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.