HBA-JEK S.B. 990 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 990 By: Sibley Insurance 4/22/2001 Engrossed BACKGROUND AND PURPOSE Some of the state statutes regarding small and large employer health benefit plans do not comply with the federal Health Insurance Portability and Accountability Act of 1996. Senate Bill 990 conforms with federal law by modifying provisions of Texas' Health Insurance Portability and Availability Act and provisions relating to coverage for a minimum inpatient stay following the birth of a child. 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 Senate Bill 990 amends the Insurance Code to provide that an individual who is a child of a covered employee who has lost coverage under the Social Security Act or the child health plan for certain lowincome children is not a late enrollee for a small or large employer's health benefit plan if the request for enrollment is made not later than the 31st day after the date on which the child loses coverage (SECTION 1, Art. 26.02). The bill provides that an individual's short term limited duration coverage is creditable under the Health Insurance Portability and Availability Act. (SECTION 2, Art. 26.035). S.B. 990 specifies that an employee welfare benefit plan is subject to provisions regarding small employer health benefit plans if it provides health care benefits covering two or more eligible employees of a small employer (SECTION 3, Art. 26.06). An employee welfare benefit plan is subject to provisions regarding large employer health benefit plans if the plan provides health care benefits to eligible employees of a large employer (SECTION 6, Art. 26.81). The bill provides that the requirements for minimum inpatient stay in a health care facility and post delivery care following the birth of a child apply to small employer health benefit plans (SECTION 7, Sec. 3, Art. 21.53F). EFFECTIVE DATE September 1, 2001. The Act applies only to a health benefit plan that is delivered, issued for delivery, or renewed on or after January 1, 2002.