CHAPTER 1601. UNIFORM INSURANCE BENEFITS ACT FOR EMPLOYEES OF THE UNIVERSITY OF TEXAS SYSTEM AND THE TEXAS A&M UNIVERSITY SYSTEM
INSURANCE CODE
TITLE 8. HEALTH INSURANCE AND OTHER HEALTH COVERAGES
SUBTITLE H. HEALTH BENEFITS AND OTHER COVERAGES FOR GOVERNMENTAL
EMPLOYEES
CHAPTER 1601. UNIFORM INSURANCE BENEFITS ACT FOR EMPLOYEES OF THE
UNIVERSITY OF TEXAS SYSTEM AND THE TEXAS A&M UNIVERSITY
SYSTEM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1601.001. SHORT TITLE. This chapter may be cited as the
State University Employees Uniform Insurance Benefits Act.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.002. PURPOSES. The purposes of this chapter are to:
(1) provide uniformity in the basic group life, accident, and
health benefit coverages for all system employees;
(2) enable the systems to attract and retain competent and able
employees by providing employees with basic life, accident, and
health benefit coverages comparable to those commonly provided in
private industry and to employees of a state agency other than a
system, including a public college or university whose employees
are covered under Chapter 1551;
(3) foster, promote, and encourage employment by and service to
the systems as a career profession for individuals of high
standards of competence and ability;
(4) recognize and protect the investment of the systems in each
employee by promoting and preserving economic security and good
health among employees;
(5) foster and develop high standards of employer-employee
relationships between the systems and their employees; and
(6) recognize the long and faithful service and dedication of
employees and encourage them to remain in service until eligible
for retirement by providing health benefits and other group
benefits for them.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.003. GENERAL DEFINITIONS. In this chapter:
(1) "Administering carrier" means a carrier or organization that
is:
(A) qualified to engage in business in this state; and
(B) designated by a system to administer services, benefits,
insurance coverages, or requirements in accordance with this
chapter.
(2) "Basic coverage" means coverage, including health benefit
coverage, that meets the basic coverage standards required under
Section 1601.053(a)(1).
(3) "Cafeteria plan" means a plan defined and authorized by
Section 125, Internal Revenue Code of 1986.
(4) "Group life, accident, or health benefit plan" means a group
agreement, policy, contract, or arrangement provided by an
administering carrier, including:
(A) a group insurance policy or contract;
(B) a life, accident, medical, dental, or hospital service
agreement;
(C) a membership or subscription contract; or
(D) any other similar group arrangement.
(5) "Optional coverage" means group coverage other than the
basic coverage.
(6) "Service" means personal service to a system for which an
employee is credited in accordance with rules adopted by the
system.
(7) "System" means The University of Texas System or The Texas
A&M University System.
(8) "The Texas A&M University System" means the entities
governed under Chapters 85 through 88, Education Code, including
the Texas Veterinary Diagnostic Laboratory.
(9) "The University of Texas System" means the entities listed
or described by Section 65.02, Education Code.
(10) "Uniform program" means an employees uniform insurance
benefits program provided under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.004. DEFINITION OF DEPENDENT. (a) In this chapter,
"dependent," with respect to an individual eligible to
participate in the uniform program under Section 1601.101 or
1601.102, means the individual's:
(1) spouse;
(2) unmarried child younger than 25 years of age; and
(3) child of any age who lives with or has the child's care
provided by the individual on a regular basis if the child is
mentally retarded or physically incapacitated to the extent that
the child is dependent on the individual for care or support, as
determined by the system.
(b) In this section:
(1) "Child" includes:
(A) an adopted child; and
(B) a stepchild, foster child, or other child who is in a
parent-child relationship with an individual who is eligible to
participate in the uniform program under Section 1601.101 or
1601.102.
