HBA-JRA H.B. 401 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 401 By: Thompson Pensions & Investments 3/11/1999 Introduced BACKGROUND AND PURPOSE Most Texas school districts do not participate in the social security system. Therefore, retired teachers who have not worked for employers that participate in the social security system do not qualify for Medicare Part A. However, the Teacher Retirement System health insurance program treats members as if they do qualify for Medicare at age 65. At age 65, retired teachers continue to pay for health insurance and buy Medicare Part B, but receive less coverage than those who qualify for Medicare Part A. H.B. 401 requires all retirees of the Teacher Retirement System of Texas to be provided with similar coverage for similar premiums. 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 Section 8(g), Article 3.50-4, Insurance Code, to add the requirement that a contract for group benefits awarded by a trustee provide all retirees of the Teacher Retirement System of Texas similar coverage for similar premiums, including any premiums paid by a retiree for supplementary medical insurance benefits under Part B of Medicare. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.