By Isett                                              H.B. No. 2828
         76R5216 PB-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the adoption of a medical savings account pilot program
 1-3     for state employees.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter E, Chapter 3, Insurance Code, is
 1-6     amended by adding Article 3.50-2A to read as follows:
 1-7           Art. 3.50-2A.  MEDICAL SAVINGS ACCOUNT PILOT PROGRAM FOR
 1-8     STATE EMPLOYEES.  (a)  The Employees Retirement System of Texas by
 1-9     rule shall adopt a medical savings account pilot program for health
1-10     care coverage, to be offered as a health benefits plan  option for
1-11     state employees in lieu of the health benefits plan provided under
1-12     the Texas Employees Uniform Group Insurance Benefits Act (Article
1-13     3.50-2, Vernon's Texas Insurance Code).
1-14           (b)  Participation in the pilot program is limited to not
1-15     more than five percent of the number of full-time state employees
1-16     as of March 1, 2000.  The system by rule shall set guidelines for
1-17     participation in the pilot program.
1-18           (c)  The system shall solicit at least three bids for the
1-19     development and establishment of the medical savings account pilot
1-20     program.  The pilot program adopted by the system must:
1-21                 (1)  provide health benefits comparable in quality to
1-22     the health benefits provided by this state to state employees under
1-23     the Texas Employees Uniform Group Insurance Benefits Act (Article
1-24     3.50-2, Vernon's Texas Insurance Code); and
 2-1                 (2)  establish annual deductibles for participating
 2-2     employees of not less than $1,500 or more than $3,000, with no
 2-3     copayment required after the employee has met the applicable annual
 2-4     deductible.
 2-5           (d)  This article expires August 31, 2005.
 2-6           SECTION 2.  (a)  This Act takes effect September 1, 1999.
 2-7           (b)  The Employees Retirement System of Texas shall adopt
 2-8     rules as necessary to implement Article 3.50-2A, Insurance Code, as
 2-9     added by this Act, not later than March 1, 2000.  The system shall
2-10     make the medical savings account pilot program available for
2-11     employee participation not later than September 1, 2000.
2-12           SECTION 3.  The importance of this legislation and the
2-13     crowded condition of the calendars in both houses create an
2-14     emergency and an imperative public necessity that the
2-15     constitutional rule requiring bills to be read on three several
2-16     days in each house be suspended, and this rule is hereby suspended.