(2) "Spouse" has the meaning assigned by the Family Code.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.005. DEFINITION OF CARRIER. In this chapter,
"carrier" means:
(1) an insurance company that is authorized by the department to
provide under this code any of the types of insurance coverages,
benefits, or services provided for in this chapter, and that:
(A) has an adequate surplus;
(B) has a successful operating history; and
(C) has had successful experience, as determined by the
department, in providing and servicing any of the types of group
coverage provided for in this chapter;
(2) a corporation operating under Chapter 842 that provides any
of the types of coverage, benefits, or services provided for in
this chapter and that:
(A) has a successful operating history; and
(B) has had successful experience, as determined by the
department, in providing and servicing any of the types of group
coverage provided for in this chapter; or
(3) any combination of carriers described by Subdivisions (1)
and (2) on terms the system prescribes.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.006. APPLICABILITY OF DEFINITIONS. The definition of
a term defined by this subchapter and the use of the terms
"employee" and "retired employee" as described by Sections
1601.101 and 1601.102 apply to this chapter unless a different
meaning is plainly required by the context in which the term
appears.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.007. SYSTEM MAY DEFINE OTHER WORDS. A system may
define by rule a word or term necessary in the administration of
this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.008. EXEMPTION FROM EXECUTION. All insurance benefits
and other payments and transactions made under this chapter to a
participant under this chapter are exempt from execution,
attachment, garnishment, or any other process.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.009. EXEMPTION FROM TAXATION AND FEES. Premiums on a
policy, an insurance contract, or an agreement established under
this chapter with a health maintenance organization are not
subject to any state tax, regulatory fee, or surcharge, including
a premium or maintenance tax or fee.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.010. CERTAIN COMBINING OF CARRIERS NOT RESTRAINT OF
TRADE. Carriers combining to bid, underwrite, or both bid and
underwrite, a group life, accident, or health benefit plan for
the uniform program are not in violation of Chapter 15, Business
& Commerce Code.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.011. PARTICIPATION OF THE TEXAS A&M UNIVERSITY
SYSTEM. Notwithstanding any other provision of this chapter, if
The Texas A&M University System elects to participate in the
group benefits program under Section 1551.006(c), that system,
including the Texas Veterinary Medical Diagnostic Laboratory,
does not participate in a uniform program established under this
chapter, effective on the date participation in the group
benefits program under Chapter 1551 begins.
Added by Acts 2003, 78th Leg., ch. 366, Sec. 4.01, eff. Sept. 1,
2003.
SUBCHAPTER B. ADMINISTRATION AND IMPLEMENTATION
Sec. 1601.051. ADMINISTRATION AND IMPLEMENTATION. A system
shall:
(1) implement a uniform program for the benefit of its employees
and retired employees; and
(2) determine basic procedural and administrative practices for
insurance coverage provided under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.052. RULEMAKING AUTHORITY. A system shall adopt rules
consistent with this chapter as it considers necessary to
implement this chapter and its purposes.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.053. GENERAL DUTIES RELATING TO COVERAGE. (a) A
system shall:
(1) determine basic coverage standards that must be comparable
to those commonly provided:
(A) in private industry; and
(B) to employees of another agency or an institution of higher
education in this state under Chapter 1551; and
(2) establish procedures to allow each covered employee and
retired employee to obtain prompt action regarding claims
pertaining to coverages provided under this chapter.
(b) In designing a coverage plan, a system may consider existing
local conditions.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.054. COMPETITIVE BIDDING REQUIRED. A system shall
submit the uniform program, including any agreement under which a
carrier is engaged to administer a self-insured program, for
competitive bidding at least every six years.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.055. IDENTIFICATION OF ADMINISTRATIVE COSTS IN BIDS.
A system shall include in its respective bid documents for the
various coverages a provision calling for each bidder to identify
the system's administrative costs as a distinguishable figure and
to enumerate the services the bidder will render in exchange for
the administrative costs.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.056. INFORMATION ON BIDDERS AND BIDDING CONTRACTS.
(a) The department shall, on request by a system, provide a list
of all carriers:
(1) authorized to engage in business in this state; and
(2) eligible to bid on insurance coverage provided under this
chapter.
(b) The department shall, on request by a system, examine and
evaluate a bidding contract and certify the contract's actuarial
soundness to the system not later than the 15th day after the
date of the request.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.057. SELECTION OF BIDS. (a) A system is not required
to select the lowest bid under Section 1601.054 but shall take
into consideration other relevant criteria, such as ability to
service contracts, past experience, and financial stability.
