Bill Text: TX HB2096 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to access to and benefits for mental health conditions and substance use disorders.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-03-16 - Referred to Public Health [HB2096 Detail]

Download: Texas-2017-HB2096-Introduced.html
  85R3974 MEW-D
 
  By: Price H.B. No. 2096
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to access to and benefits for mental health conditions and
  substance use disorders.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 531, Government Code, is
  amended by adding Sections 531.02251 and 531.02252 to read as
  follows:
         Sec. 531.02251.  OMBUDSMAN FOR BEHAVIORAL HEALTH ACCESS TO
  CARE. (a) In this section, "ombudsman" means the individual
  designated as the ombudsman for behavioral health access to care.
         (b)  The executive commissioner shall designate an ombudsman
  for behavioral health access to care.
         (c)  The ombudsman is administratively attached to the
  office of the ombudsman for the commission.
         (d)  The ombudsman serves as a neutral party to help
  consumers, including consumers who are uninsured or have public or
  private health benefit coverage, and behavioral health care
  providers navigate and resolve issues related to consumer access to
  behavioral health care, including care for mental health conditions
  and substance use disorders.
         (e)  The ombudsman shall:
               (1)  interact with consumers and behavioral health care
  providers with concerns or complaints to help the consumers and
  providers resolve behavioral health care access issues;
               (2)  identify, track, and help report potential
  violations of state or federal rules, regulations, or statutes
  concerning the availability of, and terms and conditions of,
  benefits for mental health conditions or substance use disorders,
  including potential violations related to nonquantitative
  treatment limitations;
               (3)  report concerns, complaints, and potential
  violations described by Subdivision (2) to the appropriate
  regulatory or oversight agency;
               (3)  provide appropriate referrals to help consumers
  obtain behavioral health care;
               (4)  develop appropriate points of contact for
  referrals to other state and federal agencies; and
               (5)  provide appropriate referrals and information to
  help consumers or providers file appeals or complaints with the
  appropriate entities, including insurers and other state and
  federal agencies.
         (f)  The ombudsman shall participate on the mental health
  condition and substance use disorder parity work group established
  under Section 531.02252, and provide summary reports of concerns,
  complaints, and potential violations described by Subsection
  (e)(2) to the work group.  This subsection expires September 1,
  2021.
         (g)  The Texas Department of Insurance shall appoint a
  liaison to the ombudsman to receive reports of concerns,
  complaints, and potential violations described by Subsection
  (e)(2) from the ombudsman, consumers, or behavioral health care
  providers.
         Sec. 531.02252.  MENTAL HEALTH CONDITION AND SUBSTANCE USE
  DISORDER PARITY WORK GROUP. (a)  The commission shall establish and
  facilitate a mental health condition and substance use disorder
  parity work group at the office of mental health coordination to
  increase understanding of and compliance with state and federal
  rules, regulations, and statutes concerning the availability of,
  and terms and conditions of, benefits for mental health conditions
  and substance use disorders.
         (b)  The work group may be a part of or a subcommittee of the
  behavioral health advisory committee.
         (c)  The work group is composed of:
               (1)  a representative of:
                     (A)  Medicaid and the child health plan program;
                     (B)  the office of mental health coordination;
                     (C)  the Texas Department of Insurance;
                     (D)  Medicaid managed care organizations;
                     (E)  commercial health benefit plans;
                     (F)  mental health provider organizations;
                     (G)  substance use disorder providers;
                     (H)  mental health consumer advocates;
                     (I)  substance use disorder treatment consumers;
                     (J)  family members of mental health or substance
  use disorder treatment consumers;
                     (K)  physicians;
                     (L)  hospitals;
                     (M)  children's mental health providers;
                     (N)  utilization review agents; and
                     (O)  independent review organizations; and
               (2)  the ombudsman for behavioral health access to
  care.
         (d)  The work group shall meet at least quarterly.
