HBA-SEB H.B. 3007 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3007
By: Greenberg
Pensions and Investments
3/22/1999
Introduced



BACKGROUND AND PURPOSE 

The federal government provides the Children's Health Insurance Program
(CHIP), which offers health insurance for children in economically
disadvantaged families who cannot afford health coverage.  Federal
guidelines make children of state employees ineligible for CHIP.  H.B. 3007
provides a comparable plan for children of state employees who are members
of the Employees Retirement System of Texas and also for the children of
employees of certain public university systems. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 3.50-2, V.T.C.S. (Texas Employees Uniform Group
Insurance Benefits Act), by adding Section 14A, as follows: 

Sec. 14A.  COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN EMPLOYEES. (a)
Requires the board of trustees of the Employees Retirement System of Texas
(trustee) to use money appropriated for employer contributions to fund
basic coverage for a child meeting certain criteria, subject to any
applicable limit in the General Appropriations Act. Provides that an
eligible child is a dependent of an employee, is younger than 18 years of
age, has a family income of  less than 200 percent of the poverty level,
and is not eligible for the state Medicaid program.   

(b)  Prohibits the employee from being required to contribute any amount
for dependent child coverage, notwithstanding Section 14(d) (regarding
payment of contributions) of this Act.   

(c)  Requires the trustee to identify employees who may be eligible for
dependent child coverage and to notify the employee that the employee may
be eligible for coverage and that the employee may apply for the coverage. 

(d)  Requires an employee who desires dependent child coverage to apply to
the Texas Department of Human Services or other agency designated by the
Health and Human Services Commission to perform eligibility screening.
Requires the eligibility screening to be coordinated with eligibility
screening for the state Medicaid program.  Requires the agency that
performs the screening to certify to the trustee in writing whether the
child is eligible for dependent child care coverage. 

(e)  Requires the trustee to ensure that, under any contract implementing
basic coverage under this Act, a determination that a child is eligible for
coverage is a change in status that entitles the employee to enroll the
child in the coverage without regard to any enrollment period requirement
that would otherwise apply. 

SECTION 2.  Amends Section 15(b), Article 3.50-2, V.T.C.S. (Texas Employees
Uniform Group  Insurance Benefits Act), to authorize the state to
contribute a greater amount for dependent children described by Section
14A(a) of this Act than the state contributes for group coverages for other
dependent children.   

SECTION 3.  Amends Article 3.50-3, V.T.C.S. (Texas State College and
University Employees Uniform Insurance Benefits Act), by adding Section
17A, as follows: 

Sec. 17A.  COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN EMPLOYEES. Requires
an institution to use money appropriated for employer contributions to fund
basic coverage for a child meeting certain criteria, subject to any limit
in the General Appropriations Act.  The term "institution" refers to the
University of Texas System, the Texas A&M University System, and the
University of Houston System.  Makes conforming changes with respect to
eligibility requirements, employee contributions, identification of
eligible employees, eligibility screening, and the enrollment process.   

SECTION 4.  Amends Section 13, Article 3.50-3, V.T.C.S. (Texas State
College and University Employees Uniform Group Insurance Benefits Act), to
make conforming changes with respect to state contributions. 

SECTION 5.Emergency clause.
  Effective date: upon passage.