HBA-DMH H.B. 2286 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2286 By: Averitt Insurance 3/18/2001 Introduced BACKGROUND AND PURPOSE Under current law, provisions governing small and large employer health benefit plans are not consistent with federal standards, and do not require providers to immediately accept a child who has lost state coverage under Medicaid or the state child health plan (CHIP). House Bill 2286 modifies the state Health Insurance Portability and Availability Act to create language consistent with the federal Health Insurance Portability and Accountability Act of 1996, and makes a child eligible for enrollment in a parent's group health insurance if a child loses Medicaid or CHIP coverage. 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 2286 amends the Insurance Code to modify definitions in the Health Insurance Portability and Availability Act (HIPAA). The bill removes from the definitions of a "large employer" and "small employer" the options for an employer to elect to be treated as a either a "large employer" or a "small employer." The bill provides that a dependent child of a covered employee who has lost coverage under the state medical assistance program, other than coverage consisting solely of benefits for distribution of pediatric vaccines or the state child health plan, is not a late enrollee if the request for enrollment is made not later than the 31st day after the date on which the child loses such coverage (Sec. 26.02). The bill adds that an individual's coverage is considered creditable if the coverage is provided under a short-term limited duration coverage plan (Sec. 26.035). An employee welfare benefit plan consistent with federal regulations is subject to HIPAA provisions related to guaranteed issue and renewability, underwriting and rating, coverage requirements, reinsurance, and marketing of small employer health benefit plans (Sec. 26.06). An employee welfare benefit plan consistent with federal regulations is subject to provisions relating to large employer health benefit plans (Sec. 26.81). EFFECTIVE DATE September 1, 2001, and applies to a health benefit plan that is delivered, issued for delivery, or renewed on or after January 1, 2002.