HBA-SEB H.B. 3007 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3007 By: Greenberg Pensions and Investments 3/22/1999 Introduced 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. H.B. 3007 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 this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. 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 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, is younger than 18 years of age, has a family income of less than 200 percent of the poverty level, and is not eligible for the state Medicaid program. (b) Prohibits the employee from being required to contribute any amount for dependent child coverage, notwithstanding Section 14(d) (regarding payment of contributions) of this Act. (c) 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. (d) Requires an employee who desires dependent child coverage to apply to the Texas Department of Human Services or other agency designated by the Health and Human Services Commission 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. (e) Requires the trustee to ensure that, under any contract implementing basic coverage under this Act, a determination that a child is eligible for coverage is a change in status that entitles the employee to enroll the child in the coverage without regard to any enrollment period requirement that would otherwise apply. 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 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.Emergency clause. Effective date: upon passage.