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


Office of House Bill AnalysisH.B. 1066
By: Uher
Insurance
2/19/2001
Introduced



BACKGROUND AND PURPOSE 

For insurance coverage purposes, current law defines a grandchild as a
dependent of a grandparent if the grandparent claims the grandchild as a
dependent for federal income tax purposes.  Though the Children's Health
Insurance Plan 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 private health insurance for low-wage employment,
grandparents are taking a larger role in caring for an raising
grandchildren.  House Bill 1066 allows a policy holder to claim a
grandchild as a dependent for insurance purposes if the grandparent
provides at least 75 percent of the child's care, 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 if the policy holder provides at least 75 percent of
the child's care.   

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.