         (e)  The work group shall study and make recommendations on:
               (1)  increasing compliance with the rules,
  regulations, and statutes described by Subsection (a);
               (2)  strengthening enforcement and oversight of these
  laws at state and federal agencies;
               (3)  improving the complaint processes relating to
  potential violations of these laws for consumers and providers;
               (4)  ensuring the commission and the Texas Department
  of Insurance can accept information concerns relating to these laws
  and investigate potential violations based on de-identified
  information and data submitted to providers in addition to
  individual complaints; and
               (5)  increasing public and provider education on these
  laws.
         (f)  The work group shall develop a strategic plan with
  metrics to serve as a road map to increase compliance with the
  rules, regulations, and statutes described by Subsection (a) in
  this state and to increase education and outreach relating to these
  laws.
         (g)  Not later than September 1 of each even-numbered year,
  the work group shall submit a report to the appropriate committees
  of the legislature and the appropriate state agencies on the
  findings, recommendations, and strategic plan required by
  Subsections (e) and (f).
         (h)  The work group is abolished and this section expires
  September 1, 2021.
         SECTION 2.  The heading to Subchapter A, Chapter 1355,
  Insurance Code, is amended to read as follows:
  SUBCHAPTER A.  [GROUP] HEALTH BENEFIT PLAN COVERAGE FOR CERTAIN
  SERIOUS MENTAL ILLNESSES AND OTHER DISORDERS
         SECTION 3.  Section 1355.001, Insurance Code, is amended by
  amending Subdivision (1) and adding Subdivisions (5), (6), and (7)
  to read as follows:
               (1)  "Serious mental illness" means the following
  psychiatric illnesses as defined by the American Psychiatric
  Association in the Diagnostic and Statistical Manual of Mental
  Disorders (DSM), fifth edition, or a later edition adopted by the
  commissioner by rule:
                     (A)  bipolar disorders (hypomanic, manic,
  depressive, and mixed);
                     (B)  depression in childhood and adolescence;
                     (C)  major depressive disorders (single episode
  or recurrent);
                     (D)  obsessive-compulsive disorders;
                     (E)  paranoid and other psychotic disorders;
                     (F)  posttraumatic stress disorder;
                     (G)  schizo-affective disorders (bipolar or
  depressive); and
                     (H) [(G)]  schizophrenia.
               (5)  "Posttraumatic stress disorder" means a disorder
  that:
                     (A)  meets the diagnostic criteria for
  posttraumatic stress disorder specified by the American
  Psychiatric Association in the Diagnostic and Statistical Manual of
  Mental Disorders, fifth edition, or a later edition adopted by the
  commissioner by rule; and
                     (B)  results in an impairment of a person's
  functioning in the person's community, employment, family, school,
  or social group.
               (6)  "Eating disorder" means:
                     (A)  any eating disorder described by the
  Diagnostic and Statistical Manual of Mental Disorders, fifth
  edition, or a later edition adopted by the commissioner by rule,
  including:
                           (i)  anorexia nervosa;
                           (ii)  bulimia nervosa;
                           (iii)  binge eating disorder;
                           (iv)  rumination disorder;
                           (v)  avoidant/restrictive food intake
  disorder; or
                           (vi)  any eating disorder not otherwise
  specified; or
                     (B)  any eating disorder contained in a subsequent
  edition of the Diagnostic and Statistical Manual of Mental
  Disorders published by the American Psychiatric Association and
  adopted by the commissioner by rule.
               (7)  "Serious emotional disturbance of a child" means
  an emotional or behavioral disorder or a neuropsychiatric condition
  that causes a person's functioning to be impaired in thought,
  perception, affect, or behavior and that:
                     (A)  has been diagnosed, by a physician licensed
  to practice medicine in this state, a psychologist licensed to
  practice in this state, or a licensed professional counselor
  licensed to practice in this state, in a person who is at least 3
  years of age and younger than 17 years of age; and
                     (B)  meets at least one of the following criteria:
                           (i)  the disorder substantially impairs the
  person's ability in at least two of the following activities or
  tasks:
                                 (a)  self-care;
                                 (b)  engaging in family relationships;
                                 (c)  functioning in school; or
                                 (d)  functioning in the community;
                           (ii)  the disorder creates a risk that the
  person will be removed from the person's home and placed in a more
  restrictive environment, including in a facility or program
  operated by the Department of Family and Protective Services or an
  agency that is part of the juvenile justice system;
                           (iii)  the disorder causes the person to:
                                 (a)  display psychotic features or
  violent behavior; or
                                 (b)  pose a danger to the person's self
  or others; or
                           (iv)  the disorder results in the person
  meeting state special education eligibility requirements for
  serious emotional disturbance.
