Relating to the enrollment period for newborns under certain health benefit plans, the official text

S.B. No. 896

AN ACT

relating to the enrollment period for newborns under certain health

benefit plans.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 846.258(b), Insurance Code, is amended

to read as follows:

(b) Coverage of a newborn child of a participating employee

under this section ends on the 61st [32nd] day after the date of the

child's birth unless:

(1) children are eligible for coverage under the

multiple employer welfare arrangement's plan document; and

(2) not later than the 60th [31st] day after the date

of birth, the arrangement receives:

(A) notice of the birth; and

(B) any required additional premium.

SECTION 2. Section 1367.003, Insurance Code, is amended to

read as follows:

Sec. 1367.003. CERTAIN LIMITATIONS ON COVERAGE FOR NEWBORN

CHILDREN PROHIBITED. A health benefit plan that provides maternity

benefits or accident and health coverage for additional newborn

children may not be issued in this state if the plan excludes or

limits:

(1) initial coverage of a newborn child before the

61st day after the date of the child's birth [for a period of time];

(2) coverage for congenital defects of a newborn

child; or

(3) coverage for administration of the newborn

screening tests required by Section 33.011, Health and Safety Code,

including for the cost of a newborn screening test kit in the amount

provided by the Department of State Health Services on its Internet

website under Section 33.019 of that code on the date the test was

administered.

SECTION 3. Section 1501.157(b), Insurance Code, is amended

to read as follows:

(b) Coverage of a newborn child of a covered employee under

this section ends on the 61st [32nd] day after the date of the

child's birth unless, not later than the 60th [31st] day after the

date of birth, the small employer health benefit plan issuer

receives:

(1) notice of the birth; and

(2) any required additional premium.

SECTION 4. Section 1501.607(b), Insurance Code, is amended

to read as follows:

(b) Coverage of a newborn child of a covered employee under

this section ends on the 61st [32nd] day after the date of the

child's birth unless:

(1) children are eligible for coverage under the large

employer health benefit plan; and

(2) not later than the 60th [31st] day after the date

of birth, the large employer health benefit plan issuer receives:

(A) notice of the birth; and

(B) any required additional premium.

SECTION 5. The change in law made by this Act applies only

to a health benefit plan that is delivered, issued for delivery, or

renewed on or after January 1, 2026. A health benefit plan that is

delivered, issued for delivery, or renewed before January 1, 2026,

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 6. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 896 passed the Senate on

March 26, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 896 passed the House on

May 21, 2025, by the following vote: Yeas 130, Nays 14, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor