BILL ANALYSIS C.S.H.B. 1142 By: Oliverson Pensions, Investments & Financial Services Committee Report (Substituted) BACKGROUND AND PURPOSE Significant legislative efforts have been made to increase access to mental health and substance use disorder care by improving insurance coverage. H.B. 10, enacted during the regular session of the 85th Legislature, requires health plans regulated by the Texas Department of Insurance to offer benefits in compliance with parity, meaning that the health benefit plan must provide benefits and coverage for mental health conditions and substance use disorders under the same terms and conditions applicable to the plan's medical and surgical benefits and coverage. Existing state laws requiring parity for serious mental illness and substance use disorder coverage do not apply to laws that regulate insurance for state employees, retired teachers, public school employees, and public university employees. These coverage gaps may cause public servants to receive inadequate, inequitable health insurance coverage. C.S.H.B. 1142 seeks to ensure that specific government health benefit plans provide comprehensive coverage for mental health conditions and substance use disorders by applying coverage requirements for those conditions to certain public employee health benefit plans, including the Employees Retirement System. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 1142 amends the Insurance Code to make provisions relating to group health benefit plan coverage for certain serious mental illnesses and other disorders and provisions relating to coverage for mental health conditions and substance use disorders applicable to the following plans: a basic coverage plan under the Texas Employees Group Benefits Act; a basic plan under the Texas Public School Retired Employees Group Benefits Act; a primary care coverage plan under the Texas School Employees Uniform Group Health Coverage Act; and a plan providing basic coverage under the State University Employees Uniform Insurance Benefits Act. C.S.H.B. 1142 exempts a basic coverage plan under the Texas Employees Group Benefits Act and a plan providing basic coverage under the State University Employees Uniform Insurance Benefits Act from the applicability of provisions requiring coverage for screening, treatment, and services for autism spectrum disorder for certain enrollees. C.S.H.B. 1142 requires the applicable trustee, board of trustees, or system, with respect to such plans, to enforce compliance with provisions relating to coverage for mental health conditions and substance use disorders by evaluating the benefits and coverage offered by a health benefit plan for quantitative and nonquantitative treatment limitations in the following categories: in-network and out-of-network inpatient care; in-network and out-of-network outpatient care; emergency care; and prescription drugs. C.S.H.B. 1142 excepts a coverage plan that provides coverage for serious mental illness that is less extensive than the coverage provided for any physical illness from the prohibition against the board of trustees of the Employees Retirement System of Texas (ERS) contracting for or providing certain coverage plans for purposes of group coverages under the Texas Employees Group Benefits Act. C.S.H.B. 1142 applies only to a plan year that commences on or after January 1, 2026. A plan year that commenced before that date is governed by the law as it existed immediately before the bill's effective date, and that law is continued in effect for that purpose. C.S.H.B. 1142 repeals Section 1355.003(b), Insurance Code. EFFECTIVE DATE September 1, 2025. COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 1142 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. The substitute includes a provision that was not in the introduced excepting a coverage plan for serious mental illness that is less extensive than the coverage provided for any physical illness from the prohibition against the board of trustees of ERS contracting for or providing certain coverage plans for purposes of group coverages under the Texas Employees Group Benefits Act.
BILL ANALYSIS
# BILL ANALYSIS
C.S.H.B. 1142
By: Oliverson
Pensions, Investments & Financial Services
Committee Report (Substituted)
C.S.H.B. 1142
By: Oliverson
Pensions, Investments & Financial Services
Committee Report (Substituted)
BACKGROUND AND PURPOSE Significant legislative efforts have been made to increase access to mental health and substance use disorder care by improving insurance coverage. H.B. 10, enacted during the regular session of the 85th Legislature, requires health plans regulated by the Texas Department of Insurance to offer benefits in compliance with parity, meaning that the health benefit plan must provide benefits and coverage for mental health conditions and substance use disorders under the same terms and conditions applicable to the plan's medical and surgical benefits and coverage. Existing state laws requiring parity for serious mental illness and substance use disorder coverage do not apply to laws that regulate insurance for state employees, retired teachers, public school employees, and public university employees. These coverage gaps may cause public servants to receive inadequate, inequitable health insurance coverage. C.S.H.B. 1142 seeks to ensure that specific government health benefit plans provide comprehensive coverage for mental health conditions and substance use disorders by applying coverage requirements for those conditions to certain public employee health benefit plans, including the Employees Retirement System.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS C.S.H.B. 1142 amends the Insurance Code to make provisions relating to group health benefit plan coverage for certain serious mental illnesses and other disorders and provisions relating to coverage for mental health conditions and substance use disorders applicable to the following plans: a basic coverage plan under the Texas Employees Group Benefits Act; a basic plan under the Texas Public School Retired Employees Group Benefits Act; a primary care coverage plan under the Texas School Employees Uniform Group Health Coverage Act; and a plan providing basic coverage under the State University Employees Uniform Insurance Benefits Act. C.S.H.B. 1142 exempts a basic coverage plan under the Texas Employees Group Benefits Act and a plan providing basic coverage under the State University Employees Uniform Insurance Benefits Act from the applicability of provisions requiring coverage for screening, treatment, and services for autism spectrum disorder for certain enrollees. C.S.H.B. 1142 requires the applicable trustee, board of trustees, or system, with respect to such plans, to enforce compliance with provisions relating to coverage for mental health conditions and substance use disorders by evaluating the benefits and coverage offered by a health benefit plan for quantitative and nonquantitative treatment limitations in the following categories: in-network and out-of-network inpatient care; in-network and out-of-network outpatient care; emergency care; and prescription drugs. C.S.H.B. 1142 excepts a coverage plan that provides coverage for serious mental illness that is less extensive than the coverage provided for any physical illness from the prohibition against the board of trustees of the Employees Retirement System of Texas (ERS) contracting for or providing certain coverage plans for purposes of group coverages under the Texas Employees Group Benefits Act. C.S.H.B. 1142 applies only to a plan year that commences on or after January 1, 2026. A plan year that commenced before that date is governed by the law as it existed immediately before the bill's effective date, and that law is continued in effect for that purpose. C.S.H.B. 1142 repeals Section 1355.003(b), Insurance Code.