(b) If a system selects a carrier whose bid differs from that
advertised, the governing board of the system shall fully justify
and record the reasons for the deviation in the minutes of the
next meeting of the governing board.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.058. SELECTION OF HEALTH MAINTENANCE ORGANIZATIONS. A
system shall select and contract for services performed by health
maintenance organizations that are approved by this state to
offer health care services in specific areas of the state to
eligible employees and retired employees.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.059. CERTIFICATE OF COVERAGE. A system shall ensure
that each employee and retired employee participating under this
chapter is issued a certificate of coverage that states:
(1) the benefits to which the participant is entitled;
(2) to whom the benefits are payable;
(3) to whom a claim must be submitted; and
(4) the provisions of the plan document, in summary form, that
principally affect the participant.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.060. ACCOUNTING BY CARRIER PROVIDING PURCHASED
COVERAGE. (a) A carrier providing coverage purchased under this
chapter to a system shall provide an accounting for each line of
coverage to the system not later than the 120th day after the end
of each plan year.
(b) The accounting must be in a form acceptable to the system.
(c) The accounting for each line of coverage must state:
(1) the cumulative amount of contributions remitted to the
carrier under the coverage;
(2) the total of all mortality and other claims, charges,
losses, costs, contingency reserve for pending and unreported
claims, and expenses incurred; and
(3) the amounts of the allowance for a reasonable profit,
contingency reserve, and all other administrative charges.
(d) Information provided under Subsection (c) must be provided:
(1) for the period from the coverage's date of issue to the end
of the plan year; and
(2) for the plan year covered by the report.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.061. SPECIAL RESERVE. (a) A carrier issuing a group
coverage plan under this chapter may hold as a special reserve
for a system an amount that equals the amount by which the total
amount described by Section 1601.060(c)(1) exceeds the sum of the
corresponding amounts described by Sections 1601.060(c)(2) and
(3).
(b) The system may use money in the special reserve at its
discretion, including for:
(1) providing additional coverage for participating employees or
retired employees;
(2) offsetting necessary rate increases; or
(3) reducing contributions to the coverage by participating
employees or retired employees.
(c) A special reserve held by a carrier for a system earns
interest at a rate determined each plan year by the carrier and
approved by the system as consistent with the rate generally used
by the carrier for similar funds held under other group
coverages.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.062. REPORTS AND RECORDS BY ADMINISTERING CARRIER.
Each contract entered into under this chapter between a system
and an administering carrier must:
(1) require the administering carrier to provide reasonable
reports that the system determines are necessary for the system
to perform its functions under this chapter; and
(2) permit the system and representatives of the state auditor
to examine records of the administering carrier as necessary to
accomplish the purposes of this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.063. ASSISTANCE IN REQUESTING MONEY. The Legislative
Budget Board and the Governor's Budget and Planning Office shall:
(1) establish procedures to ensure that each system requests
appropriate money to support its uniform program; and
(2) present appropriate budget recommendations to the
legislature.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.064. PHARMACY BENEFIT MANAGER CONTRACTS. (a) In
awarding a contract to provide pharmacy benefit manager services
under this chapter, a system is not required to select the lowest
bid but must select a contract that meets the criteria
established by this section.
(b) The contract must state that:
(1) the system is entitled to audit the pharmacy benefit manager
to verify costs and discounts associated with drug claims,
pharmacy benefit manager compliance with contract requirements,
and services provided by subcontractors;
(2) the audit must be conducted by an independent auditor in
accordance with established auditing standards; and
(3) to conduct the audit, the system and the independent auditor
are entitled access to information related to the services and
the costs associated with the services performed under the
contract, including access to the pharmacy benefit manager's
facilities, records, contracts, medical records, and agreements
with subcontractors.
(c) The contract must define the information that the pharmacy
benefit manager is required to provide to the system concerning
the audit of the retail, independent, and mail order pharmacies
performing services under the contract and describe how the
results of these audits must be reported to the system, including
how often the results must be reported. The contract must state
whether the pharmacy benefit manager is required to return
recovered overpayments to the system.
