85R14756 SCL-F
	By: Watson	S.B. No. 2002

	A BILL TO BE ENTITLED
	AN ACT
	relating to regional or local health care programs for eligible
	individuals and employees of small employers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The heading to Chapter 75, Health and Safety
	Code, is amended to read as follows:
	CHAPTER 75. REGIONAL OR LOCAL HEALTH CARE PROGRAMS FOR ELIGIBLE
	INDIVIDUALS AND EMPLOYEES OF SMALL EMPLOYERS
	SECTION 2.  Section 75.001, Health and Safety Code, is
	amended to read as follows:
	Sec. 75.001.  PURPOSE. The purpose of this chapter is to:
	(1)  improve the health of eligible individuals and
	employees of small employers and their families by improving the
	individuals' and employees' access to health care and by reducing
	the number of those individuals and employees who are uninsured;
	(2)  reduce the likelihood that those individuals and
	employees and their families will require services from
	state-funded entitlement programs such as Medicaid;
	(3)  contribute to economic development by helping
	small businesses remain competitive with a healthy workforce and
	optional health care benefits that will attract employees; and
	(4)  encourage innovative solutions for providing and
	funding health care services and benefits.
	SECTION 3.  Section 75.002, Health and Safety Code, is
	amended by amending Subdivisions (1), (3), and (4) and adding
	Subdivision (1-a) to read as follows:
	(1)  "Eligible individual" means an individual
	eligible for participation in a regional or local health care
	program established under this chapter.
	(1-a) "Employee" means an individual employed by an
	employer. The term includes a partner of a partnership and the
	proprietor of a sole proprietorship.
	(3)  "Local health care program" means a local health
	care program operating in one county and established for the
	benefit of eligible individuals and the employees of small
	employers under Subchapter B.
	(4)  "Regional health care program" means a regional
	health care program operating in two or more counties and
	established for the benefit of eligible individuals and the
	employees of small employers under Subchapter B.
	SECTION 4.  Sections 75.052 and 75.053, Health and Safety
	Code, are amended to read as follows:
	Sec. 75.052.  GOVERNANCE OF PROGRAM. (a) [A regional health
	care program may be operated subject to the direct governance of the
	commissioners courts of the participating counties. A local health
	care program may be operated subject to the direct governance of the
	commissioners court of the participating county.]  A regional or
	local health care program must [may] be operated by a [joint
	council,] tax-exempt nonprofit entity[, or other entity that:
	[(1)     operates the program under a contract with the
	commissioners court or courts, as applicable; or
	[(2)     is an entity in which the county or counties
	participate or that is established or designated by the
	commissioners court or courts, as applicable, to operate the
	program].
	(b)  An [In selecting an] entity operating [described by
	Subsection (a)(1) or (2) to operate] a regional or local health care
	program must [, the commissioners court or courts, as applicable,
	shall require, to the extent possible, that the entity] be
	authorized under federal law to accept donations on a basis that is
	tax-deductible or otherwise tax-advantaged for the contributor.
	Sec. 75.053.  OPERATION OF PROGRAM. A regional or local
	health care program provides health care services or benefits to
	eligible individuals and the employees of participating small
	employers who are located within the boundaries of the
	participating county or counties, as applicable. A program may
	also provide services or benefits to the dependents of those
	individuals and employees.
	SECTION 5.  Subchapter B, Chapter 75, Health and Safety
	Code, is amended by adding Section 75.0545 to read as follows:
	Sec. 75.0545.  PARTICIPATION BY ELIGIBLE INDIVIDUALS; SHARE
	OF COST. Subject to Section 75.153, the governing body may
	establish criteria for participation in a regional or local health
	care program by eligible individuals and their dependents. The
	criteria must require that participating individuals pay a share of
	the premium or other cost of the program.
	SECTION 6.  Section 75.055(c), Health and Safety Code, is
	amended to read as follows:
	(c)  A governing body shall actively solicit gifts, grants,
	and donations to:
	(1)  fund services and benefits provided under the
	regional or local health care program; and
	(2)  reduce the cost of participation in the program
	for eligible individuals and for small employers and their
	employees.
	SECTION 7.  Section 75.101, Health and Safety Code, is
	amended to read as follows:
	Sec. 75.101.  ALTERNATIVE PROGRAMS AUTHORIZED; PROGRAM
	OBJECTIVES. In developing a regional or local health care program,
	a governing body may provide health care services or benefits as
	described by this subchapter or may develop another type of program
	to accomplish the purposes of this chapter. A regional or local
	health care program must be developed, to the extent practicable,
	to:
	(1)  reduce the number of individuals without health
	benefit plan coverage [within the boundaries of the participating
	county or counties];
	(2)  address rising health care costs and reduce the
	cost of health care services or health benefit plan coverage [for
	small employers and their employees within the boundaries of the
	participating county or counties];
	(3)  promote preventive care and reduce the incidence
	of preventable health conditions, such as heart disease, cancer,
	and diabetes and low birth weight in infants;
	(4)  promote efficient and collaborative delivery of
	health care services;
	(5)  serve as a model for the innovative use of health
	information technology to promote efficient delivery of health care
	services, reduce health care costs, and improve the health of the
	community; and
	(6)  provide fair payment rates for health care
	providers, to the extent applicable.
	SECTION 8.  Sections 75.102(a), (c), and (d), Health and
	Safety Code, are amended to read as follows:
	(a)  A regional or local health care program may provide
	health care benefits to eligible individuals and the employees of
	small employers by purchasing or facilitating the purchase of
	health benefit plan coverage for those individuals and employees
	from a health benefit plan issuer, including coverage under:
	(1)  a small employer health benefit plan offered under
	Chapter 1501, Insurance Code;
	(2)  a standard health benefit plan offered under
	Chapter 1507, Insurance Code; or
	(3)  any other health benefit plan available in this
	state.
	(c)  Notwithstanding Chapter 1251, Insurance Code, an
	insurer may issue a group accident and health insurance policy,
	including a group contract issued by a group hospital service
	corporation, to cover eligible individuals and the employees of
	small employers participating in a regional or local health care
	program. The group policyholder of a policy issued in accordance
	with this subsection is the governing body or the designee of the
	governing body.
	(d)  A health maintenance organization may issue a health
	care plan to cover eligible individuals and the employees of small
	employers participating in a regional or local health care program.
	The group contract holder of a contract issued in accordance with
	this subsection is the governing body or the designee of the
	governing body.
	SECTION 9.  Sections 75.104(a) and (c), Health and Safety
	Code, are amended to read as follows:
	(a)  A regional or local health care program may contract
	with health care providers within the boundaries of the
	participating county or counties to provide health care services
	directly to eligible individuals, the employees of participating
	small employers, and the dependents of those individuals and
	employees.
	(c)  A governing body that operates a regional or local
	health care program under this section may require that
	participating eligible individuals, employees, and dependents
	obtain health care services only from health care providers that
	contract to provide those services under the program and may limit
	the health care services provided under the program to services
	provided within the boundaries of the program's service area
	[participating county or counties].
	SECTION 10.  This Act takes effect September 1, 2017.