By: Kolkhorst, et al. S.B. No. 1040
A BILL TO BE ENTITLED
AN ACT
relating to health benefit plan coverage of a transplant of an organ
that originated from or is transplanted in a country known to have
participated in forced organ harvesting.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 8, Insurance Code, is amended
by adding Chapter 1380 to read as follows:
CHAPTER 1380. HUMAN ORGAN TRANSPLANT
Sec. 1380.001. DEFINITION. In this chapter, "forced organ
harvesting" means the removal of one or more organs from a living
person by means of coercion, abduction, deception, fraud, or abuse
of power or a position of vulnerability.
Sec. 1380.002. APPLICABILITY OF CHAPTER. (a) This chapter
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 offered 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 chapter 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) health benefits provided by or through a church
benefits board under Subchapter I, Chapter 22, Business
Organizations Code;
(8) the state Medicaid program, including the Medicaid
managed care program operated under Chapter 533, Government Code;
(9) the child health plan program under Chapter 62,
Health and Safety Code;
(10) a regional or local health care program operated
under Section 75.104, Health and Safety Code;
(11) a self-funded health benefit plan sponsored by a
professional employer organization under Chapter 91, Labor Code;
(12) county employee group health benefits provided
under Chapter 157, Local Government Code; and
(13) health and accident coverage provided by a risk
pool created under Chapter 172, Local Government Code.
Sec. 1380.003. COVERAGE PROHIBITED. (a) A health benefit
plan issuer may not cover a human organ transplant or
post-transplant care if:
(1) the transplant operation is performed in China or
another country known to have participated in forced organ
harvesting, as designated by the commissioner of state health
services; or
(2) the human organ to be transplanted was procured by
a sale or donation originating in China or another country known to
have participated in forced organ harvesting, as designated by the
commissioner of state health services.
(b) The commissioner of state health services may designate
additional countries with governments that fund, sponsor, or
otherwise facilitate forced organ harvesting and shall provide
written notice to the commissioner, Teacher Retirement System of
Texas, Employees Retirement System of Texas, and executive
commissioner of the Health and Human Services Commission when the
commissioner of state health services designates an additional
country.
SECTION 2. 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 3. Chapter 1380, Insurance Code, as added by this
Act, applies only to a health benefit plan delivered, issued for
delivery, or renewed on or after January 1, 2024.
SECTION 4. This Act takes effect September 1, 2023.