HBA-MPA, BTC H.B. 520 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 520
By: Flores
Insurance
4/27/1999
Introduced



BACKGROUND AND PURPOSE 

H.B. 520 provides that an eligible school district employee under a small
employer health benefit plan may elect to insure another employee that is
the person's dependent, under the dependent coverage portion of the policy.
This bill provides that if dependent coverage is elected, the premium
charged for the dependent must be the same as that charged to a dependent
that is not also an eligible employee.   This bill provides that a child of
two married eligible employees may receive coverage as a dependent of only
one of the spouses. 

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 Article 26.036, Insurance Code, as follows: 

Art. 26.036.  New Title:  PARTICIPATION OF SCHOOL DISTRICT.  Authorizes an
eligible employee under a small employer health benefit plan offered
through an independent school district to elect dependent coverage for
another eligible employee who is also a dependent of the eligible employee.
Provides that if dependent coverage is elected under this subsection, the
premium charged for the dependent coverage is the premium charged under the
plan for coverage of a dependent who is not an eligible employee, and that
both eligible employees are treated as participating eligible employees for
purposes of Article 26.21 (Small Employer Health Benefit Plans; Employer
Election) of this code.  Authorizes a child of spouses who are both
eligible employees under  a small employer health benefit plan offered
through an independent school district to receive coverage as a dependent
of only one of the spouses. 

SECTION 2.  Effective date:  September 1, 1999.  Applies only to a small
employer health benefit plan offered through an independent school district
that is delivered, issued for delivery, or renewed on or after January 1,
2000.  Makes application of this Act prospective. 

SECTION 3.  Emergency clause.