SRC-MWN S.B. 1021 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1021
77R3389 DLF-DBy: Armbrister
Education
3/2/2001
As Filed


DIGEST AND PURPOSE 

Currently, the high cost of providing a state funded health insurance plan
for state employees has created the need for better options to meet rising
prescription costs. As proposed, S.B. 1021 requires the state to fund the
cost of a prescription drug card for every public school employee in the
state. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.01. Amends, Article 3.50-4, Insurance Code, by adding Section 7B,
as follows: 

Sec. 7B. PRESCRIPTION DRUG BENEFIT PLAN FOR ACTIVE EMPLOYEES. Requires the
trustee, as part of the group coverages offered under the program, to
develop and implement a prescription drug benefit plan to provide
prescription drug benefits for active employees. Requires the plan benefits
to be at least equivalent to the comparable benefits provided under the
basic coverage offered as part of the uniform group insurance program for
state employees under the Texas Employees Uniform Group Insurance Benefits
Act (Article 3.50-2, Insurance Code). Provides that coverage under the
prescription drug benefit plans is limited to active employees. Requires
the state, for each active employee covered by the prescription drug
benefit plan, to contribute in the manner described by Section 16 of this
article an amount equal to the cost of the plan premium. Provides that an
employee covered by the plan is responsible for any copayment, coinsurance,
or similar charge imposed under the plan. 

ARTICLE 2. CONFORMING AMENDMENTS

SECTION 2.01. Amends Section 7A, Article 3.50-4, Insurance Code, by adding
Subsection (j), to require prescription drug benefits for an active
employee to be provided under the prescription drug benefit plan
established under Section 7B of this article. 

SECTION 2.02. Amends Section 13, Article 3.50-4, Insurance Code, as follows:

Sec. 13. AUTOMATIC COVERAGE. Provides that unless the person has been found
under Section 18A of this article to have defrauded or attempted to defraud
the Texas Public School Employees Group Insurance Program an active
employee who applies during an enrollment period is prohibited from being
denied coverage under the prescription drug benefit plan provided under
this article. Deletes text regarding a person who has defrauded the Texas
Public School Employees Group Insurance Program. Makes conforming changes. 

SECTION 2.03. Amends Section 22.004, Education Code, by amending
Subsections (a) and (d) and adding Subsection (h), to authorize the
coverage to include managed care or preventive care and,  except as
provided by Subsection (h), to require it to be comparable to the basic
health coverage provided under the Texas Employees Uniform Group Insurance
Benefits Act (Article 3.50-2, V.T.C.S). Prohibits a group health coverage
made available under this section from providing benefits for prescription
drugs. Makes a conforming change. 

SECTION 2.04. Amends Section 22.005, Education Code, by adding Subsection
(d), to prohibit that a health care plan established under this section
from providing benefits for prescription drugs. 

SECTION 2.05. Amends Article 26.036, Insurance Code, by adding Subsection
(c), to prohibit a small employer health benefit plan provided to an
independent school district under this chapter, notwithstanding any other
provision of this chapter, from providing benefits for prescription drugs. 

ARTICLE 3. TRANSITION; EFFECTIVE DATE

SECTION 3.01. Requires the Teacher Retirement System of Texas, during the
2001-2002 school year, to develop the prescription drug benefit plan for
active school district employees required by Section 7B, Article 3.50-4,
Insurance Code, as added by this Act. Authorizes the system to employ
persons as necessary to implement this subsection. Requires coverage under
the prescription drug benefit plan for active school district employees
required by Section 7B, Article 3.50-4, Insurance Code, as added by this
Act, to begin with the 202-2003 school year, but not later than September
1, 2002. 

SECTION 3.02. Effective date: September 1, 2001. 
                           Provides that Article 2 of this Act takes effect
September 1, 2002.