Bill Text: TX HB430 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the termination of the Texas Public School Employees Group Insurance Program for retirees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-02-25 - Referred to Pensions, Investments & Financial Services [HB430 Detail]
Download: Texas-2021-HB430-Introduced.html
| 87R1230 MEW-D | ||
| By: King of Hemphill | H.B. No. 430 | |
|
|
||
|
|
||
| relating to the termination of the Texas Public School Employees | ||
| Group Insurance Program for retirees. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 1575, Insurance Code, is amended by | ||
| adding Subchapters L and M to read as follows: | ||
| SUBCHAPTER L. TERMINATION OF GROUP PROGRAM | ||
| Sec. 1575.551. PROGRAM TERMINATION. Subject to Section | ||
| 1575.552, effective September 1, 2021, the group program is | ||
| terminated. | ||
| Sec. 1575.552. COVERAGE ELIGIBILITY TERMINATES; PHASE-OUT | ||
| PERIOD. (a) An individual who is not a participant in the group | ||
| program on August 31, 2021, is not entitled to obtain coverage under | ||
| the group program after that date. | ||
| (b) An individual who is a participant in the group program | ||
| on August 31, 2021, and who is, on September 1, 2021, eligible to | ||
| participate in Medicare, is not entitled to continue coverage under | ||
| the group program after August 31, 2021. | ||
| (c) An individual who is a participant in the group program | ||
| on August 31, 2021, but who is not, on September 1, 2021, eligible | ||
| to participate in Medicare, may continue coverage under the group | ||
| program in accordance with this subchapter until the earlier of: | ||
| (1) the date the individual first becomes eligible to | ||
| participate in Medicare; or | ||
| (2) September 1, 2031. | ||
| Sec. 1575.553. AUTHORIZED COVERAGE. Notwithstanding | ||
| Section 1575.151, on and after September 1, 2021, the group program | ||
| may not offer coverage other than health benefit plan coverage. | ||
| Sec. 1575.554. EXCESS GROUP INSURANCE FUND MONEY. (a) Not | ||
| later than December 31, 2021, the trustee shall determine the | ||
| amount of money required to fund coverage for individuals under | ||
| Section 1575.552(c) for the 2021-2022 fiscal year and shall certify | ||
| that amount to the comptroller. | ||
| (b) As soon as practicable after January 1, 2022, the | ||
| trustee shall, notwithstanding Section 1575.206, pay to each | ||
| retiree participating in the group program on August 31, 2021, an | ||
| equal share of the amount by which the money in the group insurance | ||
| fund exceeds the amount of money determined under Subsection (a). | ||
| Sec. 1575.555. REDUCTION IN CONTRIBUTIONS. (a) Beginning | ||
| not later than June 1, 2022, the trustee shall annually determine | ||
| the amount of money required to fund coverage for individuals under | ||
| Section 1575.552(c) for the subsequent fiscal year. The trustee | ||
| shall certify that amount to the comptroller. | ||
| (b) The trustee, in consultation with the comptroller, may | ||
| annually adjust the amounts of contributions to be made under | ||
| Sections 1575.201, 1575.202, 1575.203, and 1575.204, to the extent | ||
| that the trustee determines that money otherwise to be contributed | ||
| under those sections for a fiscal year will exceed the amount | ||
| determined to be required for that fiscal year under Subsection | ||
| (a). | ||
| Sec. 1575.556. FINAL RECONCILIATION; TERMINATION OF FUND. | ||
| As soon as practicable after August 31, 2031, the trustee, in | ||
| consultation with the comptroller, shall determine any | ||
| unencumbered amount remaining in the group insurance fund. The | ||
| trustee shall pay that amount in equal shares to individuals | ||
| participating in the program on August 31, 2031. | ||
| Sec. 1575.557. GROUP PROGRAM AND GROUP INSURANCE FUND | ||
| ABOLISHED. Effective September 1, 2031, the group program and the | ||
| group insurance fund are abolished. | ||
| Sec. 1575.558. DUTIES OF THE TRUSTEE. (a) The trustee | ||
| shall implement a plan for the orderly termination of the group | ||
| program in accordance with this subchapter. | ||
| (b) The determinations made by the trustee under Sections | ||
| 1575.554 and 1575.555 must be actuarially justified. | ||
| SUBCHAPTER M. EXPIRATION OF CHAPTER | ||
| Sec. 1575.601. EXPIRATION OF CHAPTER. This chapter expires | ||
| September 1, 2032. | ||
| SECTION 2. 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, 2021. | ||
