HBA-TBM, MPM H.B. 1853 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1853 By: Maxey Pensions & Investments 3/9/2001 Introduced BACKGROUND AND PURPOSE The Children's Health Insurance Program (CHIP) is a federal/state partnership which offers health insurance for children in economically disadvantaged families that cannot afford health coverage. Federal guidelines authorize the children of state employees to participate in CHIP but prohibit federal funds from being used to pay for the cost of their coverage. As a result, the 76th Legislature created the State Kids Insurance Program (SKIP) to provide a supplement toward health insurance premiums for coverage provided through the Employees Retirement system of Texas for dependent children who would otherwise qualify for CHIP. While SKIP has decreased the costs low-income state employees pay for their children's health coverage, the coverage still costs more than that available through CHIP to children whose parents are not employed by the state. House Bill 1853 increases the state's contribution toward the basic coverage of SKIP enrollees from 80 to 100 percent. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 1853 amends the Insurance Code to require the board of trustees of the Employees Retirement System of Texas (ERS), subject to any applicable limit in the General Appropriations Act, to use money appropriated for employer contributions to fund the total cost rather than 80 percent of the cost of basic coverage for a dependent child who is not eligible for Medicaid and would be eligible for the Children's Health Insurance Program if the child were not a dependent of a state employee. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.