SRC-TBR S.B. 427 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 427
77R3810 AJA-DBy: Lucio
Business & Commerce
4/22/2001
As Filed


DIGEST AND PURPOSE 

The type and extent of medical care that is necessary for any given patient
is something that is determined by that patient's physician on a
case-by-case basis.  This should be the case for any and all patients,
regardless of their underlying diagnoses.  As proposed, S.B. 427 prohibits
an insurance carrier from using a diagnosis of autism or pervasive
developmental disorder as justification for denying coverage of therapy to
a patient. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Commission of Insurance in
SECTION 1 (Article 21.53X, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

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

Art. 21.53X.  INDIVIDUAL OR GROUP HEALTH BENEFIT PLAN COVERAGE FOR AUTISM
AND PERVASIVE DEVELOPMENTAL DISORDERS 

 Sec. 1.  DEFINITION.  Defines "enrollee".

Sec. 2.  APPLICABILITY OF ARTICLE.  (a)  Provides that this article applies
only to a health benefit plan that provides benefits for medical or
surgical expenses incurred as a result of a health condition, accident, or
sickness, including an individual, group, blanket, or franchise insurance
policy or insurance agreement, a group hospital service contract, or an
individual or group evidence of coverage or similar coverage document that
is offered by certain groups or companies. 

(b)  Provides that notwithstanding Section 172.014 (Application of Certain
Laws), Local Government Code, or any other law, this article applies to
health and accident coverage provided by a risk pool created under Chapter
172 (Texas Political Subdivisions Uniform Group Benefits Program), Local
Government Code. 

  (c)  Provides that this article does not apply to certain policies and
plans. 

Sec. 3.  COVERAGE REQUIRED.  (a)  Requires a health benefit plan, in
addition to any coverage a health benefit plan is required to provide under
Article 3.51-14 of this code, to provide each enrollee with coverage for
any medically necessary treatment, equipment, or therapy for the treatment
of autism or a pervasive developmental disorder. 

(b)  Requires that coverage provided under this article be provided in a
manner determined to be appropriate in consultation with the attending
physician and the enrollee. 

 Sec. 4.  DEDUCTIBLE, COPAYMENT, OR COINSURANCE REQUIREMENT PERMITTED;
DOLLAR LIMIT PROHIBITED.  (a)  Provides that coverage required by this
article may be subject to annual deductibles, copayments, or coinsurance
requirements that are consistent with annual deductibles, copayments, or
coinsurance requirements for other coverage provided under the health
benefit plan. 

(b)  Prohibits the coverage required by this article from being subject to
dollar limitations other than the health benefit plan's lifetime benefits. 

Sec. 5.  RULES.  Requires the commissioner to adopt rules as necessary to
administer this article. 

SECTION 2.  Effective date: September 1, 2001.
  Makes application of this Act prospective to January 1, 2002.