BILL ANALYSIS

H.B. 3657

By: Blanco

Pensions

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that participation in the statewide health coverage program for public education employees known as Teacher Retirement System-ActiveCare has grown to more than 460,000 individuals. The parties note that the program is required to offer uniform coverage statewide and that no consideration is given for geographic location. The parties assert that allowing the program to consider geographic location in establishing premiums would make the premiums more affordable for some participants. H.B. 3657 seeks to provide a basis for providing more affordable coverage for participants based on geographic location.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3657 requires the Teacher Retirement System of Texas (TRS) to conduct a study of the benefits and disadvantages of establishing a regional rating method for determining premiums charged in different regions of Texas for benefits provided under a plan of group coverage administered by TRS under the Texas School Employees Uniform Group Health Coverage Act. The bill requires TRS, not later than December 1, 2016, to report the results of the study to the speaker of the house of representatives, the lieutenant governor, and the standing committees of the house and the senate with jurisdiction over TRS and insurance. The bill requires the report to be accompanied by recommendations for legislation, if appropriate. The bill's provisions expire September 1, 2017.

EFFECTIVE DATE

September 1, 2015.