87R21081 JES-D
By: Bonnen H.B. No. 4078
Substitute the following for H.B. No. 4078:
By: Muñoz, Jr. C.S.H.B. No. 4078
A BILL TO BE ENTITLED
AN ACT
relating to participation in the uniform group coverage program for
active school employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 1579, Insurance Code, is
amended by adding Section 1579.1045 to read as follows:
Sec. 1579.1045. ALTERNATIVE GROUP HEALTH COVERAGE
PROHIBITED. Notwithstanding any other law, a participating entity
may not offer or make available to the entity's employees or their
dependents group health coverage not provided under the program.
SECTION 2. Subchapter D, Chapter 1579, Insurance Code, is
amended by adding Section 1579.155 to read as follows:
Sec. 1579.155. PROGRAM PARTICIPATION: ELECTION. (a)
Effective September 1, 2022, a participating entity may elect to
discontinue the entity's participation in the program by providing
written notice to the trustee not later than December 31st of the
year preceding the first day of the plan year in which the election
will be effective.
(b) A participating entity that elects to discontinue
participation in the program under Subsection (a) may not elect to:
(1) participate in the program until the fifth
anniversary of the effective date of the entity's election to
discontinue participation; or
(2) discontinue the entity's participation after an
election described by Subdivision (1) until the fifth anniversary
of the effective date of that election.
(c) Effective September 1, 2022, an entity that elects to
participate in the program shall provide written notice to the
trustee not later than December 31 of the year preceding the first
day of the plan year in which the election will be effective. The
entity may not elect to discontinue the entity's participation
until the fifth anniversary of the effective date of the entity's
election to participate.
(d) The trustee by rule shall prescribe the time and manner
for making an election under this section and may adopt rules
necessary to administer this section.
SECTION 3. Sections 1579.1045 and 1579.155, Insurance Code,
as added by this Act, apply only to group coverage provided for a
plan year beginning on or after September 1, 2022. A plan year that
begins before that date is governed by the law as it existed
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2021.