SRC-MWN S.B. 770 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 770
77R4734 AJA-DBy: Harris
Business & Commerce
3/25/2001
As Filed


DIGEST AND PURPOSE 

Currently, a dependent person eligible for health insurance coverage is
defined as an unmarried child who is a full-time student, under 23 years of
age and financially dependent on the parent. As proposed, S.B. 770 changes
the definition of "dependent" to mean a child who is under 25 years of age,
unmarried, and financially dependent on the parent. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

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

 Art. 21.53Y. AVAILABILITY OF COVERAGE FOR DEPENDENTS

 Sec. 1. DEFINITIONS. Defines "child" and "enrollee."

Sec. 2. APPLICABILITY OF ARTICLE. 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 entities. Provides that this article applies to a small employer
health benefit plan written under Chapter 26 of this code. Provides that
this article does not apply to a plan that provides coverage to certain
benefits, a Medicare supplemental policy as defined by Section 1882(g)(1),
Social Security Act (42 U.S.C. Section 1395ss), as amended; a workers
compensation insurance policy; medical payment insurance coverage provided
under a motor vehicle insurance policy; or a long-term care insurance
policy, including a nursing home fixed policy, unless the commissioner of
insurance (commissioner) determines that the policy is a health benefit
plan as described by Subsection (a) of this section. 

Sec. 3. COVERAGE REQUIRED. Requires a health benefit plan that offers
coverage for dependent children of an enrollee to make dependent coverage
available for a child of an enrollee who is under 25 years of age;
unmarried; and financially dependent on the parent. 

SECTION 2. Amends Section 2(5), Article 3.77, Insurance Code, to redefine
"dependent." 

SECTION 3. Amends Article 26.02(8), Insurance Code, to redefine
"dependent." Deletes text regarding a child under the age of 19. Deletes
text regarding a child who is a full-time student. 

SECTION 4. Repealer: Article 21.24-2 (Group Coverage of Certain Students),
Insurance Code. 

 SECTION 5. Effective date: September 1, 2001.
                      Makes application of this Act prospective to January
1, 2002.