Texas 2015 - 84th Regular

Texas House Bill HB1797 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R2570 LED-D
2	2	By: Márquez H.B. No. 1797
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to coverage for certain individuals under certain health
8	8	benefit plans offered to governmental employees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter A, Chapter 1551, Insurance Code, is
11	11	amended by adding Section 1551.0041 to read as follows:
12	12	Sec. 1551.0041. DEFINITION OF QUALIFIED INDIVIDUAL. In
13	13	this chapter, "qualified individual" means an individual who is at
14	14	least 18 years old and unmarried in this state and who is, with
15	15	respect to an individual eligible to participate in the group
16	16	benefits program under Section 1551.101, 1551.102, 1551.1021, or
17	17	1551.1022:
18	18	(1) not related to the eligible individual within the
19	19	third degree of consanguinity;
20	20	(2) financially interdependent with the eligible
21	21	individual; and
22	22	(3) cohabitating with the eligible individual.
23	23	SECTION 2. Section 1551.151, Insurance Code, is amended to
24	24	read as follows:
25	25	Sec. 1551.151. ENTITLEMENT TO COVERAGE. An individual who
26	26	is eligible to participate in the group benefits program under
27	27	Section 1551.101, 1551.102, 1551.1021, or 1551.1022 is entitled to
28	28	secure for a dependent of the individual or for a qualified
29	29	individual any group coverages provided under this chapter, as
30	30	determined by the board of trustees and subject to the exceptions
31	31	provided by this subchapter.
32	32	SECTION 3. Subchapter D, Chapter 1551, Insurance Code, is
33	33	amended by adding Section 1551.1511 to read as follows:
34	34	Sec. 1551.1511. PROOF OF QUALIFIED INDIVIDUAL STATUS. The
35	35	board of trustees may require an individual who secures coverage
36	36	under this chapter for a qualified individual to provide proof of
37	37	any two of the following documents:
38	38	(1) joint liability of the individuals for a mortgage,
39	39	lease, or loan;
40	40	(2) the designation of one of the individuals as the
41	41	primary beneficiary under a life insurance policy on the life of the
42	42	other individual or under a retirement plan of the other
43	43	individual;
44	44	(3) the designation of one of the individuals as the
45	45	primary beneficiary of the will of the other individual;
46	46	(4) a durable power of attorney for health care or
47	47	financial management granted by one of the individuals to the other
48	48	individual;
49	49	(5) joint ownership or lease by the individuals of a
50	50	motor vehicle;
51	51	(6) a joint checking account, joint investments, or a
52	52	joint credit account;
53	53	(7) a joint renter's or homeowner's insurance policy;
54	54	(8) joint responsibility for child care, such as
55	55	guardianship or school documents; or
56	56	(9) a relationship or cohabitation contract.
57	57	SECTION 4. Section 1551.310, Insurance Code, is amended to
58	58	read as follows:
59	59	Sec. 1551.310. STATE CONTRIBUTION REQUIRED. (a) The state
60	60	shall contribute to the cost of each participant's group coverages,
61	61	including dependents' group coverages, the amounts appropriated
62	62	for the coverages in the General Appropriations Act.
63	63	(b) The state shall pay the same portion of the cost of the
64	64	required contributions for a qualified individual as this state
65	65	pays for similar dependent coverage for an employee or annuitant
66	66	participating in the program.
67	67	SECTION 5. Subchapter A, Chapter 1575, Insurance Code, is
68	68	amended by adding Section 1575.0031 to read as follows:
69	69	Sec. 1575.0031. DEFINITION OF QUALIFIED INDIVIDUAL. In
70	70	this chapter, "qualified individual" means an individual who is at
71	71	least 18 years old and unmarried in this state and who is, with
72	72	respect to a retiree:
73	73	(1) not related to the retiree within the third degree
74	74	of consanguinity;
75	75	(2) financially interdependent with the retiree; and
76	76	(3) cohabitating with the retiree.
77	77	SECTION 6. Section 1575.155(a), Insurance Code, is amended
78	78	to read as follows:
79	79	(a) A retiree participating in the group program is entitled
80	80	to secure for the retiree's dependents or a qualified individual
81	81	group coverage provided for the retiree under this chapter, as
82	82	determined by the trustee.
