HBA-BSM S.B. 771 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 771
By: Harris
Insurance
5/8/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, employers may find it difficult to make an informed decision
when comparing plans for health benefits.  The Texas Department of
Insurance (department) has developed a guide for auto insurance that
provides information on each plan to allow consumers to make a more
informed decision on the plan that best meets a consumer's needs.  Senate
Bill 771 requires the department to prepare a consumers' guide on health
plans so that employers may compare different plans, premium rates, and the
coverage and benefits available under each plan. 

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 26.10, Insurance Code) of this bill. 

ANALYSIS

Senate Bill 771 amends the Insurance Code to require the Texas Department
of Insurance in consultation with the office of public insurance counsel to
annually prepare a consumers' guide designed to assist employers in
comparing premium rates for, and coverage and benefits provided or offered
under, the different types of employer health benefit plans available in
Texas.  The guide must describe the different types of plans available and
allow a person to compare the coverage and benefits provided or offered
under each type of plan in relation to the premium rates typically charged
for each type of plan.  The bill authorizes the commissioner of insurance
(commissioner) to include any other information in the guide the
commissioner determines will assist employers in assessing employer health
benefit plans.   The bill requires the commissioner to adopt rules as
necessary to implement the consumers' guide to employer health benefit
plans.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.