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BILL ANALYSIS
Office of House Bill Analysis
C.S.H.B. 2424
By: Coleman
Pensions and Investments
4/14/1999
Committee Report (Substituted)
BACKGROUND AND PURPOSE
The 75th Texas Legislature amended Article 3.51-14 of the Insurance Code, which relates to
coverage for certain serious mental illnesses. In the Insurance Code, however, some conflicting
language exists regarding serious mental illnesses with respect to the Texas State Employees
Uniform Group Insurance Benefits Act, the Texas State College and University Employees
Uniform Insurance Benefits Act, and local government insurance provisions. As a result, the
Texas Department of Insurance has encountered difficulties in the application of Article 3.51-14.
C.S.H.B. 2424 redefines “serious mental illness” and modifies the language of that article to
specify that it does not apply to coverage under the aforementioned plans.
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. Redesignates Section 3(a)(19), Article 3.50-2, Insurance Code, as added by
Section 11.106, Chapter 242, Acts of the 72nd Legislature, Regular Session, 1991, to Section
3(a)(23), Article 3.50-2, Insurance Code (Texas Employees Uniform Group Insurance Benefits
Act), and amends the text to redefine “serious mental illness” as schizophrenia, paranoid and
other psychotic disorders, bipolar disorders, major depressive disorders, schizo-affective
disorders, pervasive developmental disorders, obsessive-compulsive disorders, and depression in
childhood and adolescence.
SECTION 2. Redesignates Section 3(a)(16), Article 3.50-3, Insurance Code, as added by
Section 11.108, Chapter 242, Acts of the 72nd Legislature, Regular Session, 1991, to Section
3(a)(19), Article 3.51-14, Insurance Code (Texas State College and University Employees
Uniform Insurance Benefits Act), and amends the text to make a conforming change with respect
to the definition of “serious mental illness.”
SECTION 3. Amends Article 3.51-5A, Insurance Code, to make a conforming change with
respect to the definition of “serious mental illness.”
SECTION 4. Amends Section 2(b), Article 3.51-14, Insurance Code, to provide that this article
(Coverage for Certain Serious Mental Illnesses) does not apply to coverage under a limited or
specified-disease policy, other than a plan that provides for mental health care or similar
services. Provides that this article does not apply to coverage under a plan offered under the
Texas Employees Uniform Group Insurance Benefits Act or the Texas State College and
University Employees Uniform Insurance Benefits Act or in accordance with Article 3.51-5A
(Local Governments Prohibited from Excluding or Limiting Certain Coverages) of this code.
Makes conforming and nonsubstantive changes.
SECTION 5. Amends Section 3(a), Article 3.51-14, Insurance Code, to provide that a group
health benefit plan must include the same copayments for serious mental illness as for physical
illness, except as provided by Section 4 of this article (Small Employer Coverage).
SECTION 6. Effective date: September 1, 1999.
HBA-SEB C.S.H.B. 2424 76(R)
Makes application of this Act prospective.
SECTION 7. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The substitute modifies the original by adding new text for SECTIONS 1 and 2, adding
SECTIONS 3, 5, and 6, and redesignating SECTIONS 1 and 2 of the original to SECTIONS 4
and 7 of the substitute, respectively.
The substitute modifies the original in SECTION 1 by redesignating Section 3(a)(19), Article
3.50-2, Insurance Code, as added by Section 11.106, Chapter 242, Acts of the 72nd Legislature,
Regular Session, 1991, to Section 3(a)(23), Article 3.50-2, Insurance Code (Texas Employees
Uniform Group Insurance Benefits Act), and amends existing text to redefine “serious mental
illness” as schizophrenia, paranoid and other psychotic disorders, bipolar disorders, major
depressive disorders, schizo-affective disorders, pervasive developmental disorders, obsessivecompulsive disorders, and depression in childhood and adolescence.
The substitute modifies the original in SECTION 2 by redesignating Section 3(a)(16), Article
3.50-3, Insurance Code, as added by Section 11.108, Chapter 242, Acts of the 72nd Legislature,
Regular Session, 1991, to Section 3(a)(19), Article 3.51-14, Insurance Code (Texas State College
and University Employees Uniform Insurance Benefits Act), and makes a conforming change
with respect to the definition of “serious mental illness.”
The substitute adds SECTION 3 to amend Article 3.51-5A, Insurance Code, to make a
conforming change with respect to the definition of “serious mental illness.”
The substitute adds SECTION 4, as redesignated from SECTION 1 of the original, and amends
Section 2(b), Article 3.51-14, Insurance Code, to specify that this article (Coverage for Certain
Serious Mental Illnesses) does not apply to coverage under a limited or specified-disease policy,
other than a plan that provides for mental health care or similar services. The substitute makes
nonsubstantive changes.
The substitute adds SECTION 5 to amend Section 3(a), Article 3.51-14, Insurance Code, to
provide that a group health benefit plan must include the same copayments for serious mental
illness as for physical illness, except as provided by Section 4 of this article (Small Employer
Coverage).
The substitute adds SECTION 6 to specify the effective date and to set forth a prospective
clause.
The substitute adds SECTION 7, as redesignated from SECTION 2 of the original, to change the
emergency clause from the long emergency clause in the original to the short version in the
substitute.
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