EFFECTIVE DATE September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 1142 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. The substitute includes a provision that was not in the introduced excepting a coverage plan for serious mental illness that is less extensive than the coverage provided for any physical illness from the prohibition against the board of trustees of ERS contracting for or providing certain coverage plans for purposes of group coverages under the Texas Employees Group Benefits Act.
BACKGROUND AND PURPOSE
Significant legislative efforts have been made to increase access to mental health and substance use disorder care by improving insurance coverage. H.B. 10, enacted during the regular session of the 85th Legislature, requires health plans regulated by the Texas Department of Insurance to offer benefits in compliance with parity, meaning that the health benefit plan must provide benefits and coverage for mental health conditions and substance use disorders under the same terms and conditions applicable to the plan's medical and surgical benefits and coverage. Existing state laws requiring parity for serious mental illness and substance use disorder coverage do not apply to laws that regulate insurance for state employees, retired teachers, public school employees, and public university employees. These coverage gaps may cause public servants to receive inadequate, inequitable health insurance coverage. C.S.H.B. 1142 seeks to ensure that specific government health benefit plans provide comprehensive coverage for mental health conditions and substance use disorders by applying coverage requirements for those conditions to certain public employee health benefit plans, including the Employees Retirement System.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
C.S.H.B. 1142 amends the Insurance Code to make provisions relating to group health benefit plan coverage for certain serious mental illnesses and other disorders and provisions relating to coverage for mental health conditions and substance use disorders applicable to the following plans:
a basic coverage plan under the Texas Employees Group Benefits Act;
a basic plan under the Texas Public School Retired Employees Group Benefits Act;
a primary care coverage plan under the Texas School Employees Uniform Group Health Coverage Act; and
a plan providing basic coverage under the State University Employees Uniform Insurance Benefits Act.
C.S.H.B. 1142 exempts a basic coverage plan under the Texas Employees Group Benefits Act and a plan providing basic coverage under the State University Employees Uniform Insurance Benefits Act from the applicability of provisions requiring coverage for screening, treatment, and services for autism spectrum disorder for certain enrollees.
C.S.H.B. 1142 requires the applicable trustee, board of trustees, or system, with respect to such plans, to enforce compliance with provisions relating to coverage for mental health conditions and substance use disorders by evaluating the benefits and coverage offered by a health benefit plan for quantitative and nonquantitative treatment limitations in the following categories:
in-network and out-of-network inpatient care;
in-network and out-of-network outpatient care;
emergency care; and
prescription drugs.
C.S.H.B. 1142 excepts a coverage plan that provides coverage for serious mental illness that is less extensive than the coverage provided for any physical illness from the prohibition against the board of trustees of the Employees Retirement System of Texas (ERS) contracting for or providing certain coverage plans for purposes of group coverages under the Texas Employees Group Benefits Act.
C.S.H.B. 1142 applies only to a plan year that commences on or after January 1, 2026. A plan year that commenced before that date is governed by the law as it existed immediately before the bill's effective date, and that law is continued in effect for that purpose.
C.S.H.B. 1142 repeals Section 1355.003(b), Insurance Code.
EFFECTIVE DATE
September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 1142 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
The substitute includes a provision that was not in the introduced excepting a coverage plan for serious mental illness that is less extensive than the coverage provided for any physical illness from the prohibition against the board of trustees of ERS contracting for or providing certain coverage plans for purposes of group coverages under the Texas Employees Group Benefits Act.