79R2114 DLF-D
By: Williams S.B. No. 1572
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.