         SECTION 4.  Section 1355.002, Insurance Code, is amended by
  amending Subsection (a) and adding Subsections (c) and (d) to read
  as follows:
         (a)  This subchapter applies only to a [group] health benefit
  plan that provides benefits for medical or surgical expenses
  incurred as a result of a health condition, accident, or sickness,
  including:
               (1)  an individual, [a] group, blanket, or franchise
  insurance policy or [, group] insurance agreement, a group hospital
  service contract, [or] an individual or group evidence of coverage,
  or a similar coverage document, that is offered by:
                     (A)  an insurance company;
                     (B)  a group hospital service corporation
  operating under Chapter 842;
                     (C)  a fraternal benefit society operating under
  Chapter 885;
                     (D)  a stipulated premium company operating under
  Chapter 884; [or]
                     (E)  a health maintenance organization operating
  under Chapter 843; [and]
                     (F)  a reciprocal exchange operating under
  Chapter 942;
                     (G)  a Lloyd's plan operating under Chapter 941;
                     (H)  an approved nonprofit health corporation
  that holds a certificate of authority under Chapter 844; or
                     (I)  a multiple employer welfare arrangement that
  holds a certificate of authority under Chapter 846; and
               (2)  to the extent permitted by the Employee Retirement
  Income Security Act of 1974 (29 U.S.C. Section 1001 et seq.), a plan
  offered under:
                     (A)  a multiple employer welfare arrangement as
  defined by Section 3 of that Act; or
                     (B)  another analogous benefit arrangement.
         (c)  Notwithstanding Section 1501.251 or any other law, this
  subchapter applies to coverage under a small employer health
  benefit plan subject to Chapter 1501.
         (d)  This subchapter applies to a standard health benefit
  plan issued under Chapter 1507.
         SECTION 5.  The heading to Section 1355.003, Insurance Code,
  is amended to read as follows:
         Sec. 1355.003.  EXCEPTIONS [EXCEPTION].
         SECTION 6.  Section 1355.003, Insurance Code, is amended by
  amending Subsection (a) and adding Subsection (c) to read as
  follows:
         (a)  This subchapter does not apply to coverage under:
               (1)  [a blanket accident and health insurance policy,
  as described by Chapter 1251;
               [(2)]  a short-term travel policy;
               (2) [(3)]  an accident-only policy;
               (3) [(4)]  a limited or specified-disease policy that
  does not provide benefits for mental health care or similar
  services;
               (4) [(5)]  except as provided by Subsection (b), a plan
  offered under Chapter 1551 or Chapter 1601;
               (5) [(6)]  a plan offered in accordance with Section
  1355.151; or
               (6) [(7)]  a Medicare supplement benefit plan, as
  defined by Section 1652.002.
         (c)  To the extent that this section would otherwise require
  this state to make a payment under 42 U.S.C. Section
  18031(d)(3)(B)(ii), a qualified health plan, as defined by 45
  C.F.R. Section 155.20, is not required to provide a benefit under
  this subchapter that exceeds the specified essential health
  benefits required under 42 U.S.C. Section 18022(b).
         SECTION 7.  Section 1355.004, Insurance Code, is amended to
  read as follows:
         Sec. 1355.004.  REQUIRED COVERAGE FOR SERIOUS EMOTIONAL
  DISTURBANCE OF A CHILD AND SERIOUS MENTAL ILLNESS. (a) A [group]
  health benefit plan:
               (1)  must provide coverage for serious emotional
  disturbance of a child diagnosed as described by Section 1355.001
  and coverage, based on medical necessity, for serious mental
  illness for not less than the following treatments [of serious
  mental illness] in each calendar year:
                     (A)  45 days of inpatient treatment; and
                     (B)  60 visits for outpatient treatment,
  including group and individual outpatient treatment;
               (2)  may not include a lifetime limitation on the
  number of days of inpatient treatment or the number of visits for
  outpatient treatment covered under the plan; and
               (3)  must include the same amount limitations,
  deductibles, copayments, and coinsurance factors for serious
  emotional disturbance of a child and serious mental illness as the
  plan includes for physical illness.