(d) The contract must state that any audit of a mail order
pharmacy owned by the pharmacy benefit manager must be conducted
by an independent auditor selected by the system in accordance
with established auditing standards.
Added by Acts 2009, 81st Leg., R.S., Ch.
1207, Sec. 8, eff. September 1, 2009.
SUBCHAPTER C. COVERAGE AND PARTICIPATION
Sec. 1601.101. PARTICIPATION ELIGIBILITY: EMPLOYEES. (a) An
individual who is employed by the governing board of a system,
who performs service, other than as an independent contractor,
for the system, and who is described by this section is eligible
to participate as an employee in the uniform program on the date
specified by Section 1601.1045.
(b) An individual is eligible to participate in the uniform
program as provided by Subsection (a) if the individual receives
compensation for services performed for the system, is eligible
to be a member of the Teacher Retirement System of Texas, and
either:
(1) is expected to work at least 20 hours per week and to
continue in the employment for a term of at least 4-1/2 months;
or
(2) is appointed for at least 50 percent of a standard full-time
appointment.
(c) An individual is eligible to participate in the uniform
program as provided by Subsection (a) if the individual:
(1) receives compensation for services performed for the system;
(2) is employed at least 20 hours a week only; and
(3) is not permitted to be a member of the Teacher Retirement
System of Texas because the individual is solely employed by the
system in a position that as a condition of employment requires
the individual to be enrolled as a student in the system in
graduate-level courses.
(d) An individual is eligible to participate in the uniform
program as provided by Subsection (a) if the individual is
serving a postdoctoral fellowship with an institution in a
system.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 366, Sec. 4.02, eff.
Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1266, Sec. 2.11, eff.
Sept. 1, 2003.
Sec. 1601.102. PARTICIPATION ELIGIBILITY: RETIREES. (a) An
individual who retires in a manner described by this section and
who meets the requirements of Subsection (f) is eligible to
participate, subject to Section 1601.1045, as a retired employee
in the uniform program.
(b) An individual is eligible to participate in the uniform
program as provided by Subsection (a) if:
(1) the individual has at least 10 years of service with a
system for which the individual was eligible to participate in
the uniform program under Section 1601.101;
(2) the individual's last state employment before retirement was
with that system; and
(3) the individual retires under the jurisdiction of:
(A) the Teacher Retirement System of Texas under Subtitle C,
Title 8, Government Code;
(B) the Employees Retirement System of Texas; or
(C) subject to Subsection (c):
(i) the optional retirement program established by Chapter 830,
Government Code; or
(ii) any other federal or state statutory retirement program to
which the system has made employer contributions.
(c) An individual retiring in the manner described by Subsection
(b)(3)(C) is a retired employee only if the individual meets all
applicable requirements for retirement, including service and age
requirements, adopted by the system comparable to the
requirements for retirement under the Teachers Retirement System
of Texas.
(d) An individual is eligible to participate in the uniform
program as provided by Subsection (a) if the individual:
(1) meets the minimum requirements under Subsection (b) except
that the last state employment before retirement is not at the
employing system; and
(2) does not meet the requirements for an annuitant under
Section 1551.102.
(e) An individual is eligible to participate in the uniform
program as provided by Subsection (a) if the individual retired
under Subtitle C, Title 8, Government Code, before September 1,
1991, with at least five and less than 10 years of service.
Text of subsec. (f) as added by Acts 2003, 78th Leg., ch. 366,
Sec. 4.03
(f) Notwithstanding Subsections (b)-(d), an individual is
eligible to participate in the uniform program only if the
individual:
(1) has at least 10 years of service credit and the sum of the
person's age and amount of service credit, including months of
age and credit, equals or exceeds the number 80; or
(2) is at least 65 years old and has at least 10 years of
service credit.
Text of subsec. (f) as added by Acts 2003, 78th Leg., ch. 1266,
Sec. 2.08
(f) Notwithstanding Subsection (b), an individual to whom this
subsection applies is eligible to participate in the uniform
program as provided by Subsection (a) if:
(1) the individual has at least three years of service with a
system for which the individual was eligible to participate in
the uniform program under Section 1601.101;
(2) the individual's last state employment before retirement was
with that system; and
(3) the individual retires under the jurisdiction of:
(A) the Teacher Retirement System of Texas under Subtitle C,
Title 8, Government Code;
(B) the Employees Retirement System of Texas; or
(C) subject to Subsection (c):
(i) the optional retirement program established by Chapter 830,
Government Code; or
(ii) any other federal or state statutory retirement program to
which the system has made employer contributions.
