BILL ANALYSIS Senate Research Center S.B. 896 89R1818 CJD-D By: Blanco Health & Human Services 3/7/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In Texas, new parents covered under multiple employer welfare arrangements, small employer benefit plans, and large employer benefit plans have a limited window of 31 days to enroll their newborn in their health insurance plan. Given the numerous responsibilities that come with welcoming a new child, stakeholders have raised concerns about whether this timeframe provides adequate opportunity for parents to complete the enrollment process. By ensuring newborns are covered under their parents' health benefit plans for 60 days, S.B. 896 will give parents more time to enroll their newborn children into their health benefit plans. S.B. 896 extends the period for parents covered under multiple employer welfare arrangements (MEWAs), small employer benefit plans, and large employer benefit plans to enroll their newborns into their employer health benefit plan from 31 days after the child's birth date to 60 days after that date. C.S.S.B 896 will additionally require individual or group health benefit plans under Chapter 1367, Insurance Code to cover a newborn child for 60 days after the child's birth. As proposed, S.B. 896 amends current law relating to the enrollment period for newborns under certain employer health benefit plans. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 846.258(b), Insurance Code, as follows: (b) Provides that coverage of a newborn child of a participating employee under Section 846.258 (Coverage for Newborn Children) ends on the 61st day, rather than the 32nd day, after the date of the child's birth unless: (1) makes no changes to this subdivision; and (2) not later than the 60th day, rather than the 31st day, after the date of birth, the arrangement receives certain documents. SECTION 2. Amends Section 1501.157(b), Insurance Code, to make conforming changes. SECTION 3. Amends Section 1501.607(b), Insurance Code, to make conforming changes. SECTION 4. Makes application of this Act prospective to January 1, 2026. SECTION 5. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 896
89R1818 CJD-D By: Blanco
Health & Human Services
3/7/2025
As Filed
Senate Research Center
S.B. 896
89R1818 CJD-D
By: Blanco
Health & Human Services
3/7/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In Texas, new parents covered under multiple employer welfare arrangements, small employer benefit plans, and large employer benefit plans have a limited window of 31 days to enroll their newborn in their health insurance plan. Given the numerous responsibilities that come with welcoming a new child, stakeholders have raised concerns about whether this timeframe provides adequate opportunity for parents to complete the enrollment process. By ensuring newborns are covered under their parents' health benefit plans for 60 days, S.B. 896 will give parents more time to enroll their newborn children into their health benefit plans.
S.B. 896 extends the period for parents covered under multiple employer welfare arrangements (MEWAs), small employer benefit plans, and large employer benefit plans to enroll their newborns into their employer health benefit plan from 31 days after the child's birth date to 60 days after that date.
C.S.S.B 896 will additionally require individual or group health benefit plans under Chapter 1367, Insurance Code to cover a newborn child for 60 days after the child's birth.
As proposed, S.B. 896 amends current law relating to the enrollment period for newborns under certain employer health benefit plans.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 846.258(b), Insurance Code, as follows:
(b) Provides that coverage of a newborn child of a participating employee under Section 846.258 (Coverage for Newborn Children) ends on the 61st day, rather than the 32nd day, after the date of the child's birth unless:
(1) makes no changes to this subdivision; and
(2) not later than the 60th day, rather than the 31st day, after the date of birth, the arrangement receives certain documents.
SECTION 2. Amends Section 1501.157(b), Insurance Code, to make conforming changes.
SECTION 3. Amends Section 1501.607(b), Insurance Code, to make conforming changes.
SECTION 4. Makes application of this Act prospective to January 1, 2026.
SECTION 5. Effective date: September 1, 2025.