         (b)  A [group] health benefit plan issuer:
               (1)  may not count an outpatient visit for medication
  management against the number of outpatient visits required to be
  covered under Subsection (a)(1)(B); and
               (2)  must provide coverage for an outpatient visit
  described by Subsection (a)(1)(B) under the same terms as the
  coverage the issuer provides for an outpatient visit for the
  treatment of physical illness.
         SECTION 8.  Section 1355.005, Insurance Code, is amended to
  read as follows:
         Sec. 1355.005.  MANAGED CARE PLAN AUTHORIZED. A [group]
  health benefit plan issuer may provide or offer coverage required
  by Section 1355.004 through a managed care plan.
         SECTION 9.  Section 1355.006(b), Insurance Code, is amended
  to read as follows:
         (b)  This subchapter does not require a [group] health
  benefit plan to provide coverage for the treatment of:
               (1)  addiction to a controlled substance or marihuana
  that is used in violation of law; or
               (2)  mental illness that results from the use of a
  controlled substance or marihuana in violation of law.
         SECTION 10.  Subchapter A, Chapter 1355, Insurance Code, is
  amended by adding Section 1355.008 to read as follows:
         Sec. 1355.008.  REQUIRED COVERAGE FOR EATING DISORDERS. (a)
  A health benefit plan must provide coverage, based on medical
  necessity, for the diagnosis and treatment of an eating disorder.
         (b)  Coverage required under Subsection (a) is limited to a
  service or medication, to the extent the service or medication is
  covered by the health benefit plan, ordered by a licensed
  physician, psychiatrist, psychologist, or therapist within the
  scope of the practitioner's license and in accordance with a
  treatment plan.
         (c)  On request from the health benefit plan issuer, an
  eating disorder treatment plan must include all elements necessary
  for the issuer to pay a claim under the health benefit plan, which
  may include a diagnosis, goals, and proposed treatment by type,
  frequency, and duration.
         (d)  Coverage required under Subsection (a) is not subject to
  a limit on the number of days of medically necessary treatment
  except as provided by the treatment plan.
         (e)  A health benefit plan issuer may conduct a utilization
  review of an eating disorder treatment plan not more than once each
  six months unless the physician, psychiatrist, psychologist, or
  therapist treating the enrollee under the treatment plan agrees
  that a more frequent review is necessary. An agreement to conduct
  more frequent review under this subsection applies only to the
  enrollee who is the subject of the agreement.
         (f)  A health benefit plan issuer shall pay any costs of
  conducting a utilization review of coverage required under
  Subsection (a) or obtaining a treatment plan.
         (g)  In conducting a utilization review of treatment for an
  eating disorder, including review of medical necessity or the
  treatment plan, a utilization review agent shall consider:
               (1)  the overall medical and mental health needs of the
  individual with the eating disorder;
               (2)  factors in addition to weight; and
               (3)  the most recent Practice Guideline for the
  Treatment of Patients with Eating Disorders adopted by the American
  Psychiatric Association.
         SECTION 11.  Section 1355.054(a), Insurance Code, is amended
  to read as follows:
         (a)  Benefits of coverage provided under this subchapter may
  be used only in a situation in which:
               (1)  the covered individual has a serious mental
  illness or serious emotional disturbance of a child that requires
  confinement of the individual in a hospital unless treatment is
  available through a residential treatment center for children and
  adolescents or a crisis stabilization unit; and
               (2)  the covered individual's mental illness or
  emotional disturbance:
                     (A)  substantially impairs the individual's
  thought, perception of reality, emotional process, or judgment; or
                     (B)  as manifested by the individual's recent
  disturbed behavior, grossly impairs the individual's behavior.
