HBA-ATS C.S.H.B. 1919 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1919 By: Gallego Insurance 4/25/1999 Committee Report (Substituted) 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. C.S.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 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. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1919 modifies the original bill in the caption by providing that this Act relates to legislative review of health care benefits that are mandated to be provided by health benefit plans, rather than providing that this Act relates to a review and moratorium on requirements that health care benefits be provided under certain health benefit plans. C.S.H.B. 1919 modifies the original bill by replacing the entire text of the bill. Proposed ARTICLE 1 of the original would have required the Texas Health Care Information Council to provide a written analysis of a proposed mandate if requested to do so by certain members of the legislature or certain legislative agencies. Proposed ARTICLE 2 would have created the Health Benefit Mandate Review Board (board) to analyze existing mandates and required the board to recommend to the legislature whether existing mandates should be retained, revised, or eliminated. Under the substitute, SECTION 1 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 is required 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 then must submit a report and recommendations (required to be prepared by January 1, 2001) to the legislature. The committee is abolished June 1, 2001.