By Coleman                                            H.B. No. 1696
         76R5898 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a child health plan for certain low-income children.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Subtitle C, Title 2, Health and Safety Code, is
 1-5     amended by adding Chapter 62 to read as follows:
 1-6        CHAPTER 62. CHILD HEALTH PLAN FOR CERTAIN LOW-INCOME CHILDREN
 1-7           Sec. 62.001.  DEFINITION.  In this chapter, "commission"
 1-8     means the Health and Human Services Commission.
 1-9           Sec. 62.002.  DUTIES OF COMMISSION.  (a) The commission shall
1-10     develop a state-designed child health plan program to obtain health
1-11     benefits coverage for children in low-income families.  The
1-12     commission shall ensure that the child health plan program is
1-13     designed and administered in a manner that qualifies for federal
1-14     funding under Title XXI of the Social Security Act (42 U.S.C.
1-15     Section 1397aa et seq.), as amended, and any other applicable law
1-16     or regulations.
1-17           (b)  To the extent possible, the commission shall ensure that
1-18     the program is operated using the same resources that are used to
1-19     administer the state Medicaid program.
1-20           (c)  The commission shall establish eligibility requirements
1-21     to receive health benefits coverage under the child health plan
1-22     that:
1-23                 (1)  include an income eligibility level not lower than
1-24     200 percent of the federal poverty level based on the federal
 2-1     Office of Management and Budget poverty index, unless a lower level
 2-2     is required under the applicable federal law or regulations;
 2-3                 (2)  are consistent with Title XXI of the Social
 2-4     Security Act (42 U.S.C.  Section 1397aa et seq.), as amended, and
 2-5     any other applicable law or regulations; and
 2-6                 (3)  are established subject to the availability of
 2-7     appropriated money.
 2-8           Sec. 62.003.  RULES.  The commission may adopt rules as
 2-9     necessary to implement this chapter.
2-10           Sec. 62.004.  APPLICATION OF INSURANCE LAW TO STATE CHILD
2-11     HEALTH PLAN.  To provide the flexibility necessary to satisfy the
2-12     requirements of Title XXI of the Social Security Act (42 U.S.C.
2-13     Section 1397aa et seq.), as amended, and any other applicable law
2-14     or regulations, the child health plan is not subject to a law that
2-15     requires:
2-16                 (1)  coverage or the offer of coverage of a health care
2-17     service or benefit;
2-18                 (2)  coverage or the offer of coverage for the
2-19     provision of services by a particular health care services
2-20     provider; or
2-21                 (3)  the use of a particular policy or contract form or
2-22     of particular language in a policy or contract form.
2-23           SECTION 2.  Section 4, Article 3.51-6, Insurance Code, is
2-24     amended to read as follows:
2-25           Sec. 4.  EXEMPTIONS.  The provisions of this article shall
2-26     not be applicable to:
2-27                 (1)  credit accident and health insurance policies
 3-1     subject to Article 3.53 of the Insurance Code, as amended;
 3-2                 (2)  any group specifically provided for or authorized
 3-3     by law in existence and covered under a policy filed with the State
 3-4     Board of Insurance prior to April 1, 1975;
 3-5                 (3)  accident and health coverages that are incidental
 3-6     to any form of group automobile, casualty, property, or workmen's
 3-7     compensation--employers' liability policies promulgated or approved
 3-8     by the State Board of Insurance;
 3-9                 (4)  any policy or contract of insurance with a state
3-10     agency, department, or board providing health services to [all]
3-11     eligible persons under Chapter 32, Human Resources Code, or in
3-12     accordance with 42 U.S.C. Sections 1396-1396g, as amended, or 42
3-13     U.S.C. Section 1397aa et seq., as amended, [Section 6, The Medical
3-14     Assistance Act of 1967, as amended (Article 695j-1, Vernon's Texas
3-15     Civil Statutes), 343-353 (42 U.S.C.A. 1396-1396g), providing health
3-16     care and services] under a state plan.
3-17           SECTION 3.  If, before implementing any provision of Chapter
3-18     62, Health and Safety Code, as added by this Act, the Health and
3-19     Human Services Commission determines that a waiver or authorization
3-20     from a federal agency is necessary for implementation of that
3-21     provision, the commission shall request the waiver or authorization
3-22     and may delay implementing that provision until the waiver or
3-23     authorization is granted.
3-24           SECTION 4.  The importance of this legislation and the
3-25     crowded condition of the calendars in both houses create an
3-26     emergency and an imperative public necessity that the
3-27     constitutional rule requiring bills to be read on three several
 4-1     days in each house be suspended, and this rule is hereby suspended,
 4-2     and that this Act take effect and be in force from and after its
 4-3     passage, and it is so enacted.