77R11237 DLF-D                           
         By Maxey                                              H.B. No. 1853
         Substitute the following for H.B. No. 1853:
         By Tillery                                        C.S.H.B. No. 1853
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to coverage for certain dependent children under the Texas
 1-3     Employees Uniform Group Insurance Benefits Act.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 14A, Texas Employees Uniform Group
 1-6     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
 1-7     Code), is amended by amending Subsections (a), (e), and (f) and
 1-8     adding Subsections (h), (i), and (j) to read as follows:
 1-9           (a)  Subject to any applicable limit in the General
1-10     Appropriations Act, the trustee shall use money appropriated for
1-11     employer contributions to fund [80 percent of] the total cost of
1-12     basic coverage for a child who:
1-13                 (1)  is a dependent of an employee;
1-14                 (2)  would be eligible, if the child were not the
1-15     dependent of the employee, for benefits under the program
1-16     established by this state to implement Title XXI of the Social
1-17     Security Act (42 U.S.C. Section 1397aa et seq.), as amended; and
1-18                 (3)  is not eligible for the state Medicaid program.
1-19           (e)  An employee shall apply  for coverage  for a dependent
1-20     child under this section on a form developed under Subsection (j)
1-21     of this section.  The trustee may require an employee to re-apply
1-22     for dependent child coverage under this section during each annual
1-23     open enrollment period applicable to the employee's coverage.  The
1-24     trustee and the Texas Department of Human Services or other agency
 2-1     designated by the Health and Human Services Commission to perform
 2-2     eligibility screening under this section shall cooperate to develop
 2-3     a cost-effective method for annual re-evaluation of eligibility
 2-4     determinations for dependent child coverage under this section.
 2-5           (f)  The amount of the premiums and any copayment or other
 2-6     cost-sharing provision required for dependent child coverage
 2-7     provided under this section may not exceed the amount of any
 2-8     similar payment required under the program established under
 2-9     Chapter 62, Health and Safety Code.  [Notwithstanding Subsection
2-10     (a) of this section, the trustee may pay a higher percentage of the
2-11     cost of basic coverage for a child described by Subsection (a) of
2-12     this section if money becomes available for that purpose.]
2-13           (h)  Each department shall provide to each employee of the
2-14     department a brochure that relates to:
2-15                 (1)  the program to provide coverage to dependent
2-16     children under this section; and
2-17                 (2)  the Medicaid program for children.
2-18           (i)  The information required to be provided under Subsection
2-19     (h) of this section must be provided at least annually, during the
2-20     open enrollment period applicable to the department, and must be
2-21     provided to each new employee at the time the employee is employed.
2-22           (j)  The Health and Human Services Commission shall develop
2-23     an application to be used under Subsection (e) of this section that
2-24     permits a state employee to apply for coverage under this section
2-25     or for benefits under the Medicaid program for children and shall
2-26     develop a brochure for departments to use to satisfy the
2-27     requirements of Subsection (h) of this section.  The commission
 3-1     shall develop these documents in collaboration with the trustee and
 3-2     the divisions or departments of the commission responsible for the
 3-3     state child health insurance program and Medicaid.  The brochure
 3-4     must include an eligibility chart, pricing information, and a
 3-5     telephone number of the commission or trustee that a person may
 3-6     call to obtain additional information.  The application and
 3-7     brochure must be easily reproducible by the departments and must be
 3-8     made available on the commission's website to download from the
 3-9     Internet.
3-10           SECTION 2. The heading to Section 14A, Texas Employees
3-11     Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
3-12     Texas Insurance Code), is amended to read as follows:
3-13           Sec. 14A.  COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN
3-14     EMPLOYEES; INFORMATION FOR EMPLOYEES.
3-15           SECTION 3.  Section 14A(a), Texas Employees Uniform Group
3-16     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
3-17     Code), as amended by this Act, applies to the purchase of basic
3-18     coverage for a dependent child by the trustee of the group benefits
3-19     program established under the Texas Employees Uniform Group
3-20     Insurance Benefits Act (Article 3.50-2, Vernon's Texas Insurance
3-21     Code), beginning September 1, 2001.
3-22           SECTION 4.  This Act takes effect immediately if it receives
3-23     a vote of two-thirds of all the members elected to each house, as
3-24     provided by Section 39, Article III, Texas Constitution.  If this
3-25     Act does not receive the vote necessary for immediate effect, this
3-26     Act takes effect September 1, 2001.