HBA-TYH, ATS H.B. 1919 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1919
By: Gallego
Insurance
6/7/1999
Enrolled



BACKGROUND AND PURPOSE 

Health insurance mandates require insurers and managed care plans to
provide specific benefits, treatments, and services to individuals who
participate in their health care plans.  Although mandates provide more
comprehensive care by specifying the type of care that must be provided,
there are risks associated with mandating certain health benefits.  One
concern is that mandated health benefits may require services that are not
essential to maintain good health.  Another concern is that they may
increase health costs, including insurance premiums, because insurers will
have to raise prices to offset expenditures for meeting mandated
provisions.  Consumers faced with higher insurance premiums may decline
coverage completely or seek alternatives.  In addition, increased costs may
make it difficult for small firms to provide insurance packages to their
employees. 

H.B. 1919 requires the lieutenant governor and the speaker of the house of
representatives to appoint a joint interim committee to study health care
benefits mandated by law to be provided by health benefit plans.  The
committee's tasks are to: determine, among other things, the extent that
mandated health care benefits increase or have increased premiums and their
effect on the affordability of insurance, and whether existing mandates
should be retained, revised, or eliminated; develop recommendations
regarding methods that would allow the legislature to assess the costs and
benefits of proposed mandated benefits; and address any other issues
related to health care benefits.  The Texas Department of Insurance is
required to assist the committee in conducting the required study. The
committee must submit a report and recommendations, each of which must be
prepared by January 1, 2001, to the legislature.  This bill establishes
June 1, 2001, as the date on which the committee is abolished. 

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.  JOINT INTERIM COMMITTEE ON HEALTH BENEFIT MANDATES.  (a)
Requires the lieutenant governor and the speaker of the house of
representatives to appoint a joint interim committee (committee) to study
health care benefits mandated by law to be provided by health benefit
plans. 

(b) Requires the committee to determine, among other things, the extent
that mandated health care benefits increase or have increased premiums and
their effect on the affordability of insurance, and whether existing
mandates should be retained, revised, or eliminated, to develop
recommendations regarding methods that would allow the legislature to
assess the costs and benefits of proposed mandated benefits, and to address
any other issues related to health care benefits. 

(c) Requires the Texas Department of Insurance to assist the committee in
conducting the required study. 

(d) Requires the committee to submit  a report and recommendations to the
legislature. 

 (e) Requires the preparation of each to be completed by January 1, 2001.
Establishes June 1, 2001, as the date on which the committee is abolished. 

SECTION 2.Emergency clause.
  Effective date: 90 days after adjournment.