83	83	SECTION 7. Subchapter D, Chapter 1575, Insurance Code, is
84	84	amended by adding Section 1575.1551 to read as follows:
85	85	Sec. 1575.1551. PROOF OF QUALIFIED INDIVIDUAL STATUS. The
86	86	trustee may require a retiree who secures coverage under this
87	87	chapter for a qualified individual to provide proof of any two of
88	88	the following documents:
89	89	(1) joint liability of the individuals for a mortgage,
90	90	lease, or loan;
91	91	(2) the designation of one of the individuals as the
92	92	primary beneficiary under a life insurance policy on the life of the
93	93	other individual or under a retirement plan of the other
94	94	individual;
95	95	(3) the designation of one of the individuals as the
96	96	primary beneficiary of the will of the other individual;
97	97	(4) a durable power of attorney for health care or
98	98	financial management granted by one of the individuals to the other
99	99	individual;
100	100	(5) joint ownership or lease by the individuals of a
101	101	motor vehicle;
102	102	(6) a joint checking account, joint investments, or a
103	103	joint credit account;
104	104	(7) a joint renter's or homeowner's insurance policy;
105	105	(8) joint responsibility for child care, such as
106	106	guardianship or school documents; or
107	107	(9) a relationship or cohabitation contract.
108	108	SECTION 8. Section 1575.201, Insurance Code, is amended by
109	109	adding Subsection (a-1) and amending Subsection (b) to read as
110	110	follows:
111	111	(a-1) The state shall pay the same portion of the cost of the
112	112	required contributions for a qualified individual as this state
113	113	pays for similar dependent coverage for a retiree participating in
114	114	the group program.
115	115	(b) The trustee shall collect the amount of premium required
116	116	for basic coverage under the group program that exceeds the amount
117	117	contributed by the state for those individuals described by
118	118	Subsections [Subsection] (a)(2) and (a-1).
119	119	SECTION 9. Subchapter A, Chapter 1579, Insurance Code, is
120	120	amended by adding Section 1579.0041 to read as follows:
121	121	Sec. 1579.0041. DEFINITION OF QUALIFIED INDIVIDUAL. In
122	122	this chapter, "qualified individual" means an individual who is at
123	123	least 18 years old and unmarried in this state and who is, with
124	124	respect to a participating employee:
125	125	(1) not related to the participating employee within
126	126	the third degree of consanguinity;
127	127	(2) financially interdependent with the participating
128	128	employee; and
129	129	(3) cohabitating with the participating employee.
130	130	SECTION 10. Section 1579.101(a), Insurance Code, is amended
131	131	to read as follows:
132	132	(a) The trustee by rule shall establish plans of group
133	133	coverages for employees participating in the program, [and] their
134	134	dependents, and qualified individuals.
135	135	SECTION 11. Subchapter C, Chapter 1579, Insurance Code, is
136	136	amended by adding Section 1579.1011 to read as follows:
137	137	Sec. 1579.1011. PROOF OF QUALIFIED INDIVIDUAL STATUS. The
138	138	trustee may require an employee who secures coverage under this
139	139	chapter for a qualified individual to provide proof of any two of
140	140	the following documents:
141	141	(1) joint liability of the individuals for a mortgage,
142	142	lease, or loan;
143	143	(2) the designation of one of the individuals as the
144	144	primary beneficiary under a life insurance policy on the life of the
145	145	other individual or under a retirement plan of the other
146	146	individual;
147	147	(3) the designation of one of the individuals as the
148	148	primary beneficiary of the will of the other individual;
149	149	(4) a durable power of attorney for health care or
150	150	financial management granted by one of the individuals to the other
151	151	individual;
152	152	(5) joint ownership or lease by the individuals of a
153	153	motor vehicle;
154	154	(6) a joint checking account, joint investments, or a
155	155	joint credit account;
156	156	(7) a joint renter's or homeowner's insurance policy;
157	157	(8) joint responsibility for child care, such as
158	158	guardianship or school documents; or
159	159	(9) a relationship or cohabitation contract.
160	160	SECTION 12. Section 1579.203(c), Insurance Code, is amended
161	161	to read as follows:
162	162	(c) If the combined contributions received from the state
163	163	and the employing participating entity under Subchapter F exceed
164	164	the cost of a coverage plan selected by the employee, the employee
165	165	may use the excess amount of contributions to obtain coverage under
166	166	a higher tier coverage plan or to pay all or part of the cost of
167	167	coverage for the employee's dependents or a qualified individual.
