HBA-MPA, BTC H.B. 520 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 520 By: Flores Insurance 4/27/1999 Introduced BACKGROUND AND PURPOSE H.B. 520 provides that an eligible school district employee under a small employer health benefit plan may elect to insure another employee that is the person's dependent, under the dependent coverage portion of the policy. This bill provides that if dependent coverage is elected, the premium charged for the dependent must be the same as that charged to a dependent that is not also an eligible employee. This bill provides that a child of two married eligible employees may receive coverage as a dependent of only one of the spouses. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 26.036, Insurance Code, as follows: Art. 26.036. New Title: PARTICIPATION OF SCHOOL DISTRICT. Authorizes an eligible employee under a small employer health benefit plan offered through an independent school district to elect dependent coverage for another eligible employee who is also a dependent of the eligible employee. Provides that if dependent coverage is elected under this subsection, the premium charged for the dependent coverage is the premium charged under the plan for coverage of a dependent who is not an eligible employee, and that both eligible employees are treated as participating eligible employees for purposes of Article 26.21 (Small Employer Health Benefit Plans; Employer Election) of this code. Authorizes a child of spouses who are both eligible employees under a small employer health benefit plan offered through an independent school district to receive coverage as a dependent of only one of the spouses. SECTION 2. Effective date: September 1, 1999. Applies only to a small employer health benefit plan offered through an independent school district that is delivered, issued for delivery, or renewed on or after January 1, 2000. Makes application of this Act prospective. SECTION 3. Emergency clause.