By: Barrientos S.B. No. 1351
A BILL TO BE ENTITLED
AN ACT
1-1 relating to health benefits plan coverage for dependent children of
1-2 certain employees paid by state appropriated money.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The Texas Employees Uniform Group Insurance
1-5 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
1-6 amended by adding Section 14A to read as follows:
1-7 Sec. 14A. COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN
1-8 EMPLOYEES. (a) Subject to any applicable limit in the General
1-9 Appropriations Act, the trustee shall use money appropriated for
1-10 employer contributions to fund 80 percent of the cost of basic
1-11 coverage for a child who:
1-12 (1) is a dependent of an employee;
1-13 (2) would be eligible, if the child were not the
1-14 dependent of the employee, for benefits under the program
1-15 established by this state to implement Title XXI of the Social
1-16 Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and
1-17 (3) is not eligible for the state Medicaid program.
1-18 (b) The trustee shall notify employees that they may be
1-19 eligible for dependent child coverage under Subsection (a) of this
1-20 section and notify the employee that:
1-21 (1) the employee may be eligible for dependent child
1-22 coverage under Subsection (a) of this section; and
1-23 (2) the employee may apply for the coverage as
1-24 provided by Subsection (c) of this section.
2-1 (c) An employee who desires dependent child coverage under
2-2 this section shall apply to the Texas Department of Human Services
2-3 or other agency designated by the Health and Human Services
2-4 Commission to perform eligibility screening under this section.
2-5 The eligibility screening shall be coordinated with eligibility
2-6 screening for the state Medicaid program. The agency that performs
2-7 the eligibility screening shall certify to the trustee in writing
2-8 whether a child is eligible for dependent child coverage under
2-9 Subsection (a) of this section.
2-10 (d) If an employee does not obtain dependent child coverage
2-11 under this section at the time the employee is initially employed,
2-12 the employee may apply for the coverage during the annual open
2-13 enrollment period applicable to the employee's coverage under this
2-14 Act. The trustee may:
2-15 (1) continue the coverage until the next annual open
2-16 enrollment period applicable to the employee's coverage, without
2-17 regard to any change in status of the child; or
2-18 (2) adopt rules requiring an employee, during the
2-19 period the coverage is in effect, to report a change in status that
2-20 would make the dependent child ineligible for coverage and may
2-21 terminate the coverage on receipt of the report of a change in
2-22 status.
2-23 (e) The trustee may require an employee to re-apply for
2-24 dependent child coverage under this section during each annual open
2-25 enrollment period applicable to the employee's coverage. The
2-26 trustee and the Texas Department of Human Services or other agency
3-1 designated by the Health and Human Services Commission to perform
3-2 eligibility screening under this section shall cooperate to develop
3-3 a cost-effective method for annual re-evaluation of eligibility
3-4 determinations for dependent child coverage under this section.
3-5 (f) Notwithstanding Subsection (a) of this section, the
3-6 trustee may pay a higher percentage of the cost of basic coverage
3-7 for a child described by Subsection (a) of this section if money
3-8 becomes available for that purpose.
3-9 SECTION 2. Subsection (b), Section 15, Texas Employees
3-10 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
3-11 Texas Insurance Code), is amended to read as follows:
3-12 (b) The state shall contribute to the cost of each
3-13 employee's individual and dependent group coverages the amounts
3-14 appropriated for the coverages in the General Appropriations Act.
3-15 The state may contribute a greater amount for coverage for
3-16 dependent children described by Section 14A(a) of this Act than the
3-17 state contributes for group coverages for other dependent children.
3-18 The governing board of each state department and institution of
3-19 higher education participating in the program established under
3-20 this Act shall pay the trustee a like amount for each employee's
3-21 individual or dependent group coverages for their employees who
3-22 are, and retirees who were, compensated from funds not appropriated
3-23 in the General Appropriations Act. The departments and
3-24 institutions shall include the required contributions from funds
3-25 not appropriated in the General Appropriations Act in their annual
3-26 operating budgets. Each state department and institution of higher
4-1 education participating in the program shall assure current
4-2 participant coverages based on the records of the trustee, make
4-3 timely payments of amounts due the trustee from all fund sources
4-4 under the control of the department or institution, and reconcile
4-5 trustee and agency records of coverages and payments monthly.
4-6 There is hereby allocated to the trustee, in accordance with the
4-7 provisions of this Act, from the several funds from which employees
4-8 receive their respective salaries, a sum equal to the total of all
4-9 employer contributions computed in accordance with the provisions
4-10 of this Act and the rules and regulations of the trustee
4-11 promulgated pursuant thereto.
