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.