BILL ANALYSIS

Senate Research Center	C.S.S.B. 896
89R13520 DNC-D	By: Blanco
	Health & Human Services
	3/19/2025
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

In Texas, new parents covered under multiple employer welfare arrangements, small employer
benefit plans, and large employer benefit plans have a limited window of 31 days to enroll their
newborn in their health insurance plan. Given the numerous responsibilities that come with
welcoming a new child, stakeholders have raised concerns about whether this timeframe provides adequate opportunity for parents to complete the enrollment process. By ensuring newborns are covered under their parents' health benefit plans for 60 days, C.S.S.B. 896 will give parents more time to enroll their newborn children into their health benefit plans.

C.S.S.B. 896 amends Sections 846.258(b), 1501.157(b), and 1501.607(b) of the Insurance Code,
extending the period for parents covered under multiple employer welfare arrangements
(MEWAs), small employer benefit plans, and large employer benefit plans to enroll their
newborns into their employer health benefit plan from 31 days after the child's birth date
to 60 days after that date.

H.B. 687 (88R), sponsored by Senator Blanco, passed the Senate Committee on Health and Human Services unanimously in 2023.

C.S.S.B. 896 will additionally require individual or group health benefit plans under
Chapter 1367, Insurance Code, to cover a newborn child for 60 days after the child's birth.

C.S.S.B. 896 amends current law relating to the enrollment period for newborns under certain health benefit plans.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 846.258(b), Insurance Code, as follows:

(b) Provides that coverage of a newborn child of a participating employee under Section 846.258 (Coverage for Newborn Children) ends on the 61st day, rather than the 32nd day, after the date of the child's birth unless not later than the 60th day, rather than the 31st day, after the date of birth, the arrangement receives certain information.

SECTION 2. Amends Section 1367.003, Insurance Code, as follows:

Sec. 1367.003. CERTAIN LIMITATIONS ON COVERAGE FOR NEWBORN CHILDREN PROHIBITED. Prohibits a health benefit plan that provides maternity benefits or accident and health coverage for additional newborn children from being issued in this state if the plan excludes or limits initial coverage of a newborn child before the 61st day after the date of the child's birth, rather than initial coverage of a new born for a period of time.

SECTION 3. Amends Section 1501.157(b), Insurance Code, as follows:

(b) Provides that coverage of a newborn child of a covered employee under Section 1501.157 (Coverage for Newborn Children) ends on the 61st day, rather than the 32nd day, after the date of the child's birth unless, not later than the 60th day, rather than the 31st day, after the date of birth, the small employer health benefit plan issuer receives certain information.

SECTION 4. Amends Section 1501.607(b), Insurance Code, as follows:

(b) Provides that coverage of a newborn child of a covered employee under Section 1501.607 (Coverage for Newborn Children) ends on the 61st day, rather than the 32nd day, after the date of the child's birth unless not later than the 60th day, rather than the 31st day, after the date of birth, the large employer health benefit plan issuer receives certain information.

SECTION 5. Makes application of this Act prospective to January 1, 2026.

SECTION 6. Effective date: September 1, 2025.