By: Truan S.B. No. 404
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the right of certain municipal and county employees to
1-2 purchase a continuation of health benefits coverage at retirement.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle C, Title 5, Local Government Code, is
1-5 amended by adding Chapter 174 to read as follows:
1-6 CHAPTER 174. RIGHT OF CERTAIN MUNICIPAL AND COUNTY EMPLOYEES
1-7 TO PURCHASE CONTINUED HEALTH COVERAGE AT RETIREMENT
1-8 Sec. 174.001. APPLICABILITY. This chapter applies to a
1-9 person who is leaving county or municipal employment.
1-10 Sec. 174.002. RIGHT TO PURCHASE CONTINUED COVERAGE. (a) A
1-11 person to whom this chapter applies who retires or has enough
1-12 credit in the governmental retirement plan that covers the person
1-13 to be able to retire with full benefits at an attained age is
1-14 entitled to purchase continued health benefits coverage for the
1-15 person and the person's dependents as provided by this chapter.
1-16 The coverage shall be provided under the group health insurance
1-17 plan or group health coverage plan provided by or through the
1-18 employing county or municipality to its employees. If the plan
1-19 that provided coverage while the person was employed by the county
1-20 or municipality is terminated, the coverage shall be provided under
1-21 the successor to that plan.
1-22 (b) To receive continued coverage under this chapter, the
1-23 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:
3-1 (1) make payments for the coverage at the same time
3-2 and to the same entity that payments for coverage are made by
3-3 current employees of the county or municipality; and
3-4 (2) purchase the coverage at the group rate for that
3-5 coverage that exists at the time of payment.
3-6 Sec. 174.005. DUTY TO INFORM RETIREE OF RIGHTS. A county
3-7 and a municipality shall provide written notice to a person to whom
3-8 this chapter may apply of the person's rights under this chapter
3-9 not later than the date the person leaves employment with the
3-10 county or municipality.
3-11 Sec. 174.006. CERTAIN MATTERS NOT AFFECTED. This chapter
3-12 does not:
3-13 (1) prohibit a county or municipality from uniformly
3-14 changing the group health insurance plan or group health coverage
3-15 plan provided for its employees and retirees;
3-16 (2) affect the definition of a dependent or the
3-17 eligibility requirements for a dependent under a plan, except as
3-18 provided by Section 174.003(c);
3-19 (3) prohibit a county or municipality from agreeing
3-20 with a person to deduct the cost of coverage provided under this
3-21 chapter from a pension check;
3-22 (4) prohibit a county or municipality from increasing
3-23 the cost of group health coverage to its employees and to persons
3-24 covered under this chapter to reflect the increased cost, if any,
3-25 attributable to compliance with this chapter; or
4-1 (5) affect the right of a county or municipality to
4-2 provide coverage under Chapter 172.
4-3 Sec. 174.007. EXEMPTIONS. (a) A county or municipality
4-4 that does not provide health benefits coverage through a
4-5 self-insured plan or a plan authorized under Chapter 172 is not
4-6 required to provide coverage under this chapter if:
4-7 (1) the county or municipality makes a good-faith
4-8 effort to purchase insurance coverage that includes coverage
4-9 required by this chapter from an insurance company authorized to do
4-10 business in this state but is unable to find a provider for the
4-11 coverage; or
4-12 (2) the majority of the employees of a county or
4-13 municipality vote by secret ballot to be exempted from this
4-14 chapter.
4-15 (b) If the majority of the employees of a county or
4-16 municipality vote to be exempted from this chapter as provided by
4-17 Subsection (a), a new election shall be held not earlier than the
4-18 first anniversary of the preceding election if at least 20 percent
4-19 of the employees petition the presiding officer of the county or
4-20 municipality for a new election.
4-21 SECTION 2. (a) Chapter 174, Local Government Code, as added
4-22 by this Act, applies according to its terms to all eligible persons
4-23 who leave county or municipal employment on or after June 1, 1993.
4-24 In addition, notwithstanding Subsection (b), Section 174.002, Local
4-25 Government Code, as added by this Act, a person who leaves county
5-1 or municipal employment before September 1, 1993, is entitled to
5-2 purchase continued health benefits coverage in accordance with
5-3 Chapter 174, Local Government Code, as added by this Act, if:
5-4 (1) the person is purchasing health coverage for the
5-5 person or for the person's dependents from or through the county or
5-6 municipality on September 1, 1993; and
5-7 (2) the person informs the employing county or
5-8 municipality, before December 1, 1993, that the person elects to
5-9 purchase continued coverage as provided by Chapter 174, Local
5-10 Government Code.
5-11 (b) A county or municipality that is required by Chapter
5-12 174, Local Government Code, as added by this Act, to provide
5-13 continued health benefits coverage but that is not allowed to
5-14 provide the coverage under the terms of the county's or
5-15 municipality's existing group health plan shall ensure that the
5-16 required continued health benefits coverage is provided for in any
5-17 plan that is adopted, amended, or renewed by the county or
5-18 municipality on or after September 1, 1993, unless the county or
5-19 municipality is exempted under Section 174.007, Local Government
5-20 Code, as added by this Act. The period during which a person must
5-21 inform a county or municipality that the person elects to continue
5-22 health benefits coverage under Chapter 174, Local Government Code,
5-23 as added by this Act, is extended by the amount of time that occurs
5-24 after the date that the person leaves county or municipal
5-25 employment and before the date that the person receives written
6-1 notice from the county or municipality that the person is presently
6-2 able to purchase the continued health benefits coverage required to
6-3 be provided under Chapter 174, Local Government Code, as added by
6-4 this Act.
6-5 SECTION 3. This Act takes effect September 1, 1993.
6-6 SECTION 4. The importance of this legislation and the
6-7 crowded condition of the calendars in both houses create an
6-8 emergency and an imperative public necessity that the
6-9 constitutional rule requiring bills to be read on three several
6-10 days in each house be suspended, and this rule is hereby suspended.