Texas 2015 - 84th Regular

Texas Senate Bill SB482 Compare Versions

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

Old	New	Differences
1	1	84R5917 LED-D
2	2	By: Hancock S.B. No. 482
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of an optional consumer-directed health
8	8	plan for certain individuals eligible to participate in the group
9	9	benefits program provided under the Texas Employees Group Benefits
10	10	Act and their qualified dependents.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 1551, Insurance Code, is amended by
13	13	adding Subchapter J to read as follows:
14	14	SUBCHAPTER J. STATE CONSUMER-DIRECTED HEALTH PLAN
15	15	Sec. 1551.451. DEFINITIONS. In this subchapter:
16	16	(1) "High deductible health plan" means a health
17	17	benefit plan that complies with Section 223(c), Internal Revenue
18	18	Code of 1986, and other federal law.
19	19	(2) "Plan enrollee" means an employee or annuitant who
20	20	is enrolled in the plan established under this subchapter.
21	21	(3) "Qualified medical expense" means an expense paid
22	22	by a plan enrollee for medical care, as defined by Section 213(d),
23	23	Internal Revenue Code of 1986, for the plan enrollee or the
24	24	enrollee's dependents as defined by Section 152, Internal Revenue
25	25	Code of 1986.
26	26	Sec. 1551.452. ESTABLISHMENT OF STATE CONSUMER-DIRECTED
27	27	HEALTH PLAN. (a) The state consumer-directed health plan is
28	28	established for the benefit of individuals eligible to participate
29	29	in the group benefits program and those individuals' eligible
30	30	dependents.
31	31	(b) The board of trustees may adopt rules necessary to
32	32	administer this subchapter. In implementing this subchapter the
33	33	board shall:
34	34	(1) establish health savings accounts under this
35	35	subchapter and administer or select an administrator in accordance
36	36	with Section 1551.453 for the accounts;
37	37	(2) finance a self-funded high deductible health plan
38	38	that:
39	39	(A) is an integral part of the state
40	40	consumer-directed health plan; and
41	41	(B) provides health benefit coverage, including
42	42	preventive health care, to a plan enrollee in the state
43	43	consumer-directed health plan and to the dependents of a plan
44	44	enrollee in accordance with Section 1551.455; and
45	45	(3) provide to individuals eligible to participate in
46	46	the group benefits program information regarding the operation of
47	47	and option to participate in the state consumer-directed health
48	48	plan established under this subchapter.
49	49	(c) In adopting rules and administering health savings
50	50	accounts or selecting administrators for health savings accounts
51	51	under this subchapter, the board of trustees shall ensure that the
52	52	health savings accounts are qualified for appropriate federal tax
53	53	exemptions.
54	54	Sec. 1551.453. ACCOUNT ADMINISTRATOR. (a) The account
55	55	administrator selected to administer a health savings account
56	56	established under this subchapter must be a person:
57	57	(1) qualified to serve as trustee under Section
58	58	223(d)(1)(B), Internal Revenue Code of 1986, and the rules adopted
59	59	under that section; and
60	60	(2) experienced in administering health savings
61	61	accounts or other similar trust accounts.
62	62	(b) An account administrator is the fiduciary of a plan
63	63	enrollee who has a health savings account established under this
64	64	subchapter.
65	65	Sec. 1551.454. PARTICIPATION IN PROGRAM. (a) Each
66	66	individual eligible to participate in the basic coverage may choose
67	67	instead to participate in the state consumer-directed health plan
68	68	if the plan enrollee is an eligible individual under Section
69	69	223(c)(1), Internal Revenue Code of 1986. The dependents of a plan
70	70	enrollee may participate in the state consumer-directed health plan
71	71	in accordance with Section 1551.455.
72	72	(b) Participation in the state consumer-directed health
73	73	plan qualifies a plan enrollee to receive a contribution to a health
74	74	savings account under Section 1551.456. An individual who elects
75	75	not to participate in the plan is not eligible to receive a
76	76	contribution under that section.
77	77	(c) Under this section, the board of trustees has exclusive
78	78	authority to determine an individual's eligibility to participate
79	79	in the state consumer-directed health plan and may adopt rules
80	80	regarding eligibility to participate in the plan.
81	81	Sec. 1551.455. COVERAGE FOR DEPENDENTS; REQUIRED
82	82	CONTRIBUTIONS. (a) A plan enrollee may obtain for the enrollee's
83	83	dependents coverage in the state consumer-directed health plan in
84	84	the manner determined by the board of trustees.
85	85	(b) If the plan enrollee elects to obtain dependent coverage
86	86	under Subsection (a), the plan enrollee shall pay any required
87	87	contribution for the dependent coverage in the state
88	88	consumer-directed health plan in the manner prescribed by the board
89	89	of trustees.
90	90	(c) Amounts contributed by a plan enrollee under this
91	91	section may be:
