SRC-ARR S.B. 1351 76(R)BILL ANALYSIS Senate Research CenterS.B. 1351 By: Barrientos State Affairs 8/5/1999 Enrolled DIGEST Currently, 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. S.B. 1351 provides a comparable plan for children of state employees who would otherwise be eligible for health insurance under CHIP and for eligible children of certain public university systems. PURPOSE As enrolled, S.B. 1351 requires health benefits plan coverage for dependent children of certain employees paid by state appropriated money. RULEMAKING AUTHORITY Rulemaking authority is granted to the Board of Trustees of the Employees Retirement System of Texas in SECTION 1 (Section 14A, Article 3.50-2, Insurance Code) and institutions of higher education in SECTION 3 (Section 17A, Article 3.50-2, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 3.50-2, Insurance Code (The Texas Employees Uniform Group Insurance Benefit Act), by adding Section 14A, as follow: Sec. 14A. COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN EMPLOYEES. Requires a trustee of the Board of Trustees of the Employees Retirement System of Texas, subject to any applicable limit in the General Appropriations Act, to use money appropriated for employer contributions to fund 80 percent of the cost of basic coverage for a chid who meets certain requirements. Requires the trustee to notify employees that they may be eligible for dependent child coverage under Subsection (a) and notify the employee of certain conditions. Requires an employee who desires dependent child coverage under this section to apply to the Texas Department of Human Services (TDHS) or other agency designated by the Health and Human Services Commission (commission) to perform eligibility screening under this section. Requires the eligibility screening to be coordinated with eligibility screening for the state Medicaid program. Requires the agency that performs the eligibility screening to certify to the trustee in writing whether a child is eligible for dependent child coverage under Subsection (a) for this section. Authorizes the employee to apply for the coverage during the annual open enrollment period applicable to the employee's coverage under this Act, if an employee does not obtain dependent child coverage under this section at the time the employee is initially employed. Authorizes the trustee to take certain action. Authorizes the trustee to require an employee to re-apply for dependant child coverage under this section during each annual open enrollment period applicable to the employee's coverage. Requires the trustee and TDHS or other agency designated by the commission to perform eligibility screening under this section to cooperate to develop a cost-effective method for annual re-evaluation of eligibility determination for dependant child coverage under this section. Authorizes the trustee to pay a higher percentage of the cost of basic coverage for a child described by Subsection (a) of this section if money becomes available for that purpose. Requires state contributions for benefits for those eligible under Subsection (a) of this section to terminate as well, if the program established under Chapter 62, Health and Safety Code, which utilizes federal funding under Title XXI of the Social Security Act, as amended, is terminated. SECTION 2. Amends Section 15(b), Article 3.50-2, Insurance Code, to authorize the state to contribute a greater amount for coverage for dependent children described by Section 14A(a) of this Act than the state contributes for group coverage for other dependent children. SECTION 3. (a) Effective date: September 1, 1999. (b) Provides that Section 14A, Article 3.50-2, Insurance Code, as added by this Act does not apply to the purchase of basic dependent child coverage by the trustee of the group benefits program under the Texas Employees Uniform Group Insurance Benefits Act, before fiscal year 2001. SECTION 4. Emergency clause.