HBA-NIK C.S.H.B. 1650 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1650
By: Coleman
Insurance
4/24/1999
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Currently, the majority of health insurance policies provided in Texas
exclude coverage for injuries or sickness resulting from attempted suicide
or intentionally self-inflicted injury.  C.S.H.B. 1650 prohibits insurance
companies from excluding coverage of self-inflicted wounds when minors are
involved.  Insurance companies would be required to cover all
self-inflicted wounds that occur in either a suicide attempt or as a result
of a serious mental illness involving a minor. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of insurance in
SECTION 1 (Article 21.53P, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter E, Chapter 21, Insurance Code, by adding
Article 21.53P, as follows: 

Art. 21.53P. COVERAGE FOR CERTAIN SELF-INFLICTED PHYSICAL INJURIES BY MINORS

Sec. 1. DEFINITIONS.  Defines "enrollee," "health benefit plan," and
"serious mental illness." 

Sec. 2.  SCOPE OF ARTICLE. (a) Provides that this article applies only to a
health benefit plan (plan) that provides benefits for medical or surgical
expenses for an individual or group insurance policy that is offered by
specified providers. 

(b) Sets forth the plans, insurance, and policies to which this article
does not apply. 

Sec. 3.  COVERAGE REQUIRED.  Requires a plan, regardless of whether it
provides mental health coverage, to cover an enrollee for any
self-inflicted physical injury through age 18 in an attempt to commit
suicide, regardless of the state of the enrollee's mental health or whether
injury results in death of the enrollee. 

Sec. 4.  DEDUCTIBLE, COINSURANCE, AND  COPAYMENT REQUIREMENTS. Prohibits
the benefits required under this article from being made subject to a
deductible, coinsurance, or copayment requirement (requirements) that
exceeds requirements applicable to other physical injury benefits provided
under the plan. 

Sec. 5. RULES.  Requires the commissioner of insurance to adopt rules as
necessary to administer this article. 

SECTION 2.  Effective date: September 1, 1999.
 Makes application of this Act prospective to a plan delivered, issued for
delivery, or             renewed beginning January 1, 2000.  

SECTION 3.  Emergency clause.
   
COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1650 modifies the original bill in SECTION 1 by changing the title
of proposed Article 21.53P to "Coverage for Certain Self-Inflicted Physical
Injuries by Minors" by adding the word "physical."  The substitute modifies
the proposed definition of "serious mental illness" as defined by the
American Psychiatric Association's Diagnostic and Statistical Manual
designated DSM-IV-R, to DSM-IV. Other changes in SECTION 1 are as follows: 

The substitute modifies proposed Section 2 of the original bill to remove a
plan that provides benefits for medical or surgical expenses for an
individual or group insurance policy that is offered by specified
providers, and sets forth the plans, insurance, and policies to which this
article does not apply from the list of plans to which the article does not
apply.  

The substitute also modifies proposed Section 2 of the original bill by
adding that this article does not apply to a small employer health benefit
plan written under Chapter 26 (Health Insurance Availability) of this code,
except when an independent school district elects to participate in a small
employer market in accordance with Article 26.036 (School District
Election), Insurance Code. 

The substitute modifies proposed Section 3 of the original bill to make a
conforming change. 

The substitute removes proposed Section 4 of the original bill, which
authorized a health benefit plan to limit the amount of coverage provided
under this article to $75,000 for the lifetime of the enrollee. 

The substitute redesignates proposed Section 5 of the original bill to
Section 4 of the substitute. The substitute modifies this section by
prohibiting the benefits required under this article from being made
subject to a deductible, coinsurance, or copayment requirement that exceeds
the deductible, coinsurance, or copayment requirements applicable to other
physical injury, rather than similar, benefits provided under the health
benefit plan. 

The substitute redesignates Section 6 to Section 5.