| 1 | 1 | | 86R11133 LED-D |
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| 2 | 2 | | By: King of Hemphill H.B. No. 3110 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the termination of the Texas Public School Employees |
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| 8 | 8 | | Group Insurance Program for retirees. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 1575, Insurance Code, is amended by |
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| 11 | 11 | | adding Subchapters L and M to read as follows: |
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| 12 | 12 | | SUBCHAPTER L. TERMINATION OF GROUP PROGRAM |
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| 13 | 13 | | Sec. 1575.551. PROGRAM TERMINATION. Subject to Section |
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| 14 | 14 | | 1575.552, effective September 1, 2019, the group program is |
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| 15 | 15 | | terminated. |
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| 16 | 16 | | Sec. 1575.552. COVERAGE ELIGIBILITY TERMINATES; PHASE-OUT |
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| 17 | 17 | | PERIOD. (a) An individual who is not a participant in the group |
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| 18 | 18 | | program on August 31, 2019, is not entitled to obtain coverage under |
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| 19 | 19 | | the group program after that date. |
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| 20 | 20 | | (b) An individual who is a participant in the group program |
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| 21 | 21 | | on August 31, 2019, and who is, on September 1, 2019, eligible to |
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| 22 | 22 | | participate in Medicare, is not entitled to continue coverage under |
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| 23 | 23 | | the group program after August 31, 2019. |
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| 24 | 24 | | (c) An individual who is a participant in the group program |
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| 25 | 25 | | on August 31, 2019, but who is not, on September 1, 2019, eligible |
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| 26 | 26 | | to participate in Medicare, may continue coverage under the group |
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| 27 | 27 | | program in accordance with this subchapter until the earlier of: |
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| 28 | 28 | | (1) the date the individual first becomes eligible to |
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| 29 | 29 | | participate in Medicare; or |
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| 30 | 30 | | (2) September 1, 2029. |
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| 31 | 31 | | Sec. 1575.553. AUTHORIZED COVERAGE. Notwithstanding |
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| 32 | 32 | | Section 1575.151, on and after September 1, 2019, the group program |
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| 33 | 33 | | may not offer coverage other than health benefit plan coverage. |
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| 34 | 34 | | Sec. 1575.554. EXCESS GROUP INSURANCE FUND MONEY. (a) Not |
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| 35 | 35 | | later than December 31, 2019, the trustee shall determine the |
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| 36 | 36 | | amount of money required to fund coverage for individuals under |
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| 37 | 37 | | Section 1575.552(c) for the 2019-2020 fiscal year and shall certify |
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| 38 | 38 | | that amount to the comptroller. |
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| 39 | 39 | | (b) As soon as practicable after January 1, 2020, the |
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| 40 | 40 | | trustee shall, notwithstanding Section 1575.206, pay to each |
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| 41 | 41 | | retiree participating in the group program on August 31, 2019, an |
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| 42 | 42 | | equal share of the amount by which the money in the group insurance |
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| 43 | 43 | | fund exceeds the amount of money determined under Subsection (a). |
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| 44 | 44 | | Sec. 1575.555. REDUCTION IN CONTRIBUTIONS. (a) Beginning |
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| 45 | 45 | | not later than June 1, 2020, the trustee shall annually determine |
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| 46 | 46 | | the amount of money required to fund coverage for individuals under |
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| 47 | 47 | | Section 1575.552(c) for the subsequent fiscal year. The trustee |
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| 48 | 48 | | shall certify that amount to the comptroller. |
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| 49 | 49 | | (b) The trustee, in consultation with the comptroller, may |
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| 50 | 50 | | annually adjust the amounts of contributions to be made under |
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| 51 | 51 | | Sections 1575.201, 1575.202, 1575.203, and 1575.204, to the extent |
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| 52 | 52 | | that the trustee determines that money otherwise to be contributed |
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| 53 | 53 | | under those sections for a fiscal year will exceed the amount |
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| 54 | 54 | | determined to be required for that fiscal year under Subsection |
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| 55 | 55 | | (a). |
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| 56 | 56 | | Sec. 1575.556. FINAL RECONCILIATION; TERMINATION OF FUND. |
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| 57 | 57 | | As soon as practicable after August 31, 2029, the trustee, in |
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| 58 | 58 | | consultation with the comptroller, shall determine any |
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| 59 | 59 | | unencumbered amount remaining in the group insurance fund. The |
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| 60 | 60 | | trustee shall pay that amount in equal shares to individuals |
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| 61 | 61 | | participating in the program on August 31, 2029. |
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| 62 | 62 | | Sec. 1575.557. GROUP PROGRAM AND GROUP INSURANCE FUND |
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| 63 | 63 | | ABOLISHED. Effective September 1, 2029, the group program and the |
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| 64 | 64 | | group insurance fund are abolished. |
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| 65 | 65 | | Sec. 1575.558. DUTIES OF THE TRUSTEE. (a) The trustee |
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| 66 | 66 | | shall implement a plan for the orderly termination of the group |
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| 67 | 67 | | program in accordance with this subchapter. |
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| 68 | 68 | | (b) The determinations made by the trustee under Sections |
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| 69 | 69 | | 1575.554 and 1575.555 must be actuarially justified. |
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| 70 | 70 | | SUBCHAPTER M. EXPIRATION OF CHAPTER |
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| 71 | 71 | | Sec. 1575.601. EXPIRATION OF CHAPTER. This chapter expires |
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| 72 | 72 | | September 1, 2030. |
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| 73 | 73 | | SECTION 2. This Act takes effect immediately if it receives |
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| 74 | 74 | | a vote of two-thirds of all the members elected to each house, as |
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| 75 | 75 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 76 | 76 | | Act does not receive the vote necessary for immediate effect, this |
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| 77 | 77 | | Act takes effect September 1, 2019. |
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