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.