By Kitchen, Hopson, Naishtat, Hawley,                  H.B. No. 835
         77R8902 JAT-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the study of a buy-in option for the state child health
 1-3     plan.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  (a)  In this section, "commission" means the
 1-6     Health and Human Services Commission.
 1-7           (b)  The commission shall conduct a study to determine the
 1-8     feasibility of a buy-in option to allow families without access to
 1-9     health benefits coverage to purchase health benefits coverage for
1-10     all family members under the state child health plan under Chapter
1-11     62, Health and Safety Code.
1-12           (c)  To determine the feasibility of the buy-in option, the
1-13     commission shall examine:
1-14                 (1)  the fiscal impact on the state of a buy-in option;
1-15                 (2)  the fiscal impact on families that would choose to
1-16     participate in the plan through a buy-in option;
1-17                 (3)  the cost of a comparable health benefits plan in
1-18     the current market;
1-19                 (4)  the need for a buy-in option, by determining:
1-20                       (A)  the number of families that would likely
1-21     choose to participate in the plan through a buy-in option; and
1-22                       (B)  whether families that are not covered by a
1-23     health benefits plan and that would participate in the program
1-24     through a buy-in option could be covered in the private market;
1-25                 (5)  the role of private insurance agents in enrollment
 2-1     in the plan through the buy-in option;
 2-2                 (6)  the possible effects that a buy-in option to the
 2-3     plan would have on the private market for health benefits plan
 2-4     coverage;
 2-5                 (7)  the options for the system of delivery for plan
 2-6     benefits; and
 2-7                 (8)  the options for obtaining federal matching funds
 2-8     for the program, including the use of local government funds.
 2-9           (d)  In conducting the study the commission shall consult
2-10     consumer groups interested in the private market for health
2-11     benefits plan coverage and members of the issuers of health
2-12     benefits plan coverage in the private market, including agents and
2-13     actuaries.  The commission may consult other groups in conducting
2-14     the study.
2-15           (e)  Not later than November 1, 2002, the commission shall
2-16     submit to the governor, lieutenant governor, and speaker of the
2-17     house of representatives a written report containing the findings
2-18     of the study.
2-19           SECTION 2.  This Act takes effect immediately if it receives
2-20     a vote of two-thirds of all the members elected to each house, as
2-21     provided by Section 39, Article III, Texas Constitution.  If this
2-22     Act does not receive the vote necessary for immediate effect, this
2-23     Act takes effect September 1, 2001.