79R6678 KCR-D

By:  Rodriguez                                                    H.B. No. 1654



A BILL TO BE ENTITLED

AN ACT

relating to the cost of certain coverage provided by certain group 
benefits programs and uniform insurance benefits programs and to 
eligibility to participate in certain group benefits programs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 1551, Insurance Code, is 
amended by adding Section 1551.067 to read as follows:
	Sec. 1551.067.  CONTRACT RATES FOR PRESCRIPTION DRUGS.  The 
board of trustees shall make available to the public on request the 
contract rates paid for prescription drugs under the basic coverage 
plan.
	SECTION 2.  Subchapter C, Chapter 1551, Insurance Code, is 
amended by adding Section 1551.115 to read as follows:
	Sec. 1551.115.  PARTICIPATION BY CERTAIN INDIVIDUALS 
EMPLOYED BY SMALL EMPLOYERS.  (a)  In this section, "small employer" 
has the meaning assigned by Section 1501.002.
	(b)  An individual who is employed by a small employer may 
participate in the group benefits program as if the individual were 
an employee eligible to participate under Section 1551.101.  An 
individual who participates in the group benefits program under 
this subsection may obtain coverage for the individual's dependents 
in the manner provided for any other employee.
	(c)  An individual who is employed by a small employer may 
participate as an employee in that portion of the group benefits 
program that provides only prescription drug coverage.  An 
individual who, under this subsection, participates in that portion 
of the group benefits program that provides only prescription drug 
coverage may obtain coverage for the individual's dependents at the 
same cost and level of coverage as any other employee.
	(d)  A participant under this section may not receive a state 
contribution for premiums, and the small employer who employs the 
participant is responsible for payment of:
		(1)  the contributions the state would make if an 
individual who participates in the program under Subsection (b) 
were a state employee; and
		(2)  the same percentage of the cost of coverage for an 
individual who, under Subsection (c), participates in that portion 
of the group benefits program that provides only prescription drug 
coverage for which the small employer would be responsible under 
Subdivision (1) if the person participated in the program under 
Subsection (b).
	(e)  The board of trustees shall adopt rules as necessary to 
implement this section.
	SECTION 3.  Subchapter B, Chapter 1601, Insurance Code, is 
amended by adding Section 1601.064 to read as follows:
	Sec. 1601.064.  CONTRACT RATES FOR PRESCRIPTION DRUGS.  A 
system shall make available to the public on request the contract 
rates paid for prescription drugs under a contract with an 
administering carrier or a carrier providing coverage under this 
chapter.
	SECTION 4.  (a)  The Employees Retirement System of Texas 
shall develop a plan for the extension of benefits under the group 
benefits program under Section 1551.115, Insurance Code, as added 
by this Act.  The system may employ persons as necessary to 
implement this subsection and Section 1551.115.
	(b)  An individual eligible to participate in the group 
benefits program under Section 1551.115, Insurance Code, as added 
by this Act, is first eligible to participate on the later of 
January 1, 2006, or the date that the health benefit plan coverage 
held by the individual on September 1, 2005, expires or terminates.
	SECTION 5.  This Act takes effect September 1, 2005.