BILL ANALYSIS

S.B. 896

By: Blanco

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that a constituent has raised concerns that in Texas, new parents only have 31 days to enroll their newborn in their insurance plan, which is simply not enough time given the many new responsibilities parenthood holds. S.B. 896 seeks to address this issue by extending the period for parents to enroll their newborn in their insurance plan.

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

S.B. 896 amends the Insurance Code to extend the amount of time that a participating or covered employee under a multiple employer welfare arrangement plan, small employer health benefit plan, or large employer health benefit plan has to enroll their newborn child in the plan by doing the following:

· changing the deadline for providing the plan issuer with notice of the child's birth and any required additional premium from the 31st day after the date of the child's birth to the 60th day after that date; and

· changing the date on which initial coverage of the child ends if the notice and premium are not provided from the 32nd day after the date of the child's birth to the 61st day after that date.

S.B. 896, with respect to the prohibition against a health benefit plan that provides maternity benefits or accident and health coverage for additional newborn children being issued in Texas if the plan excludes or limits, among other coverage, initial coverage of a newborn child for a period of time, specifies instead that such excluded or limited coverage is the initial coverage of a newborn child before the 61st day after the date of the child's birth.

S.B. 896 establishes that the bill's provisions apply only to a health benefit plan that is delivered, issued for delivery, or renewed on or after January 1, 2026. A health benefit plan that is delivered, issued for delivery, or renewed before that date is governed by the law as it existed immediately before the bill's effective date, and that law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.