SRC-JEC H.B. 1853 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1853
77R11237 DLF-DBy: Maxey (Barrientos)
Health & Human Services
5/11/2001
Engrossed


DIGEST AND PURPOSE 

The Children's Health Insurance Program (CHIP) is a federal/state
partnership which offers health insurance for children in economically
disadvantaged families that cannot afford health coverage. Federal
guidelines authorize the children of state employees to participate in CHIP
but prohibit federal funds from being used to pay for the cost of their
coverage. As a result, the 76th Legislature created the State Kids
Insurance Program (SKIP) to provide a supplement toward health insurance
premiums for coverage provided through the Employees Retirement system of
Texas for dependent children who would otherwise qualify for CHIP. While
SKIP has decreased the costs low-income state employees pay for their
children's health coverage, the coverage still costs more than that
available through CHIP to children whose parents are not employed by the
state.  H.B. 1853 increases the state's contribution toward the basic
coverage of SKIP enrollees from 80 to 100 percent.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  H.B. 1853 amends the Insurance Code to require the board of
trustees (trustee) of the Employees Retirement System of Texas (ERS)
subject to any applicable limit in the General Appropriations Act to use
money appropriated for employer contributions to fund the total cost rather
than 80 percent of the cost of basic coverage for a dependent child who is
not eligible for Medicaid and would be eligible for the Children's Health
Insurance Program if the child were not a dependent of a state employee.  

_The bill requires an employee to apply for coverage for a dependent child
on a form developed by the Health and Human Services Commission
(commission).  

_The bill prohibits the amount of the premiums and any copayment or other
cost-sharing provision required for dependent child coverage from exceeding
the amount of any similar payment required under the Child Health Plan for
Certain Low-Income Children. 

_Each department participating in ERS is required to provide at least
annually a brochure that relates to the program to provide coverage to
dependent children and the Medicaid program for children to each employee
of the department during the open enrollment period applicable to the
department and to each new employee at the time the employee is employed.  

_The commission is required to develop an application that permits a state
employee to apply for coverage or for benefits under the Medicaid program
for children and to develop a brochure for departments to distribute to
employees. The commission shall develop these documents in collaboration
with the trustee and the divisions or departments of the commission
responsible for the state child health insurance program and Medicaid. The
brochure must include an eligibility chart, pricing information, and a
telephone number of the commission or trustee that a  person may call to
obtain additional information. The application and the brochure must be
easily reproducible by the departments and must be made available on the
commission's website to download from the Internet.  

SECTION 2.  Amends the heading to Section 14A, Texas Employees Uniform
Group Insurance Benefits Act (Article 3.50-2, V.T.I.C.), to read as
follows: 

Sec. 14A.  COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN EMPLOYEES;
INFORMATION FOR EMPLOYEES. 

SECTION 3.  Provides that the new pay schedule applies to the purchase of
basic coverage for a dependent child beginning September 1, 2001. 

SECTION 4.  Effective date: upon passage or September 1, 2001.