SRC-JBJ S.B. 569 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 569
76R6572 DB-FBy: Nelson
Economic Development
3/18/1999
As Filed


DIGEST 

Currently, a health benefit plan maintains reimbursement requirements for
an enrollee or a health provider.  In a mental health plan, for example, a
company may require a representative to observe an enrollee's psychotherapy
session or require the mental health provider to submit its progress notes
from the session.  Although Texas Department of Insurance (TDI) rules
prohibit utilization review agents from using progress notes or observing
therapy sessions, codification of the TDI rules would expand some
prohibitions against certain mental health field practices.  S.B. 569 would
prohibit an insurance company representative from observing therapy
sessions and prevent certain providers from being required to submit their
notes as a condition of reimbursement.  

PURPOSE

As proposed, S.B. 569 prohibits insurance company representatives from
observing therapy sessions and prevents certain providers from being
required to submit their notes as a condition of reimbursement.  

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance in SECTION
1 (Section 4, Article 21.53S, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 21E, Insurance Code, by adding Article 21.53S,
as follows: 

Art. 21.53S. RESTRICTIONS APPLICABLE TO CERTAIN MENTAL HEALTH SERVICES

 Sec. 1.  DEFINITIONS.  Defines "enrollee" and "health benefit plan."

Sec. 2.  SCOPE OF ARTICLE.  Establishes that this article applies only to
certain health benefit plans including individual or group insurance
policies, agreements, hospital service contracts, and other similar
coverages.  Sets forth types of similar health coverage.  Sets forth plan
types that do not apply to this article. 

Sec. 3.  CERTAIN REQUIREMENTS RELATING TO MENTAL HEALTH SERVICES
PROHIBITED.  Prohibits a health benefit plan issuer from requiring
observation of a mental health service, including a psychotherapy session,
by the issuer, or requiring an enrollee to provide process or progress
notes of the mental health care provider, as a condition of coverage.  

Sec. 4.  RULES.  Authorizes the commissioner of insurance to adopt rules to
implement this article. 

SECTION 2.Makes application of this Act prospective.

SECTION 3.Emergency clause.
  Effective date: upon passage.