A Senate bill introduced in the Texas legislature yesterday, if passed, will allow Texas school districts, for the first time in 20 years, to exit the TRS ActiveCare government health plan. A companion bill was introduced in the Texas House of Representatives.
Bill Title: Relating to participation in and rates for coverage provided under the uniform group coverage program for active school employees.
| 87R11944 JES-D | ||
| By: Taylor | S.B. No. 1444 | |
| A BILL TO BE ENTITLED | |
| AN ACT | |
| relating to participation in and rates for coverage provided under | |
| the uniform group coverage program for active school employees. | |
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| SECTION 1. Subchapter B, Chapter 1579, Insurance Code, is | |
| amended by adding Section 1579.056 to read as follows: | |
| Sec. 1579.056. REGIONAL RATING AUTHORIZED. | |
| Notwithstanding any other provision of this chapter, the trustee by | |
| rule may establish a regional rating method for determining | |
| premiums charged in different regions of the state for the benefits | |
| provided under a plan of group coverage established under the | |
| program. | |
| SECTION 2. Section 1579.152, Insurance Code, is amended to | |
| read as follows: | |
| Sec. 1579.152. PARTICIPATION OF [OTHER] SCHOOL DISTRICTS | |
| AND CERTAIN RISK POOLS. Effective September 1, 2021 [2005], a | |
| school district or a risk pool established under Chapter 172, Local | |
| Government Code, as provided by Section 22.004, Education Code, | |
| that is in existence on January 1, 2021, and whose members are | |
| school districts [with more than 500 employees] may elect to | |
| participate in the program. A school district or risk pool that | |
| elects to participate under this section shall apply for | |
| participation in the manner prescribed by the trustee by rule. | |
| SECTION 3. Subchapter D, Chapter 1579, Insurance Code, is | |
| amended by adding Section 1579.155 to read as follows: | |
| Sec. 1579.155. ELECTION NOT TO PARTICIPATE. A school | |
| district or risk pool established under Chapter 172, Local | |
| Government Code, as provided by Section 22.004, Education Code, may | |
| elect not to participate in the program, notwithstanding any | |
| previous election or requirement to participate. | |
| SECTION 4. Sections 1579.151 and 1579.153, Insurance Code, | |
| are repealed. | |
| SECTION 5. This Act takes effect September 1, 2021. | |
