CHAPTER 1576. GROUP LONG-TERM CARE INSURANCE FOR PUBLIC SCHOOL EMPLOYEES
INSURANCE CODE
TITLE 8. HEALTH INSURANCE AND OTHER HEALTH COVERAGES
SUBTITLE H. HEALTH BENEFITS AND OTHER COVERAGES FOR GOVERNMENTAL
EMPLOYEES
CHAPTER 1576. GROUP LONG-TERM CARE INSURANCE FOR PUBLIC SCHOOL
EMPLOYEES
Sec. 1576.001. DEFINITIONS. In this chapter:
(1) "Active employee" has the meaning assigned by Section
1575.002.
(2) "Trustee" means the Teacher Retirement System of Texas.
(3) "Retiree" has the meaning assigned by Section 1575.004.
(4) "Surviving spouse" has the meaning assigned by Section
1575.003.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.457,
eff. Sept. 1, 2003.
Sec. 1576.002. ESTABLISHMENT OF PROGRAM. (a) The trustee may
establish a group long-term care insurance program to provide
long-term care insurance coverage for:
(1) an active employee or retiree;
(2) the spouse of an active employee or retiree, including a
surviving spouse;
(3) a parent or grandparent of an active employee or retiree;
and
(4) a parent of the spouse of an employee or retiree, including
a parent of a surviving spouse.
(b) The trustee may not implement a group long-term care
insurance program unless any cost or administrative burden
associated with the development of, implementation of, or
communications about the program is incidental.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.458,
eff. Sept. 1, 2003.
Sec. 1576.003. CONTRACTS TO PROVIDE COVERAGES. The trustee may
contract with one or more carriers authorized to provide
long-term care insurance to provide that coverage.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.458,
eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1359, Sec. 44, eff. September 1, 2005.
Sec. 1576.004. PREMIUMS. (a) The trustee shall determine the
procedures by which each program participant pays premiums and
any other program costs. Each participant is responsible for
required payments.
(b) The trustee may authorize any payment method appropriate for
the program, including a payment method under which:
(1) a participating employee is required to pay premiums by
payroll deduction remitted by the employee's employer at the
times and in the manner determined by the trustee;
(2) a participating retiree is required to pay premiums by
deduction from the retiree's monthly annuity; or
(3) a carrier with which the trustee has contracted under
Section 1576.003 bills a program participant directly.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1359, Sec. 44, eff. September 1, 2005.
Sec. 1576.005. PROGRAM NOT PART OF OTHER GROUP COVERAGES. (a)
The group long-term care insurance program is not part of the
group coverages offered under Chapter 1575 or 1579.
(b) The state may not contribute any part of the premiums for
coverage offered under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1359, Sec. 45, eff. September 1, 2005.
Sec. 1576.006. RULES. The trustee may adopt rules as necessary
to administer this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.458,
eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1359, Sec. 46, eff. September 1, 2005.
Sec. 1576.007. EXEMPTION FROM STATE TAXES AND FEES. A premium
or contribution on a policy, insurance contract, or agreement
authorized under this chapter is not subject to any state tax,
regulatory fee, or surcharge, including a premium or maintenance
tax or fee.
Added by Acts 2003, 78th Leg., ch. 1276, Sec. 10A.459(a), eff.
Sept. 1, 2003.
Sec. 1576.008. COMPETITIVE BIDDING REQUIREMENTS; RULES. (a) A
contract to provide benefits under this chapter may be awarded
only through competitive bidding under rules adopted by the
trustee.
(b) The rules may provide criteria for determining whether a
carrier is qualified.
Added by Acts 2005, 79th Leg., Ch.
1359, Sec. 47, eff. September 1, 2005.
Sec. 1576.009. CONTRACT AWARD; CONSIDERATIONS. (a) In awarding
a contract under this chapter, the trustee is not required to
select the lowest bid and may consider any relevant criteria,
including a bidder's:
(1) ability to service contracts;
(2) past experience; and
(3) financial stability.
(b) If the trustee awards a contract to a bidder whose bid
deviates from that advertised, the trustee shall record the
deviation and fully justify the reason for the deviation in the
minutes of the next meeting of the trustee.
Added by Acts 2005, 79th Leg., Ch.
1359, Sec. 47, eff. September 1, 2005.
Sec. 1576.010. GROUP LONG-TERM CARE INSURANCE PROGRAM FUND. (a)
The group long-term care insurance program fund is a trust fund
with the comptroller.
(b) The trustee shall administer the fund on behalf of the
participants in the plan of insurance coverage provided under
this chapter.
(c) The following shall be credited to the fund:
(1) money recovered under contracts for providing insurance
coverage under this chapter; and
(2) investment and depository income.
Added by Acts 2005, 79th Leg., Ch.
1359, Sec. 47, eff. September 1, 2005.
Sec. 1576.011. INVESTMENT OF FUND. The trustee may invest the
group long-term care insurance program fund in the manner
provided by Section 67(a)(3), Article XVI, Texas Constitution.
Added by Acts 2005, 79th Leg., Ch.
1359, Sec. 47, eff. September 1, 2005.
Sec. 1576.012. PAYMENTS FROM FUND. Money in the group long-term
care insurance program fund may be used only to cover the cost of
administering the program and to provide coverage under this
chapter.
Added by Acts 2005, 79th Leg., Ch.
1359, Sec. 47, eff. September 1, 2005.
Sec. 1576.013. COVERAGE EXEMPT FROM INSURANCE LAW. A coverage
plan provided under this chapter is exempt from any other
insurance law, including common law, that does not expressly
apply to the plan or this chapter.
Added by Acts 2005, 79th Leg., Ch.
1359, Sec. 47, eff. September 1, 2005.