By:  Zaffirini, et al.                                 S.B. No. 217

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     reconstructive surgery incident to a mastectomy.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is

 1-5     amended by adding Article 21.53D to read as follows:

 1-6           Art. 21.53D.  COVERAGE FOR RECONSTRUCTIVE SURGERY AFTER

 1-7     MASTECTOMY

 1-8           Sec. 1.  DEFINITIONS.  In this article:

 1-9                 (1)  "Health benefit plan" means a plan described by

1-10     Section 2 of this article.

1-11                 (2)  "Breast reconstruction" means reconstruction of a

1-12     breast incident to mastectomy to restore or achieve breast

1-13     symmetry.  The term includes surgical reconstruction of a breast on

1-14     which mastectomy surgery has been performed and surgical

1-15     reconstruction of a breast on which mastectomy surgery has not been

1-16     performed.

1-17           Sec. 2.  SCOPE OF ARTICLE.  (a)  This article applies to a

1-18     health benefit plan that:

1-19                 (1)  provides benefits for medical or surgical expenses

1-20     incurred as a result of a health condition, accident, or sickness,

1-21     including:

1-22                       (A)  an individual, group, blanket, or franchise

1-23     insurance policy or insurance agreement, a group hospital service

 2-1     contract, or an individual or group evidence of coverage that is

 2-2     offered by:

 2-3                             (i)  an insurance company;

 2-4                             (ii)  a group hospital service corporation

 2-5     operating under Chapter 20 of this code;

 2-6                             (iii)  a fraternal benefit society

 2-7     operating under Chapter 10 of this code;

 2-8                             (iv)  a stipulated premium insurance

 2-9     company operating under Chapter 22 of this code; or

2-10                             (v)  a health maintenance organization

2-11     operating under the Texas Health Maintenance Organization Act

2-12     (Chapter 20A, Vernon's Texas Insurance Code); or

2-13                       (B)  to the extent permitted by the Employee

2-14     Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et

2-15     seq.), a health benefit plan that is offered by:

2-16                             (i)  a multiple employer welfare

2-17     arrangement as defined by Section 3, Employee Retirement Income

2-18     Security Act of 1974 (29 U.S.C. Section 1002); or

2-19                             (ii)  another analogous benefit

2-20     arrangement; or

2-21                 (2)  is offered by an approved nonprofit health

2-22     corporation that is certified under Section 5.01(a), Medical

2-23     Practice Act (Article 4495b, Vernon's Texas Civil Statutes), and

2-24     that holds a certificate of authority issued by the commissioner

2-25     under Article 21.52F of this code.

 3-1           (b)  This article does not apply to:

 3-2                 (1)  a plan that provides coverage:

 3-3                       (A)  only for a specified disease except for

 3-4     cancer;

 3-5                       (B)  only for accidental death or dismemberment;

 3-6                       (C)  for wages or payments in lieu of wages for a

 3-7     period during which an employee is absent from work because of

 3-8     sickness or injury;

 3-9                       (D)  for specified accident, hospital indemnity,

3-10     or other limited benefits health insurance policies;

3-11                       (E)  for credit insurance;

3-12                       (F)  only for dental or vision care;

3-13                       (G)  for hospital confinement indemnity coverage

3-14     only; or

3-15                       (H)  as a supplement to liability insurance;

3-16                 (2)  a small employer plan written under Chapter 26 of

3-17     this code;

3-18                 (3)  a Medicare supplemental policy as defined by

3-19     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);

3-20                 (4)  workers' compensation insurance coverage;

3-21                 (5)  medical payment insurance issued as part of a

3-22     motor vehicle insurance policy; or

3-23                 (6)  a long-term care policy, including a nursing home

3-24     fixed indemnity policy, unless the commissioner determines that the

3-25     policy provides benefit coverage so comprehensive that the policy

 4-1     is a health benefit plan as described by Subsection (a) of this

 4-2     section.

 4-3           Sec. 3.  COVERAGE REQUIRED.  A health benefit plan that

 4-4     provides coverage for mastectomy must provide coverage for breast

 4-5     reconstruction.  The coverage may be subject to the same deductible

 4-6     or copayment applicable to mastectomy.

 4-7           Sec. 4.  PROHIBITION.  A health benefit plan may not offer a

 4-8     financial incentive for a patient to forgo breast reconstruction or

 4-9     to waive the coverage required by Section 3 of this article.

4-10           Sec. 5.  RULES.  The commissioner may adopt rules to

4-11     implement this article.

4-12           SECTION 2.  This Act takes effect September 1, 1997, and

4-13     applies only to a health benefit plan that is delivered, issued for

4-14     delivery, or renewed on or after January 1, 1998.  A health benefit

4-15     plan that is delivered, issued for delivery, or renewed before

4-16     January 1, 1998, is governed by the law as it existed immediately

4-17     before the effective date of this Act, and that law is continued in

4-18     effect for this purpose.

4-19           SECTION 3.  The importance of this legislation and the

4-20     crowded condition of the calendars in both houses create an

4-21     emergency and an imperative public necessity that the

4-22     constitutional rule requiring bills to be read on three several

4-23     days in each house be suspended, and this rule is hereby suspended.