Bill Text: TX HB151 | 2017 | 85th Legislature 1st Special Session | Introduced
Bill Title: Relating to the administration of certain group benefits by the Teacher Retirement System of Texas; making an appropriation.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-07-25 - Left pending in committee [HB151 Detail]
Download: Texas-2017-HB151-Introduced.html
| 85S10566 LED-D | ||
| By: Gooden | H.B. No. 151 | |
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| relating to the administration of certain group benefits by the | ||
| Teacher Retirement System of Texas; making an appropriation. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter G, Chapter 1575, Insurance Code, is | ||
| amended by adding Section 1575.307 to read as follows: | ||
| Sec. 1575.307. CERTAIN MONEY APPROPRIATED TO FUND. (a) | ||
| Notwithstanding Section 1575.303 and subject to Subsections (b) and | ||
| (c), the trustee shall use the money appropriated to the fund by the | ||
| Act enacting this section to: | ||
| (1) reduce deductibles for health benefit plan | ||
| coverage provided under a basic plan; | ||
| (2) provide some level of first-dollar coverage for | ||
| prescription drugs; | ||
| (3) provide subsidies for the contributions required | ||
| for: | ||
| (A) coverage for retirees, dependents, surviving | ||
| spouses, or surviving dependent children who are eligible for | ||
| Medicare; or | ||
| (B) dependent coverage; or | ||
| (4) otherwise reduce out-of-pocket costs for health | ||
| benefit plan coverage provided under the group program. | ||
| (b) The trustee shall use $250 million of the appropriation | ||
| described by Subsection (a) for each of the following plan years: | ||
| 2018, 2019, 2020, and 2021. | ||
| (c) The trustee may not use the appropriated money described | ||
| by Subsection (a): | ||
| (1) to offset the amount of the required state | ||
| contribution under Section 1575.201 or 1575.202, the active | ||
| employee contribution under Section 1575.203, or the public school | ||
| contribution under Section 1575.204; or | ||
| (2) for any purpose not authorized by Subsection (a). | ||
| (d) The trustee shall consult with actuaries to determine | ||
| how to discharge the trustee's obligations under this section for | ||
| each plan year. The trustee may allow and consider public comment | ||
| regarding the use of the appropriated money described by Subsection | ||
| (a) for purposes of this section. | ||
| (e) Not later than December 1 of each year, the trustee | ||
| shall prepare a report detailing the trustee's intended use of the | ||
| appropriated money described by Subsection (a) for the following | ||
| plan year and submit the report to the governor, the lieutenant | ||
| governor, the speaker of the house of representatives, the chair of | ||
| the Senate Committee on State Affairs, the chair of the House | ||
| Committee on Pensions, the chair of the Senate Committee on | ||
| Finance, the chair of the House Committee on Appropriations, and | ||
| the Legislative Budget Board. | ||
| (f) This section expires December 31, 2023. | ||
| SECTION 2. Section 1575.452, Insurance Code, is amended to | ||
| read as follows: | ||
| Sec. 1575.452. ANNUAL REPORTS [ |
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| the 180th day after the last day of each state fiscal year, the | ||
| trustee shall submit a written report to the department concerning | ||
| the group coverages provided to and the benefits and services being | ||
| received by individuals covered under this chapter. | ||
| (b) Each year, the trustee shall prepare a written report | ||
| containing: | ||
| (1) projected health care cost trends and predicted | ||
| expenses related to group coverages and the group program for the | ||
| following plan year; | ||
| (2) information relevant to determining cost | ||
| increases for the group program, including claims history, medical | ||
| utilization, pharmacy cost information, and network discounts | ||
| applied to the group program; and | ||
| (3) estimates of the effect on the funding sufficiency | ||
| of the group program of an increase in the state contribution under | ||
| Section 1575.202 to 2 percent, 2.25 percent, 2.5 percent, 2.75 | ||
| percent, and 3 percent of the salary of each active employee. | ||
| (c) Not later than December 1 of each year, the trustee | ||
| shall submit the report described by Subsection (b) to the | ||
| governor, the lieutenant governor, the speaker of the house of | ||
| representatives, the chair of the Senate Committee on State | ||
| Affairs, the chair of the House Committee on Pensions, the chair of | ||
| the Senate Committee on Finance, the chair of the House Committee on | ||
| Appropriations, and the Legislative Budget Board. | ||
| SECTION 3. (a) In this section: | ||
| (1) "Active employee" has the meaning assigned by | ||
| Section 1575.002, Insurance Code. | ||
| (2) "Dependent," "surviving dependent child," and | ||
| "surviving spouse" have the meanings assigned by Section 1575.003, | ||
| Insurance Code. | ||
| (3) "Retiree" has the meaning assigned by Section | ||
| 1575.004, Insurance Code. | ||
| (b) The Teacher Retirement System of Texas shall conduct a | ||
| study of the feasibility of: | ||
| (1) combining into a single group health benefit plan | ||
| active employees, retirees, dependents, surviving spouses, and | ||
| surviving dependent children who are not eligible to enroll in | ||
| Medicare; and | ||
| (2) creating a group health benefit plan for active | ||
| employees, retirees, dependents, surviving spouses, and surviving | ||
| dependent children who are eligible to enroll in Medicare. | ||
| (c) Not later than January 1, 2019, the Teacher Retirement | ||
| System of Texas shall prepare and submit a report of the results of | ||
| the study conducted under Subsection (a) of this section together | ||
| with recommendations for legislation, if appropriate, to the | ||
| governor, the lieutenant governor, the speaker of the house of | ||
| representatives, the chair of the Senate Committee on State | ||
| Affairs, the chair of the House Committee on Pensions, the chair of | ||
| the Senate Committee on Finance, the chair of the House Committee on | ||
| Appropriations, and the Legislative Budget Board. | ||
| SECTION 4. The amount of $1 billion is appropriated from the | ||
| economic stabilization fund to the retired school employees group | ||
| insurance fund established under Section 1575.301, Insurance Code, | ||
| for distribution by the Teacher Retirement System of Texas as | ||
| provided by Section 1575.307, Insurance Code, as added by this Act. | ||
| SECTION 5. (a) Subject to Subsection (b) of this section: | ||
| (1) 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; and | ||
| (2) if this Act does not receive the vote necessary for | ||
| immediate effect, this Act takes effect on the 91st day after the | ||
| last day of the legislative session. | ||
| (b) This Act takes effect only if it receives a vote of | ||
| two-thirds of the members present in each house of the legislature, | ||
| as provided by Section 49-g(m), Article III, Texas Constitution. | ||
