86R11133 LED-D
By: King of Hemphill H.B. No. 3110
A BILL TO BE ENTITLED
AN ACT
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, 2019, 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, 2019, 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, 2019, and who is, on September 1, 2019, eligible to
participate in Medicare, is not entitled to continue coverage under
the group program after August 31, 2019.
(c) An individual who is a participant in the group program
on August 31, 2019, but who is not, on September 1, 2019, 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, 2029.
Sec. 1575.553. AUTHORIZED COVERAGE. Notwithstanding
Section 1575.151, on and after September 1, 2019, 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, 2019, the trustee shall determine the
amount of money required to fund coverage for individuals under
Section 1575.552(c) for the 2019-2020 fiscal year and shall certify
that amount to the comptroller.
(b) As soon as practicable after January 1, 2020, the
trustee shall, notwithstanding Section 1575.206, pay to each
retiree participating in the group program on August 31, 2019, 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, 2020, 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, 2029, 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, 2029.
Sec. 1575.557. GROUP PROGRAM AND GROUP INSURANCE FUND
ABOLISHED. Effective September 1, 2029, 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, 2030.
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, 2019.