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A BILL TO BE ENTITLED
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AN ACT
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relating to the termination of the Texas Public School Employees |
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Group Insurance Program for retirees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1575, Insurance Code, is amended by |
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adding Subchapters L and M to read as follows: |
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SUBCHAPTER L. TERMINATION OF GROUP PROGRAM |
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Sec. 1575.551. PROGRAM TERMINATION. Subject to Section |
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1575.552, effective September 1, 2021, the group program is |
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terminated. |
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Sec. 1575.552. COVERAGE ELIGIBILITY TERMINATES; PHASE-OUT |
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PERIOD. (a) An individual who is not a participant in the group |
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program on August 31, 2021, is not entitled to obtain coverage under |
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the group program after that date. |
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(b) An individual who is a participant in the group program |
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on August 31, 2021, and who is, on September 1, 2021, eligible to |
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participate in Medicare, is not entitled to continue coverage under |
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the group program after August 31, 2021. |
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(c) An individual who is a participant in the group program |
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on August 31, 2021, but who is not, on September 1, 2021, eligible |
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to participate in Medicare, may continue coverage under the group |
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program in accordance with this subchapter until the earlier of: |
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(1) the date the individual first becomes eligible to |
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participate in Medicare; or |
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(2) September 1, 2031. |
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Sec. 1575.553. AUTHORIZED COVERAGE. Notwithstanding |
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Section 1575.151, on and after September 1, 2021, the group program |
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may not offer coverage other than health benefit plan coverage. |
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Sec. 1575.554. EXCESS GROUP INSURANCE FUND MONEY. (a) Not |
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later than December 31, 2021, the trustee shall determine the |
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amount of money required to fund coverage for individuals under |
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Section 1575.552(c) for the 2021-2022 fiscal year and shall certify |
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that amount to the comptroller. |
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(b) As soon as practicable after January 1, 2022, the |
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trustee shall, notwithstanding Section 1575.206, pay to each |
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retiree participating in the group program on August 31, 2021, an |
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equal share of the amount by which the money in the group insurance |
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fund exceeds the amount of money determined under Subsection (a). |
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Sec. 1575.555. REDUCTION IN CONTRIBUTIONS. (a) Beginning |
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not later than June 1, 2022, the trustee shall annually determine |
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the amount of money required to fund coverage for individuals under |
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Section 1575.552(c) for the subsequent fiscal year. The trustee |
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shall certify that amount to the comptroller. |
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(b) The trustee, in consultation with the comptroller, may |
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annually adjust the amounts of contributions to be made under |
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Sections 1575.201, 1575.202, 1575.203, and 1575.204, to the extent |
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that the trustee determines that money otherwise to be contributed |
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under those sections for a fiscal year will exceed the amount |
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determined to be required for that fiscal year under Subsection |
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(a). |
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Sec. 1575.556. FINAL RECONCILIATION; TERMINATION OF FUND. |
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As soon as practicable after August 31, 2031, the trustee, in |
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consultation with the comptroller, shall determine any |
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unencumbered amount remaining in the group insurance fund. The |
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trustee shall pay that amount in equal shares to individuals |
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participating in the program on August 31, 2031. |
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Sec. 1575.557. GROUP PROGRAM AND GROUP INSURANCE FUND |
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ABOLISHED. Effective September 1, 2031, the group program and the |
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group insurance fund are abolished. |
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Sec. 1575.558. DUTIES OF THE TRUSTEE. (a) The trustee |
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shall implement a plan for the orderly termination of the group |
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program in accordance with this subchapter. |
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(b) The determinations made by the trustee under Sections |
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1575.554 and 1575.555 must be actuarially justified. |
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SUBCHAPTER M. EXPIRATION OF CHAPTER |
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Sec. 1575.601. EXPIRATION OF CHAPTER. This chapter expires |
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September 1, 2032. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |