HB 2896

relating to insurance coverage for the disposition of embryonic and
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Title 9, Insurance Code, is amended by adding
Chapter 1702 to read as follows:
CHAPTER 1702. CERTAIN COVERAGE REQUIRED FOR DISPOSITION OF
EMBRYONIC AND FETAL TISSUE REMAINS
Sec. 1702.001.  APPLICABILITY.  (a)  This chapter applies to
any issuer, sponsor, trustee, or third-party administrator of any
insurance policy, annuity or other contract, or group benefit plan
that provides a death benefit payable for the costs of cremation or
burial of a child of a named insured or beneficiary, including:
(1)  an insurance company operating under Chapter 841;
(2)  a statewide mutual assessment company operating
(3)  a mutual life insurance company operating under
(4)  a stipulated premium insurance company operating
(5)  a fraternal benefit society operating under
(6)  a local mutual aid association operating under
(7)  a burial association operating under Chapter 888;
(8)  an employer or other group benefit plan sponsor,
regardless of whether the death benefit is provided through an
insurance policy or is self-insured;
(9)  a voluntary association that holds a group life
insurance policy under Chapter 1578;
(10)  a third-party administrator under Chapter 4151
for group benefits that include a death benefit; and
(11)  a trustee of a trust-funded prepaid funeral
benefits contract regulated under Subchapter F, Chapter 154,
(b)  This chapter applies 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, or an
individual or group evidence of coverage or similar coverage
document that is issued in this state by:
(2)  a group hospital service corporation operating
(3)  a health maintenance organization operating under
(4)  an approved nonprofit health corporation that
holds a certificate of authority under Chapter 844;
(5)  a multiple employer welfare arrangement that holds
a certificate of authority under Chapter 846;
(6)  a stipulated premium company operating under
(7)  a fraternal benefit society operating under
(8)  a Lloyd's plan operating under Chapter 941; or
(9)  an exchange operating under Chapter 942.
(c)  Notwithstanding any other law, this chapter applies to:
(1)  a small employer health benefit plan subject to
Chapter 1501, including coverage provided through a health group
cooperative under Subchapter B of that chapter;
(2)  a standard health benefit plan issued under
(3)  nonprofit agricultural organization health
benefits offered by a nonprofit agricultural organization under
(4)  alternative health benefit coverage offered by a
subsidiary of the Texas Mutual Insurance Company under Subchapter
(5)  a regional or local health care program operated
under Section 75.104, Health and Safety Code; and
(6)  a self-funded health benefit plan sponsored by a
professional employer organization under Chapter 91, Labor Code.
(d)  This chapter 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
(B)  as a supplement to a liability 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
(3)  a workers' compensation insurance policy;
(4)  medical payment insurance coverage provided under
a motor vehicle insurance policy;
(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 Subsection (b) or (c); or
(6)  the state Medicaid program, including the Medicaid
managed care program operated under Chapter 540, Government Code.
Sec. 1702.002.  REQUIRED COVERAGE.  (a)  An entity to which
this chapter applies must 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.
(b)  The manner of disposition for which coverage is required
(3)  incineration followed by interment; and
(4)  steam disinfection followed by interment.
SECTION 2.  Chapter 1702, Insurance Code, as added by this
Act, 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, 2026.
SECTION 3.  This Act takes effect September 1, 2025.