         SECTION 12.  Chapter 1355, Insurance Code, is amended by
  adding Subchapter F to read as follows:
  SUBCHAPTER F. COVERAGE FOR MENTAL HEALTH CONDITIONS AND SUBSTANCE
  USE DISORDERS
         Sec. 1355.251.  DEFINITIONS. In this subchapter:
               (1)  "Financial requirement" includes a requirement
  relating to a deductible, copayment, coinsurance, or other
  out-of-pocket expense or an annual or lifetime limit.
               (2)  "Mental health benefit" means a benefit relating
  to an item or service for a mental health condition, as defined
  under the terms of a health benefit plan and in accordance with
  applicable federal and state law.
               (3)  "Nonquantitative treatment limitation" includes:
                     (A)  a medical management standard limiting or
  excluding benefits based on medical necessity or medical
  appropriateness or based on whether a treatment is experimental or
  investigational;
                     (B)  formulary design for prescription drugs;
                     (C)  network tier design;
                     (D)  a standard for provider participation in a
  network, including reimbursement rates;
                     (E)  a method used by a health benefit plan to
  determine usual, customary, and reasonable charges;
                     (F)  a step therapy protocol;
                     (G)  an exclusion based on failure to complete a
  course of treatment; and
                     (H)  a restriction based on geographic location,
  facility type, provider specialty, and other criteria that limit
  the scope or duration of a benefit.
               (4)  "Substance use disorder benefit" means a benefit
  relating to an item or service for a substance use disorder, as
  defined under the terms of a health benefit plan and in accordance
  with applicable federal and state law.
               (5)  "Treatment limitation" includes a limit on the
  frequency of treatment, number of visits, days of coverage, or
  other similar limit on the scope or duration of treatment.  The term
  includes a nonquantitative treatment limitation.
         Sec. 1355.252.  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, an individual or
  group evidence of coverage, or a similar coverage document, that is
  offered by:
               (1)  an insurance company;
               (2)  a group hospital service corporation operating
  under Chapter 842;
               (3)  a fraternal benefit society operating under
  Chapter 885;
               (4)  a stipulated premium company operating under
  Chapter 884;
               (5)  a health maintenance organization operating under
  Chapter 843;
               (6)  a reciprocal exchange operating under Chapter 942;
               (7)  a Lloyd's plan operating under Chapter 941;
               (8)  an approved nonprofit health corporation that
  holds a certificate of authority under Chapter 844; or
               (9)  a multiple employer welfare arrangement that holds
  a certificate of authority under Chapter 846.
         (b)  Notwithstanding Section 1501.251 or any other law, this
  subchapter applies to coverage under a small employer health
  benefit plan subject to Chapter 1501.
         (c)  This subchapter applies to a standard health benefit
  plan issued under Chapter 1507.
         Sec. 1355.253.  EXCEPTIONS. (a) This subchapter does not
  apply to:
               (1)  a plan that provides coverage:
                     (A)  for wages or payments in lieu of wages for a
  period during which an employee is absent from work because of
  sickness or injury;
                     (B)  as a supplement to a liability insurance
  policy;
                     (C)  for credit insurance;
                     (D)  only for dental or vision care;
                     (E)  only for hospital expenses; or
                     (F)  only for indemnity for hospital confinement;
               (2)  a Medicare supplemental policy as defined by
  Section 1882(g)(1), Social Security Act (42 U.S.C. Section
  1395ss(g)(1));
               (3)  a workers' compensation insurance policy;
               (4)  medical payment insurance coverage provided under
  a motor vehicle insurance policy; or
               (5)  a long-term care policy, including a nursing home
  fixed indemnity policy, unless the commissioner determines that the
  policy provides benefit coverage so comprehensive that the policy
  is a health benefit plan as described by Section 1355.252.
         (b)  To the extent that this section would otherwise require
  this state to make a payment under 42 U.S.C. Section
  18031(d)(3)(B)(ii), a qualified health plan, as defined by 45
  C.F.R. Section 155.20, is not required to provide a benefit under
  this subchapter that exceeds the specified essential health
  benefits required under 42 U.S.C. Section 18022(b).