Text of subsec. (g) as added by Acts 2003, 78th Leg., ch. 366,
Sec. 4.03
(g) A person eligible to participate and participating in the
uniform program as an annuitant on September 1, 2003, may
continue to participate in the program as an annuitant if a lapse
in coverage has not occurred.
Text of subsec. (g) as added by Acts 2003, 78th Leg., ch. 1266,
Sec. 2.08
(g) Subsection (f) applies only to a person who, on August 31,
2003:
(1) was eligible to participate in the uniform program as an
employee under Section 1601.101; or
(2) was eligible to participate in the uniform program as a
retired employee under this section as this section existed on
January 1, 2003.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 366, Sec. 4.03, eff.
Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1266, Sec. 2.08, eff.
June 20, 2003.
Sec. 1601.103. RIGHT TO COVERAGE. An individual eligible to
participate in the uniform program under Section 1601.101 or
1601.102 may not be denied enrollment in any coverage provided
under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.104. AUTOMATIC COVERAGE. (a) A system shall
automatically provide the basic coverage to each full-time
employee unless the employee has:
(1) waived participation in the basic coverage; or
(2) selected an optional coverage plan.
(b) An employee or retired employee who is automatically covered
under this section may subsequently:
(1) retain the basic coverage or waive participation in the
basic coverage; and
(2) apply for any other coverage provided under this chapter
within applicable standards.
(c) Automatic coverage as described under this section begins on
the first date of employment.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.1045. DATE ELIGIBILITY BEGINS; WAITING PERIOD. (a)
Except as provided by Subsection (c) or (d), eligibility under
Section 1601.101 begins on the first day of the calendar month
that begins after the 90th day after the date the employee
performs services for a system.
(b) Except as provided by Subsection (c), eligibility under
Section 1601.102, for an individual who does not retire at the
end of the last month for which the individual is on the payroll
of a system before retirement, begins on the first day of the
calendar month that begins after the 90th day after the date the
individual retires.
(c) The waiting period established by Subsections (a) and (b)
applies only to the determination of initial eligibility to
participate in the group health benefits program and does not
apply to the determination of initial eligibility to participate
in optional coverages under the uniform program.
(d) Notwithstanding Subsection (a), eligibility under Section
1601.101 may not begin earlier than the first day that an
employee performs services for a system if any amount paid for
premium incurred before the date specified under Subsection (a)
for the employee and any dependents of the employee is paid from
money not appropriated from the general revenue fund, in
accordance with policies and procedures established by the
system.
Added by Acts 2003, 78th Leg., ch. 366, Sec. 4.05, eff. Sept. 1,
2003.
Sec. 1601.105. WAIVER. An employee or retired employee may
waive in writing any coverage provided under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.106. OPTIONAL COVERAGE. A system shall provide
optional coverage in accordance with Section 1601.201.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.107. COVERAGE FOR DEPENDENTS. An individual who is
eligible to participate in the uniform program under Section
1601.101 or 1601.102 is entitled to secure for a dependent of the
individual any group coverages provided under this chapter for
dependents under rules adopted by the applicable system.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.108. COVERAGE OPTIONS FOR CERTAIN SURVIVING SPOUSES.
(a) This section applies only to the surviving spouse of:
(1) an individual eligible to participate in the uniform program
under Section 1601.101 who had at least five years of service on
the date of the individual's death, including at least three
years of service as an eligible employee with the employing
system; or
(2) an individual eligible to participate in the uniform program
under Section 1601.102.
(b) A surviving spouse to whom this section applies may elect to
retain any of the following coverages in effect on the date of
the participant's death:
(1) the surviving spouse's authorized coverages; and
(2) authorized coverages for any eligible dependent of the
deceased participant.
