79R4907 KCR-D

By:  Martinez                                                     H.B. No. 1416



A BILL TO BE ENTITLED

AN ACT

relating to health insurance benefits provided to certain public 
school retirees and their dependents.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 1575.152, Insurance Code, is amended to 
read as follows: 
	Sec. 1575.152.  REQUIREMENTS FOR BASIC PLAN [MUST COVER 
PREEXISTING CONDITIONS].  A basic plan must:
		(1)  cover preexisting conditions; and                          
		(2)  provide for a coinsurance payment by an insured 
that does not exceed 10 percent.
	SECTION 2.  Section 1575.161, Insurance Code, is amended by 
adding Subsection (f) as follows:
	(f)  The trustee by rule shall set at least one open 
enrollment period for each calendar year during which a retiree may 
select or modify previously selected coverage under this chapter.  
The open enrollment period set under this subsection must be at 
least 30 days.
	SECTION 3.  Sections 1575.211(b) and (c), Insurance Code, 
are amended to read as follows:
	(b)  In determining the allocation of total costs under this 
section, the state shall pay the same percentage of the cost of 
coverage for a retiree and a retiree's dependents under the basic 
plan as the state annually contributes for an annuitant and an 
annuitant's dependents covered by the basic coverage plan under 
Chapter 1551.  The [not more than 55 percent of the total costs, 
retirees shall pay at least 30 percent of the total costs, and the] 
balance of the cost of coverage under the basic plan for a retiree 
and a retiree's dependents under the basic plan shall be paid by 
active employees and public schools.
	(c)  The trustee by rule shall allocate the total cost of 
coverage for a retiree and a retiree's dependents in an optional 
plan elected by the retiree among the state, retirees, active 
employees, and public schools.  The allocation adopted by the 
trustee under this subsection must comply with the requirements of 
Section 1575.205.  [A retiree eligible to participate under Section 
1575.004(a)(1)(B) is, except as provided by this subsection, 
required to pay the total cost, as determined by the trustee, 
attributable to the participation of that individual and the 
dependents of that individual until the date the individual is 
otherwise eligible under Section 1575.004.  The General 
Appropriations Act or other similar legislation may specify a 
different allocation of total costs for retirees eligible to 
participate under Section 1575.004(a)(1)(B) and the dependents of 
those retirees.  This subsection applies only to an individual who 
is eligible to participate as an annuitant under Section 
1575.004(a)(1)(B) and who is not otherwise eligible to participate 
under another provision of Section 1575.004 at the time of 
retirement.]
	SECTION 4.  Section 1575.212, Insurance Code, is repealed.                     
	SECTION 5.  The Teacher Retirement System of Texas shall set 
and hold the first open enrollment period required by Section 
1575.161(f), Insurance Code, as added by this Act not later than 
July 1, 2006.
	SECTION 6.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.