81R1148 KKA-F By: Hunter H.B. No. 4288 A BILL TO BE ENTITLED AN ACT relating to health care coverage for children in Title IV-D cases. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 154.182(b), Family Code, is amended to read as follows: (b) In determining the manner in which health care coverage for the child is to be ordered, the court shall render its order in accordance with the following priorities, unless a party shows good cause why a particular order would not be in the best interest of the child: (1) if health insurance is available for the child through a parent's employment or membership in a union, trade association, or other organization at reasonable cost [to the parent], the court shall order that parent to include the child in the parent's health insurance; (2) if health insurance is not available for the child under Subdivision (1) but is available to a parent at reasonable cost from another source, including the program under Section 154.1826 to provide health insurance in Title IV-D cases [and at a reasonable cost], the court may order that parent to provide health insurance for the child; or (3) if health insurance coverage is not available for the child under Subdivision (1) or (2), the court shall order the obligor to pay the obligee, in addition to any amount ordered under the guidelines for child support, an amount, not to exceed nine percent of the obligor's annual [monthly] resources, as described by Section 154.062(b), as cash medical support for the child. SECTION 2. Subchapter D, Chapter 154, Family Code, is amended by adding Sections 154.1826 and 154.1827 to read as follows: Sec. 154.1826. HEALTH CARE PROGRAM FOR CERTAIN CHILDREN IN TITLE IV-D CASES. (a) In this section: (1) "Health benefit plan issuer" means an insurer, health maintenance organization, or other entity authorized to provide health benefits coverage under this section, including a primary care case management provider network. (2) "Health care provider" means a physician or other person who is licensed, certified, or otherwise authorized to provide a health care service in this state. (3) "Program" means the child health care program developed under this section. (4) "Reasonable cost" has the meaning assigned by Section 154.181(e). (b) In consultation with the Texas Department of Insurance, the Health and Human Services Commission, and representatives of the insurance industry in this state, the Title IV-D agency shall develop and implement a statewide program to address the health care needs of children in Title IV-D cases for whom health insurance is not available to either parent at reasonable cost in the manner described by Section 154.182(b)(1). (c) The principal objective of the program is to provide basic health care services, including usual physician services, office visits, hospitalization, and laboratory, x-ray, and emergency services, to eligible children in Title IV-D cases at reasonable cost to the parents obligated by court order to provide medical support for the children. The health care services provided are intended to be commensurate in range of services with the premium reimbursement available to a health benefit plan issuer. (d) It is the intent of the legislature that the Title IV-D agency maximize the use of private resources in administering the program, including the use of gifts and grants. To the extent federal money is available for that purpose, the Title IV-D agency may contract with a third-party administrator to provide enrollment and related services under the program. (e) The Title IV-D agency shall adopt rules as necessary to implement the program. The Title IV-D agency shall consult with the Health and Human Services Commission and other public and private health care authorities in establishing policies regarding benefits provided by the program. (f) The program may not deny health care coverage to eligible children because of preexisting conditions or chronic illnesses, and must provide a uniform schedule of benefits for all children enrolled in the program. A child who is determined to be eligible for coverage under the program continues to be eligible until the termination of the parent's duty to pay child support as specified by Section 154.006. (g) The Title IV-D agency shall solicit applications for participation in the program from health benefit plan issuers who meet requirements specified by the agency. The Title IV-D agency shall consult with the Texas Department of Insurance in the appropriate rating of health benefit plan issuers who apply for participation in the program. Each health benefit plan issuer who participates in the program must hold a certificate of authority issued by the Texas Department of Insurance. (h) The Title IV-D agency shall promptly notify the courts of this state when the program has been implemented and is available to provide for the health care needs of children described by Subsection (b). The notification must specify a date beginning on which children may be enrolled in the program. (i) On or after the date specified in the notification required by Subsection (h), a court that orders health care coverage for a child in a Title IV-D case shall order that the child be enrolled in the program authorized by this section unless other private health insurance is available for the child at reasonable cost. (j) Payment of premium costs for the enrollment of a child in the program may be enforced against the obligor by any means available for the enforcement of a child support obligation, including income withholding under Chapter 158. (k) To provide the flexibility necessary to provide services at a reasonable cost to an obligor, and notwithstanding any provision in the Insurance Code, the program authorized by this section is not subject to a law that requires: (1) coverage or the offer of coverage of a particular health care service or benefit; (2) coverage or the offer of coverage for the provision of services by a particular health care provider, other than a provider selected for participation in the program; or (3) the use of a particular insurance policy or contract form or of particular language in a policy or contract form. Sec. 154.1827. ADMINISTRATIVE ADJUSTMENT OF MEDICAL SUPPORT ORDER. (a) In a Title IV-D case in which a medical support order requires that a child be enrolled in a health care program under Section 154.1826, the Title IV-D agency may administratively adjust the order as necessary to reflect changes in the amount of premium costs associated with the child's enrollment. (b) The Title IV-D agency shall provide notice of the administrative adjustment to the obligor and the clerk of the court that rendered the order. SECTION 3. This Act takes effect September 1, 2009, except that Section 2 of this Act takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, Section 2 takes effect September 1, 2009.