HBA-MPM H.B. 2285 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2285
By: Kitchen
Public Health
3/27/2001
Introduced



BACKGROUND AND PURPOSE 

The Texas Healthy Kids Corporation (THK) is currently in the process of
dissolution.  While most children covered under THK's program are eligible
for the state child health plan (CHIP), some children will not be eligible
for coverage under CHIP.  The family incomes of these children range from
at or below 200 to 300 percent of the federal poverty level.  To ensure
that all children from low-income families have health benefits coverage, a
buy-in program for families of children not otherwise eligible for CHIP is
needed. House Bill 2285 establishes two eligibility groups for CHIP
coverage, one fully-covered eligibility group for a child whose family
income is at or below 200 percent of the federal poverty level, and another
costsharing eligibility group for a child whose family income is at or
below 300 percent of the poverty level. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Health and Human Services
Commission in SECTION 1.02 (Section 62.1015, Health and Safety Code) and
SECTION 1.05 (Section 62.203, Health and Safety Code) of this bill. 

ANALYSIS

House Bill 2285 amends the Health and Safety Code to establish two
eligibility groups, group A and group B, for children  who are eligible for
health coverage under the state child health plan (CHIP). 

The bill applies existing eligibility criteria for health benefits coverage
under CHIP to children in eligibility group A, and specifies that the
coverage be in accordance with provisions governing cost sharing for
copayment of services, an enrollment fee, or a portion of the CHIP premium,
and that the child's family income be at or below 200 percent of the
federal poverty level (Sec. 62.101).  

The bill establishes eligibility group B for children who meet all of the
eligibility requirements of those in group A, have a family income that is
greater than 200 percent but less than 300 percent of the federal poverty
level, and satisfy any other eligibility standard imposed by rule by HHSC
(Sec. 62.1015).  The bill authorizes HHSC to apply for, receive, and
administer gifts, grant, loans, and other funds available from any source
for the CHIP eligibility group B account (Sec. 62.051). 

The bill requires HHSC to use money available in the CHIP eligibility group
B account to subsidize benefits plan coverage for enrollees in eligibility
group B and to require enrollees to share the cost of CHIP, including
requiring enrollees under CHIP to pay a copayment for services, an
enrollment fee, or a portion of the plan premium.  If money is not
available in the account to subsidize coverage for enrollees in eligibility
group B, the enrollees are required to pay a plan premium in an amount
actuarially determined to be sufficient in a manner specified by HHSC (Sec.
62.153).  H.B. 2285 also authorizes the commissioner of health and human
services (commissioner) to require enrollees under eligibility group B to
pay the plan premium if appropriated money is insufficient to sustain
enrollment (Sec. 62.1016). The bill authorizes HHSC to require enrollees to
pay a copayment for services or an enrollment fee (Sec. 62.153). 

The bill specifies that federal money may not be used to provide coverage
for or to pay costs attributed to  children in eligibility group B, nor may
expenditures made to provide coverage for children in eligibility group B
be included to determine the state's CHIP expenditures (Sec. 62.201).  The
bill establishes the eligibility group B account as an account in the
general revenue fund that consists of money transferred from the Texas
healthy kids fund and enrollment fees charged to enrollees in eligibility
group B.  The bill specifies the expenses for which money in the fund may
be used (Sec. 62.202).   

H.B. 2285 provides that a parent, managing conservator, or guardian
(parent) of a child in eligibility group B is responsible for premiums for
coverage and applicable enrollment fees and copayments. The bill sets forth
measures which HHSC by rule may adopt to prevent the termination of
coverage for children in eligibility group B (Sec. 62.203).   

The bill repeals the provisions establishing the Texas Healthy Kids
Corporation (SECTION 2.07). The bill amends the Family and the Health and
Safety codes to delete references to the Texas Healthy Kids Corporation, as
well as related provisions (SECTIONS 2.01-2.06). The bill modifies the Tax
Code to repeal the provision authorizing a nonprofit hospital to satisfy
the requirement to provide charity care and community benefits by a
donation of money to the Texas Healthy Kids Corporation (SECTION 2.08). 

The bill requires HHSC no later than 90 days after the effective date of
this Act to submit for approval a plan amendment relating to CHIP under
federal law to comply with the change in law made by this Act. HHSC and the
Texas Healthy Kids Corporation are required to examine the rolls of
children who are provided health benefits by the corporation and take
actions necessary to transfer eligible children to CHIP when the necessary
plan amendments have taken effect.  HHSC is required to waive any waiting
period for those children transferred to CHIP under this Act (SECTION
3.01). 

The bill requires the comptroller, effective on the date the plan
amendments to CHIP take effect, to transfer all money in the Texas healthy
kids fund to the CHIP eligibility group B account.  If the amendments do
not become effective before September 1, 2003, the comptroller is required
to transfer this money to the general revenue fund.  The bill provides for
the continuation of the Texas healthy kids fund until all existing and
outstanding assets are transferred to the CHIP eligibility group B account
(SECTION 3.01). 

The bill authorizes the Texas Healthy Kids Corporation, notwithstanding the
change in law made by this Act, to continue to offer the program provided
by the corporation until the necessary plan amendments to CHIP are in
effect or September 1, 2003, whichever date is earlier, after which the
Texas Healthy Kids Corporation is terminated.  No later than the 30th day
after that date, the board of directors of the corporation is required to
begin the steps necessary to dissolve the corporation (SECTION 3.02). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. Provisions regarding a donation of money to
the Texas Healthy Kids Corporation take effect January 1, 2002, and apply
to a tax report originally due on or after that date.