1-1                                   AN ACT
 1-2     relating to application of certain coverage requirements for
 1-3     serious mental illness.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 3(a)(19), Texas Employees Uniform Group
 1-6     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
 1-7     Code), as added by Section 11.106, Chapter 242, Acts of the 72nd
 1-8     Legislature, Regular Session, 1991, is redesignated as Section
 1-9     3(a)(23), Texas Employees Uniform Group Insurance Benefits Act
1-10     (Article 3.50-2, Vernon's Texas Insurance Code), and amended to
1-11     read as follows:
1-12                 (23)  "Serious [(19)  For the purposes of this section,
1-13     "serious] mental illness" has the meaning assigned by Section 1,
1-14     Article 3.51-14, Insurance Code [means the following psychiatric
1-15     illnesses as defined by the American Psychiatric Association in the
1-16     Diagnostic and Statistical Manual (DSM) III-R:]
1-17                       [(A)  schizophrenia;]
1-18                       [(B)  paranoid and other psychotic disorders;]
1-19                       [(C)  bipolar disorders (mixed, manic, and
1-20     depressive);]
1-21                       [(D)  major depressive disorders (single episode
1-22     or recurrent); and]
1-23                       [(E)  schizo-affective disorders (bipolar or
1-24     depressive)].
 2-1           SECTION 2.  Section 3(a)(16), Texas State College and
 2-2     University Employees Uniform Insurance Benefits Act (Article
 2-3     3.50-3, Vernon's Texas Insurance Code), as added by Section 11.108,
 2-4     Chapter 242, Acts of the 72nd Legislature, Regular Session, 1991,
 2-5     is redesignated as Section 3(a)(19), Texas State College and
 2-6     University Employees Uniform Insurance Benefits Act (Article
 2-7     3.50-3, Vernon's Texas Insurance Code), and amended to read as
 2-8     follows:
 2-9                 (19)  "Serious [(16)  For purposes of this section,
2-10     "serious] mental illness" has the meaning assigned by Section 1,
2-11     Article 3.51-14, Insurance Code [means the following psychiatric
2-12     illnesses as defined by the American Psychiatric Association in the
2-13     Diagnostic and Statistical Manual (DSM) III-R:]
2-14                       [(A)  schizophrenia;]
2-15                       [(B)  paranoid and other psychotic disorders;]
2-16                       [(C)  bipolar disorders (mixed, manic, and
2-17     depressive);]
2-18                       [(D)  major depressive disorders (single episode
2-19     or recurrent); and]
2-20                       [(E)  schizo-affective disorders (bipolar or
2-21     depressive)].
2-22           SECTION 3.  Article 3.51-5A(b), Insurance Code, is amended to
2-23     read as follows:
2-24           (b)  For purposes of this article, "serious mental illness"
2-25     has the meaning assigned by Section 1, Article 3.51-14, of this
2-26     code [means the following psychiatric illnesses as defined by the
2-27     American Psychiatric Association in the Diagnostic and Statistical
 3-1     Manual (DSM) III-R:]
 3-2                 [(1)  schizophrenia;]
 3-3                 [(2)  paranoid and other psychotic disorders;]
 3-4                 [(3)  bipolar disorders (mixed, manic, and depressive);]
 3-5                 [(4)  major depressive disorders (single episode or
 3-6     recurrent); and]
 3-7                 [(5)  schizo-affective disorders (bipolar or
 3-8     depressive)].
 3-9           SECTION 4.  Section 2(b), Article 3.51-14, Insurance Code, is
3-10     amended to read as follows:
3-11           (b)  This article does not apply to coverage under:
3-12                 (1)  a blanket accident and health insurance policy as
3-13     that term is defined under Section 2, Article 3.51-6, of this code;
3-14                 (2)  a short-term travel policy;
3-15                 (3)  an accident-only policy;
3-16                 (4)  a limited or specified-disease policy, other than
3-17     a plan that provides benefits for mental health care or similar
3-18     services; [or]
3-19                 (5)  with the exception of Section 1 of this article
3-20     which shall apply, a plan offered under the Texas Employees Uniform
3-21     Group Insurance Benefits Act (Article 3.50-2, Vernon's Texas
3-22     Insurance Code) or the Texas State College and University Employees
3-23     Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
3-24     Insurance Code);
3-25                 (6)  a plan offered under or in accordance with Article
3-26     3.51-5A of this code; or
3-27                 (7)  a medicare supplement policy, as that term is
 4-1     defined under Section 1(b)(3) [1(3)], Article 3.74, of this code.
 4-2           SECTION 5.  Section 3(a), Article 3.51-14, Insurance Code, is
 4-3     amended to read as follows:
 4-4           (a)  Except as provided by Section 4 of this article, a group
 4-5     health benefit plan:
 4-6                 (1)  must provide coverage, based on medical necessity,
 4-7     for the following treatment of serious mental illness in each
 4-8     calendar year:
 4-9                       (A)  45 days of inpatient treatment; and
4-10                       (B)  60 visits for outpatient treatment,
4-11     including group and individual outpatient treatment;
4-12                 (2)  may not include a lifetime limit on the number of
4-13     days of inpatient treatment or the number of outpatient visits
4-14     covered under the plan; and
4-15                 (3)  must include the same amount limits, deductibles,
4-16     copayments, and coinsurance factors for serious mental illness as
4-17     for physical illness.
4-18           SECTION 6.  This Act takes effect September 1, 1999, and
4-19     applies only to a health benefit plan that is delivered, issued for
4-20     delivery, or renewed on or after January 1, 2000.  A health benefit
4-21     plan that is delivered, issued for delivery, or renewed before
4-22     January 1, 2000,  is governed by the law as it existed immediately
4-23     before the effective date of this Act, and that law is continued in
4-24     effect for this purpose.
4-25           SECTION 7.  The importance of this legislation and the
4-26     crowded condition of the calendars in both houses create an
4-27     emergency and an imperative public necessity that the
 5-1     constitutional rule requiring bills to be read on three several
 5-2     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2424 was passed by the House on May
         4, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2424 on May 22, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2424 was passed by the Senate, with
         amendments, on May 20, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor