Texas House Bill HB3110

Texas 2019 - 86th Regular

Caption

Relating to the termination of the Texas Public School Employees Group Insurance Program for retirees.

Impact

The termination of this insurance program has significant implications for public school retirees in Texas, as it shifts health insurance reliance to Medicare for eligible individuals. Supporters argue that the program has outlived its necessity and that the funds could be better allocated or invested in other retirement benefits. By ceasing the program, the state aims to alleviate financial burdens associated with maintaining it, which could lead to overall savings for the state budget in the long term.

Summary

House Bill 3110 proposes the termination of the Texas Public School Employees Group Insurance Program for retirees. The bill establishes provisions to phase out the group insurance program, impacting retirees who depend on this coverage. Effective September 1, 2019, individuals who were participants on August 31, 2019, would lose eligibility for the program once they become eligible for Medicare or by September 1, 2029, whichever comes first. The bill outlines an orderly termination process, including the management of surplus funds within the insurance program to ensure equitable distribution among current participants.

Contention

Opposition to HB3110 is expected from various stakeholders, including retiree advocacy groups who may argue that such termination undermines the promised benefits to public school employees. Critics are likely to highlight that many retirees may not have sufficient alternative healthcare solutions under Medicare, especially for those who are not yet eligible. The concerns of these advocates suggest a potential impact on retirees' health and financial stability, which could lead to wider criticism of the bill.