HBA-ATS H.B. 2290 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2290 By: Isett Insurance 3/22/1999 Introduced 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. These mandates 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. 2290 requires the comptroller of public accounts (comptroller) to provide a written analysis of an existing or a proposed mandate if requested to do so by certain members of the legislature, certain legislative agencies, or the commissioner of insurance. This bill also authorizes the comptroller to assess all entities writing health coverage for the reasonable and necessary expenses of analyzing and preparing written reports on existing and proposed mandates. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the commissioner of insurance in SECTION 1 (Article 3.97-3, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS ARTICLE 1. REVIEW OF AND LIMITATIONS ON HEALTH CARE BENEFIT MANDATES SECTION 1. AMENDMENT. Amends Chapter 3, Insurance Code, by adding Subchapter K, as follows: SUBCHAPTER K. REVIEW AND IMPLEMENTATION OF HEALTH CARE BENEFIT MANDATES Art. 3.97-1. DEFINITIONS. Defines "comptroller," "health benefit plan," "health care benefit mandate," and "offer of coverage mandate." Art. 3.97-2. ANALYSIS BY COMPTROLLER OF PUBLIC ACCOUNTS. (a) Requires the comptroller of public accounts (comptroller) to provide a written analysis of an existing or proposed health care benefit mandate (mandate) if requested to do so by certain elected officials, appointed public officials, or legislative agencies. (b) Enumerates the criteria required to be considered by the comptroller when the comptroller analyzes an existing or proposed mandate. Art. 3.97-3. IMPLEMENTATION BY COMMISSIONER. (a) Requires the commissioner of insurance (commissioner) to strictly construe a mandate and adopt rules to implement a mandate in strict compliance with state or federal law. (b) Requires the commissioner to request that the comptroller prepare a written analysis of a mandate, in accordance with this subchapter, before proposed rules to implement the mandate are published. Requires the commissioner to take into consideration the written analysis before adopting those rules. Art. 3.97-4. REVIEW OF EXISTING HEALTH CARE BENEFIT MANDATES. (a) Requires the comptroller to review and analyze each existing mandate, in accordance with this subchapter. (b) Requires the comptroller to issue a written report of its finding and to distribute the report to certain publicly-elected and appointed officials. Requires the commissioner to publish the report on the Internet. (c) Requires the comptroller, by January 1, 2001, to complete its review and issue its written report on each mandate that is in effect or becomes effective before January 1, 2001. Art. 3.97-5. ASSESSMENTS. (a) Authorizes the comptroller to assess all entities writing health coverage as a health benefit product for the reasonable and necessary expenses (expenses) of analyzing and preparing written reports on existing and proposed mandates. (b) Requires the comptroller, after the end of each fiscal year, to determine its expenses incurred as a result of analyzing and preparing written reports for the preceding calendar year. Authorizes the comptroller to assess on an annual basis all entities that sell health coverage in this state. Requires the assessment on each entity to be based on annual statements and other reports filed with the Department of Insurance. (c) Requires the assessment imposed on each entity to be in an amount that is equal to the ratio of gross premiums collected by the entity for health insurance coverage in this state during the preceding calendar year, except for Medicare supplements premiums subject to Article 3.74 (Minimum Standards for Medicare Supplement Policies), to the gross premiums collected by all insurers for health insurance coverage, except for Medicare supplement premiums subject to Article 3.74, in this state during the preceding calendar year. SECTION 2. EFFECTIVE DATE. Effective date: September 1, 1999. SECTION 3. EMERGENCY CLAUSE. Emergency clause.