HBA-DMH C.S.H.B. 849 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 849
By: Coleman
Insurance
4/16/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The 75th Legislature significantly increased health benefit coverage for
those who suffer from mental illnesses by requiring certain health
maintenance organizations and group insurance plans to provide coverage for
medical treatment of serious mental illnesses.  However, these changes did
not extend coverage to those suffering from eating disorders, illnesses
mainly affecting women ages 10 to 20. Statistically, one to four percent of
women suffer from anorexia or bulimia in their lifetime and without
treatment up to 20 percent of people with a serious eating disorder die.
C.S.H.B. 849 includes anorexia and bulimia in the definition of a "serious
mental illness" to extend insurance coverage to include such medical
conditions. 

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. 

ANALYSIS

C.S.H.B. 849 amends the Insurance Code to add anorexia and bulimia to the
definition of a "serious mental illness," for which a group health benefit
plan that provides benefits for medical or surgical expenses incurred as a
result of a health condition, accident, or sickness must provide coverage
based on medical necessity.  The bill requires the Sunset Advisory
Commission (commission) to conduct a study, on or before September 1, 2006,
to determine the enrollee usage and cost impact of this expanded health
benefit plan coverage.  The bill requires the Texas Department of Insurance
and any other state agency to cooperate with the commission as necessary to
conduct the study and requires the commission to report its findings to the
legislature on or before January 1, 2007. 

EFFECTIVE DATE

September 1, 2001, and applies only to a group health benefit plan that is
delivered, issued for delivery, or renewed on or after January 1, 2002. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 849 differs from the original bill by conforming to Texas
Legislative Council style and format. The substitute includes provisions
relating to a study to be conducted by the Sunset Advisory Commission.