By: Lucio, et al. S.B. No. 872

A BILL TO BE ENTITLED

AN ACT

relating to continued health insurance coverage for eligible survivors of certain public servants killed in the line of duty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (c), Section 615.073, Government Code, is amended to read as follows:

(c) The surviving spouse is entitled to continue to purchase health insurance coverage until [the earlier of:

[(1) the date the surviving spouse remarries;

[(2) the date the surviving spouse becomes eligible for group health insurance through another employer; or

[(3)] the date the surviving spouse becomes eligible for federal Medicare benefits.

SECTION 2. Section 615.074, Government Code, is amended to read as follows:

Sec. 615.074. BENEFIT TO DEPENDENT. (a) An eligible surviving dependent who is a minor child is entitled to continue health insurance coverage until [the earlier of:

[(1)] the date the dependent reaches the age of 18 [years; or

[(2) the date the dependent becomes eligible for group health insurance through another employer].

(b) An eligible surviving dependent who is not a minor child is entitled to continue health insurance coverage until the earlier of:

(1) [the date the dependent marries;

[(2)] the date the dependent becomes eligible for group health insurance through another employer; or

(2) [(3)] the date the dependent becomes eligible for federal Medicare benefits.

SECTION 3. Subsections (a) and (c), Section 615.075, Government Code, are amended to read as follows:

(a) An employing entity shall provide written notice to an eligible survivor to whom this subchapter may apply of the survivor's rights under this subchapter not later than the 10th day after the date of the decedent's death. Not later than the 150th day after the date of the decedent's death, the employing entity shall send a subsequent written notice under this subsection by certified mail to any eligible survivor who has not already elected to continue coverage on or before that date.

(c) To receive continued coverage under this subchapter, the employing entity must be informed not later than the 180th [90th] day after the date the decedent died that the eligible survivor elects to continue coverage.

SECTION 4. Section 615.077, Government Code, is amended to read as follows:

Sec. 615.077. PAYMENTS; RATE. An eligible survivor who is entitled to continued coverage under this subchapter [is entitled to]:

(1) is entitled to:

(A) make payments for the coverage or have payments made on the survivor's behalf at the same time and to the same entity that payments for coverage are made by current employees of the employing entity; and

(B) obtain [(2) purchase] the coverage at the [group] rate paid by current employees of the employing entity for that coverage; and

(2) may not be required to pay a premium amount for the coverage that is greater than the premium amount that a current employee of the employing entity without a spouse is required to pay to cover the employee alone or to cover the employee and the employee's dependent children, as applicable to the eligible survivor [that exists at the time of payment].

SECTION 5. Subchapter D, Chapter 615, Government Code, is amended by adding Sections 615.080 and 615.081 to read as follows:

Sec. 615.080. GRACE PERIOD. Health insurance benefits coverage in force on the date of the decedent's death under which a deceased individual listed under Section 615.071 covered one or more other persons may not lapse before the 181st day after the date of the decedent's death for failure to pay the premium.

Sec. 615.081. LIMITED OPPORTUNITY FOR CERTAIN ELIGIBLE SURVIVORS TO REAPPLY FOR COVERAGE. (a) This section applies only to an eligible survivor of a deceased individual listed under Section 615.071 who died on or after September 1, 1993.

(b) Notwithstanding any other provision of this subchapter or other law, an eligible survivor to whom this section applies who did not purchase continued health insurance benefits under this subchapter or under the law codified by this subchapter within the time allowed after the listed individual's death, or who discontinued coverage under this subchapter or under the law codified by this subchapter after the listed individual's death, may reapply for coverage under the employing entity's health insurance benefits plan not later than March 1, 2010.

(c) An eligible survivor who reapplies for coverage under Subsection (b) is entitled to purchase the coverage according to the same rate schedule and coverage options as would apply had the eligible survivor continued coverage under this subchapter after the listed individual's death.

(d) This section expires September 1, 2010.

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, 2009.