HB1226 Summary

• Modifies health insurance subsidy rates for Teachers Retirement System (TRS) benefit recipients selecting major medical coverage when managed care is not accessible, reducing the subsidy from 75% to 50% effective Fiscal Year 2014.

• Adjusts subsidy rates for TRS dependent beneficiaries who are Medicare primary, maintaining 25% state contribution for both managed care and major medical coverage programs effective Fiscal Year 2014.

• Establishes a new financial incentive program beginning July 1, 2013 allowing annuitants with 20 or more years of creditable service to opt out of health benefits coverage for up to $500 per month.

• Extends existing premium increase caps through Fiscal Year 2013 and caps future annual premium increases at 105% of the previous year's rate beginning Fiscal Year 2008.