SEB S.B. 1351 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1351 By: Barrientos Pensions and Investments 4/28/1999 Engrossed BACKGROUND AND PURPOSE The federal government provides the Children's Health Insurance Program (CHIP), which offers health insurance for children in economically disadvantaged families who cannot afford health coverage. Federal guidelines make children of state employees ineligible for CHIP. S.B. 1351 provides a comparable plan for children of state employees who are members of the Employees Retirement System of Texas and also for the children of employees of certain public university systems. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the board of trustees of the Employees Retirement System of Texas in SECTION 1 (Section 14A, Article 3.50-2, V.T.C.S.) and to the University of Texas System, the Texas A&M University System, and the University of Houston System in SECTION 3 (Section 17A, Article 3.50-3, V.T.C.S.) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 3.50-2, V.T.C.S. (Texas Employees Uniform Group Insurance Benefits Act), by adding Section 14A, as follows: Sec. 14A. COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN EMPLOYEES. (a) Requires the board of trustees of the Employees Retirement System of Texas (trustee) to use money appropriated for employer contributions to fund 80 percent of the cost of basic coverage for a child meeting certain criteria, subject to any applicable limit in the General Appropriations Act. Provides that an eligible child is a dependent of an employee, would be eligible for benefits under the program established by this state to implement the state children's health insurance program if the child were not the dependent of the employee, and is not eligible for the state Medicaid program. (b) Requires the trustee to identify employees who may be eligible for dependent child coverage and to notify the employee that the employee may be eligible for coverage and that the employee may apply for the coverage. (c) Requires an employee who desires dependent child coverage to apply to the Texas Department of Human Services (DHS) or other agency designated by the Health and Human Services Commission (HHSC) to perform eligibility screening. Requires the eligibility screening to be coordinated with eligibility screening for the state Medicaid program. Requires the agency that performs the screening to certify to the trustee in writing whether the child is eligible for dependent child care coverage. (d) Authorizes an employee to apply for the coverage during the applicable annual open enrollment period if the employee does not obtain dependent child coverage at the time the employee is initially employed. Authorizes the trustee to continue the coverage until the next applicable enrollment period without regard to any change in the child's status. Authorizes the trustee to adopt rules requiring an employee, during the period the coverage is in effect, to report a change in status that would make the child ineligible for coverage and to terminate the coverage on receipt of the report of a change in status. (e) Authorizes the trustee to require an employee to re-apply for dependent child coverage during each applicable annual enrollment period. Requires the trustee and DHS or other agency designated by HHSC to cooperate to develop a cost-effective method for annual re-evaluation of eligibility determinations for dependent child coverage. (f) Authorizes the trustee to pay a higher percentage of the cost of basic coverage for an eligible child if money becomes available for that purpose, notwithstanding Subsection (a). SECTION 2. Amends Section 15(b), Article 3.50-2, V.T.C.S. (Texas Employees Uniform Group Insurance Benefits Act), to authorize the state to contribute a greater amount for dependent children described by Section 14A(a) of this Act than the state contributes for group coverages for other dependent children. SECTION 3. Amends Article 3.50-3, V.T.C.S. (Texas State College and University Employees Uniform Insurance Benefits Act), by adding Section 17A, as follows: Sec. 17A. COVERAGE FOR DEPENDENT CHILDREN OF CERTAIN EMPLOYEES. Requires an institution to use money appropriated for employer contributions to fund 80 percent of the cost of basic coverage for a child meeting certain criteria, subject to any limit in the General Appropriations Act. The term "institution" refers to the University of Texas System, the Texas A&M University System, and the University of Houston System. Makes conforming changes with respect to eligibility requirements, employee contributions, identification of eligible employees, eligibility screening, and the enrollment process. SECTION 4. Amends Section 13, Article 3.50-3, V.T.C.S. (Texas State College and University Employees Uniform Group Insurance Benefits Act), to make conforming changes with respect to state contributions. SECTION 5. Effective date: September 1, 1999. Makes application of Section 14A, Article 3.50-2, V.T.C.S., and Section 17A, Article 3.50-3, V.T.C.S., as added by this Act, prospective to fiscal year 2001. SECTION 6. Emergency clause.