By:  Hochberg                                                     H.B. No. 619



A BILL TO BE ENTITLED

AN ACT

relating to prohibiting the refusal to insure an individual's 
eligible dependent child solely because the individual has been 
denied or is not enrolled under that policy; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle A, Title 8, Insurance Code is amended by 
adding Chapter 1211 to read as follows:
	Chapter 1211 REFUSAL TO INSURE AN INDIVIDUAL'S ELIGIBLE 
DEPENDENT CHILD SOLELY BECAUSE THE OTHERWISE ELIGIBLE INDIVIDUAL 
HAS BEEN DENIED OR IS NOT ENROLLED UNDER THAT POLICY PROHIBITED.
	1211.001 DEFINITION OF DEPENDENT CHILD.  In this chapter, 
"dependent child" means:
		(1)  unmarried child younger than 25 years of age, 
including:        
			(A)  a full-time student younger than 25 years of 
age who is financially dependent on the parent;
			(B)  18 years of age or older and is an individual 
for whom a person may be obligated to pay child support; or
			(C)  disabled and dependent on the parent 
regardless of the age of the child.
	1211.002 APPLICABILITY OF CHAPTER.  (a)  This chapter applies 
to an individual health insurance policy that provides benefits for 
medical care under a hospital, medical or surgical policy.
	(b)  This chapter includes a plan that provides coverage 
only:        
		(1)  for a specified disease or for another limited 
benefit;         
		(2)  for accidental death or dismemberment;                            
		(3)  for dental or vision care; or                                     
		(4)  for hospital expenses.                                            
	(c)  This chapter does not apply to a plan that provides 
coverage:    
		(1)  for wages or payments in lieu of wages for a period 
during which an employee is absent from work because of sickness or 
injury;
		(2)  as a supplement to a liability insurance policy;                  
		(3) for credit insurance;                                              
		(4) for a long term care insurance policy, including a 
nursing home fixed indemnity policy;
		(5)  only for indemnity for hospital confinement; or                   
		(6)  in accordance with Title XXI of the Social 
Security Act (42 U.S.C. Section 1397aa et seq.) including:
			(A)  a Medicare supplemental policy as defined by 
Section 1882 (g)(1), Social Security Act (42 U.S.C. Section 
1395ss), as amended;
			(B)  a worker's compensation insurance policy; or                     
			(C)  a medical payment insurance coverage 
provided under a motor vehicle insurance policy.
	Sec. 1211.003.  PROHIBITION.  An issuer may not refuse to 
issue a policy covering an individual's otherwise eligible 
dependent child solely because that individual has been denied or 
is not enrolled under that policy.
	Sec. 1211.004.  VIOLATION.  A health benefit plan issuer who 
violates this chapter engages in unfair discrimination under 
Subchapter B, Chapter 544.
	Section 2.  The changes in laws made by this Act apply only 
to an insurance policy delivered, issued for delivery, or renewed 
on or after January 1, 2006.  An insurance policy delivered, issued 
for delivery, or renewed before January 1, 2006 is governed by the 
law in effect immediately before that effective date of this Act and 
that law is continued in effect for that purpose.
	Section 3.  The Act takes effect September 1, 2005.