By: Vo H.B. No. 3886

A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of participants in the state employees group benefits program for certain federal benefits.

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

SECTION 1. Subchapter B, Chapter 1551, Insurance Code, is amended by adding Section 1551.069 to read as follows

Sec. 1551.069. REVIEW OF ELIGIBILITY FOR CERTAIN BENEFITS. (a) The board of trustees shall establish a program to continuously:

(1) review each basic coverage plan established under Section 1551.202 to determine whether each participant or covered dependent is eligible to continue receiving basic health coverage provided by that plan as the individual's primary coverage under Section 1551.231;

(2) identify each participant or covered dependent who is eligible to enroll in Medicare hospital and medical insurance or Social Security Disability Insurance (SSDI) benefits under 42 U.S.C. Section 401 et seq.; and

(3) ensure that each individual identified under Subdivision (2) is properly enrolled in Medicare hospital and medical insurance or Social Security Disability Insurance (SSDI) benefits under 42 U.S.C. Section 401 et seq., as applicable.

(b) the board of trustees may, on a competitive bid basis, contract with an entity to implement this section.

SECTION 2. Subchapter E, Chapter 1551, Insurance Code, is amended by adding Section 1551.231 to read as follows:

Sec. 1551.231. GROUP COVERAGE PLAN SECONDARY TO CERTAIN OTHER COVERAGE. The basic health coverage provided by a basic coverage plan established under Section 1551.202 is secondary to Medicare hospital and medical insurance to the extent permitted by federal law for a participant or covered dependent who is entitled to receive Medicare hospital insurance benefits without charge.

SECTION 3. The change in law made by this Act applies only to a plan year that commences on or after January 1, 2024.

SECTION 4. This Act takes effect September 1, 2023.