HBA-TBM, CCH C.S.H.B. 835 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 835
By: Kitchen
Public Health
3/19/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas has done a great deal of work to address its uninsured children
through the Children's Health Insurance Program (CHIP), a program that
provides health insurance coverage to children under the age of 18 who are
from working families with incomes too high to qualify for Medicaid but who
cannot afford private coverage.  However, low-income families are often
unable to obtain affordable, quality health care. Many parents of children
who benefit from CHIP and Medicaid are not eligible for the state-sponsored
health insurance themselves.  Between 1996-1998, an average of more than
three million Texans between 18 and 64 years of age were uninsured.
Low-income children are more likely to be enrolled in state health
insurance programs when coverage is offered to the entire family, rather
than to children alone.  C.S.H.B. 835 requires the Health and Human
Services Commission to conduct a study to determine the feasibility of a
buy-in option to allow families without access to health benefits coverage
to purchase coverage for all family members under CHIP. 

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. 835 requires the Health and Human Services Commission (HHSC) to
conduct a study to determine the feasibility of a buy-in option to allow
families without access to health benefits coverage to purchase coverage
for all family members under the state child health plan.  The bill
requires HHSC to examine the cost of comparable health benefits in the
current market and the buy-in option's fiscal impact on the state and on
families that would participate in the plan.  The bill also requires HHSC
to examine the need for a buy-in option by determining the number of
families likely to participate and whether families that would participate
in the plan could be covered in the private market.  HHSC is required to
examine the role of private insurance agents in enrollment in the plan
through the buy-in option, the possible effects that a buy-in option to the
plan would have on the private market for health benefit plan coverage, the
options for the system of delivery for plan benefits, and the options for
obtaining federal matching funds for the program.  In conducting the study,
HHSC is required to consult consumer groups and issuers of health benefits
plan coverage in the private market.  The bill authorizes the commission to
consult other groups in conducting the study.  The bill requires HHSC to
submit a written report of its findings to the governor, lieutenant
governor, and speaker of the house of representatives no later than
November 1, 2002.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 835 differs from the original by requiring the Health and Human
Services Commission (HHSC)  to examine the role of private insurance agents
in enrollment in the plan through the buy-in option, the possible effects
that a buy-in option to the plan would have on the private market for
health benefits plan coverage, the options for the system of delivery for
plan benefits, and the options for obtaining federal matching funds for the
program.  The substitute also requires HHSC in conducting the study to
consult consumer groups and issuers of health benefits plan coverage in the
private market.