HBA-JEK S.B. 990 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 990
By: Sibley
Insurance
4/22/2001
Engrossed



BACKGROUND AND PURPOSE 

Some of the state statutes regarding small and large employer health
benefit plans do not comply with the federal Health Insurance Portability
and Accountability Act of 1996.  Senate Bill 990 conforms with federal law
by modifying provisions of Texas' Health Insurance Portability and
Availability Act and provisions relating to coverage for a minimum
inpatient stay following the birth of a child. 

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

Senate Bill 990 amends the Insurance Code to provide that an individual who
is a child of a covered employee who has lost coverage under the Social
Security Act or the child health plan for certain lowincome children is not
a late enrollee for a small or large employer's health benefit plan if the
request for enrollment is made not later than the 31st day after the date
on which the child loses coverage (SECTION 1, Art. 26.02).  The bill
provides that an individual's short term limited duration coverage is
creditable under the Health Insurance Portability and Availability Act.
(SECTION 2, Art. 26.035).   

S.B. 990 specifies that an employee welfare benefit plan is subject to
provisions regarding small employer health benefit plans if it provides
health care benefits covering two or more eligible employees of a small
employer (SECTION 3, Art. 26.06).  An employee welfare benefit plan is
subject to provisions regarding large employer health benefit plans if the
plan provides health care benefits to eligible employees of a large
employer (SECTION 6, Art. 26.81).  The bill provides that the requirements
for minimum inpatient stay in a health care facility and post delivery care
following the birth of a child apply to small employer health benefit plans
(SECTION 7, Sec. 3, Art. 21.53F). 

EFFECTIVE DATE

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