By Gray, Greenberg, Van de Putte, McCall,              H.B. No. 102

         75R8032 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 and postdelivery care following the birth of a

 1-4     child.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is

 1-7     amended by adding Article 21.53F to read as follows:

 1-8           Art. 21.53F.  COVERAGE FOR MINIMUM INPATIENT STAY IN HEALTH

 1-9     CARE FACILITY AND POSTDELIVERY CARE FOLLOWING BIRTH OF CHILD

1-10           Sec. 1.  SHORT TITLE.  This article may be cited as the Lee

1-11     Alexandria Hanley Act.

1-12           Sec. 2.  DEFINITIONS.  In this article:

1-13                 (1)  "Attending physician" means an obstetrician,

1-14     pediatrician, or other physician who attends a woman who has given

1-15     birth or who attends the newborn child.

1-16                 (2)  "Enrollee" means an individual enrolled in a

1-17     health benefit plan.

1-18                 (3)  "Health benefit plan" means a plan described by

1-19     Section 3 of this article.

1-20           Sec. 3.  SCOPE OF ARTICLE.  (a)  This article applies to a

1-21     health benefit plan that:

1-22                 (1)  provides benefits for medical or surgical expenses

1-23     incurred as a result of a health condition, accident, or sickness,

1-24     including:

1-25                       (A)  an individual, group, blanket, or franchise

 2-1     insurance policy or insurance agreement, a group hospital service

 2-2     contract, or an individual or group evidence of coverage that is

 2-3     offered by:

 2-4                             (i)  an insurance company;

 2-5                             (ii)  a group hospital service corporation

 2-6     operating under Chapter 20 of this code;

 2-7                             (iii)  a fraternal benefit society

 2-8     operating under Chapter 10 of this code;

 2-9                             (iv)  a stipulated premium insurance

2-10     company operating under Chapter 22 of this code; or

2-11                             (v)  a health maintenance organization

2-12     operating under the Texas Health Maintenance Organization Act

2-13     (Chapter 20A, Vernon's Texas Insurance Code); or

2-14                       (B)  to the extent permitted by the Employee

2-15     Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et

2-16     seq.), a health benefit plan that is offered by:

2-17                             (i)  a multiple employer welfare

2-18     arrangement as defined by Section 3, Employee Retirement Income

2-19     Security Act of 1974 (29 U.S.C. Section 1002);

2-20                             (ii)  any other entity not licensed under

2-21     this code or another insurance law of this state that contracts

2-22     directly for health care services on a risk-sharing basis,

2-23     including an entity that contracts for health care services on a

2-24     capitation basis; or

2-25                             (iii)  another analogous benefit

2-26     arrangement; or

2-27                 (2)  is offered by an approved nonprofit health

 3-1     corporation that is certified under Section 5.01(a), Medical

 3-2     Practice Act (Article 4495b, Vernon's Texas Civil Statutes), and

 3-3     that holds a certificate of authority  issued by the commissioner

 3-4     under Article 21.52F of this code.

 3-5           (b)  This article does not apply to:

 3-6                 (1)  a plan that provides coverage:

 3-7                       (A)  only for a specified disease or other

 3-8     limited benefit;

 3-9                       (B)  only for accidental death or dismemberment;

3-10                       (C)  for wages or payments in lieu of wages for a

3-11     period during which an employee is absent from work because of

3-12     sickness or injury;

3-13                       (D)  as a supplement to liability insurance;

3-14                       (E)  for credit insurance;

3-15                       (F)  only for dental or vision care; or

3-16                       (G)  only for indemnity for hospital confinement;

3-17                 (2)  a small employer health benefit plan written under

3-18     Chapter 26 of this code;

3-19                 (3)  a Medicare supplemental policy as defined by

3-20     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);

3-21                 (4)  workers' compensation insurance coverage;

3-22                 (5)  medical payment insurance issued as part of a

3-23     motor vehicle insurance policy; or

3-24                 (6)  a long-term care policy, including a nursing home

3-25     fixed indemnity policy, unless the commissioner determines that the

3-26     policy provides benefit coverage so comprehensive that the policy

3-27     is a health benefit plan as described by Subsection (a) of this

 4-1     section.

 4-2           Sec. 4.  REQUIRED COVERAGE FOR MINIMUM INPATIENT STAY

 4-3     FOLLOWING BIRTH; EXCEPTIONS.  (a)  A health benefit plan that

 4-4     provides maternity benefits, including benefits for childbirth,

 4-5     must include coverage for inpatient care for a mother and her

 4-6     newborn child in a health care facility for a minimum of:

 4-7                 (1)  48 hours following an uncomplicated vaginal

 4-8     delivery; and

 4-9                 (2)  96 hours following an uncomplicated delivery by

4-10     caesarean section.

