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.