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79R15369 AJA-D


By:  Farabee, Taylor, Nixon, Rose, et al.                         H.B. No. 368

Substitute the following for H.B. No. 368:                                    

By:  Taylor                                                   C.S.H.B. No. 368



A BILL TO BE ENTITLED

AN ACT

relating to health benefit plan coverage for certain mental 
disorders.      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 1355.001(1), Insurance Code, as 
effective April 1, 2005, is amended to read as follows:
		(1)  "Serious mental illness" means the following 
psychiatric illnesses as defined by the American Psychiatric 
Association in the Diagnostic and Statistical Manual (DSM):
			(A)  bipolar disorders (hypomanic, manic, 
depressive, and mixed);          
			(B)  depression in childhood and adolescence;                                
			(C)  major depressive disorders (single episode 
or recurrent);             
			(D)  obsessive-compulsive disorders;                                         
			(E)  paranoid and other psychotic disorders;                                 
			(F)  pervasive developmental disorders;                                      
			(G)  schizo-affective disorders (bipolar or 
depressive); [and]
			(H)  schizophrenia; and                                               
			(I)  anorexia nervosa and bulimia nervosa.                            
	SECTION 2.  Section 1355.007, Insurance Code, as effective 
April 1, 2005, is amended to read as follows:
	Sec. 1355.007.  SMALL EMPLOYER COVERAGE.  (a) An issuer of a 
group health benefit plan to a small employer must offer the 
coverage described by Section 1355.004 to the employer but is not 
required to provide the coverage if the employer rejects the 
coverage.
	(b)  Regardless of whether a small employer accepts the 
coverage required by Subsection (a), an issuer of a group health 
benefit plan to a small employer must provide the coverage required 
by Section 1355.004 for persons under the age of 19 years for the 
following psychiatric illnesses as defined by the American 
Psychiatric Association in the Diagnostic and Statistical Manual 
(DSM):
		(1)  depression in childhood and adolescence;                          
		(2)  pervasive developmental disorders; and                            
		(3)  anorexia nervosa and bulimia nervosa.                             
	SECTION 3.  (a)  On or before September 1, 2010, the Sunset 
Advisory Commission shall conduct a study to determine:
		(1)  to what extent the health benefit plan coverage 
required by the change in law made by this Act to Chapter 1355, 
Insurance Code, is being used by enrollees in health benefit plans 
to which those articles apply; and
		(2)  the impact of the required coverage on the cost of 
those health benefit plans.
	(b)  The Sunset Advisory Commission shall report its 
findings under this section to the legislature on or before January 
1, 2011.
	(c)  The Texas Department of Insurance and any other state 
agency shall cooperate with the Sunset Advisory Commission as 
necessary to implement this section.
	SECTION 4.  This Act applies only to a health benefit plan 
delivered, issued for delivery, or renewed on or after January 1, 
2006.  A health benefit plan delivered, issued for delivery, or 
renewed before January 1, 2006, is governed by the law as it existed 
immediately before the effective date of this Act, and that law is 
continued in effect for that purpose.
	SECTION 5.  This Act takes effect September 1, 2005.