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A BILL TO BE ENTITLED
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AN ACT
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relating to health benefits coverage provided to persons who retire |
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early from employment by certain counties or municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 175, Local Government Code, is amended |
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by adding Section 175.0015 to read as follows: |
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Sec. 175.0015. DEFINITION. In this chapter, "early |
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retiree" means a person who retires from county or municipal |
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employment before the person is eligible for federal Medicare |
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benefits. |
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SECTION 2. Section 175.002, Local Government Code, is |
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amended by amending Subsection (a) and adding Subsection (a-1) to |
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read as follows: |
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(a) A person to whom this chapter applies is entitled to |
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purchase continued health benefits coverage for the person and the |
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person's dependents as provided by this chapter unless the person |
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is eligible for group health benefits coverage through another |
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employer. Except as provided by Subsection (a-1), the [The] |
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coverage shall be provided under the group health insurance plan or |
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group health coverage plan provided by or through the employing |
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county or municipality to its employees. |
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(a-1) As an alternative to providing health benefits |
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coverage under a group health insurance plan or group health |
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coverage plan offered to active employees, a county or municipality |
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may provide coverage for early retirees under: |
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(1) a fully insured health benefits plan or a |
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self-insured health benefits plan that is separate from the plans |
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offered to its active employees; or |
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(2) a group health insurance plan or group health |
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coverage plan offered by a pool established under Chapter 172 or a |
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health benefits plan issuer authorized to do business in this state |
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and designated by the municipality or county as exclusively for |
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early retirees. |
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SECTION 3. Section 175.003(b), Local Government Code, is |
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amended to read as follows: |
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(b) Except as provided by Subsections (c) and (d), the level |
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of coverage provided under this chapter at any given time is: |
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(1) for persons other than early retirees, the same |
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level of coverage provided to current employees of the county or |
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municipality at that time; and |
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(2) for early retirees, a level of coverage that is |
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comparable to the level of coverage provided to active employees of |
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the county or municipality, as determined by the commissioners |
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court or governing body of the municipality for each enrollment |
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period. |
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SECTION 4. The changes in law made by this Act to Sections |
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175.002 and 175.003, Local Government Code, apply to a person who |
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retires from county or municipal employment regardless of the date |
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on which the person retires. |
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SECTION 5. This Act takes effect September 1, 2009. |