         Sec. 1355.254.  REQUIRED COVERAGE FOR MENTAL HEALTH
  CONDITIONS AND SUBSTANCE USE DISORDERS. (a)  A health benefit plan
  must provide benefits for mental health conditions and substance
  use disorders under the same terms and conditions applicable to
  benefits for medical or surgical expenses.
         (b)  Coverage under Subsection (a) may not impose treatment
  limitations or financial requirements on benefits for a mental
  health condition or substance use disorder that are generally more
  restrictive than treatment limitations or financial requirements
  imposed on coverage of benefits for medical or surgical expenses.
         Sec. 1355.255.  DEFINITIONS UNDER PLAN. (a)  A health
  benefit plan must define a condition to be a mental health condition
  or not a mental health condition in a manner consistent with
  generally recognized independent standards of medical practice.
         (b)  A health benefit plan must define a condition to be a
  substance use disorder or not a substance use disorder in a manner
  consistent with generally recognized independent standards of
  medical practice.
         Sec. 1355.256.  COORDINATION WITH OTHER LAW; INTENT OF
  LEGISLATURE.  This subchapter supplements Subchapters A and B of
  this chapter and Chapter 1368 and the department rules adopted
  under those statutes. It is the intent of the legislature that
  Subchapter A or B of this chapter or Chapter 1368 or the department
  rules adopted under those statutes controls in any circumstance in
  which that other law requires:
               (1)  a benefit that is not required by this subchapter;
  or
               (2)  a more extensive benefit than is required by this
  subchapter.
         Sec. 1355.257.  RULES. The commissioner shall adopt rules
  necessary to implement this subchapter.
         SECTION 13.  Section 1368.002, Insurance Code, is amended to
  read as follows:
         Sec. 1368.002.  APPLICABILITY OF CHAPTER. (a)  This chapter
  applies only to a [group] health benefit plan that provides
  hospital and medical coverage or services on an expense incurred,
  service, or prepaid basis, including an individual, [a] group,
  blanket, or franchise insurance policy or insurance agreement, a
  group hospital service contract, an individual or group evidence of
  coverage, or a similar coverage document, or self-funded or
  self-insured plan or arrangement, that is offered in this state by:
               (1)  an insurer;
               (2)  a group hospital service corporation operating
  under Chapter 842;
               (3)  a health maintenance organization operating under
  Chapter 843; [or]
               (4)  an employer, trustee, or other self-funded or
  self-insured plan or arrangement;
               (5)  a fraternal benefit society operating under
  Chapter 885;
               (6)  a stipulated premium company operating under
  Chapter 884;
               (7)  a reciprocal exchange operating under Chapter 942;
               (8)  a Lloyd's plan operating under Chapter 941;
               (9)  an approved nonprofit health corporation that
  holds a certificate of authority under Chapter 844; or
               (10)  a multiple employer welfare arrangement that
  holds a certificate of authority under Chapter 846.
         (b)  Notwithstanding Section 1501.251 or any other law, this
  chapter applies to coverage under a small employer health benefit
  plan subject to Chapter 1501.
         (c)  This chapter applies to a standard health benefit plan
  issued under Chapter 1507.
         SECTION 14.  Section 1368.003, Insurance Code, is amended to
  read as follows:
         Sec. 1368.003.  EXCEPTIONS [EXCEPTION].  (a)  This chapter
  does not apply to:
               (1)  an employer, trustee, or other self-funded or
  self-insured plan or arrangement with 250 or fewer employees or
  members;
               (2)  [an individual insurance policy;
               [(3)     an individual evidence of coverage issued by a
  health maintenance organization;
               [(4)]  a health insurance policy that provides only:
                     (A)  cash indemnity for hospital or other
  confinement benefits;
                     (B)  supplemental or limited benefit coverage;
                     (C)  coverage for specified diseases or
  accidents;
                     (D)  disability income coverage; or
                     (E)  any combination of those benefits or
  coverages;
               (3) [(5)  a blanket insurance policy;
               [(6)]  a short-term travel insurance policy;
               (4) [(7)]  an accident-only insurance policy;
               (5) [(8)]  a limited or specified disease insurance
  policy;
               (6) [(9)     an individual conversion insurance policy or
  contract;
               [(10)]  a policy or contract designed for issuance to a
  person eligible for Medicare coverage or other similar coverage
  under a state or federal government plan; or
               (7) [(11)]  an evidence of coverage provided by a
  health maintenance organization if the plan holder is the subject
  of a collective bargaining agreement that was in effect on January
  1, 1982, and that has not expired since that date.