(c) The coverage is at the group rate for other participants.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.109. COVERAGE FOR AIDS, HIV, OR SERIOUS MENTAL
ILLNESS. (a) In this section, "serious mental illness" has the
meaning assigned by Section 1355.001.
(b) A system may not contract for or provide for group insurance
or HMO coverage or provide self-insured coverage, that:
(1) excludes or limits coverage or services for acquired immune
deficiency syndrome, as defined by the Centers for Disease
Control and Prevention of the United States Public Health
Service, or human immunodeficiency virus infection; or
(2) provides coverage for serious mental illness that is less
extensive than the coverage provided for any other physical
illness.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 2G.020, eff. April 1, 2009.
Sec. 1601.110. DISEASE MANAGEMENT SERVICES. (a) In this
section, "disease management services" means services to assist
an individual manage a disease or other chronic health condition,
such as heart disease, diabetes, respiratory illness, end-stage
renal disease, HIV infection, or AIDS, and with respect to which
the governing board of a system identifies populations requiring
disease management.
(b) A health benefit plan provided under this chapter must
provide disease management services or coverage for disease
management services in the manner required by the governing board
of a system, including:
(1) patient self-management education;
(2) provider education;
(3) evidence-based models and minimum standards of care;
(4) standardized protocols and participation criteria; and
(5) physician-directed or physician-supervised care.
Added by Acts 2003, 78th Leg., ch. 589, Sec. 5, eff. June 20,
2003.
SUBCHAPTER D. GROUP COVERAGES
Sec. 1601.151. AUTHORITY TO SELF-INSURE; EXEMPTION FROM OTHER
INSURANCE LAWS. (a) Notwithstanding any other provisions of
this chapter, the governing board of a system may:
(1) self-insure a plan provided under this chapter; and
(2) hire a carrier to administer the system's uniform program.
(b) A plan for which a system provides coverage on a
self-insured basis is exempt from any other insurance law of this
state that does not expressly apply to that plan or this chapter.
(c) Expenses for the administration of a self-insured plan may
come from the contributions of employees and the state after
payments for any coverage provided under this chapter have been
made.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.152. CAFETERIA PLAN. (a) The governing board of a
system may develop, implement, and administer a cafeteria plan.
(b) The governing board may include in the cafeteria plan any
benefit that may be included in a cafeteria plan under federal
law.
(c) The governing board may cooperate and work with and enter
into a necessary contract or agreement with an independent and
qualified agency, person, or entity to:
(1) develop, implement, or administer a cafeteria plan; or
(2) assist in those activities.
(d) The governing board may adopt an order terminating the
cafeteria plan and providing a procedure for the orderly
withdrawal of the system and its employees from the cafeteria
plan if the governing board determines that a cafeteria plan
adopted under this section is no longer advantageous to the
system and its employees.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.153. SYSTEMS MAY JOIN IN PROCURING INSURANCE. The
systems may join together to procure one or more group contracts
with an insurance company authorized to engage in business in
this state to insure the employees and retired employees of each
participating system.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.154. LONG-TERM CARE COVERAGE. (a) A system may join
with a board of trustees that administers the uniform program
established under Chapter 1551 or the group program established
under Chapter 1575 to provide long-term care insurance coverage.
(b) Each participating board of trustees and the governing board
of the system must mutually agree to join together for this
purpose, subject to terms that are beneficial to all
participants.
(c) A system may not participate in an agreement under this
section unless any cost or administrative burden associated with
the development or implementation of or communications about the
long-term care coverage plan is incidental.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.155. REINSURANCE. A system may arrange with an
administering carrier issuing a policy under this chapter for the
reinsurance of portions of the total amount of insurance under
the policy with other carriers that elect to participate in the
reinsurance.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
SUBCHAPTER E. PAYMENTS, CONTRIBUTIONS, AND COSTS
Sec. 1601.201. PAYMENT FOR COVERAGE. (a) A system may not
contribute more than the amounts specified by this section for
coverages provided under the uniform program.
(b) For an employee designated by the system as working 40 or
more hours a week, the system may contribute:
(1) the full cost of basic coverage for the employee; and
(2) not more than 50 percent of the cost of dependent coverage.
