By Talton H.B. No. 2740
74R7945 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to group health insurance for retirees of certain
1-3 municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 142, Local Government Code, is amended by
1-6 adding Section 142.0041 to read as follows:
1-7 Sec. 142.0041. GROUP HEALTH INSURANCE FOR RETIREES OF
1-8 GENERAL-LAW MUNICIPALITIES. (a) In this section:
1-9 (1) "Health insurance plan" means a group, blanket, or
1-10 franchise insurance policy, insurance agreement, group hospital
1-11 service contract, or other employee benefit plan that provides
1-12 benefits for health care services or for medical or surgical
1-13 expenses incurred as a result of an accident or sickness. The term
1-14 includes a health maintenance organization or other entity that
1-15 provides the services directly.
1-16 (2) "Retiree of a municipality" means a person who has
1-17 terminated employment with a municipality and is receiving an
1-18 annuity because of service performed for the municipality. The
1-19 term includes a person retired because of disability.
1-20 (b) A general-law municipality that provides a health
1-21 insurance plan for employees of the municipality shall allow
1-22 retirees of the municipality to participate in the health insurance
1-23 plan. If a plan authorizes coverage for spouses or dependents of
1-24 the employees, the municipality shall allow the retirees of the
2-1 municipality to include their spouses or dependents in the coverage
2-2 of the plan.
2-3 (c) This section does not require a municipality to pay any
2-4 portion of the premium for coverage of a retiree of the
2-5 municipality, or a spouse or dependent of a retiree, in a health
2-6 insurance plan.
2-7 SECTION 2. (a) This Act takes effect September 1, 1995.
2-8 (b) If the terms of a contract in effect on August 31, 1995,
2-9 between a general-law municipality and a provider of benefits or
2-10 services under a health insurance plan prohibit participation in
2-11 the plan by retirees or their spouses or dependents, the
2-12 municipality is not required to comply with Section 142.0041,
2-13 Local Government Code, as added by this Act, until the existing
2-14 contract expires or is renewed.
2-15 SECTION 3. The importance of this legislation and the
2-16 crowded condition of the calendars in both houses create an
2-17 emergency and an imperative public necessity that the
2-18 constitutional rule requiring bills to be read on three several
2-19 days in each house be suspended, and this rule is hereby suspended.