HBA-SEB C.S.H.B. 2424 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2424
By: Coleman
Pensions and Investments
4/14/1999
Committee Report (Substituted)

BACKGROUND AND PURPOSE 

The 75th Texas Legislature amended Article 3.51-14 of the Insurance Code,
which relates to coverage for certain serious mental illnesses.  In the
Insurance Code, however, some conflicting language exists regarding serious
mental illnesses with respect to the Texas State Employees Uniform Group
Insurance Benefits Act, the Texas State College and University Employees
Uniform Insurance Benefits Act, and local government insurance provisions.
As a result, the Texas Department of Insurance has encountered difficulties
in the application of Article 3.51-14.  C.S.H.B. 2424 redefines "serious
mental illness" and modifies the language of that article to specify that
it does not apply to coverage under the aforementioned plans. 
  
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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Redesignates Section 3(a)(19), Article 3.50-2, Insurance Code,
as added by Section 11.106, Chapter 242, Acts of the 72nd Legislature,
Regular Session, 1991, to Section 3(a)(23), Article 3.50-2, Insurance Code
(Texas Employees Uniform Group Insurance Benefits Act), and amends the text
to redefine "serious mental illness" as schizophrenia, paranoid and other
psychotic disorders, bipolar disorders, major depressive disorders,
schizo-affective disorders, pervasive developmental disorders,
obsessive-compulsive disorders, and depression in childhood and
adolescence.     

SECTION 2.  Redesignates Section 3(a)(16), Article 3.50-3, Insurance Code,
as added by Section 11.108, Chapter 242, Acts of the 72nd Legislature,
Regular Session, 1991, to Section 3(a)(19), Article 3.51-14, Insurance Code
(Texas State College and University Employees Uniform Insurance Benefits
Act), and amends the text to make a conforming change with respect to the
definition of "serious mental illness."  

SECTION 3.  Amends Article 3.51-5A, Insurance Code, to make a conforming
change with respect to the definition of "serious mental illness."   

SECTION 4.  Amends Section 2(b), Article 3.51-14, Insurance Code, to
provide that this article (Coverage for Certain Serious Mental Illnesses)
does not apply to coverage under a limited or specified-disease policy,
other than a plan that provides for mental health care or similar services.
Provides that this article does not apply to coverage under a plan offered
under the Texas Employees Uniform Group Insurance Benefits Act or the Texas
State College and University Employees Uniform Insurance Benefits Act or in
accordance with Article 3.51-5A (Local Governments Prohibited from
Excluding or Limiting Certain Coverages) of this code.  Makes conforming
and nonsubstantive changes.   

SECTION 5.  Amends Section 3(a), Article 3.51-14, Insurance Code, to
provide that a group health benefit plan must include the same copayments
for serious mental illness as for physical illness, except as provided by
Section 4 of this article (Small Employer Coverage).   
 
SECTION 6.Effective date: September 1, 1999.
             Makes application of this Act prospective.
 
SECTION 7.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original by adding new text for SECTIONS 1 and
2, adding SECTIONS 3, 5, and 6, and redesignating SECTIONS 1 and 2 of the
original to SECTIONS 4 and 7 of the substitute, respectively.   

The substitute modifies the original in SECTION 1 by redesignating Section
3(a)(19), Article 3.50-2, Insurance Code, as added by Section 11.106,
Chapter 242, Acts of the 72nd Legislature, Regular Session, 1991, to
Section 3(a)(23), Article 3.50-2, Insurance Code (Texas Employees Uniform
Group Insurance Benefits Act), and amends existing text to redefine
"serious mental illness" as schizophrenia, paranoid and other psychotic
disorders, bipolar disorders, major depressive disorders, schizo-affective
disorders, pervasive developmental disorders, obsessive-compulsive
disorders, and depression in childhood and adolescence. 

The substitute modifies the original in SECTION 2 by redesignating Section
3(a)(16), Article 3.50-3, Insurance Code, as added by Section 11.108,
Chapter 242, Acts of the 72nd Legislature, Regular Session, 1991, to
Section 3(a)(19), Article 3.51-14, Insurance Code (Texas State College and
University Employees Uniform Insurance Benefits Act), and makes a
conforming change with respect to the definition of "serious mental
illness."  

The substitute adds SECTION 3 to amend Article 3.51-5A, Insurance Code, to
make a conforming change with respect to the definition of "serious mental
illness." 

The substitute adds SECTION 4, as redesignated from SECTION 1 of the
original, and amends Section 2(b), Article 3.51-14, Insurance Code, to
specify that this article (Coverage for Certain Serious Mental Illnesses)
does not apply to coverage under a limited or specified-disease policy,
other than a plan that provides for mental health care or similar services.
The substitute makes nonsubstantive changes.   

The substitute adds SECTION 5 to amend Section 3(a), Article 3.51-14,
Insurance Code, to provide that a group health benefit plan must include
the same copayments for serious mental illness as for physical illness,
except as provided by Section 4 of this article (Small Employer Coverage). 

The substitute adds SECTION 6 to specify the effective date and to set
forth a prospective clause.  
The substitute adds SECTION 7, as redesignated from SECTION 2 of the
original, to change the emergency clause from the long emergency clause in
the original to the short version in the substitute.