1-1     By:  Van de Putte (Senate Sponsor - Carona)            H.B. No. 969
 1-2           (In the Senate - Received from the House May 11, 1999;
 1-3     May 12, 1999, read first time and referred to Committee on Economic
 1-4     Development; May 14, 1999, reported favorably by the following
 1-5     vote:  Yeas 7, Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the definition under certain health benefit plans of
 1-9     treatment for craniofacial abnormalities of a child.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
1-12     amended by adding Article 21.53W to read as follows:
1-13           Art. 21.53W.  COVERAGE FOR CRANIOFACIAL ABNORMALITIES
1-14           Sec. 1.  DEFINITIONS.  In this article:
1-15                 (1)  "Enrollee" means an individual enrolled in a
1-16     health benefit plan.
1-17                 (2)  "Health benefit plan" means a plan described by
1-18     Section 2(a) of this article.
1-19           Sec. 2.  SCOPE OF ARTICLE.  (a)  This article applies only to
1-20     a health benefit plan that:
1-21                 (1)  provides benefits for medical or surgical expenses
1-22     incurred as a result of a health condition, accident, or sickness,
1-23     including:
1-24                       (A)  an individual, group, blanket, or franchise
1-25     insurance policy or insurance agreement, a group hospital service
1-26     contract, or an individual or group evidence of coverage that is
1-27     offered by:
1-28                             (i)  an insurance company;
1-29                             (ii)  a group hospital service corporation
1-30     operating under Chapter 20 of this code;
1-31                             (iii)  a fraternal benefit society
1-32     operating under Chapter 10 of this code;
1-33                             (iv)  a stipulated premium insurance
1-34     company operating under Chapter 22 of this code; or
1-35                             (v)  a health maintenance organization
1-36     operating under the Texas Health Maintenance Organization Act
1-37     (Chapter 20A, Vernon's Texas Insurance Code); or
1-38                       (B)  to the extent permitted by the Employee
1-39     Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et
1-40     seq.), a health benefit plan that is offered by:
1-41                             (i)  a multiple employer welfare
1-42     arrangement as defined by Section 3, Employee Retirement Income
1-43     Security Act of 1974 (29 U.S.C. Section 1002);
1-44                             (ii)  any other entity not licensed under
1-45     this code or another insurance law of this state that contracts
1-46     directly for health care services on a risk-sharing basis,
1-47     including an entity that contracts for health care services on a
1-48     capitation basis; or
1-49                             (iii)  another analogous benefit
1-50     arrangement; or
1-51                 (2)  is offered by an approved nonprofit health
1-52     corporation that is certified under Section 5.01(a), Medical
1-53     Practice Act (Article 4495b, Vernon's Texas Civil Statutes), and
1-54     that holds a certificate of authority issued by the commissioner
1-55     under Article 21.52F of this code.
1-56           (b)  This article does not apply to:
1-57                 (1)  a plan that provides coverage:
1-58                       (A)  only for a specified disease or other
1-59     limited benefit;
1-60                       (B)  only for accidental death or dismemberment;
1-61                       (C)  for wages or payments in lieu of wages for a
1-62     period during which an employee is absent from work because of
1-63     sickness or injury;
1-64                       (D)  as a supplement to liability insurance;
 2-1                       (E)  for credit insurance;
 2-2                       (F)  only for dental or vision care; or
 2-3                       (G)  only for indemnity for hospital confinement
 2-4     or other hospital expenses;
 2-5                 (2)  a small employer health benefit plan written under
 2-6     Chapter 26 of this code;
 2-7                 (3)  a Medicare supplemental policy as defined by
 2-8     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);
 2-9                 (4)  workers' compensation insurance coverage;
2-10                 (5)  medical payment insurance issued as part of a
2-11     motor vehicle insurance policy; or
2-12                 (6)  a long-term care policy, including a nursing home
2-13     fixed indemnity policy, unless the commissioner determines that the
2-14     policy provides benefit coverage so comprehensive that the policy
2-15     is a health benefit plan as described by Subsection (a) of this
2-16     section.
2-17           Sec. 3.  COVERAGE.  A health benefit plan that provides
2-18     benefits to a child who is younger than 18 years of age must define
2-19     reconstructive surgery for craniofacial abnormalities under the
2-20     plan to mean surgery to improve the function of, or to attempt to
2-21     create a normal appearance of, an abnormal structure caused by
2-22     congenital defects, developmental deformities, trauma, tumors,
2-23     infections, or disease.
2-24           Sec. 4.  RULES.  The commissioner shall adopt rules as
2-25     necessary to administer this article.
2-26           SECTION 2.  This Act takes effect September 1, 1999, and
2-27     applies only to a health benefit plan that is delivered, issued for
2-28     delivery, or renewed on or after January 1, 2000.  A health benefit
2-29     plan that is delivered, issued for delivery, or renewed before
2-30     January 1, 2000, is governed by the law as it existed immediately
2-31     before the effective date of this Act, and that law is continued in
2-32     effect for that purpose.
2-33           SECTION 3.  The importance of this legislation and the
2-34     crowded condition of the calendars in both houses create an
2-35     emergency and an imperative public necessity that the
2-36     constitutional rule requiring bills to be read on three several
2-37     days in each house be suspended, and this rule is hereby suspended.
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