HBA-ATS H.B. 1586 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1586
By: Naishtat
Insurance
2/26/1999
Introduced



BACKGROUND AND PURPOSE 

Under Texas law, a long-term care insurance policy is defined as a policy
issued by a health maintenance organization (HMO) that provides a daily
benefit to cover the costs of long-term care for a person who needs medical
or personal care services in a setting other than an acute care unit of  a
hospital, such as a nursing home or a patient's own home.  Responsibility
has been delegated to the State Board of Insurance to establish specific
standards for provisions of long-term care insurance.   Because long-term
care coverage is relatively new, industry-wide standards regarding policy
language have yet to materialize.  Currently, there are no standards
relating to the coverage by long-term care insurance policies of the
parents of an insured or the parents of the spouse of an insured. 

H.B. 1586 includes coverage of the parents of an insured and the parents of
the insured's spouse in the list of provisions required to be covered by
standards established by the State Board of Insurance regarding long-term
care insurance policies.  This bill also requires the State Board of
Insurance to establish these standards by March 1, 2000. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 3(b), Article 3.70-12, Insurance Code, to
include coverage of parents of the insured and parents of the spouse of the
insured in the list of provisions required to be covered by the standards
established by the State Board of Insurance for provisions of long-term
care insurance policies and for full and fair disclosure setting forth the
manner, content, and required disclosures for the marketing and sale of
long-term care insurance policies.  Redesignates existing Subdivisions
(5)-(14) to Subdivisions (6)-(15). 

SECTION 2.  (a) Effective date: September 1, 1999.

(b) Requires the commissioner of insurance to establish the standards
required under Section 3, Article 3.70-12 (Minimum Standards for Long-Term
Care Insurance Policies), Insurance Code, by March 1, 2000. 

(c) Makes application of this Act prospective for a policy that is
delivered, issued for delivery, or renewed on or after April 1, 2000. 

SECTION 3.  Emergency clause.