Texas Senate Bill SB1415

Texas 2021 - 87th Regular

Caption

Relating to a study by the Teacher Retirement System of Texas regarding the use of health reimbursement accounts in conjunction with Medicare plans available through the individual marketplace to provide health and pharmacy benefit coverage for certain retired school employees.

Impact

If implemented, this bill could reshape the health benefit landscape for retired school employees by potentially integrating Medicare plans with health reimbursement accounts. The findings from the study could lead to changes in how health benefits are structured for this demographic, allowing retirees to have a wider array of options for coverage while potentially lowering state expenditures related to health benefits.

Summary

SB1415 mandates a study by the Teacher Retirement System of Texas (TRS) to evaluate the efficacy of health reimbursement accounts utilized alongside Medicare plans available through the individual marketplace. This examination is aimed specifically at providing health and pharmacy benefits to Medicare-eligible retired school employees and their spouses. The study is expected to assess affordability, provider availability, and the overall capacity of such accounts to ensure health coverage that is comparable to existing plans under Chapter 1575, Insurance Code.

Contention

There may be concerns regarding the adequacy of proposed Medicare plans as they relate to existing benefits provided under TRS. Critics may argue about the trade-offs involved in switching to individual marketplace plans, such as possible reductions in benefits or difficulties for retirees in navigating these options. Additionally, the efficacy of such reimbursement accounts in delivering comprehensive coverage may invoke debate, especially if cost savings are accompanied by a decrease in service availability or provider choice for retired employees.