1-1 By: Barrientos S.B. No. 1351 1-2 (In the Senate - Filed March 11, 1999; March 15, 1999, read 1-3 first time and referred to Committee on State Affairs; 1-4 April 19, 1999, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 9, Nays 0; April 19, 1999, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1351 By: Brown 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to health benefits plan coverage for dependent children of 1-11 certain employees paid by state appropriated money. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. The Texas Employees Uniform Group Insurance 1-14 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is 1-15 amended by adding Section 14A to read as follows: 1-16 Sec. 14A. COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN 1-17 EMPLOYEES. (a) Subject to any applicable limit in the General 1-18 Appropriations Act, the trustee shall use money appropriated for 1-19 employer contributions to fund 80 percent of the cost of basic 1-20 coverage for a child who: 1-21 (1) is a dependent of an employee; 1-22 (2) would be eligible, if the child were not the 1-23 dependent of the employee, for benefits under the program 1-24 established by this state to implement Title XXI of the Social 1-25 Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and 1-26 (3) is not eligible for the state Medicaid program. 1-27 (b) The trustee shall identify employees who may be eligible 1-28 for dependent child coverage under Subsection (a) of this section 1-29 and notify the employee that: 1-30 (1) the employee may be eligible for dependent child 1-31 coverage under Subsection (a) of this section; and 1-32 (2) the employee may apply for the coverage as 1-33 provided by Subsection (c) of this section. 1-34 (c) An employee who desires dependent child coverage under 1-35 this section shall apply to the Texas Department of Human Services 1-36 or other agency designated by the Health and Human Services 1-37 Commission to perform eligibility screening under this section. 1-38 The eligibility screening shall be coordinated with eligibility 1-39 screening for the state Medicaid program. The agency that performs 1-40 the eligibility screening shall certify to the trustee in writing 1-41 whether a child is eligible for dependent child coverage under 1-42 Subsection (a) of this section. 1-43 (d) If an employee does not obtain dependent child coverage 1-44 under this section at the time the employee is initially employed, 1-45 the employee may apply for the coverage during the annual open 1-46 enrollment period applicable to the employee's coverage under this 1-47 Act. The trustee may: 1-48 (1) continue the coverage until the next annual open 1-49 enrollment period applicable to the employee's coverage, without 1-50 regard to any change in status of the child; or 1-51 (2) adopt rules requiring an employee, during the 1-52 period the coverage is in effect, to report a change in status that 1-53 would make the dependent child ineligible for coverage and may 1-54 terminate the coverage on receipt of the report of a change in 1-55 status. 1-56 (e) The trustee may require an employee to re-apply for 1-57 dependent child coverage under this section during each annual open 1-58 enrollment period applicable to the employee's coverage. The 1-59 trustee and the Texas Department of Human Services or other agency 1-60 designated by the Health and Human Services Commission to perform 1-61 eligibility screening under this section shall cooperate to develop 1-62 a cost-effective method for annual re-evaluation of eligibility 1-63 determinations for dependent child coverage under this section. 1-64 (f) Notwithstanding Subsection (a) of this section, the 2-1 trustee may pay a higher percentage of the cost of basic coverage 2-2 for a child described by Subsection (a) of this section if money 2-3 becomes available for that purpose. 2-4 SECTION 2. Subsection (b), Section 15, Texas Employees 2-5 Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's 2-6 Texas Insurance Code), is amended to read as follows: 2-7 (b) The state shall contribute to the cost of each 2-8 employee's individual and dependent group coverages the amounts 2-9 appropriated for the coverages in the General Appropriations Act. 2-10 The state may contribute a greater amount for coverage for 2-11 dependent children described by Section 14A(a) of this Act than the 2-12 state contributes for group coverages for other dependent children. 2-13 The governing board of each state department and institution of 2-14 higher education participating in the program established under 2-15 this Act shall pay the trustee a like amount for each employee's 2-16 individual or dependent group coverages for their employees who 2-17 are, and retirees who were, compensated from funds not appropriated 2-18 in the General Appropriations Act. The departments and 2-19 institutions shall include the required contributions from funds 2-20 not appropriated in the General Appropriations Act in their annual 2-21 operating budgets. Each state department and institution of higher 2-22 education participating in the program shall assure current 2-23 participant coverages based on the records of the trustee, make 2-24 timely payments of amounts due the trustee from all fund sources 2-25 under the control of the department or institution, and reconcile 2-26 trustee and agency records of coverages and payments monthly. 2-27 There is hereby allocated to the trustee, in accordance with the 2-28 provisions of this Act, from the several funds from which employees 2-29 receive their respective salaries, a sum equal to the total of all 2-30 employer contributions computed in accordance with the provisions 2-31 of this Act and the rules and regulations of the trustee 2-32 promulgated pursuant thereto. 