(c) For an employee designated by the system as working less
than 40 hours a week, including an individual employed by the
system in a position that as a condition of employment requires
the individual to be enrolled as a student in the system in
graduate-level courses, the system, from money appropriated from
the general revenue fund, may contribute:
(1) not more than 50 percent of the cost of basic coverage for
the employee; and
(2) not more than 25 percent of the cost of dependent coverage.
(d) Subsection (c) does not prohibit a system from contributing,
from money not appropriated from the general revenue fund,
amounts in excess of the amount specified by that subsection for
an individual employed by the system in a position that as a
condition of employment requires the individual to be enrolled as
a student in the system in graduate level courses.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003. Amended by Acts 2003, 78th Leg., ch. 366, Sec. 4.06, eff.
Sept. 1, 2003.
Sec. 1601.202. FEES FOR CAFETERIA PLAN. (a) The governing
board of a system may establish a monthly fee in an amount set by
the board to be paid by each employee who elects to participate
in a cafeteria plan for the purpose of paying the expenses of
administering the cafeteria plan.
(b) If the governing board establishes a monthly fee, each
employee who participates in the cafeteria plan must authorize
payment of the fee by executing a separate payroll deduction
agreement or as part of a salary reduction agreement, as
determined by the governing board.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.203. PAYMENT FOR COVERAGE FOR DEPENDENTS.
Contributions for coverages for a dependent of an individual
eligible to participate in the uniform program under Section
1601.101 or 1601.102 required of the participant that exceed the
amount of system contributions shall be paid:
(1) by a deduction from the monthly compensation of the
participant;
(2) by a reduction of the monthly compensation of the
participant in the appropriate amount; or
(3) in the form and manner the system determines.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.204. AUTHORIZATION OF EMPLOYEE DEDUCTION. (a) Except
for a participant who participates in a cafeteria plan, each
individual eligible to participate in the uniform program under
Section 1601.101 must authorize a deduction from the
participant's monthly compensation in an amount equal to the
difference between:
(1) the total cost for coverages for which the participant
applies; and
(2) the amount contributed by the system.
(b) The authorization must be:
(1) in writing or performed electronically; and
(2) in a form satisfactory to the system.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.205. EMPLOYEE PAYMENTS FOR PARTICIPATION IN CAFETERIA
PLAN. (a) If an employee elects to participate in a cafeteria
plan, the employee must execute a salary reduction agreement
under which the employee's monthly compensation will be reduced
in an amount equal to the difference between:
(1) the amount appropriated for that purpose in the General
Appropriations Act or the system's budget; and
(2) the cost of the employee's selected coverages for which the
employee is eligible to pay under the cafeteria plan.
(b) The employee must execute a salary reduction agreement for
any portion of the cost that is not covered by state or system
appropriations and cafeteria plan contributions.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.206. PAYMENT BY RETIRED EMPLOYEE. An individual
eligible to participate in the uniform program under Section
1601.102 must execute an agreement and make appropriate
contributions in a manner analogous to the requirements adopted
under Sections 1601.204 and 1601.205 for an individual eligible
to participate in the uniform program under Section 1601.101.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.207. SYSTEM CONTRIBUTIONS. A system shall contribute
monthly to the cost of each participant's coverage provided under
this chapter an amount:
(1) if the participants are compensated from amounts
appropriated in the General Appropriations Act, equal to or
greater than the amount appropriated for that purpose in the Act;
or
(2) if the participants are compensated from amounts
appropriated by the governing board of the system in its official
operating budget, an amount equal to the amount appropriated for
a participant under the General Appropriations Act.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.208. AMOUNT OF SYSTEM CONTRIBUTION. Not later than
November 1 preceding each regular session of the legislature,
each system shall certify to the Legislative Budget Board and the
budget division of the Governor's Budget and Planning Office the
amount necessary to pay the contributions of the system for the
coverages provided under this chapter to each employee and
retired employee of the system.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.209. ORDER OF PRECEDENCE OF PAYMENT TO SURVIVORS. (a)
The amount of group life coverages and group accidental death
and dismemberment coverages in force for a participant on the
date the participant dies shall be paid, on the establishment of
a valid claim, to a person surviving the death in the following
order of precedence:
(1) to the beneficiary designated by the participant in a signed
and witnessed writing received before death by the appropriate
office of the applicable system; or
(2) if a beneficiary is not designated under Subdivision (1), in
accordance with the death benefit provisions of Subtitle C, Title
8, Government Code.
