88R12761 EAS-F By: Bucy H.B. No. 3566 A BILL TO BE ENTITLED AN ACT relating to statewide standards for the provision of and health benefit plan coverage of substance use and addiction treatment. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle I, Title 4, Government Code, is amended by adding Chapter 542 to read as follows: CHAPTER 542. SUBSTANCE USE AND ADDICTION TREATMENT Sec. 542.001. STANDARDS FOR SUBSTANCE USE AND ADDICTION TREATMENT. In carrying out the commission's duties under law in relation to the provision of substance use and addiction treatment, including the designation of appropriate levels of care, the transfer or discharge of a patient, and the utilization management review of care and treatment provided to individuals suffering from a substance use, mental health, or co-occurring disorder, the commission shall endeavor to use and encourage the use of the most recently published standards on substance use and addiction treatment by the American Society of Addiction Medicine, including the use of those standards for determining the level of care and authorizing payment commensurate with the level of care indicated by a health benefit plan. Sec. 542.002. MEMORANDUM OF UNDERSTANDING. To encourage the use of standards described by Section 542.001 by other state agencies and local governmental entities, the commission may adopt a memorandum of understanding with those agencies and entities to coordinate the use of and authorize the payment for services delivered in accordance with those standards. SECTION 2. Chapter 1355, Insurance Code, is amended by adding Subchapter G to read as follows: SUBCHAPTER G. CLASSIFICATION AND DETERMINATION OF COVERAGE FOR MENTAL ILLNESS Sec. 1355.301. APPLICABILITY OF SUBCHAPTER. (a) This subchapter applies only to a health benefit plan that provides benefits for medical or surgical expenses incurred as a result of a health condition, accident, or sickness, including an individual, group, blanket, or franchise insurance policy or insurance agreement, a group hospital service contract, or an individual or group evidence of coverage or similar coverage document that is issued by: (1) an insurance company; (2) a group hospital service corporation operating under Chapter 842; (3) a health maintenance organization operating under Chapter 843; (4) an approved nonprofit health corporation that holds a certificate of authority under Chapter 844; (5) a multiple employer welfare arrangement that holds a certificate of authority under Chapter 846; (6) a stipulated premium company operating under Chapter 884; (7) a fraternal benefit society operating under Chapter 885; (8) a Lloyd's plan operating under Chapter 941; or (9) an exchange operating under Chapter 942. (b) Notwithstanding any other law, this subchapter applies to: (1) a small employer health benefit plan subject to Chapter 1501, including coverage provided through a health group cooperative under Subchapter B of that chapter; (2) a standard health benefit plan issued under Chapter 1507; (3) a basic coverage plan under Chapter 1551; (4) a basic plan under Chapter 1575; (5) a primary care coverage plan under Chapter 1579; (6) a plan providing basic coverage under Chapter 1601; (7) nonprofit agricultural organization health benefits offered by a nonprofit agricultural organization under Chapter 1682; (8) alternative health benefit coverage offered by a subsidiary of the Texas Mutual Insurance Company under Subchapter M, Chapter 2054; (9) health benefits provided by or through a church benefits board under Subchapter I, Chapter 22, Business Organizations Code; (10) group health coverage made available by a school district in accordance with Section 22.004, Education Code; (11) the state Medicaid program, including the Medicaid managed care program operated under Chapter 533, Government Code; (12) the child health plan program under Chapter 62, Health and Safety Code; (13) a regional or local health care program operated under Section 75.104, Health and Safety Code; (14) a self-funded health benefit plan sponsored by a professional employer organization under Chapter 91, Labor Code; (15) county employee group health benefits provided under Chapter 157, Local Government Code; and (16) health and accident coverage provided by a risk pool created under Chapter 172, Local Government Code. Sec. 1355.302. REQUIRED USE OF MANUAL. A health benefit plan that provides coverage for mental health or substance use disorders must use the Diagnostic and Statistical Manual of Mental Disorders, 5th edition, for purposes of classifying and determining coverage for mental illness. SECTION 3. If before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted. SECTION 4. Section 1355.302, Insurance Code, as added by this Act, applies only to a health benefit plan that is delivered, issued for delivery, or renewed on or after January 1, 2024. SECTION 5. This Act takes effect September 1, 2023.