79R2114 DLF-D

By:  Eissler                                                      H.B. No. 2970



A BILL TO BE ENTITLED

AN ACT

relating to certain health coverage under the Texas Employees Group 
Benefits Act.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 1551.104(a), Insurance Code, is amended 
to read as follows:
	(a)  Subject to Sections 1551.101 and 1551.102, each 
full-time employee is covered automatically by the basic coverage 
plan for employees and each annuitant is covered by the basic 
coverage plan for annuitants unless:
		(1)  participation is specifically waived as provided 
by Section 1551.1045;
		(2)  the employee or annuitant is expelled from the 
program under Section 1551.351; or
		(3)  eligibility is otherwise limited by this chapter.                        
	SECTION 2.  Subchapter C, Chapter 1551, Insurance Code, is 
amended by adding Section 1551.1045 to read as follows:
	Sec. 1551.1045.  WAIVER.  (a)  Subject to Subsection (b), an 
employee or annuitant may waive in writing any coverage provided 
under this chapter.
	(b)  To waive coverage under the basic coverage plan, a 
full-time employee must demonstrate, in the manner required by the 
board of trustees, that the employee is covered by another health 
benefit plan that provides substantially equivalent coverage, as 
determined by the board of trustees, to the coverage provided by the 
basic coverage plan.
	SECTION 3.  Subchapter E, Chapter 1551, Insurance Code, is 
amended by adding Sections 1551.221 and 1551.222 to read as 
follows:
	Sec. 1551.221.  OPTIONAL SUPPLEMENTAL HEALTH COVERAGE FOR 
INDIVIDUALS ELIGIBLE UNDER TRICARE MILITARY HEALTH SYSTEM.  (a)  
The board of trustees shall offer, as an optional coverage under the 
group benefits program, a supplemental health coverage program.
	(b)  Under the supplemental health coverage program, an 
employee who is eligible to participate in the group benefits 
program and who is also eligible for benefits under the TRICARE 
Military Health System may elect to receive primary coverage under 
the TRICARE Military Health System.  An employee participating in 
the supplemental health coverage program does not receive basic 
coverage through the group benefits program, but receives 
supplemental health coverage under this section.
	(c)  The cost of supplemental health coverage provided under 
this section may be paid in the same manner as the cost of other 
optional coverage is paid under Subchapter G.
	(d)  The board of trustees shall contract to purchase the 
supplemental health coverage in accordance with Sections 
1551.213-1551.216.
	(e)  The board of trustees may adopt rules to implement this 
section. 
	Sec. 1551.222.  INCENTIVE PAYMENTS.  (a)  The board of 
trustees may allow an incentive payment under this section to an 
employee who elects to:
		(1)  waive coverage under the basic coverage plan for 
employees as provided by Section 1551.1045(b); or
		(2)  participate in the supplemental health coverage 
program under Section 1551.221.
	(b)  The incentive payment authorized by this section is in 
the amount authorized by the General Appropriations Act and may be 
used by the employee, in the manner prescribed by the board of 
trustees, only to pay for other group coverage plans provided under 
the group benefits program, including the supplemental health 
coverage offered under Section 1551.221.
	(c)  The board of trustees, at the time of initial enrollment 
in the group benefits program and during subsequent open-enrollment 
periods, shall inform employees that they may make an election 
described by Subsection (a), if eligible, and receive any 
authorized incentive payment.
	SECTION 4.  Subchapter G, Chapter 1551, Insurance Code, is 
amended by adding Section 1551.324 to read as follows:
	Sec. 1551.324.  REDUCTION IN CONTRIBUTION FOR CERTAIN ACTIVE 
EMPLOYEES; INCENTIVE PAYMENTS.  (a)  Notwithstanding any other 
provision of this subchapter, the state contribution for an 
employee's coverage under this chapter may be reduced, as provided 
in the General Appropriations Act, to reflect the reduced cost of 
coverage for:
		(1)  an employee who elects to receive supplemental 
health coverage under the program established under Section 
1551.221; or
		(2)  an employee who elects to waive basic coverage as 
provided by Section 1551.1045(b).
	(b)  Instead of the full state contribution for an employee 
who makes an election described by Subsection (a), the state may 
contribute, as specified by the General Appropriations Act, an 
amount for the incentive payment authorized by Section 1551.222.
	SECTION 5.  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.