(b) For purposes of Subsection (a)(1), a designation, change, or
cancellation of a beneficiary in a document, including a will,
that is not executed and filed in the manner described by that
subsection is not valid.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.210. PROVISION OF NECESSARY INFORMATION. The Teacher
Retirement System of Texas, Optional Retirement Program carriers,
and Employees Retirement System of Texas shall provide to each
system information the system considers necessary to provide
retired employees with the coverages and system contributions
provided under this chapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
SUBCHAPTER F. CAFETERIA PLAN FUND
Sec. 1601.251. SYSTEM CAFETERIA PLAN FUND. (a) The governing
board of each system may establish and administer a cafeteria
plan fund.
(b) The following shall be credited to the cafeteria plan fund
of a system:
(1) salary reduction payments for benefits included in a
cafeteria plan adopted under this chapter, other than group
coverage plans under the uniform program;
(2) appropriations by the state for the administration of a
cafeteria plan; and
(3) a monthly fee established under Section 1601.202.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.252. USE OF FUND. The cafeteria plan fund of a system
is available without fiscal year limitation:
(1) for all payments for any benefits included in a cafeteria
plan adopted by the system under this chapter other than group
coverage plans under the uniform program; and
(2) for payment of expenses of administering the cafeteria plan.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.253. INVESTMENT OF MONEY IN FUND. (a) The governing
board of a system may invest the money in the system's cafeteria
plan fund.
(b) The earnings, including interest, and the proceeds from the
sale of the investments become a part of the fund.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
SUBCHAPTER G. ADVISORY COMMITTEE
Sec. 1601.301. ADVISORY COMMITTEE. An advisory committee for
each system shall be selected, serve, and perform duties as
provided by this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.302. ELECTION OF MEMBERS. One member of the advisory
committee shall be elected from each of the components, units, or
agencies of the system:
(1) at times designated by the system; and
(2) in accordance with general guidelines for the election
provided by the system.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.303. QUALIFICATIONS OF MEMBERS. (a) A member of a
system's advisory committee must be an employee of the system.
(b) A member must:
(1) demonstrate mature judgment, special abilities, and sincere
interest in employee coverage plans; and
(2) be able to represent the needs of all employees of the
component, unit, or agency the member represents with respect to
an action of the advisory committee.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.304. TERMS. A member of the advisory committee is
elected for a two-year term, subject to reelection.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.305. OFFICERS. Annually, the members of a system's
advisory committee shall elect a presiding officer and other
necessary officers.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.306. VACANCY. The chief executive officer of a
component, unit, or agency of a system shall appoint to the
system's advisory committee an employee of the component, unit,
or agency to fill the remainder of a vacated term of a member who
is an employee of the component, unit, or agency.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.307. DUTIES OF COMMITTEE. (a) The advisory committee
of a system shall cooperate and work with the governing board of
the system in coordinating and correlating the administration of
the uniform program among the various components, units, and
agencies of the system.
(b) Members of the advisory committee shall cooperate and work
with the governing board of the system as advisors in the
development, implementation, coordination, and administration of
the uniform program among the various components, units, and
agencies of the system.
(c) The advisory committee shall provide a channel for open
communication of ideas and suggestions regarding coverages,
eligibility, claims, procedures, bidding, administration, and any
other aspect of employee plan benefits.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Sec. 1601.308. EXPENSES. (a) A member's service on the
advisory committee of a system is in addition to the duties of
the member's state office or employment.
(b) An expense incurred by an advisory committee member in
performing a duty as a member of the committee shall be paid from
money made available for that purpose to the system of which the
member is an employee or officer.
(c) Employees may not be required to pay from the amount of
employer contributions due the employees or from the amount of
additional contributions due for selected coverages under this
chapter the expenses of an advisory committee established under
this subchapter.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 3, eff. June 1,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 14.017(a), eff. September 1, 2009.