Texas House Bill HB430

Texas 2021 - 87th Regular

Caption

Relating to the termination of the Texas Public School Employees Group Insurance Program for retirees.

Impact

The bill's enactment will significantly impact retirees, particularly those associated with Texas public schools, as it abolishes their group insurance plan. This legislative change obligates the board trustees to create a clear and orderly termination plan that aligns with the financial requirements of the program, ensuring that participants receive a fair share of any excess funds from the group insurance budget. The insurance policy adjustments under this bill also stipulate that coverage can only be in the form of health benefit plans following the termination, indicating a shift in the type of insurance options available to retirees.

Summary

House Bill 430 pertains to the termination of the Texas Public School Employees Group Insurance Program for retirees. It aims to phase out this group insurance program over a stated timeline, marking September 1, 2021, as the pivotal date when individuals who were not already enrolled would not be able to obtain coverage. The bill provides specific guidelines on how existing participants would be affected based on their eligibility for Medicare. Notably, individuals who were not eligible for Medicare could continue their coverage until their eligibility status changes or until a final cutoff date of September 1, 2031.

Contention

While the bill may streamline the funding and management of retiree health benefits, it is anticipated to raise concerns among groups advocating for public school employees and their benefits. Critics may argue that the limitations imposed by this bill could leave some retirees without adequate healthcare options, especially those not yet eligible for Medicare. The legislative debate could center around the adequacy of support for retirees transitioning from the group insurance plan to other available healthcare options, questioning the fairness of the phase-out process and the anticipated burden on those affected.