| TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1558 by Coleman (Relating to coverage of anorexia and bulimia as serious mental illnesses under certain group health benefit plans.), As Introduced |
The bill would require certain group health benefit plans to provide coverage of anorexia and bulimia as serious mental illnesses. The bill would require the Sunset Advisory Commission to conduct a study, on or before September 1, 2008, of the extent of use and the impact on the cost of health benefit plans of coverage for anorexia and bulimia and report the findings to the legislature on or before January 1, 2009. The Sunset Advisory Commission estimates the study would require the equivalent of one-month effort by a Policy Analyst II. The Commission estimates salary and associated cost for this effort would be approximately $4,000 and could be absorbed within current resources.
The Employees Retirement System indicates that any costs associated with the bill could be absorbed within current resources.
The Texas Department of Insurance (TDI) indicates it would need to add a review element to current Evidence Of Coverage (EOC) review checklist and it might receive form filings such as new policies and/or policy compliance amendments for previously-approved form filings. It may also receive complaints from health benefit plan enrollees or dependents who have anorexia or bulimia and receive denials for proposed treatment. Additionally, it would need to collect additional data under mandated benefit reporting requirements to provide to the Sunset Advisory Commission (SAC), and assist SAC in the evaluation of the impact of the benefit on the cost of insurance. TDI indicates it could absorb any costs associated with the bill within current resources.
| Source Agencies: | 116 Sunset Advisory Commission, 327 Employees Retirement System, 454 Department of Insurance
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| LBB Staff: | JK, JRO, RT, RB
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