CHAPTER 175. RIGHT OF EMPLOYEES OF CERTAIN POLITICAL SUBDIVISIONS TO PURCHASE CONTINUED HEALTH COVERAGE AT RETIREMENT - Texas Statutes

LOCAL GOVERNMENT CODE

TITLE 5. MATTERS AFFECTING PUBLIC OFFICERS AND EMPLOYEES

SUBTITLE C. MATTERS AFFECTING PUBLIC OFFICERS AND EMPLOYEES OF

MORE THAN ONE TYPE OF LOCAL GOVERNMENT

CHAPTER 175. RIGHT OF EMPLOYEES OF CERTAIN POLITICAL SUBDIVISIONS

TO PURCHASE CONTINUED HEALTH COVERAGE AT RETIREMENT

Sec. 175.001. APPLICABILITY. This chapter applies to a person

who:

(1) retires from:

(A) county employment in a county with a population of 75,000 or

more;

(B) employment by an appraisal district in a county with a

population of 75,000 or more; or

(C) municipal employment in a municipality with a population of

25,000 or more; and

(2) is entitled to receive retirement benefits from a county,

appraisal district, or municipal retirement plan.

Added by Acts 1993, 73rd Leg., ch. 663, Sec. 1, eff. Sept. 1,

1993. Renumbered from Local Government Code Sec. 174.001 by Acts

1995, 74th Leg., ch. 76, Sec. 17.01(38), eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1363, Sec. 2, eff. June 19, 2009.

Sec. 175.002. RIGHT TO PURCHASE CONTINUED COVERAGE. (a) A

person to whom this chapter applies is entitled to purchase

continued health benefits coverage for the person and the

person's dependents as provided by this chapter unless the person

is eligible for group health benefits coverage through another

employer. The coverage shall be provided under the group health

insurance plan or group health coverage plan provided by or

through the employing political subdivision to its employees.

(b) To receive continued coverage under this chapter, the person

must inform the employing political subdivision, not later than

the day on which the person retires from the political

subdivision, that the person elects to continue coverage.

(c) If the person elects to continue coverage for the person and

on any subsequent date elects to discontinue such coverage, the

person is no longer eligible for coverage under this chapter.

(d) If the person elects to continue coverage for any dependent

and on any subsequent date elects to discontinue such coverage,

the dependent is no longer eligible for coverage under this

chapter.

Added by Acts 1993, 73rd Leg., ch. 663, Sec. 1, eff. Sept. 1,

1993. Renumbered from Local Government Code Sec. 174.002 by Acts

1995, 74th Leg., ch. 76, Sec. 17.01(38), eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1363, Sec. 3, eff. June 19, 2009.

Sec. 175.003. LEVEL OF COVERAGE. (a) The person may elect to

cover the same persons who were covered under the political

subdivision's group health insurance plan or group health

coverage plan through the person at the time the person left

employment with the political subdivision, or the person may

elect to discontinue coverage for one or more persons. A person

who was not covered under the plan at the time the person to whom

this chapter applies left employment with the political

subdivision is not eligible for coverage under this chapter.

(b) Except as provided by Subsections (c) and (d), the level of

coverage provided under this chapter at any given time is the

same level of coverage provided to current employees of the

political subdivision at that time.

(c) A political subdivision may substitute Medicare supplement

health benefits coverage as the coverage provided for a person

who receives health benefits coverage under this chapter,

including a dependent, after the date that the person becomes

eligible for federal Medicare benefits.

(d) The person may elect to continue coverage at a reduced

level, if offered by the political subdivision.

Added by Acts 1993, 73rd Leg., ch. 663, Sec. 1, eff. Sept. 1,

1993. Renumbered from Local Government Code Sec. 174.003 by Acts

1995, 74th Leg., ch. 76, Sec. 17.01(38), eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1363, Sec. 4, eff. June 19, 2009.

Sec. 175.004. PAYMENT FOR COVERAGE. A person who is entitled to

continued coverage under this chapter is entitled to make

payments for the coverage at the same time and to the same entity

that payments for the coverage are made by current employees of

the political subdivision.

Added by Acts 1993, 73rd Leg., ch. 663, Sec. 1, eff. Sept. 1,

1993. Renumbered from Local Government Code Sec. 174.004 by Acts

1995, 74th Leg., ch. 76, Sec. 17.01(38), eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1363, Sec. 4, eff. June 19, 2009.

Sec. 175.005. DUTY TO INFORM RETIREE OF RIGHTS. A political

subdivision shall provide written notice to a person to whom this

chapter may apply of the person's rights under this chapter not

later than the date the person retires from the political

subdivision. A political subdivision may fulfill its

requirements under this section by placing the written notice

required by this section in a personnel manual or employee

handbook that is available to all employees.

Added by Acts 1993, 73rd Leg., ch. 663, Sec. 1, eff. Sept. 1,

1993. Renumbered from Local Government Code Sec. 174.005 by Acts

1995, 74th Leg., ch. 76, Sec. 17.01(38), eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1363, Sec. 4, eff. June 19, 2009.

Sec. 175.006. CERTAIN MATTERS NOT AFFECTED. This chapter does

not:

(1) prohibit a political subdivision from uniformly changing the

group health insurance plan or group health coverage plan

provided for its employees and retirees;

(2) affect the definition of a dependent or the eligibility

requirements for a dependent under a plan;

(3) prohibit a political subdivision from agreeing with a person

to deduct the cost of coverage provided under this chapter from a

pension check;

(4) prohibit a political subdivision from agreeing with a person

to pay for the coverage provided under this chapter provided the

person reimburses the political subdivision for the actual cost

of the coverage;

(5) prohibit a political subdivision or a pool established under

Chapter 172 from increasing the cost of group health coverage to

its employees and to persons covered under this chapter to

reflect the increased cost, if any, attributable to compliance

with this chapter;

(6) affect the right of a political subdivision to provide

coverage under Chapter 172; or

(7) affect the right of a political subdivision or a pool

established under Chapter 172 to offer the coverage at the same

rate that is available to active employees or to offer the

coverage at a reasonable or actual rate established for retirees

that may be greater than the rate offered to active employees.

Added by Acts 1993, 73rd Leg., ch. 663, Sec. 1, eff. Sept. 1,

1993. Renumbered from Local Government Code Sec. 174.006 by Acts

1995, 74th Leg., ch. 76, Sec. 17.01(38), eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1363, Sec. 4, eff. June 19, 2009.

Sec. 175.007. EXEMPTIONS. (a) A political subdivision that

does not provide health benefits coverage through a self-insured

plan or a plan authorized under Chapter 172 is not required to

provide coverage under this chapter if the political subdivision

makes a good faith effort to purchase insurance coverage that

includes coverage required by this chapter from an insurance

company authorized to do business in this state and from pools

established under Chapter 172 but is unable to find a provider

for the coverage.

(b) A political subdivision that is providing coverage

substantially similar to or better than the coverage required by

this chapter is exempt from this chapter.

Added by Acts 1993, 73rd Leg., ch. 663, Sec. 1, eff. Sept. 1,

1993. Renumbered from Local Government Code Sec. 174.007 by Acts

1995, 74th Leg., ch. 76, Sec. 17.01(38), eff. Sept. 1, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1363, Sec. 4, eff. June 19, 2009.