4-11           (b)  Notwithstanding Subsection (a) of this section, a health

4-12     benefit plan that provides coverage for in-home postdelivery care

4-13     to a mother and her newborn child is not required to provide the

4-14     minimum hours of coverage of inpatient care required under

4-15     Subsection (a) of this section unless that inpatient care is

4-16     determined to be medically necessary by an attending physician or

4-17     is requested by the mother.

4-18           (c)  For purposes of Subsection (a) of this section, the

4-19     determination as to whether a delivery is complicated shall be made

4-20     by the attending physician.

4-21           (d)  This article does not require a mother who is eligible

4-22     for coverage under a health benefit plan to:

4-23                 (1)  give birth in a hospital or other health care

4-24     facility; or

4-25                 (2)  remain under inpatient care in a hospital or other

4-26     health care facility for any fixed term following the birth of a

4-27     child.

 5-1           Sec. 5.  POSTDELIVERY CARE.  (a)  If a decision is made to

 5-2     discharge a mother or newborn child from inpatient care before the

 5-3     expiration of the minimum hours of coverage of inpatient care

 5-4     required under Section 4(a) of this article, the health benefit

 5-5     plan must provide coverage for timely postdelivery care.  That care

 5-6     may be provided to the mother and child by a physician, registered

 5-7     nurse, or other appropriate licensed health care provider and may

 5-8     be provided at:

 5-9                 (1)  the mother's home, a health care provider's

5-10     office, or a health care facility; or

5-11                 (2)  another location determined to be appropriate

5-12     under rules adopted by the commissioner.

5-13           (b)  The coverage required under Subsection (a) of this

5-14     section must allow the mother the option to have the care provided

5-15     in the mother's home.

5-16           (c)  For purposes of this section, "postdelivery care" means

5-17     postpartum health care services provided in accordance with

5-18     accepted maternal and neonatal physical assessments.  The term

5-19     includes parent education, assistance and training in

5-20     breast-feeding and bottle-feeding, and the performance of any

5-21     necessary and appropriate clinical tests.  The timeliness of the

5-22     care shall be determined in accordance with recognized medical

5-23     standards for that care.

5-24           Sec. 6.  PROHIBITIONS.  A health benefit plan may not:

5-25                 (1)  modify the terms and conditions of coverage based

5-26     on the determination by a person enrolled in the health benefit

5-27     plan to request less than the minimum coverage required under

 6-1     Section 4(a) of this article;

 6-2                 (2)  offer to the mother of a newborn child financial

 6-3     incentives or other compensation the receipt of which is contingent

 6-4     on the waiver by the mother of the minimum hours of coverage of

 6-5     inpatient care required under Section 4(a) of this article;

 6-6                 (3)  refuse to accept a physician's recommendation for

 6-7     a specified period of inpatient care made in consultation with the

 6-8     mother of the newborn child if the period recommended by the

 6-9     physician does not exceed the minimum periods recommended in

6-10     guidelines for perinatal care developed by the American College of

6-11     Obstetricians and Gynecologists, the American Academy of

6-12     Pediatrics, or another nationally recognized professional

6-13     association of obstetricians and gynecologists or of pediatricians;

6-14                 (4)  reduce payments or other forms of reimbursement

6-15     for inpatient care below the usual and customary rate of

6-16     reimbursement for that care; or

6-17                 (5)  penalize a physician for recommending inpatient

6-18     care for a mother or her newborn child by:

6-19                       (A)  refusing to allow the physician to

6-20     participate as a provider within the health benefit plan;

6-21                       (B)  reducing payments made to the physician;

6-22                       (C)  requiring the physician to provide

6-23     additional documentation or undergo additional utilization review;

6-24     or

6-25                       (D)  imposing other analogous sanctions or

6-26     disincentives.

6-27           Sec. 7.  NOTICE.  In accordance with rules adopted by the

 7-1     commissioner, each health benefit plan must provide to each

 7-2     enrollee under the plan written notice regarding the coverage

 7-3     required by this article.

 7-4           Sec. 8.  RULES.  The commissioner shall adopt rules as

 7-5     necessary to administer this article.

 7-6           SECTION 2.  This Act takes effect September 1, 1997, and

 7-7     applies only to a health benefit plan that is delivered, issued for

 7-8     delivery, or renewed on or after January 1, 1998.  A health benefit

 7-9     plan that is delivered, issued for delivery, or renewed before

7-10     January 1, 1998, is governed by the law as it existed immediately

7-11     before the effective date of this Act, and that law is continued in

7-12     effect for that purpose.

7-13           SECTION 3.  The importance of this legislation and the

7-14     crowded condition of the calendars in both houses create an

7-15     emergency and an imperative public necessity that the

7-16     constitutional rule requiring bills to be read on three several

7-17     days in each house be suspended, and this rule is hereby suspended.