HBA-JEK, TBM H.B. 1066 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1066
By: Uher
Insurance
7/10/2001
Enrolled



BACKGROUND AND PURPOSE 

Law prior to the 77th Legislature defined a grandchild as a dependent of a
grandparent for insurance purposes if the grandparent claimed the
grandchild as a dependent for federal income tax purposes. Though CHIP and
Medicaid have made considerable progress in meeting the health insurance
needs of children, many children in Texas remain without coverage.  Due to
the increasing number of single parents raising children and the lack of
affordable private health insurance, grandparents are taking a larger role
in caring for and raising grandchildren.  House Bill 1066 allows a policy
holder to claim a grandchild as a dependent for insurance purposes
regardless of whether the policy holder claims the grandchild as a
dependent for federal income tax purposes. 

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. 

ANALYSIS

House Bill 1066 amends the Insurance Code to establish that an insurer must
provide coverage for a grandchild in an individual or group policy of
accident and sickness insurance on payment of a premium, regardless of
whether the policy holder treats the grandchild as a dependent for federal
income tax purposes. 

EFFECTIVE DATE

September 1, 2001.  The Act applies only to an insurance policy, contract,
or evidence of coverage delivered, issued for delivery, or renewed on or
after January 1, 2002.