LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 16, 2001
  
  
          TO:  Honorable John T. Smithee, Chair, House Committee on
               Insurance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB760  by Coleman (Relating to health benefit plan
               coverage for certain physical injuries that are
               self-inflicted by a minor.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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Local Government Impact
  
The bill would require political subdivisions to provide health insurance
coverage for medical or surgical expenses to enrollees in the plan
between the ages of birth to 18 years for physical injury that is
self-inflicted by the enrollee. The coverage would be required regardless
if the existing health plan covers mental health or not. The bill would
take effect September 1, 2001.

The Texas Municipal League reported that if a major incident of this
nature were to occur, the impact on the overall risk pool would be for
all premiums to be increased.  The municipalities pay for the employees'
premiums, while employees pay premiums for family members.  All premiums
would be expected to increase, which would be significant for the
political subdivision.

The Texas Association of Counties estimates that health insurance
premiums would increase by approximately 2 percent and would apply to the
policy holder.

Depending on whether or not and to what degree a political subdivision
pays a portion of its employees' insurance premiums, the subdivisions
would experience a negative impact of up to an estimated 2 percent of
the premiums currently paid by the subdivision, which would be
significant.
  
  
Source Agencies:   454   Texas Department of Insurance, 327   Employees
                   Retirement System, 701   Texas Education Agency, 781
                   Texas Higher Education Coordinating Board, 323
                   Teacher Retirement System
LBB Staff:         JK, JO, DE, DB