By Barrientos                                    S.B. No. 153

      75R3041 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 21.53D to read as follows:

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

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

1-10           Sec. 1.  DEFINITIONS.  In this article:

1-11                 (1)  "Attending physician" means an obstetrician,

1-12     pediatrician, or other physician who attends a woman who has given

1-13     birth or who attends the newborn child.

1-14                 (2)  "Health benefit plan" means a plan that provides

1-15     benefits for medical or surgical expenses incurred as a result of a

1-16     health condition, accident, or sickness and that is offered by any

1-17     insurance company, group hospital service corporation, fraternal

1-18     benefit society subject to Chapter 10 of this code, stipulated

1-19     premium company subject to Chapter 22 of this code, or health

1-20     maintenance organization that delivers or issues for delivery an

1-21     individual, group, blanket, or franchise insurance policy or

1-22     insurance agreement, a group hospital service contract, or a group

1-23     or individual evidence of coverage, by a multiple employer welfare

1-24     arrangement as defined by Section 3, Employee Retirement Income

 2-1     Security Act of 1974 (29 U.S.C. Section 1002), or by any other

 2-2     analogous benefit arrangement to the extent permitted by the

 2-3     Employee Retirement Income Security Act of 1974 (29 U.S.C. Section

 2-4     1002).  The term does not include:

 2-5                       (A)  a plan that provides coverage:

 2-6                             (i)  only for accidental death or

 2-7     dismemberment;

 2-8                             (ii)  for wages or payments in lieu of

 2-9     wages for a period during which an employee is absent from work

2-10     because of sickness or injury; or

2-11                             (iii)  as a supplement to liability

2-12     insurance;

2-13                       (B)  a Medicare supplemental policy as defined by

2-14     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);

2-15                       (C)  workers' compensation insurance coverage;

2-16                       (D)  medical payment insurance issued as part of

2-17     a motor vehicle insurance policy; or

2-18                       (E)  a long-term care policy, including a nursing

2-19     home fixed indemnity policy, unless the commissioner determines

2-20     that the policy provides benefit coverage so comprehensive that the

2-21     policy meets the definition of a health benefit plan.

2-22           Sec. 2.  REQUIRED COVERAGE FOR MINIMUM INPATIENT STAY

2-23     FOLLOWING BIRTH; EXCEPTIONS.  (a)  A health benefit plan that

2-24     provides maternity benefits, including benefits for childbirth,

2-25     must include coverage for inpatient care for a mother and her

2-26     newborn child in a health care facility for a minimum of:

2-27                 (1)  48 hours following a vaginal delivery; and

 3-1                 (2)  96 hours following a delivery by caesarean

 3-2     section.

 3-3           (b)  Notwithstanding Subsection (a) of this section, a health

 3-4     benefit plan that provides coverage for in-home postdelivery care

 3-5     to a mother and her newborn child is not required to provide the

 3-6     minimum hours of coverage of inpatient care required under

 3-7     Subsection (a) of this section unless that inpatient care is

 3-8     determined to be medically necessary by an attending physician or

 3-9     is requested by the mother.

3-10           (c)  This article does not require a mother who is eligible

3-11     for coverage under a health benefit plan to:

3-12                 (1)  give birth in a hospital or other health care

3-13     facility; or

3-14                 (2)  remain under inpatient care in a hospital or other

3-15     health care facility for any fixed term following the birth of a

3-16     child.

3-17           Sec. 3.  POSTDELIVERY CARE.  (a)  If a decision is made to

3-18     discharge a mother and newborn child from inpatient care before the

3-19     expiration of the minimum hours of coverage of inpatient care

3-20     required under Section 2(a) of this article, the health benefit

3-21     plan shall provide coverage for timely postdelivery care.  That

3-22     care may be provided to the mother and child by a physician,

3-23     registered nurse, or other appropriate licensed health care

3-24     provider and may be provided at:

3-25                 (1)  the mother's home, a health care provider's

3-26     office, or a health care facility; or

3-27                 (2)  another location determined to be appropriate

 4-1     under rules adopted by the commissioner.

 4-2           (b)  The coverage required under Subsection (a) of this

 4-3     section must allow the mother the option to have the care provided

 4-4     in the mother's home.

 4-5           (c)  For purposes of this section, "postdelivery care" means

 4-6     postpartum health care services provided in accordance with

 4-7     accepted maternal and neonatal physical assessments.  The term

 4-8     includes parent education, assistance and training in breast

 4-9     feeding and bottle feeding, and the performance of any necessary

4-10     and appropriate clinical tests.  The timeliness of the care shall

4-11     be determined in accordance with recognized medical standards for

4-12     that care.

4-13           Sec. 4.  PROHIBITIONS.  A health benefit plan may not:

4-14                 (1)  modify the terms and conditions of coverage based

4-15     on the determination by a person enrolled in the health benefit

4-16     plan to request less than the minimum coverage required under

4-17     Section 2(a) of this article;

4-18                 (2)  offer to the mother of a newborn child financial

4-19     incentives or other compensation the receipt of which is contingent

4-20     on the waiver by the mother of the minimum hours of coverage of

4-21     inpatient care required under Section 2(a) of this article;

4-22                 (3)  refuse to accept a physician's recommendation for

4-23     a specified period of inpatient care made in consultation with the

4-24     mother of the newborn child if the period recommended by the

4-25     physician does not exceed the minimum periods recommended in

4-26     guidelines for perinatal care developed by the American College of

4-27     Obstetricians and Gynecologists, the American Academy of

 5-1     Pediatrics, or another nationally recognized professional

 5-2     association of obstetricians and gynecologists or of pediatricians;

 5-3                 (4)  reduce payments or other forms of reimbursement

 5-4     for inpatient care below the usual and customary rate of

 5-5     reimbursement for that care; or

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

 5-7     care for a mother or her newborn child by:

 5-8                       (A)  refusing to allow the physician to

 5-9     participate as a provider within the health benefit plan;

5-10                       (B)  reducing payments made to the physician;

5-11                       (C)  requiring the physician to provide

5-12     additional documentation or undergo additional utilization review;

5-13     or

5-14                       (D)  imposing other analogous sanctions or

5-15     disincentives.

5-16           Sec. 5.  NOTICE.  (a)  Each health benefit plan shall provide

5-17     written notice to each enrollee under the plan regarding the

5-18     coverage required by this article.  The health benefit plan shall

5-19     provide the notice in accordance with rules adopted by the

5-20     commissioner.

5-21           (b)  The notice required under this section must be

5-22     prominently positioned in any literature or correspondence made

5-23     available or distributed by the health benefit plan.

5-24           Sec. 6.  RULES.  The commissioner shall adopt rules as

5-25     necessary to administer this article.

5-26           SECTION 2.  This Act takes effect September 1, 1997, and

5-27     applies only to an insurance policy or evidence of coverage that is

 6-1     delivered, issued for delivery, or renewed on or after January 1,

 6-2     1998.  A policy or evidence of coverage that is delivered, issued

 6-3     for delivery, or renewed before January 1, 1998, is governed by the

 6-4     law as it existed immediately before the effective date of this

 6-5     Act, and that law is continued in effect for that purpose.

 6-6           SECTION 3.  The importance of this legislation and the

 6-7     crowded condition of the calendars in both houses create an

 6-8     emergency and an imperative public necessity that the

 6-9     constitutional rule requiring bills to be read on three several

6-10     days in each house be suspended, and this rule is hereby suspended.