HBA-JEK, TBM C.S.H.B. 1066 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1066 By: Uher Insurance 4/1/2001 Committee Report (Substituted) 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 affordable private health insurance, grandparents are taking a larger role in caring for and raising grandchildren. C.S.H.B. 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 C.S.H.B. 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. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1066 removes the stipulation that a policyholder provide at least 75 percent of a child's care for an insurer to provide coverage for the grandchild.