SRC-JFA H.B. 864 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 864
By: McCall (Patterson)
Economic Development
5-14-97
Engrossed


DIGEST 

Currently, health benefit plans are not required to provide coverage for a
full-time college student for an entire academic term.  Some students may
be removed from their parent's insurance policy for reducing their course
load or temporarily dropping out of school.  This bill would requires
health benefit plans which provide coverage for full-time college students
who are 21 under their parent's policy to provide coverage for an entire
academic term, regardless of whether the course load is reduced to less
than that of a full-time student.  

PURPOSE

As proposed, H.B. 864 requires health benefit plans which provide coverage
for full-time college students who are over 21 under their parent's policy
to provide coverage for an entire academic term, regardless of whether the
course load is reduced to less than that of a full-time student.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 21C, Insurance Code, by adding Article 21.24-2,
as follows: 

Art. 21.24-2.  GROUP COVERAGE OF CERTAIN STUDENTS

Sec. 1.  DEFINITION.  Defines "health benefit plan."

Sec. 2.  SCOPE OF ARTICLE.  Provides that this article applies to certain
health benefit plans.  Provides that this article does not apply to
certain plans.   

Sec. 3.  COVERAGE OF CERTAIN STUDENTS.  Requires each health benefit plan
that conditions dependent coverage for a child 21 years of age or older on
the child's being a fulltime student at an educational institution to
provide the coverage for an entire academic term during which the child
begins as a full-time student and remains enrolled, regardless of whether
the number of hours of instruction for which the child is enrolled is
reduced to a level that changes the child's academic status to less than
that of a full-time student. Requires the health benefit plan to provide
coverage continuously until the 10th day of instruction of the subsequent
academic term on which date the health benefit plan may terminate coverage
of the child if the child does not return to full-time student status
before that date.  Provides that for purposes of this section,
determination of the full-time student status of a child subject to this
article is made in the manner provided by the educational institution at
which the child is enrolled.   

SECTION 2. Makes application of this Act prospective to January 1, 1998. 

SECTION 3. Emergency clause.
  Effective date:  90 days after adjournment.