92	92	(1) used to pay the cost of coverage in the high
93	93	deductible health plan not paid by the state under Section
94	94	1551.456(b); or
95	95	(2) allocated by the board of trustees to an enrollee's
96	96	health savings account in the manner described by Section
97	97	1551.456(c).
98	98	Sec. 1551.456. STATE CONTRIBUTION. (a) For each plan
99	99	enrollee, from the state contribution that would otherwise be made
100	100	for basic coverage for the enrollee, the state shall contribute
101	101	annually to a high deductible health plan under this subchapter the
102	102	amount that is necessary to pay the cost of coverage under the high
103	103	deductible health plan and does not exceed the amount the state
104	104	annually contributes for a full-time or part-time employee, as
105	105	applicable, who is covered by the basic coverage.
106	106	(b) For each plan enrollee's dependent covered under this
107	107	subchapter, from the state contribution that would otherwise be
108	108	made for basic coverage for the dependent, the state shall
109	109	contribute annually to the high deductible health plan under this
110	110	subchapter the same percentage of the cost of coverage under the
111	111	high deductible health plan as the state annually contributes for
112	112	dependent coverage in the basic coverage.
113	113	(c) Before each plan year, the board of trustees may
114	114	determine the amount of allocation of the state's contribution, if
115	115	any, to an enrollee's health savings account that would otherwise
116	116	be made for basic coverage for the enrollee and that remains after
117	117	payment for coverage under Subsection (a) or (b).
118	118	(d) For a calendar year, the amount of any allocations made
119	119	under Subsection (c) and Section 1551.455(c)(2), in the aggregate,
120	120	may not exceed the sum of the monthly limitations imposed by federal
121	121	law for health savings accounts.
122	122	Sec. 1551.457. PLAN ENROLLEE CONTRIBUTIONS. (a) Each plan
123	123	enrollee, in accordance with Section 1551.305, shall contribute any
124	124	amount required to cover the selected participation in the high
125	125	deductible health plan that exceeds the state contribution amount
126	126	under Section 1551.456.
127	127	(b) A plan enrollee may contribute any amount allowed under
128	128	federal law to the enrollee's health savings account in addition to
129	129	the state contribution under Section 1551.456.
130	130	(c) A plan enrollee shall make contributions under this
131	131	section in the manner prescribed by the board of trustees.
132	132	Sec. 1551.458. COORDINATION WITH CAFETERIA PLAN. (a) The
133	133	board of trustees has exclusive authority to determine the
134	134	eligibility of a plan enrollee to participate in any flexible
135	135	spending account that is part of a cafeteria plan offered under this
136	136	chapter.
137	137	(b) The board of trustees may adopt rules regarding the
138	138	eligibility of a plan enrollee to participate in any flexible
139	139	spending account that is part of a cafeteria plan offered under this
140	140	chapter.
141	141	(c) A plan enrollee may not participate in any flexible
142	142	spending account that would disqualify the enrollee's health
143	143	savings account from favorable tax treatment under federal law.
144	144	Sec. 1551.459. EXEMPTION FROM EXECUTION; UNASSIGNABILITY.
145	145	A state contribution to a health savings account or a high
146	146	deductible health plan is exempt from execution and is unassignable
147	147	in the same manner and to the same extent as an amount described by
148	148	Section 1551.011.
149	149	SECTION 2. The Employees Retirement System of Texas shall
150	150	develop the state consumer-directed health plan to be implemented
151	151	under Chapter 1551, Insurance Code, as amended by this Act,
152	152	including enrollment requirements, during the state fiscal
153	153	biennium beginning September 1, 2015, with coverage beginning
154	154	September 1, 2016.
155	155	SECTION 3. Not later than July 31, 2016, the Employees
156	156	Retirement System of Texas shall provide written information to
157	157	individuals eligible to participate in the state consumer-directed
158	158	health plan under Chapter 1551, Insurance Code, as amended by this
159	159	Act, that provides a general description of the requirements for
160	160	the plan as adopted under Chapter 1551, Insurance Code, as amended
161	161	by this Act.
162	162	SECTION 4. The Employees Retirement System of Texas shall
163	163	develop and implement the health savings account program under
164	164	Chapter 1551, Insurance Code, as amended by this Act, in a manner
165	165	that is as revenue neutral as possible.
166	166	SECTION 5. It is the intent of the legislature that in
167	167	implementing an optional consumer-directed health plan, the
168	168	Employees Retirement System of Texas may not divide the self-funded
169	169	risk pool of the state employees group benefits program provided
170	170	under Chapter 1551, Insurance Code.
171	171	SECTION 6. This Act takes effect September 1, 2015.