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  H.B. No. 2000
 
 
 
 
AN ACT
  relating to health benefit plan coverage for certain amino
  acid-based elemental formulas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle E, Title 8, Insurance Code, is amended
  by adding Chapter 1377 to read as follows:
  CHAPTER 1377. COVERAGE FOR CERTAIN AMINO ACID-BASED ELEMENTAL
  FORMULAS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1377.001.  DEFINITION. In this chapter, "enrollee"
  means an individual entitled to coverage under a health benefit
  plan.
         Sec. 1377.002.  APPLICABILITY OF CHAPTER. (a) This chapter
  applies only to a health benefit plan, including a small employer
  health benefit plan written under Chapter 1501 or coverage provided
  by a health group cooperative under Subchapter B of that chapter,
  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 fraternal benefit society operating under
  Chapter 885;
               (4)  a stipulated premium company operating under
  Chapter 884;
               (5)  an exchange operating under Chapter 942;
               (6)  a Lloyd's plan operating under Chapter 941;
               (7)  a health maintenance organization operating under
  Chapter 843;
               (8)  a multiple employer welfare arrangement that holds
  a certificate of authority under Chapter 846; or
               (9)  an approved nonprofit health corporation that
  holds a certificate of authority under Chapter 844.
         (b)  Notwithstanding any provision in Chapter 1551, 1575,
  1579, or 1601 or any other law, this chapter applies to:
               (1)  a basic coverage plan under Chapter 1551;
               (2)  a basic plan under Chapter 1575;
               (3)  a primary care coverage plan under Chapter 1579;
  and
               (4)  basic coverage under Chapter 1601.
         Sec. 1377.003.  EXCEPTION.  This chapter does not apply to:
               (1)  a plan that provides coverage:
                     (A)  only for benefits for a specified disease or
  for another limited benefit, other than a plan that provides
  benefits for a disease or disorder listed in Section 1377.051(a);
                     (B)  only for accidental death or dismemberment;
                     (C)  for wages or payments in lieu of wages for a
  period during which an employee is absent from work because of
  sickness or injury;
                     (D)  as a supplement to a liability insurance
  policy;
                     (E)  only for dental or vision care; 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);
               (3)  a workers' compensation insurance policy;
               (4)  medical payment insurance coverage provided under
  an automobile insurance policy;
               (5)  a credit insurance policy;
               (6)  a limited benefit policy that does not provide
  coverage for physical examinations or wellness exams; or
               (7)  a long-term care insurance 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 1377.002.
  [Sections 1377.004-1377.050 reserved for expansion]
  SUBCHAPTER B. COVERAGE FOR CERTAIN AMINO ACID-BASED ELEMENTAL
  FORMULAS
         Sec. 1377.051.  REQUIRED COVERAGE FOR CERTAIN AMINO
  ACID-BASED ELEMENTAL FORMULAS. (a) A health benefit plan must
  provide coverage as provided by this chapter for amino acid-based
  elemental formulas, regardless of the formula delivery method, that
  are used for the diagnosis and treatment of:
               (1)  immunoglobulin E and non-immunoglobulin E
  mediated allergies to multiple food proteins;
               (2)  severe food protein-induced enterocolitis
  syndrome;
               (3)  eosinophilic disorders, as evidenced by the
  results of a biopsy; and
               (4)  impaired absorption of nutrients caused by
  disorders affecting the absorptive surface, functional length, and
  motility of the gastrointestinal tract.
         (b)  Subject to Subsection (c), the coverage required under
  Subsection (a) is required if the treating physician has issued a
  written order stating that the amino acid-based elemental formula
  is medically necessary for the treatment of an enrollee who is
  diagnosed with a disease or disorder listed in Subsection (a). The
  coverage must include coverage of any medically necessary services
  associated with the administration of the formula.
         (c)  A health benefit plan must provide the coverage
  described by Subsection (a) on a basis no less favorable than the
  basis on which prescription drugs and other medications and related
  services are covered by the plan, and to the same extent that the
  plan provides coverage for drugs that are available only on the
  orders of a physician.
         Sec. 1377.052.  UTILIZATION REVIEW.  (a)  A utilization
  review agent acting on behalf of a health benefit plan issuer may
  review a treating physician's determination of the medical
  necessity of the use of an amino acid-based elemental formula for
  the treatment of an enrollee who is diagnosed with a disease or
  disorder listed in Section 1377.051(a).
         (b)  Utilization review under this section is subject to
  Chapter 4201.
         SECTION 2.  Chapter 1377, Insurance Code, as added by this
  Act, applies only to a health benefit plan that is delivered, issued
  for delivery, or renewed on or after January 1, 2010. A health
  benefit plan that is delivered, issued for delivery, or renewed
  before January 1, 2010, is covered by the law in effect at the time
  the plan was delivered, issued for delivery, or renewed, and that
  law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2000 was passed by the House on May
  14, 2009, by the following vote:  Yeas 99, Nays 28, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 2000 on May 29, 2009, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 2000 on May 31, 2009, by the following vote:  Yeas 142,
  Nays 0, 1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2000 was passed by the Senate, with
  amendments, on May 25, 2009, by the following vote:  Yeas 28, Nays
  3; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  2000 on May 31, 2009, by the following vote:  Yeas 28, Nays 3.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor