  provides only mental health services and substance abuse services
   1-11  is a single health care service plan.
   1-12        SECTION 2.  Section 6, Texas Health Maintenance Organization
   1-13  Act (Article 20A.06, Vernon's Texas Insurance Code), is amended by
   1-14  adding Subsection (c) to read as follows:
   1-15        (c)  A health maintenance organization may furnish or arrange
   1-16  mental health services and substance abuse services through
   1-17  contract with a single service health maintenance organization.
   1-18        SECTION 3.  Article 3.51-14, Insurance Code, is amended by
   1-19  adding Section 4 to read as follows:
   1-20        Sec. 4.  SINGLE SERVICE HEALTH MAINTENANCE ORGANIZATIONS;
   1-21  EXCEPTION.  (a)  An insurer, nonprofit hospital service plan
   1-22  corporation, health maintenance organization, or self-funded or
   1-23  self-insured welfare or benefit plan, program, or arrangement
   1-24  subject to Section 2 of this article may satisfy the requirements
    2-1  of this article by offering the required coverage through a
    2-2  contract with a single service health maintenance organization.
    2-3        (b)  An insurer, nonprofit hospital service plan corporation,
    2-4  health maintenance organization, or self-funded or self-insured
    2-5  welfare or benefit plan, program, or arrangement subject to Section
    2-6  2 of this article is not required to comply with this article if
    2-7  the required coverage is provided to the group under a contract
    2-8  between the group policy holder, contract holder, employer,
    2-9  multiple employer, union, association, or trustee and a single
   2-10  service health maintenance organization.
   2-11        SECTION 4.  Section 2A, Article 3.51-9, Insurance Code, is
   2-12  amended by adding Subsection (f) to read as follows:
   2-13        (f)  An insurer, nonprofit hospital and medical service plan
   2-14  corporation, health maintenance organization, or self-funded or
   2-15  self-insured plan or arrangement subject to Subsection (a) of this
   2-16  section is not required to comply with this article if the required
   2-17  coverage is provided to the group under a contract between the
   2-18  group policy holder, contract holder, employer, or other entity
   2-19  acting on behalf of the group and a single service health
   2-20  maintenance organization.
   2-21        SECTION 5.  This Act takes effect September 1, 1993, and
   2-22  applies only to an insurance policy, contract, or self-funded or
   2-23  self-insured plan, program, or arrangement that is delivered,
   2-24  issued for delivery, or renewed on or after January 1, 1994.  An
   2-25  insurance policy, contract, or self-funded or self-insured plan,
   2-26  program, or arrangement that is delivered, issued for delivery, or
   2-27  renewed before January 1, 1994, is governed by the law as it
    3-1  existed immediately before the effective date of this  Act, and
    3-2  that law is continued in effect for that purpose.
    3-3        SECTION 6.  The importance of this legislation and the
    3-4  crowded condition of the calendars in both houses create an
    3-5  emergency and an imperative public necessity that the
    3-6  constitutional rule requiring bills to be read on three several
    3-7  days in each house be suspended, and this rule is hereby suspended.