SRC-ARR S.B. 1351 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1351
76R8994 DLF-DBy: Barrientos
State Affairs
4/13/1999
As Filed


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 proposed, S.B. 1351 requires health benefits plan coverage for children
of certain employees paid by state appropriated money. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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 basic coverage
for a chid who meets certain requirements. Prohibits the employee from
being required to contribute any amount towards coverage provided under
Section (a) of this section. Requires the trustee to identify employees who
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. Requires the trustee to
ensure that, under any contract implementing the basic coverage under this
Act, a determination that a dependant child is eligible for coverage under
Subsection (a) of this section 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 be applicable.  

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. Amends Article 3.50-3, Insurance Code (The 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, subject to any applicable limit in the General
Appropriations Act, to use money appropriated for employer contributions to
fund basic coverage for a chid who meets certain requirements. Prohibits
the employee from being required to contribute any amount towards coverage
provided under Section (a) of this section. Requires the institution to
identify employees who 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.
Requires the institution to ensure that, under any contract implementing
the basic coverage under this Act, a determination that a dependant child
is eligible for coverage under Subsection (a) of this section 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
be applicable.  

SECTION 4. Amends Section 13, Article 3.50-3, Insurance Code, to authorize
the state to contribute a greater amount for coverage for dependent
children described by Section 17A(a) of this Act than the state contributes
for group coverage for other dependent children. Makes conforming changes.  

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