79R2264 PB-D

By:  Lucio                                                        S.B. No. 208


A BILL TO BE ENTITLED
AN ACT
relating to health benefit plan coverage for an enrollee with certain mental disorders, including autism or another pervasive developmental disorder. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 1355, Insurance Code, as effective April 1, 2005, is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. INDIVIDUAL HEALTH BENEFIT PLAN COVERAGE FOR ENROLLEE WITH AUTISM OR PERVASIVE DEVELOPMENTAL DISORDER
Sec. 1355.251. DEFINITION. In this subchapter, "enrollee" means an individual who is enrolled in a health benefit plan, including a covered dependent. Sec. 1355.252. APPLICABILITY OF SUBCHAPTER. (a) This subchapter applies only to an individual health benefit plan that provides benefits for medical or surgical expenses incurred as a result of a health condition, accident, or sickness, including an individual insurance policy or insurance agreement, an individual evidence of coverage, or similar coverage document that is offered by: (1) an insurance company; (2) a group hospital service corporation operating under Chapter 842; (3) a fraternal benefit society operating under Chapter 885; (4) a stipulated premium insurance company operating under Chapter 884; (5) a reciprocal exchange operating under Chapter 942; (6) a Lloyd's plan operating under Chapter 941; (7) a health maintenance organization operating under Chapter 843; (8) a multiple employer welfare arrangement that holds a certificate of authority under Chapter 846; or (9) an approved nonprofit health corporation that holds a certificate of authority under Chapter 844. (b) Notwithstanding Section 172.014, Local Government Code, or any other law, this subchapter applies to health and accident coverage provided by a risk pool created under Chapter 172, Local Government Code. Sec. 1355.253. EXCEPTION. This subchapter does not apply to: (1) a plan that provides coverage: (A) only for benefits for a specified disease or for another limited benefit, other than a plan that provides benefits for mental health or similar services; (B) only for accidental death or dismemberment; (C) for wages or payments in lieu of wages for a period during which an employee is absent from work because of sickness or injury; (D) as a supplement to a liability insurance policy; (E) only for dental or vision care; or (F) only for indemnity for hospital confinement; (2) a small employer health benefit plan written under Chapter 1501; (3) a Medicare supplemental policy as defined by Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss); (4) a workers' compensation insurance policy; (5) medical payment insurance coverage provided under an automobile insurance policy; or (6) a long-term care insurance policy, including a nursing home fixed indemnity policy, unless the commissioner determines that the policy provides benefit coverage so comprehensive that the policy is a health benefit plan as described by Section 1355.252. Sec. 1355.254. EXCLUSION OF COVERAGE AND DENIAL OF BENEFITS PROHIBITED. A health benefit plan may not exclude coverage or deny benefits otherwise available to an enrollee for treatment, equipment, or therapy based on the enrollee's having autism or a pervasive developmental disorder. Sec. 1355.255. RULES. The commissioner shall adopt rules as necessary to administer this subchapter. SECTION 2. 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, including autism; (G) schizo-affective disorders (bipolar or depressive); and (H) schizophrenia. SECTION 3. Section 1355.002, Insurance Code, as effective April 1, 2005, is amended to read as follows: Sec. 1355.002. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to a group health benefit plan that provides benefits for medical or surgical expenses incurred as a result of a health condition, accident, or sickness, including: (1) a group, blanket, or franchise insurance policy, group insurance agreement, group hospital service contract, or group evidence of coverage that is offered by: (A) an insurance company; (B) a group hospital service corporation operating under Chapter 842; (C) a fraternal benefit society operating under Chapter 885; (D) a stipulated premium company operating under Chapter 884; [or] (E) a health maintenance organization operating under Chapter 843; (F) a reciprocal exchange operating under Chapter 942; (G) a Lloyd's plan operating under Chapter 941; or (H) an approved nonprofit health corporation that holds a certificate of authority under Chapter 844; and (2) to the extent permitted by the Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.), a plan offered under: (A) a multiple employer welfare arrangement that holds a certificate of authority under Chapter 846 [as defined by Section 3 of that Act]; or (B) another analogous benefit arrangement. SECTION 4. Section 1355.003(a), Insurance Code, as effective April 1, 2005, is amended to read as follows: (a) This subchapter does not apply to coverage under: (1) [a blanket accident and health insurance policy, as described by Chapter 1251; [(2)] a short-term travel policy; (2) [(3)] an accident-only policy; (3) [(4)] a limited or specified-disease policy that does not provide benefits for mental health care or similar services; (4) [(5)] except as provided by Subsection (b), a plan offered under Chapter 1551 or Chapter 1601; (5) [(6)] a plan offered in accordance with Section 1355.151; or (6) [(7)] a Medicare supplement benefit plan, as defined by Section 1652.002. SECTION 5. Section 1355.004(a), Insurance Code, as effective April 1, 2005, is amended to read as follows: (a) A group health benefit plan: (1) must provide coverage, based on medical necessity, for not less than the following treatments of serious mental illness in each calendar year: (A) 45 days of inpatient treatment; and (B) 60 visits for outpatient treatment, including group and individual outpatient treatment; (2) may not include a lifetime limitation on the number of days of inpatient treatment or the number of visits for outpatient treatment covered under the plan; [and] (3) must include equipment and therapy in the coverage of treatment of pervasive developmental disorders; and (4) must include the same amount limitations, deductibles, copayments, and coinsurance factors for serious mental illness as the plan includes for physical illness. SECTION 6. Subchapter A, Chapter 1355, Insurance Code, as effective April 1, 2005, is amended by adding Section 1355.008 to read as follows: Sec. 1355.008. RULES. The commissioner shall adopt rules as necessary to administer this subchapter. SECTION 7. The change in law made by 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 8. This Act takes effect September 1, 2005.