BILL ANALYSIS

H.B. 5402

By: Geren

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that legislation creating new health insurance mandates does not provide an accurate picture of the impact on the average Texan or business, and that legislative fiscal notes only take into account costs of certain government-funded programs, such as Medicaid, CHIP, the Employees Retirement System (ERS), and the Teacher Retirement System (TRS), as costs to individuals and Texas employers are not considered in the fiscal note process. The bill author has further informed the committee that many past sessions have seen the legislature enact new mandates for health insurance providers and that the burden of paying the costs of the mandate are then passed on to the consumer. Following the 87th Legislature, Texans saw a 13 percent increase in health insurance premiums, while most other states stayed static. Currently, 29 other states already have a fiscal note or impact statement process for determining how legislative proposals influence health care coverage costs. H.B. 5402 seeks to protect Texans from unnecessary health care cost increases and provide more information to legislators when evaluating the impact of health insurance mandates on their constituents and businesses by requiring the Legislative Budget Board to prepare a fiscal impact statement for each bill or joint resolution that requires a health benefit plan issuer to provide new health benefits, increase payments to health care providers, or implement new contractual or administrative requirements.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 5402 amends the Government Code to require the Legislative Budget Board to prepare a fiscal impact statement for each bill or joint resolution that requires a health benefit plan issuer to provide new health benefits, increase payments to health care providers, or implement new contractual or administrative requirements. The bill requires that statement to estimate the effect of the bill or joint resolution on health benefit plan issuer expenditures and on premiums and other costs paid by enrollees. The statement must be attached to the bill or joint resolution immediately following the applicable fiscal note required to be attached to the bill or joint resolution under applicable state law or immediately following another statement attached under statutory provisions relating to fiscal notes and cost projections for legislation.

H.B. 5402 defines the following terms:

· "enrollee" as an individual who is enrolled in a health benefit plan, including a covered dependent;

· "health benefit plan issuer" as an insurer, health maintenance organization, or other entity authorized to provide health benefits coverage under the laws of the state; and

· "health care provider" as a physician or other person who is licensed, certified, or otherwise authorized to provide a health care service in Texas.

H.B. 5402 applies only to a bill or joint resolution filed on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2025.