168	168	SECTION 13. Subchapter A, Chapter 1601, Insurance Code, is
169	169	amended by adding Section 1601.0041 to read as follows:
170	170	Sec. 1601.0041. DEFINITION OF QUALIFIED INDIVIDUAL. In
171	171	this chapter, "qualified individual" means an individual who is at
172	172	least 18 years old and unmarried in this state and who is, with
173	173	respect to an individual eligible to participate in the group
174	174	benefits program under Section 1601.101, 1601.102, or 1601.1021:
175	175	(1) not related to the eligible individual within the
176	176	third degree of consanguinity;
177	177	(2) financially interdependent with the eligible
178	178	individual; and
179	179	(3) cohabitating with the eligible individual.
180	180	SECTION 14. Section 1601.107, Insurance Code, is amended to
181	181	read as follows:
182	182	Sec. 1601.107. COVERAGE FOR DEPENDENTS AND QUALIFIED
183	183	INDIVIDUALS. An individual who is eligible to participate in the
184	184	uniform program under Section 1601.101, 1601.102, or 1601.1021 is
185	185	entitled to secure for a dependent of the individual or for a
186	186	qualified individual any group coverages provided under this
187	187	chapter for dependents under rules adopted by the applicable
188	188	system.
189	189	SECTION 15. Subchapter C, Chapter 1601, Insurance Code, is
190	190	amended by adding Section 1601.1071 to read as follows:
191	191	Sec. 1601.1071. PROOF OF QUALIFIED INDIVIDUAL STATUS. A
192	192	system may require an individual who secures coverage under this
193	193	chapter for a qualified individual to provide proof of any two of
194	194	the following documents:
195	195	(1) joint liability of the individuals for a mortgage,
196	196	lease, or loan;
197	197	(2) the designation of one of the individuals as the
198	198	primary beneficiary under a life insurance policy on the life of the
199	199	other individual or under a retirement plan of the other
200	200	individual;
201	201	(3) the designation of one of the individuals as the
202	202	primary beneficiary of the will of the other individual;
203	203	(4) a durable power of attorney for health care or
204	204	financial management granted by one of the individuals to the other
205	205	individual;
206	206	(5) joint ownership or lease by the individuals of a
207	207	motor vehicle;
208	208	(6) a joint checking account, joint investments, or a
209	209	joint credit account;
210	210	(7) a joint renter's or homeowner's insurance policy;
211	211	(8) joint responsibility for child care, such as
212	212	guardianship or school documents; or
213	213	(9) a relationship or cohabitation contract.
214	214	SECTION 16. Section 1601.201, Insurance Code, is amended by
215	215	amending Subsections (b) and (c) and adding Subsection (e) to read
216	216	as follows:
217	217	(b) For an employee designated by the system as working 40
218	218	or more hours a week, the system may contribute:
219	219	(1) the full cost of basic coverage for the employee;
220	220	and
221	221	(2) not more than 50 percent of the cost of dependent
222	222	coverage, including the cost of coverage of a qualified individual.
223	223	(c) For an employee designated by the system as working less
224	224	than 40 hours a week, including an individual employed by the system
225	225	in a position that as a condition of employment requires the
226	226	individual to be enrolled as a student in the system in
227	227	graduate-level courses, the system, from money appropriated from
228	228	the general revenue fund, may contribute:
229	229	(1) not more than 50 percent of the cost of basic
230	230	coverage for the employee; and
231	231	(2) not more than 25 percent of the cost of dependent
232	232	coverage, including the cost of coverage of a qualified individual.
233	233	(e) The state shall pay the same portion of the cost of the
234	234	required contributions for a qualified individual as this state
235	235	pays for similar dependent coverage for an employee participating
236	236	in the program.
237	237	SECTION 17. As soon as practicable after the effective date
238	238	of this Act, but not later than January 1, 2016, The University of
239	239	Texas System, The Texas A&M University System, the board of
240	240	trustees of the Teacher Retirement System of Texas, and the board of
241	241	trustees of the Employees Retirement System of Texas shall adopt
242	242	rules necessary to implement the changes in law made by this Act.
243	243	SECTION 18. The changes in law made by this Act apply only
244	244	to health benefit plans provided under Chapters 1551, 1575, 1579,
245	245	and 1601, Insurance Code, beginning with the 2016-2017 plan year. A
246	246	plan year before 2016-2017 is governed by the law as it existed
247	247	immediately before September 1, 2015, and that law is continued in
248	248	effect for that purpose.
249	249	SECTION 19. This Act takes effect September 1, 2015.