Bill Text: TX HB151 | 2017 | 85th Legislature 1st Special Session | Introduced


Bill Title: Relating to the administration of certain group benefits by the Teacher Retirement System of Texas; making an appropriation.

Spectrum: Bipartisan Bill

Status: (Introduced) 2017-07-25 - Left pending in committee [HB151 Detail]

Download: Texas-2017-HB151-Introduced.html
  85S10566 LED-D
 
  By: Gooden H.B. No. 151
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration of certain group benefits by the
  Teacher Retirement System of Texas; making an appropriation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter G, Chapter 1575, Insurance Code, is
  amended by adding Section 1575.307 to read as follows:
         Sec. 1575.307.  CERTAIN MONEY APPROPRIATED TO FUND. (a)
  Notwithstanding Section 1575.303 and subject to Subsections (b) and
  (c), the trustee shall use the money appropriated to the fund by the
  Act enacting this section to:
               (1)  reduce deductibles for health benefit plan
  coverage provided under a basic plan;
               (2)  provide some level of first-dollar coverage for
  prescription drugs;
               (3)  provide subsidies for the contributions required
  for:
                     (A)  coverage for retirees, dependents, surviving
  spouses, or surviving dependent children who are eligible for
  Medicare; or
                     (B)  dependent coverage; or
               (4)  otherwise reduce out-of-pocket costs for health
  benefit plan coverage provided under the group program.
         (b)  The trustee shall use $250 million of the appropriation
  described by Subsection (a) for each of the following plan years:
  2018, 2019, 2020, and 2021.
         (c)  The trustee may not use the appropriated money described
  by Subsection (a):
               (1)  to offset the amount of the required state
  contribution under Section 1575.201 or 1575.202, the active
  employee contribution under Section 1575.203, or the public school
  contribution under Section 1575.204; or
               (2)  for any purpose not authorized by Subsection (a).
         (d)  The trustee shall consult with actuaries to determine
  how to discharge the trustee's obligations under this section for
  each plan year.  The trustee may allow and consider public comment
  regarding the use of the appropriated money described by Subsection
  (a) for purposes of this section.
         (e)  Not later than December 1 of each year, the trustee
  shall prepare a report detailing the trustee's intended use of the
  appropriated money described by Subsection (a) for the following
  plan year and submit the report to the governor, the lieutenant
  governor, the speaker of the house of representatives, the chair of
  the Senate Committee on State Affairs, the chair of the House
  Committee on Pensions, the chair of the Senate Committee on
  Finance, the chair of the House Committee on Appropriations, and
  the Legislative Budget Board.
         (f)  This section expires December 31, 2023.
         SECTION 2.  Section 1575.452, Insurance Code, is amended to
  read as follows:
         Sec. 1575.452.  ANNUAL REPORTS [REPORT].  (a)  Not later than
  the 180th day after the last day of each state fiscal year, the
  trustee shall submit a written report to the department concerning
  the group coverages provided to and the benefits and services being
  received by individuals covered under this chapter.
         (b)  Each year, the trustee shall prepare a written report
  containing:
               (1)  projected health care cost trends and predicted
  expenses related to group coverages and the group program for the
  following plan year;
               (2)  information relevant to determining cost
  increases for the group program, including claims history, medical
  utilization, pharmacy cost information, and network discounts
  applied to the group program; and
               (3)  estimates of the effect on the funding sufficiency
  of the group program of an increase in the state contribution under
  Section 1575.202 to 2 percent, 2.25 percent, 2.5 percent, 2.75
  percent, and 3 percent of the salary of each active employee.
         (c)  Not later than December 1 of each year, the trustee
  shall submit the report described by Subsection (b) to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, the chair of the Senate Committee on State
  Affairs, the chair of the House Committee on Pensions, the chair of
  the Senate Committee on Finance, the chair of the House Committee on
  Appropriations, and the Legislative Budget Board.
         SECTION 3.  (a)  In this section:
               (1)  "Active employee" has the meaning assigned by
  Section 1575.002, Insurance Code.
               (2)  "Dependent," "surviving dependent child," and
  "surviving spouse" have the meanings assigned by Section 1575.003,
  Insurance Code.
               (3)  "Retiree" has the meaning assigned by Section
  1575.004, Insurance Code.
         (b)  The Teacher Retirement System of Texas shall conduct a
  study of the feasibility of:
               (1)  combining into a single group health benefit plan
  active employees, retirees, dependents, surviving spouses, and
  surviving dependent children who are not eligible to enroll in
  Medicare; and
               (2)  creating a group health benefit plan for active
  employees, retirees, dependents, surviving spouses, and surviving
  dependent children who are eligible to enroll in Medicare.
         (c)  Not later than January 1, 2019, the Teacher Retirement
  System of Texas shall prepare and submit a report of the results of
  the study conducted under Subsection (a) of this section together
  with recommendations for legislation, if appropriate, to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, the chair of the Senate Committee on State
  Affairs, the chair of the House Committee on Pensions, the chair of
  the Senate Committee on Finance, the chair of the House Committee on
  Appropriations, and the Legislative Budget Board.
         SECTION 4.  The amount of $1 billion is appropriated from the
  economic stabilization fund to the retired school employees group
  insurance fund established under Section 1575.301, Insurance Code,
  for distribution by the Teacher Retirement System of Texas as
  provided by Section 1575.307, Insurance Code, as added by this Act.
         SECTION 5.  (a)  Subject to Subsection (b) of this section:
               (1)  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; and
               (2)  if this Act does not receive the vote necessary for
  immediate effect, this Act takes effect on the 91st day after the
  last day of the legislative session.
         (b)  This Act takes effect only if it receives a vote of
  two-thirds of the members present in each house of the legislature,
  as provided by Section 49-g(m), Article III, Texas Constitution.
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