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A BILL TO BE ENTITLED
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AN ACT
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relating to participation in the uniform group coverage program for |
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active school employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 1579, Insurance Code, is |
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amended by adding Section 1579.1045 to read as follows: |
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Sec. 1579.1045. ALTERNATIVE GROUP HEALTH COVERAGE |
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PROHIBITED. Notwithstanding any other law, a participating entity |
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may not offer or make available to the entity's employees or their |
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dependents group health coverage not provided under the program. |
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SECTION 2. Subchapter D, Chapter 1579, Insurance Code, is |
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amended by adding Section 1579.155 to read as follows: |
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Sec. 1579.155. PROGRAM PARTICIPATION: ELECTION. (a) |
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Effective September 1, 2022, a participating entity may elect to |
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discontinue the entity's participation in the program by providing |
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written notice to the trustee not later than December 31 of the year |
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preceding the first day of the plan year in which the election will |
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be effective. |
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(b) A participating entity that elects to discontinue |
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participation in the program under Subsection (a) may not elect to: |
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(1) participate in the program until the fifth |
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anniversary of the effective date of the entity's election to |
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discontinue participation; or |
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(2) discontinue the entity's participation after an |
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election described by Subdivision (1) until the fifth anniversary |
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of the effective date of that election. |
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(c) Effective September 1, 2022, an entity that elects to |
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participate in the program shall provide written notice to the |
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trustee not later than December 31 of the year preceding the first |
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day of the plan year in which the election will be effective. The |
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entity may not elect to discontinue the entity's participation |
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until the fifth anniversary of the effective date of the entity's |
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election to participate. |
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(d) The trustee by rule shall prescribe the time and manner |
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for making an election under this section and may adopt rules |
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necessary to administer this section. |
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SECTION 3. Sections 1579.1045 and 1579.155, Insurance Code, |
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as added by this Act, apply only to group coverage provided for a |
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plan year beginning on or after September 1, 2022. A plan year that |
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begins before that date is governed by the law as it existed |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |
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* * * * * |