1-1                                   AN ACT
 1-2     relating to coverage for tests for the detection of colorectal
 1-3     cancer under certain health benefit plans.
 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 21.53S to read as follows:
 1-7           Art. 21.53S.  COVERAGE OF CERTAIN TESTS FOR DETECTION OF
 1-8     COLORECTAL CANCER
 1-9           Sec. 1.  DEFINITION.  In this article, "health benefit plan"
1-10     means a plan described by Section 2 of this article.
1-11           Sec. 2.  SCOPE OF ARTICLE.  (a)  This article applies to a
1-12     health benefit plan that:
1-13                 (1)  provides benefits for medical or surgical expenses
1-14     incurred as a result of a health condition, accident, or sickness,
1-15     including:
1-16                       (A)  an individual, group, blanket, or franchise
1-17     insurance policy or insurance agreement, a group hospital service
1-18     contract, or an individual or group evidence of coverage that is
1-19     offered by:
1-20                             (i)  an insurance company;
1-21                             (ii)  a group hospital service corporation
1-22     operating under Chapter 20 of this code;
1-23                             (iii)  a fraternal benefit society
1-24     operating under Chapter 10 of this code;
1-25                             (iv)  a Lloyd's plan operating under
 2-1     Chapter 18 of this code;
 2-2                             (v)  a stipulated premium insurance company
 2-3     operating under Chapter 22 of this code; or
 2-4                             (vi)  a health maintenance organization
 2-5     operating under the Texas Health Maintenance Organization Act
 2-6     (Chapter 20A, Vernon's Texas Insurance Code); and
 2-7                       (B)  to the extent permitted by the Employee
 2-8     Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et
 2-9     seq.), a health benefit plan that is offered by:
2-10                             (i)  a multiple employer welfare
2-11     arrangement as defined by Section 3, Employee Retirement Income
2-12     Security Act of 1974 (29 U.S.C. Section 1002); or
2-13                             (ii)  another analogous benefit
2-14     arrangement;
2-15                 (2)  is offered by an approved nonprofit health
2-16     corporation that is certified under Section 162.001, Occupations
2-17     Code, and that holds a certificate of authority issued by the
2-18     commissioner under Article 21.52F of this code; or
2-19                 (3)  notwithstanding Section 172.014, Local Government
2-20     Code, or any other law, provides health and accident coverage
2-21     through a risk pool created under Chapter 172, Local Government
2-22     Code.
2-23           (b)  This article does not apply to:
2-24                 (1)  a plan that provides coverage:
2-25                       (A)  only for a specified disease or other
2-26     limited benefit;
 3-1                       (B)  only for accidental death or dismemberment;
 3-2                       (C)  for wages or payments in lieu of wages for a
 3-3     period during which an employee is absent from work because of
 3-4     sickness or injury;
 3-5                       (D)  as a supplement to liability insurance; or
 3-6                       (E)  only for indemnity for hospital confinement;
 3-7                 (2)  a small employer plan written under Chapter 26 of
 3-8     this code;
 3-9                 (3)  a Medicare supplemental policy as defined by
3-10     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss),
3-11     as amended;
3-12                 (4)  workers' compensation insurance coverage;
3-13                 (5)  medical payment insurance issued as part of a
3-14     motor vehicle insurance policy; or
3-15                 (6)  a long-term care policy, including a nursing home
3-16     fixed indemnity policy, unless the commissioner determines that the
3-17     policy provides benefit coverage so comprehensive that the policy
3-18     is a health benefit plan as described by Subsection (a) of this
3-19     section.
3-20           Sec. 3.  REQUIRED COVERAGE FOR CERTAIN TESTS FOR THE
3-21     DETECTION OF COLORECTAL CANCER.  (a)  A health benefit plan that
3-22     provides benefits for screening medical procedures must provide
3-23     coverage for each person enrolled in the plan who is 50 years of
3-24     age or older and at normal risk for developing colon cancer for
3-25     expenses incurred in conducting a medically recognized screening
3-26     examination for the detection of colorectal cancer.
 4-1           (b)  The minimum benefits provided under Subsection (a) of
 4-2     this section must:
 4-3                 (1)  include:
 4-4                       (A)  a fecal occult blood test performed
 4-5     annually; and
 4-6                       (B)  a flexible sigmoidoscopy performed every
 4-7     five years; or
 4-8                 (2)  include a colonoscopy performed every 10 years.
 4-9           Sec. 4.  NOTICE.  Each health benefit plan shall provide
4-10     written notice to each person enrolled in the plan regarding the
4-11     coverage required by this article.  The notice must be provided in
4-12     accordance with rules adopted by the commissioner.
4-13           Sec. 5.  RULES.  The commissioner shall adopt rules as
4-14     necessary to administer this article.
4-15           SECTION 2.  This Act takes effect September 1, 2001, and
4-16     applies only to a health benefit plan that is delivered, issued for
4-17     delivery, or renewed on or after January 1, 2002.  A plan that is
4-18     delivered, issued for delivery, or renewed before January 1, 2002,
4-19     is governed by the law as it existed immediately before the
4-20     effective date of this Act, and that law is continued in effect for
4-21     that purpose.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1467 passed the Senate on
         May 1, 2001, by a viva-voce vote; and that the Senate concurred in
         House amendment on May 24, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1467 passed the House, with
         amendment, on May 18, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor