S.B. No. 1444
AN ACT
relating to participation in the uniform group coverage program for
active school employees and to a study concerning health coverage
for school district 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 31 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. (a) In this section, "committee" means a
regional school district health coverage advisory committee
established under this section.
(b) Each regional education service center established
under Chapter 8, Education Code, shall establish a regional school
district health coverage advisory committee to conduct a study
assessing:
(1) health care needs of and health coverage options
currently available to employees of school districts served by that
service center; and
(2) alternative health coverage options that may be
available.
(c) The executive director of each regional education
service center shall serve as the chair of that region's committee.
The executive director shall appoint nine superintendents of school
districts served by the regional education service center to serve
as members of that region's committee.
(d) The study must include, with respect to school districts
in that committee's region, the following information:
(1) an overview of current health coverage plans made
available to district employees, including for each plan:
(A) the amount paid by districts and by district
employees for premium under the plan;
(B) the schedule of benefits available under the
plan; and
(C) deductibles and other cost-sharing amounts
applicable to services provided under the plan;
(2) a survey of district employees using a scale that
allows the district employee to indicate that the employee is very
satisfied, satisfied, somewhat satisfied, somewhat dissatisfied,
dissatisfied, or very dissatisfied with:
(A) the current costs to the employee of the
employee's health coverage plan; and
(B) benefits available and access to care under
the employee's plan; and
(3) an assessment of three alternative health coverage
options that are available on the open market or through
self-funding of school district health care expenses, including for
each alternative:
(A) the amount that would be paid by a district
and district employees for premium under the alternative;
(B) the schedule of benefits available under the
alternative; and
(C) whether, in obtaining the alternative, some
or all of the districts in the region should jointly seek health
coverage under that alternative as a group.
(e) Not later than November 1, 2022, each committee shall
submit to the governor, the lieutenant governor, the speaker of the
house of representatives, each standing committee of the senate or
house of representatives having primary jurisdiction over public
education or public retirement systems, the commissioner of the
Texas Education Agency, and the executive director of the Teacher
Retirement System of Texas a written report on the study conducted
by the committee under this section.
(f) This section expires January 1, 2023.
SECTION 4. 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 5. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1444 passed the Senate on
May 6, 2021, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1444 passed the House on
May 24, 2021, by the following vote: Yeas 145, Nays 0, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor