By:  Uher                                             H.B. No. 1073
       73R4581 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to continuation of benefits for the surviving spouse of a
    1-3  deceased state employee.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 3B, Article 3.51-6, Insurance Code, is
    1-6  amended by adding Subsection (n) to read as follows:
    1-7        (n)  Notwithstanding Subsection (l) of this section, if a
    1-8  person covered under a contract executed under the Texas Employees
    1-9  Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
   1-10  Texas Insurance Code) and its subsequent amendments exercises the
   1-11  continuation option under Subsection (b) of this section because of
   1-12  the death of a member of the group, coverage of that person
   1-13  continues without interruption and may not be cancelled or
   1-14  otherwise terminated until:
   1-15              (1)  the insured fails to make a premium payment in the
   1-16  time required to make that payment;
   1-17              (2)  the insured becomes eligible for substantially
   1-18  similar coverage under another health insurance policy, hospital or
   1-19  medical service subscriber contract, medical practice or other
   1-20  prepayment plan, or any other plan or program;  or
   1-21              (3)  the insured is no longer eligible for coverage for
   1-22  a reason other than the death of the member of the group.
   1-23        SECTION 2.  This Act applies only to health insurance
   1-24  policies, as defined by Section 3B, Article 3.51-6, Insurance Code,
    2-1  provided for employees under the Texas Employees Uniform Group
    2-2  Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
    2-3  Code) on or after September 1, 1993.  Health insurance policies
    2-4  provided for employees before September 1, 1993, are subject to the
    2-5  law as it existed before September 1, 1993, and that law is
    2-6  continued in effect for that purpose.
    2-7        SECTION 3.  The importance of this legislation and the
    2-8  crowded condition of the calendars in both houses create an
    2-9  emergency and an imperative public necessity that the
   2-10  constitutional rule requiring bills to be read on three several
   2-11  days in each house be suspended, and this rule is hereby suspended,
   2-12  and that this Act take effect and be in force from and after its
   2-13  passage, and it is so enacted.