HBA-NRS C.S.H.B. 2498 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2498 By: Haggerty Insurance 4/1/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Millions of people living or working near the Texas-Mexico border are uninsured. One complicating factor is that border residents sometimes receive medical treatment in both the United States and Mexico. C.S.H.B. 2498 creates a cross-border health insurance arrangement that allows Texas-based employers to offer health insurance coverage for services in Mexico to Mexican nationals and United States citizens working within 62 miles of the Texas-Mexico border. 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. 2498 amends the Insurance Code to authorize a health maintenance organization (HMO) to offer individuals who work or reside in this state within 62 miles of the Texas-Mexico border a health care plan through an HMO delivery network based exclusively on physicians, providers, or other HMOs located in the United Mexican States (Mexican HMO network). The bill authorizes such a health care plan to limit its service area to a geographic region within Mexico and to limit the coverage of out-of-area health care services delivered in this state to emergency care services. The bill provides that the delivery of health care services through a Mexican HMO network is governed by the applicable laws and standards, including licensing requirements and care standards, of Mexico. The bill authorizes such a health care plan to be made available to eligible employees of a small or large employer only when offered by the employer as an option among two or more health benefit plans, at least one of which provides coverage for health care services delivered in this state. A health care plan offered by an HMO through the provisions of this bill must satisfy provisions relating to evidence of coverage and charges. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2498 modifies the original bill to include the definitions of "small employer" and "large employer."