BILL ANALYSIS

 

 

Senate Research Center                                                                                                        S.B. 261

79R2071 AJA-F                                                                                                             By: Williams

                                                                                                                                       State Affairs

                                                                                                                                            2/18/2005

                                                                                                                                              As Filed

 

 

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

 

Under current law, the Texas Department of Insurance (TDI) is not required to provide public education on the value of health insurance coverage.  Currently, it is not clear whether TDI may accept donations from foundations and regulated entities.  According to the new United States Census Bureau report issued in August 2004, 45 million Americans lack health insurance.  The census report indicated that Texas leads the nation on the number of uninsured, with one in four Texans without health coverage.  Studies have shown that the fastest growing segment of uninsured has been middle- and upper-class families.  As proposed, S.B. 261 authorizes TDI to develop public service announcements and a new website to educate consumers about the availability of health coverage in Texas.  S.B. 261 directs TDI to provide public education, including health fairs and brochures, about the value of health insurance coverage.  This bill directs the Texas commissioner of insurance to appoint a working group to make recommendations on public service announcements (PSA), and authorizes TDI to accept donations from foundations and regulated entities and to issue a request for proposals to advertising firms for specific PSA services.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Subtitle B, Title 5, Insurance Code, as effective April 1, 2005, by adding Chapter 524, as follows:

 

CHAPTER 524. HEALTH COVERAGE AWARENESS AND EDUCATION PROGRAM

 

            Sec. 524.001. PROGRAM ESTABLISHED. Requires the Texas Department of Insurance             (department) to develop and implement a health coverage public awareness and    education program that complies with this chapter. Sets forth requirements for the   program.  Prohibits the program from endorsing or directing the public to a specific         issuer   of health coverage but authorizes it to include information on all health coverage          issuers authorized to offer health coverage in this state.

           

            Sec. 524.002. PUBLIC SERVICE ANNOUNCEMENTS. Requires the department to     develop and make public service announcements to educate consumers and employers             about the availability of health coverage in this state.

 

            Sec. 524.003. INTERNET WEBSITE; PUBLIC EDUCATION.  Requires the department           to develop an Internet website to educate the public about health coverage in this state            and authorizes the department to provide other appropriate education to the public      regarding the value of health coverage.

 

            Sec. 524.004. TASK FORCE.  Requires the commissioner of insurance (commissioner)     to appoint a task force to make recommendations regarding the health coverage public          awareness and education program.  Sets forth the representatives who compose the task         force.  Requires the department to consult the task force regarding the content of specific        publications. Authorizes the commissioner to make final decisions as to what the       program's materials will contain.

 

            Sec. 524.005.  FUNDING.  Authorizes the department to accept gifts and grants from any           party in addition to general appropriations to assist in funding the program.

 

SECTION 2.  Effective date: upon passage or September 1, 2005.