BILL ANALYSIS

C.S.H.B. 1452

By: Anchía

Insurance

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Families who experience stillbirths may want proper funeral services for their unborn child instead of having them treated like medical waste, but most health insurance policies and life insurance policies do not cover funeral or burial costs in the case of a stillbirth. This creates another burden for grieving families. According to the Centers for Disease Control and Prevention, stillbirth affects about 1 in 175 births, and each year about 21,000 babies are stillborn in the United States. Most life insurance plans require the child to be 14 days old before being covered on the policy. Even the average cost of a funeral service or cremation service in Texas may impart a heavy financial burden on families. C.S.H.B. 1452 seeks to address this issue by requiring certain entities to provide a benefit or coverage for up to $7,500 of the costs associated with the disposition of embryonic and fetal tissue remains with a post-fertilization age of 20 weeks or more.

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. 1452 amends the Insurance Code to provide for coverage for the disposition of embryonic and fetal tissue remains. The bill requires an applicable entity to provide a benefit or coverage for up to $7,500 of the cost of disposition of embryonic and fetal tissue remains with a post‑fertilization age of 20 weeks or more, including disposition by interment, cremation, or incineration or steam disinfection followed by interment. The bill specifies the sources of coverage to which its provisions apply and establishes exceptions to that applicability, including for a Medicare supplemental policy and Medicaid. The bill applies only to an insurance policy, evidence of coverage, annuity or other contract, or group benefit plan that is delivered, issued for delivery, or renewed on or after January 1, 2024.

EFFECTIVE DATE

September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 1452 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 omits a provision from the introduced that made the bill's provisions applicable to health benefits provided by or through a church benefits board.

Whereas the introduced did not specify the amount of the benefit or coverage that an applicable entity must provide for the cost of the disposition of the remains, the substitute includes a cap on that amount of $7,500.