         (b)  To the extent that this section would otherwise require
  this state to make a payment under 42 U.S.C. Section
  18031(d)(3)(B)(ii), a qualified health plan, as defined by 45
  C.F.R. Section 155.20, is not required to provide a benefit under
  this chapter that exceeds the specified essential health benefits
  required under 42 U.S.C. Section 18022(b).
         SECTION 15.  Section 1368.004, Insurance Code, is amended to
  read as follows:
         Sec. 1368.004.  COVERAGE REQUIRED. (a)  A [group] health
  benefit plan shall provide coverage for the necessary care and
  treatment of chemical dependency.
         (b)  Coverage required under this section may be provided:
               (1)  directly by the [group] health benefit plan
  issuer; or
               (2)  by another entity, including a single service
  health maintenance organization, under contract with the [group]
  health benefit plan issuer.
         SECTION 16.  Section 1368.005(b), Insurance Code, is amended
  to read as follows:
         (b)  A [group] health benefit plan may set dollar or
  durational limits for coverage required under this chapter that are
  less favorable than for coverage provided for physical illness
  generally under the plan if those limits are sufficient to provide
  appropriate care and treatment under the guidelines and standards
  adopted under Section 1368.007. If guidelines and standards
  adopted under Section 1368.007 are not in effect, the dollar and
  durational limits may not be less favorable than for physical
  illness generally.
         SECTION 17.  Section 1355.007, Insurance Code, is repealed.
         SECTION 18.  (a) The Texas Department of Insurance shall
  conduct a study and prepare a report on benefits for medical or
  surgical expenses and for mental health conditions and substance
  use disorders.
         (b)  In conducting the study, the department must collect and
  compare data from health benefit plan issuers subject to Subchapter
  F, Chapter 1355, Insurance Code, as added by this Act, on medical or
  surgical benefits and mental health condition or substance use
  disorder benefits that are:
               (1)  subject to prior authorization or utilization
  review;
               (2)  denied as not medically necessary or experimental
  or investigational;
               (3)  internally appealed, including data that
  indicates whether the appeal was denied; or
               (4)  subject to an independent external review,
  including data that indicates whether the denial was upheld.
         (c)  Not later than September 1, 2018, the department shall
  report the results of the study and the department's findings.
         SECTION 19.  (a)  The Health and Human Services Commission
  shall conduct a study and prepare a report on benefits for medical
  or surgical expenses and for mental health conditions and substance
  use disorders provided by Medicaid managed care organizations.
         (b)  In conducting the study, the commission must collect and
  compare data from Medicaid managed care organizations on medical or
  surgical benefits and mental health condition or substance use
  disorder benefits that are:
               (1)  subject to prior authorization or utilization
  review;
               (2)  denied as not medically necessary or experimental
  or investigational;
               (3)  internally appealed, including data that
  indicates whether the appeal was denied; or
               (4)  subject to an independent external review,
  including data that indicates whether the denial was upheld.
         (c)  Not later than September 1, 2018, the commission shall
  report the results of the study and the commission's findings.
         SECTION 20.  The changes in law made by this Act to Chapters
  1355 and 1368, Insurance Code, apply only to a health benefit plan
  delivered, issued for delivery, or renewed on or after January 1,
  2018. A health benefit plan delivered, issued for delivery, or
  renewed before January 1, 2018, is governed by the law as it existed
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         SECTION 21.  This Act takes effect September 1, 2017.
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