2-33 SECTION 3. The Texas State College and University Employees 2-34 Uniform Insurance Benefits Act (Article 3.50-3, Vernon's Texas 2-35 Insurance Code) is amended by adding Section 17A to read as 2-36 follows: 2-37 Sec. 17A. COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN 2-38 EMPLOYEES. (a) Subject to any applicable limit in the General 2-39 Appropriations Act, an institution shall use money appropriated for 2-40 employer contributions to fund 80 percent of the cost of basic 2-41 coverage for a child who: 2-42 (1) is a dependent of an employee; 2-43 (2) would be eligible, if the child were not the 2-44 dependent of the employee, for benefits under the program 2-45 established by this state to implement Title XXI of the Social 2-46 Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and 2-47 (3) is not eligible for the state Medicaid program. 2-48 (b) The institution shall identify employees who may be 2-49 eligible for dependent child coverage under Subsection (a) of this 2-50 section and notify the employee that: 2-51 (1) the employee may be eligible for dependent child 2-52 coverage under Subsection (a) of this section; and 2-53 (2) the employee may apply for the coverage as 2-54 provided by Subsection (c) of this section. 2-55 (c) An employee who desires dependent child coverage under 2-56 this section shall apply to the Texas Department of Human Services 2-57 or other agency designated by the Health and Human Services 2-58 Commission to perform eligibility screening under this section. 2-59 The eligibility screening shall be coordinated with eligibility 2-60 screening for the state Medicaid program. The agency that performs 2-61 the eligibility screening shall certify to the institution in 2-62 writing whether a child is eligible for dependent child coverage 2-63 under Subsection (a) of this section. 2-64 (d) If an employee does not obtain dependent child coverage 2-65 under this section at the time the employee is initially employed, 2-66 the employee may apply for the coverage during the annual open 2-67 enrollment period applicable to the employee's coverage under this 2-68 Act. The institution may: 2-69 (1) continue the coverage until the next annual open 3-1 enrollment period applicable to the employee's coverage, without 3-2 regard to any change in status of the child; or 3-3 (2) adopt rules requiring an employee, during the 3-4 period the coverage is in effect, to report a change in status that 3-5 would make the dependent child ineligible for coverage and may 3-6 terminate the coverage on receipt of the report of a change in 3-7 status. 3-8 (e) The institution may require an employee to re-apply for 3-9 dependent child coverage under this section during each annual open 3-10 enrollment period applicable to the employee's coverage. The 3-11 institution and the Texas Department of Human Services or other 3-12 agency designated by the Health and Human Services Commission to 3-13 perform eligibility screening under this section shall cooperate to 3-14 develop a cost-effective method for annual re-evaluation of 3-15 eligibility determinations for dependent child coverage under this 3-16 section. 3-17 (f) Notwithstanding Subsection (a) of this section, an 3-18 institution may pay a higher percentage of the cost of basic 3-19 coverage for a child described by Subsection (a) of this section if 3-20 money becomes available for that purpose. 3-21 SECTION 4. Section 13, Texas State College and University 3-22 Employees Uniform Insurance Benefits Act (Article 3.50-3, Vernon's 3-23 Texas Insurance Code), is amended to read as follows: 3-24 Sec. 13. EMPLOYER CONTRIBUTIONS. (a) Certification shall 3-25 be submitted on or before the first day of November next preceding 3-26 each regular session of the legislature; the institutions and 3-27 agencies covered under the provisions of this Act shall certify to 3-28 the Legislative Budget Board and budget division of the Governor's 3-29 Budget and Planning Office the amount necessary to pay employer 3-30 contributions for each active and retired employee from the 3-31 effective date of this Act. 3-32 (b) The state may contribute a greater amount for coverage 3-33 for dependent children of employees described by Section 17A(a) of 3-34 this Act than the state contributes for group coverages for other 3-35 dependent children. 3-36 (c) The Legislative Budget Board and the Governor's Budget 3-37 and Planning Office will establish procedures to insure that 3-38 eligible institutions request appropriate funds to support this 3-39 program and shall present appropriate budget recommendations to the 3-40 legislature. 3-41 (d) The Teacher Retirement System of Texas, Optional 3-42 Retirement Program carriers, and Employees Retirement System of 3-43 Texas shall furnish each institution such information as may be 3-44 deemed necessary by the institution to provide retired employees 3-45 with the coverages and employer contributions provided under the 3-46 Act. 3-47 SECTION 5. (a) This Act takes effect September 1, 1999. 3-48 (b) Section 14A, Texas Employees Uniform Group Insurance 3-49 Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code), as 3-50 added by this Act, and Section 17A, Texas State College and 3-51 University Employees Uniform Insurance Benefits Act (Article 3-52 3.50-3, Vernon's Texas Insurance Code), as added by this Act, do 3-53 not apply to the purchase of basic coverage for a dependent child 3-54 by the trustee of the group benefits program established under the 3-55 Texas Employees Uniform Group Insurance Benefits Act (Article 3-56 3.50-2, Vernon's Texas Insurance Code) and an institution subject 3-57 to the Texas State College and University Employees Uniform 3-58 Insurance Benefits Act (Article 3.50-3, Vernon's Texas Insurance 3-59 Code) before fiscal year 2001. 3-60 SECTION 6. The importance of this legislation and the 3-61 crowded condition of the calendars in both houses create an 3-62 emergency and an imperative public necessity that the 3-63 constitutional rule requiring bills to be read on three several 3-64 days in each house be suspended, and this rule is hereby suspended. 3-65 * * * * *