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