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H.B. No. 417
AN ACT
relating to a supplemental health coverage program under the Texas
Employees Group Benefits Act for certain persons.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 1551, Insurance Code, is
amended by adding Section 1551.221 to read as follows:
Sec. 1551.221. VOLUNTARY SUPPLEMENTAL HEALTH COVERAGE FOR
INDIVIDUALS ELIGIBLE UNDER TRICARE MILITARY HEALTH SYSTEM. (a)
The board of trustees may offer a voluntary supplemental health
coverage program under this section.
(b) Under the supplemental health coverage program, an
individual who is eligible to participate in the group benefits
program and who is also eligible for benefits under the TRICARE
Military Health System may elect to receive primary coverage under
the TRICARE Military Health System. An individual participating in
the supplemental health coverage program does not receive basic
coverage through the group benefits program, but receives
supplemental health coverage under this section.
(c) The cost of supplemental health coverage provided under
this section shall be paid from state, employer, and employee
contributions in the same manner that the cost of basic coverage is
paid under Subchapter G.
(d) The board of trustees may purchase the supplemental
health coverage in accordance with Sections 1551.213-1551.216, or,
if the board of trustees determines that it would be
cost-effective, may provide the supplemental health coverage
directly from the employees life, accident, and health insurance
benefits fund in accordance with Sections 1551.208-1551.212.
(e) The board of trustees may not implement a supplemental
health coverage program under this section if the board finds that
the program would not be cost-effective or would otherwise not be
advantageous to the state or program participants.
(f) The board of trustees may coordinate purchasing,
contracting, or administrative functions relating to the
supplemental health coverage program with:
(1) an agency or a political subdivision of this
state; or
(2) a retirement system that provides benefits to
retired employees of this state or a political subdivision of this
state.
(g) The board of trustees may enter into a contract to
implement Subsection (f), including an interagency contract with an
agency of this state.
(h) The board of trustees may adopt rules to implement this
section.
SECTION 2. Section 1551.319, Insurance Code, is amended by
adding Subsection (f) to read as follows:
(f) Notwithstanding any other provision of this section, if
the board of trustees establishes a supplemental health coverage
program under Section 1551.221, the amount of the contribution made
for an individual who elects to receive supplemental health
coverage under the program may be reduced, as provided in the
General Appropriations Act, to reflect the reduced cost of the
supplemental health coverage.
SECTION 3. 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. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 417 was passed by the House on April
6, 2005, by the following vote: Yeas 143, Nays 1, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 417 was passed by the Senate on May
17, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor