RS H.B. 864 75(R)BILL ANALYSIS INSURANCE H.B. 864 By: McCall 4-18-97 Committee Report (Unamended) BACKGROUND Many college students and their parents are unaware that under the current law in Texas, a student who is covered under his/her parent's insurance policy loses that coverage when they fall below full-time student status at their educational institution. Often times, a college student must drop from full-time to part-time status to handle legitimate matters such as a medical need, family emergency or death in the family. This legislation is needed to ensure that students remain protected with insurance coverage when circumstances require them to forego a full academic course load until the following semester. PURPOSE To ensure that college-aged students retain their insurance coverage when they fall below a fulltime course load during a semester. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. - Amends Subchapter C, Chapter 21, Insurance Code, by adding Article 21.24-2 as follows: Art. 21.24-2. GROUP COVERAGE OF CERTAIN STUDENTS Sec. 1. - DEFINITIONS. Defines "Health benefit plan." Sec. 2. - SCOPE OF ARTICLE. (a) This article applies to a benefit plan that provides group benefits for medical or surgical expenses incurred as a result of a health condition, accident or sickness to individuals, groups or franchises, as an insurance company group hospital service organization, fraternal benefit society, stipulated premium insurance company, a HMO, ERISA as permitted by law, a MEWA as permitted by law, or non-profit health corporations, or other entity providing like benefits not regulated under the Insurance Code. (b) This article excludes plans for specified disease coverage, accidental death or dismemberment, wage recovery insurance, or supplemental liability coverage, medicare supplemental policy, workers compensation, motor vehicle medical insurance payments, or a long term health policy. Sec. 3. - COVERAGE OF CERTAIN STUDENTS. (a) A health plan that conditions coverage for a child 21 years of age or older on the individual being a full-time student shall continue coverage for the entire time during which the child begins as a full time student and remains enrolled, regardless of whether the student reduces to class time to less than a full time student. Coverage shall extend to the 10th day of instruction of the subsequent academic term, at which time the plan may terminate if the student has not returned to full time enrollment. (b) Determination of full-time student is made in accordance with the guidelines of the particular educational institution. SECTION 2. - Applies to insurance policies delivered, issued for delivery, or renewed on or after January 1, 1998. SECTION 3. - Emergency Clause.