By Wilson                                               H.B. No. 60

      75R1022 PB-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to minimum coverage under certain health benefit plans for

 1-3     inpatient stays following the birth of a child.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is

 1-6     amended by adding Article 21.53D to read as follows:

 1-7           Art. 21.53D.  COVERAGE FOR MINIMUM HOSPITAL STAY FOLLOWING

 1-8     BIRTH OF CHILD

 1-9           Sec. 1.  SHORT TITLE.  This article may be cited as the Lee

1-10     Alexandria Hanley Act.

1-11           Sec. 2.  DEFINITIONS.  In this article:

1-12                 (1)  "Attending physician" means an obstetrician,

1-13     pediatrician, or other physician who attends a woman who has given

1-14     birth or who attends the newborn child.

1-15                 (2)  "Health plan" means a plan that provides benefits

1-16     for medical or surgical expenses incurred as a result of an

1-17     accident or sickness that is offered by any insurance company,

1-18     group hospital service corporation, or health maintenance

1-19     organization, that delivers or issues for delivery an individual,

1-20     group, blanket, or franchise insurance policy or insurance

1-21     agreement, a group hospital service contract, or an evidence of

1-22     coverage.  The term does not include:

1-23                       (A)  a plan that provides coverage:

1-24                             (i)  only for accidental death or

 2-1     dismemberment;

 2-2                             (ii)  for wages or payments in lieu of

 2-3     wages for any period during which an employee is absent from work

 2-4     because of sickness or injury; or

 2-5                             (iii)  as a supplement to liability

 2-6     insurance;

 2-7                       (B)  a Medicare supplemental policy as defined by

 2-8     Section 1882(g)(1), Social Security Act (42 U.S.C. Sec. 1395ss);

 2-9                       (C)  workers' compensation insurance coverage;

2-10                       (D)  medical payment insurance issued as part of

2-11     a motor vehicle insurance policy; or

2-12                       (E)  a long-term care policy, including a nursing

2-13     home fixed indemnity policy, unless the commissioner determines

2-14     that the policy provides benefit coverage so comprehensive that the

2-15     policy should be treated as a health plan.

2-16           Sec. 3.  REQUIRED COVERAGE FOR MINIMUM HOSPITAL STAY

2-17     FOLLOWING BIRTH; EXCEPTION.  (a)  A health plan that provides

2-18     maternity benefits, including benefits for childbirth, must include

2-19     coverage for inpatient care for a mother and her newly born child

2-20     in a health care facility for a minimum of:

2-21                 (1)  48 hours following a vaginal delivery; and

2-22                 (2)  96 hours following a delivery by caesarean

2-23     section.

2-24           (b)  Notwithstanding Subsection (a) of this section, a health

2-25     plan that provides coverage for in-home postdelivery care to a

2-26     mother and her newly born child is not required to provide the

2-27     minimum coverage of inpatient care required under Subsection (a) of

 3-1     this section unless that inpatient care is determined to be

 3-2     medically necessary by the attending physician or is requested by

 3-3     the mother.

 3-4           Sec. 4.  PROHIBITION.  A health plan may not modify the terms

 3-5     and conditions of coverage because an enrollee in the plan requests

 3-6     less than the minimum coverage required under Section 3(a) of this

 3-7     article.

 3-8           Sec. 5.  NOTICE.  (a)  Each health plan shall provide written

 3-9     notice to each enrollee under the plan regarding the coverage

3-10     required by this article.  The health plan shall provide the notice

3-11     in accordance with rules adopted by the commissioner.

3-12           (b)  The notice required under this section must be

3-13     prominently positioned in any literature or correspondence made

3-14     available or distributed by the health plan.

3-15           SECTION 2.  The notice required under Section 5(a), Article

3-16     21.53D, Insurance Code, as added by this Act, must be transmitted

3-17     to each enrollee in an affected health plan not later than the

3-18     earlier of:

3-19                 (1)  the date of the first mailing scheduled to be made

3-20     by the plan to the enrollee after January 1, 1998;

3-21                 (2)  the date that the first yearly informational

3-22     packet is scheduled to be sent to the enrollee after January 1,

3-23     1998; or

3-24                 (3)  February 1, 1998.

3-25           SECTION 3.  This Act takes effect September 1, 1997, and

3-26     applies only to an insurance policy or evidence of coverage that is

3-27     delivered, issued for delivery, or renewed on or after January 1,

 4-1     1998.  A policy or evidence of coverage that is delivered, issued

 4-2     for delivery, or renewed before January 1, 1998, is governed by the

 4-3     law as it existed immediately before the effective date of this

 4-4     Act, and that law is continued in effect for that purpose.

 4-5           SECTION 4.  The importance of this legislation and the

 4-6     crowded condition of the calendars in both houses create an

 4-7     emergency and an imperative public necessity that the

 4-8     constitutional rule requiring bills to be read on three several

 4-9     days in each house be suspended, and this rule is hereby suspended.