2003S0500-1 03/05/03
By: Janek S.B. No. 1169
A BILL TO BE ENTITLED
AN ACT
relating to offering health reimbursement arrangements under the
Texas Employees Group Benefits Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 1551, Insurance Code, as
effective June 1, 2003, is amended by adding Section 1551.218 to
read as follows:
Sec. 1551.218. HEALTH REIMBURSEMENT ARRANGEMENTS.
(a) The board of trustees shall offer coverage through health
reimbursement arrangements. The board of trustees shall develop,
implement, and administer health reimbursement arrangements.
(b) Health reimbursement arrangements offered under this
section may only reimburse expenses for medical care, as defined by
Section 213(d), Internal Revenue Code of 1986.
(c) The board of trustees by rule shall establish the
maximum dollar amount for a coverage period that may be reimbursed
under a health reimbursement arrangement. Any unused portion of
the maximum dollar amount at the end of a coverage period shall be
carried forward to increase the maximum reimbursement amount in
subsequent coverage periods.
(d) The board of trustees may enter into a contract or
agreement with an independent and qualified agency, individual, or
entity to:
(1) develop, implement, or administer health
reimbursement arrangements; or
(2) assist in those activities.
SECTION 2. Subchapter G, Chapter 1551, Insurance Code, as
effective June 1, 2003, is amended by adding Section 1551.321 to
read as follows:
Sec. 1551.321. FUNDING OF HEALTH REIMBURSEMENT
ARRANGEMENTS. Health reimbursement arrangements offered under
Section 1551.218 shall be paid for solely by the employer. Employer
contributions to health reimbursement arrangements may not be
attributable to salary reductions or otherwise provided under the
cafeteria plan.
SECTION 3. The board of trustees of the Employees
Retirement System of Texas is not required to offer health
reimbursement arrangements, as required by Section 1551.218,
Insurance Code, as added by this Act, before September 1, 2004.
SECTION 4. The board of trustees of the Employees
Retirement System of Texas shall adopt rules as required under
Section 1551.218, Insurance Code, as added by this Act, not later
than June 1, 2004.
SECTION 5. This Act takes effect September 1, 2003.