By: Martin H.B. No. 646
73R934 LGF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the right of certain municipal and county employees to
1-3 purchase a continuation of health benefits coverage at retirement.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle C, Title 5, Local Government Code, is
1-6 amended by adding Chapter 174 to read as follows:
1-7 CHAPTER 174. RIGHT OF CERTAIN MUNICIPAL AND COUNTY EMPLOYEES
1-8 TO PURCHASE CONTINUED HEALTH COVERAGE AT RETIREMENT
1-9 Sec. 174.001. APPLICABILITY. This chapter applies to a
1-10 person who is leaving county or municipal employment.
1-11 Sec. 174.002. RIGHT TO PURCHASE CONTINUED COVERAGE. (a) A
1-12 person to whom this chapter applies who retires or has enough
1-13 credit in the governmental retirement plan that covers the person
1-14 to be able to retire with full benefits at an attained age is
1-15 entitled to purchase continued health benefits coverage for the
1-16 person and the person's dependents as provided by this chapter.
1-17 The coverage shall be provided under the group health insurance
1-18 plan or group health coverage plan provided by or through the
1-19 employing county or municipality to its employees. If the plan
1-20 that provided coverage while the person was employed by the county
1-21 or municipality is terminated, the coverage shall be provided under
1-22 the successor to that plan.
1-23 (b) To receive continued coverage under this chapter, the
1-24 person must inform the employing county or municipality, not later
2-1 than the 90th day after the date the person leaves employment with
2-2 the county or municipality, that the person elects to continue
2-3 coverage.
2-4 Sec. 174.003. LEVEL OF COVERAGE. (a) The person may elect
2-5 to cover the same persons who were covered under the county's or
2-6 municipality's group health insurance plan or group health coverage
2-7 plan through the person at the time the person left county or
2-8 municipal employment, or the person may elect to discontinue
2-9 coverage for one or more persons. A person who was not covered
2-10 under the plan at the time the person to whom this chapter applies
2-11 left county or municipal employment is not eligible for coverage
2-12 under this chapter.
2-13 (b) Except as provided by Subsections (c) and (d), the level
2-14 of coverage provided under this chapter at any given time is the
2-15 same level of coverage provided to current employees of the county
2-16 or municipality at that time.
2-17 (c) A county or municipality may substitute Medicare
2-18 supplement health benefits coverage as the coverage provided for a
2-19 person who receives health benefits coverage under this chapter,
2-20 including a dependent, after the date that the person becomes
2-21 eligible for federal Medicare benefits.
2-22 (d) The person may elect to continue coverage at a reduced
2-23 level, if offered by the county or municipality.
2-24 Sec. 174.004. PAYMENT FOR COVERAGE. A person who is
2-25 entitled to continued coverage under this chapter is entitled to:
2-26 (1) make payments for the coverage at the same time
2-27 and to the same entity that payments for coverage are made by
3-1 current employees of the county or municipality; and
3-2 (2) purchase the coverage at the group rate for that
3-3 coverage that exists at the time of payment.
3-4 Sec. 174.005. DUTY TO INFORM RETIREE OF RIGHTS. A county
3-5 and a municipality shall provide written notice to a person to whom
3-6 this chapter may apply of the person's rights under this chapter
3-7 not later than the date the person leaves employment with the
3-8 county or municipality.
3-9 Sec. 174.006. CERTAIN MATTERS NOT AFFECTED. This chapter
3-10 does not:
3-11 (1) prohibit a county or municipality from uniformly
3-12 changing the group health insurance plan or group health coverage
3-13 plan provided for its employees and retirees;
3-14 (2) affect the definition of a dependent or the
3-15 eligibility requirements for a dependent under a plan, except as
3-16 provided by Section 174.003(c);
3-17 (3) prohibit a county or municipality from agreeing
3-18 with a person to deduct the cost of coverage provided under this
3-19 chapter from a pension check;
3-20 (4) prohibit a county or municipality from increasing
3-21 the cost of group health coverage to its employees and to persons
3-22 covered under this chapter to reflect the increased cost, if any,
3-23 attributable to compliance with this chapter; or
3-24 (5) affect the right of a county or municipality to
3-25 provide coverage under Chapter 172.
3-26 Sec. 174.007. EXEMPTIONS. (a) A county or municipality
3-27 that does not provide health benefits coverage through a
4-1 self-insured plan or a plan authorized under Chapter 172 is not
4-2 required to provide coverage under this chapter if:
4-3 (1) the county or municipality makes a good-faith
4-4 effort to purchase insurance coverage that includes coverage
4-5 required by this chapter from an insurance company authorized to do
4-6 business in this state but is unable to find a provider for the
4-7 coverage; or
4-8 (2) the majority of the employees of a county or
4-9 municipality vote by secret ballot to be exempted from this
4-10 chapter.
4-11 (b) If the majority of the employees of a county or
4-12 municipality vote to be exempted from this chapter as provided by
4-13 Subsection (a), a new election shall be held not earlier than the
4-14 first anniversary of the preceding election if at least 20 percent
4-15 of the employees petition the presiding officer of the county or
4-16 municipality for a new election.
4-17 SECTION 2. (a) Chapter 174, Local Government Code, as added
4-18 by this Act, applies according to its terms to all eligible persons
4-19 who leave county or municipal employment on or after June 1, 1993.
4-20 In addition, notwithstanding Section 174.002(b), Local Government
4-21 Code, as added by this Act, a person who leaves county or municipal
4-22 employment before September 1, 1993, is entitled to purchase
4-23 continued health benefits coverage in accordance with Chapter 174,
4-24 Local Government Code, as added by this Act, if:
4-25 (1) the person is purchasing health coverage for the
4-26 person or for the person's dependents from or through the county or
4-27 municipality on September 1, 1993; and
5-1 (2) the person informs the employing county or
5-2 municipality, before December 1, 1993, that the person elects to
5-3 purchase continued coverage as provided by Chapter 174, Local
5-4 Government Code.
5-5 (b) A county or municipality that is required by Chapter
5-6 174, Local Government Code, as added by this Act, to provide
5-7 continued health benefits coverage, but that is not allowed to
5-8 provide the coverage under the terms of the county's or
5-9 municipality's existing group health plan, shall ensure that the
5-10 required continued health benefits coverage is provided for in any
5-11 plan that is adopted, amended, or renewed by the county or
5-12 municipality on or after September 1, 1993, unless the county or
5-13 municipality is exempted under Section 174.007, Local Government
5-14 Code, as added by this Act. The period during which a person must
5-15 inform a county or municipality that the person elects to continue
5-16 health benefits coverage under Chapter 174, Local Government Code,
5-17 as added by this Act, is extended by the amount of time that occurs
5-18 after the date that the person leaves county or municipal
5-19 employment and before the date that the person receives written
5-20 notice from the county or municipality that the person is presently
5-21 able to purchase the continued health benefits coverage required to
5-22 be provided under Chapter 174, Local Government Code, as added by
5-23 this Act.
5-24 SECTION 3. This Act takes effect September 1, 1993.
5-25 SECTION 4. The importance of this legislation and the
5-26 crowded condition of the calendars in both houses create an
5-27 emergency and an imperative public necessity that the
6-1 constitutional rule requiring bills to be read on three several
6-2 days in each house be suspended, and this rule is hereby suspended.