SRC-BWC S.B. 990 77(R)BILL ANALYSIS


Senate Research CenterS.B. 990
By: Sibley
Business & Commerce
5/30/2001
Enrolled


DIGEST AND PURPOSE 

Currently, there are provisions in Chapter 26 of the Insurance Code,
governing small and large employer health benefit plans, and in Article
21.53F of the Insurance Code, relating to coverage for minimum inpatient
stay in a health care facility following the birth of a child, that do not
comply with the Health Insurance Portability and Accountability Act
(HIPAA).  S.B. 990 makes the necessary statutory changes to conform to
federal law and to avoid preemption of state law under HIPAA. 

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 Subdivisions (10) through (32), Article 26.02, Insurance
Code, as follows: Adds a definition for "employee."  Redefines "late
enrollee" to provide that among those who are not late enrollees is a child
of a covered employee who has lost coverage under Title XIX of the Social
Security Act (42 U.S.C. Section 1396 et seq.) or under Chapter 62 (Child
Health Plan for Certain Low-Income Children), Health and Safety Code, and
the request is made within 31 days.   Makes conforming and nonsubstantive
changes. 

SECTION 2.  Amends Subsection (a), Article 26.035, Insurance Code, to add
to the reasons for which an individual's coverage is creditable.   Makes
nonsubstantive changes. 

SECTION 3.  Amends Subsections (a) and (b), Article 26.06, Insurance Code,
to add to the reasons for which certain benefit plans are subject to
Subchapters C-G of this chapter.  Makes nonsubstantive changes.   

SECTION 4.  Amends Subsections (b) and (e), Article 26.22, Insurance Code,
to prohibit a small employer carrier that refuses to issue a small employer
health benefit plan in a geographic service area from offering a health
benefit plan to a small employer, rather than group of not more than 50
individuals, in the affected service area before  the fifth anniversary of
the date of the refusal.  Makes nonsubstantive changes. 

SECTION 5.  Amends Subsections (b) and (c), Article 26.23, Insurance Code,
to authorize a small employer carrier to refuse to renew the coverage of a
covered, rather than an eligible, employee or dependent for fraud or
intentional misrepresentation of a material fact by that individual.  Makes
a conforming change. 

SECTION 6.  Amends Subsection (a), Article 26.81, Insurance Code, to make
conforming and nonsubstantive changes. 

SECTION 7.  Amends Section 3(b), Article 21.53F, Insurance Code, as added
by Chapter 832, Acts of the 75th Legislature, Regular Session, 1997, to
delete text regarding a small employer health benefit  plan to which this
Article does not apply.  Makes nonsubstantive changes.   

SECTION 8.  Effective date:  September 1, 2001.
                       Makes application of this Act prospective to January
1, 2002.