4-12 SECTION 3. The Texas State College and University Employees
4-13 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas
4-14 Insurance Code) is amended by adding Section 17A to read as
4-15 follows:
4-16 Sec. 17A. COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN
4-17 EMPLOYEES. (a) Subject to any applicable limit in the General
4-18 Appropriations Act, an institution shall use money appropriated for
4-19 employer contributions to fund 80 percent of the cost of basic
4-20 coverage for a child who:
4-21 (1) is a dependent of an employee;
4-22 (2) would be eligible, if the child were not the
4-23 dependent of the employee, for benefits under the program
4-24 established by this state to implement Title XXI of the Social
4-25 Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and
4-26 (3) is not eligible for the state Medicaid program.
5-1 (b) The institution shall identify employees who may be
5-2 eligible for dependent child coverage under Subsection (a) of this
5-3 section and notify the employee that:
5-4 (1) the employee may be eligible for dependent child
5-5 coverage under Subsection (a) of this section; and
5-6 (2) the employee may apply for the coverage as
5-7 provided by Subsection (c) of this section.
5-8 (c) An employee who desires dependent child coverage under
5-9 this section shall apply to the Texas Department of Human Services
5-10 or other agency designated by the Health and Human Services
5-11 Commission to perform eligibility screening under this section.
5-12 The eligibility screening shall be coordinated with eligibility
5-13 screening for the state Medicaid program. The agency that performs
5-14 the eligibility screening shall certify to the institution in
5-15 writing whether a child is eligible for dependent child coverage
5-16 under Subsection (a) of this section.
5-17 (d) If an employee does not obtain dependent child coverage
5-18 under this section at the time the employee is initially employed,
5-19 the employee may apply for the coverage during the annual open
5-20 enrollment period applicable to the employee's coverage under this
5-21 Act. The institution may:
5-22 (1) continue the coverage until the next annual open
5-23 enrollment period applicable to the employee's coverage, without
5-24 regard to any change in status of the child; or
5-25 (2) adopt rules requiring an employee, during the
5-26 period the coverage is in effect, to report a change in status that
6-1 would make the dependent child ineligible for coverage and may
6-2 terminate the coverage on receipt of the report of a change in
6-3 status.
6-4 (e) The institution may require an employee to re-apply for
6-5 dependent child coverage under this section during each annual open
6-6 enrollment period applicable to the employee's coverage. The
6-7 institution and the Texas Department of Human Services or other
6-8 agency designated by the Health and Human Services Commission to
6-9 perform eligibility screening under this section shall cooperate to
6-10 develop a cost-effective method for annual re-evaluation of
6-11 eligibility determinations for dependent child coverage under this
6-12 section.
6-13 (f) Notwithstanding Subsection (a) of this section, an
6-14 institution may pay a higher percentage of the cost of basic
6-15 coverage for a child described by Subsection (a) of this section if
6-16 money becomes available for that purpose.
6-17 SECTION 4. Section 13, Texas State College and University
6-18 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's
6-19 Texas Insurance Code), is amended to read as follows:
6-20 Sec. 13. EMPLOYER CONTRIBUTIONS. (a) Certification shall
6-21 be submitted on or before the first day of November next preceding
6-22 each regular session of the legislature; the institutions and
6-23 agencies covered under the provisions of this Act shall certify to
6-24 the Legislative Budget Board and budget division of the Governor's
6-25 Budget and Planning Office the amount necessary to pay employer
6-26 contributions for each active and retired employee from the
7-1 effective date of this Act.
7-2 (b) The state may contribute a greater amount for coverage
7-3 for dependent children of employees described by Section 17A(a) of
7-4 this Act than the state contributes for group coverages for other
7-5 dependent children.
7-6 (c) The Legislative Budget Board and the Governor's Budget
7-7 and Planning Office will establish procedures to insure that
7-8 eligible institutions request appropriate funds to support this
7-9 program and shall present appropriate budget recommendations to the
7-10 legislature.
7-11 (d) The Teacher Retirement System of Texas, Optional
7-12 Retirement Program carriers, and Employees Retirement System of
7-13 Texas shall furnish each institution such information as may be
7-14 deemed necessary by the institution to provide retired employees
7-15 with the coverages and employer contributions provided under the
7-16 Act.
7-17 SECTION 5. (a) This Act takes effect September 1, 1999.
7-18 (b) Section 14A, Texas Employees Uniform Group Insurance
7-19 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code), as
7-20 added by this Act, and Section 17A, Texas State College and
7-21 University Employees Uniform Insurance Benefits Act (Article
7-22 3.50-3, Vernon's Texas Insurance Code), as added by this Act, do
7-23 not apply to the purchase of basic coverage for a dependent child
7-24 by the trustee of the group benefits program established under the
7-25 Texas Employees Uniform Group Insurance Benefits Act (Article
7-26 3.50-2, Vernon's Texas Insurance Code) and an institution subject
8-1 to the Texas State College and University Employees Uniform
8-2 Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance
8-3 Code) before fiscal year 2001.
8-4 SECTION 6. The importance of this legislation and the
8-5 crowded condition of the calendars in both houses create an
8-6 emergency and an imperative public necessity that the
8-7 constitutional rule requiring bills to be read on three several
8-8 days in each house be suspended, and this rule is hereby suspended.