By Lucio                                               S.B. No. 427
         77R3810 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to health benefit plan coverage for the treatment of
 1-3     autism and pervasive developmental disorders.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
 1-6     amended by adding Article 21.53X to read as follows:
 1-7           Art. 21.53X.  INDIVIDUAL OR GROUP HEALTH BENEFIT PLAN
 1-8     COVERAGE FOR AUTISM AND PERVASIVE DEVELOPMENTAL DISORDERS
 1-9           Sec. 1.  DEFINITION.  In this article, "enrollee" means a
1-10     person entitled to coverage under a health benefit plan.
1-11           Sec. 2.  APPLICABILITY OF ARTICLE.   (a)  This article
1-12     applies only to a health benefit plan that provides benefits for
1-13     medical or surgical expenses incurred as a result of a health
1-14     condition, accident, or sickness, including an individual, group,
1-15     blanket, or franchise insurance policy or insurance agreement, a
1-16     group hospital service contract, or an individual or group evidence
1-17     of coverage or similar coverage document that is offered by:
1-18                 (1)  an insurance company;
1-19                 (2)  a group hospital service corporation operating
1-20     under Chapter 20 of this code;
1-21                 (3)  a fraternal benefit society operating under
1-22     Chapter 10 of this code;
1-23                 (4)  a stipulated premium insurance company operating
1-24     under Chapter 22 of this code;
 2-1                 (5)  a reciprocal exchange operating under Chapter 19
 2-2     of this code;
 2-3                 (6)  a health maintenance organization operating under
 2-4     the Texas Health Maintenance Organization Act (Chapter 20A,
 2-5     Vernon's Texas Insurance Code);
 2-6                 (7)  a multiple employer welfare arrangement that holds
 2-7     a certificate of authority under Article 3.95-2 of this code; or
 2-8                 (8)  an approved nonprofit health corporation that
 2-9     holds a certificate of authority under Article 21.52F of this code.
2-10           (b)  Notwithstanding Section 172.014, Local Government Code,
2-11     or any other law, this article applies to health and accident
2-12     coverage provided by a risk pool created under Chapter 172, Local
2-13     Government Code.
2-14           (c)  This article does not apply to:
2-15                 (1)  a plan that provides coverage:
2-16                       (A)  only for benefits for a specified disease or
2-17     for another limited benefit;
2-18                       (B)  only for accidental death or dismemberment;
2-19                       (C)  for wages or payments in lieu of wages for a
2-20     period during which an employee is absent from work because of
2-21     sickness or injury;
2-22                       (D)  as a supplement to a liability insurance
2-23     policy;
2-24                       (E)  only for dental or vision care; or
2-25                       (F)  only for indemnity for hospital confinement;
2-26                 (2)  a small employer health benefit plan written under
2-27     Chapter 26 of this code;
 3-1                 (3)  a Medicare supplemental policy as defined by
 3-2     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss),
 3-3     as amended;
 3-4                 (4)  a workers' compensation insurance policy;
 3-5                 (5)  medical payment insurance coverage provided under
 3-6     a motor vehicle insurance policy; or
 3-7                 (6)  a long-term care insurance policy, including a
 3-8     nursing home fixed indemnity policy, unless the commissioner
 3-9     determines that the policy provides benefit coverage so
3-10     comprehensive that the policy is a health benefit plan as described
3-11     by Subsection (a) of this section.
3-12           Sec. 3.  COVERAGE REQUIRED.  (a)  In addition to any coverage
3-13     a health benefit plan is required to provide under Article 3.51-14
3-14     of this code, a health benefit plan must provide each enrollee with
3-15     coverage for any medically necessary treatment, equipment, or
3-16     therapy for the treatment of autism or a pervasive developmental
3-17     disorder.
3-18           (b)  Coverage provided under this article shall be provided
3-19     in a manner determined to be appropriate in consultation with the
3-20     attending physician and the enrollee.
3-21           Sec. 4.  DEDUCTIBLE, COPAYMENT, OR COINSURANCE REQUIREMENT
3-22     PERMITTED; DOLLAR LIMIT PROHIBITED. (a)  Coverage required by this
3-23     article may be subject to annual deductibles, copayments, or
3-24     coinsurance requirements that are consistent with annual
3-25     deductibles, copayments, or coinsurance requirements for other
3-26     coverage provided under the health benefit plan.
3-27           (b)  The coverage required by this article may not be subject
 4-1     to dollar limitations other than the health benefit plan's lifetime
 4-2     maximum benefits.
 4-3           Sec. 5.  RULES.  The commissioner shall adopt rules as
 4-4     necessary to administer this article.
 4-5           SECTION 2. This Act takes effect September 1, 2001, and
 4-6     applies only to a health benefit plan delivered, issued for
 4-7     delivery, or renewed on or after January 1, 2002.  A health benefit
 4-8     plan delivered, issued for delivery, or renewed before January 1,
 4-9     2002, is governed by the law as it existed immediately before the
4-10     effective date of this Act, and that law is continued in effect for
4-11     that purpose.