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Austin State Representative Dianne White Delisi announced today that she has filed a bill that manages to combine costs savings with enhanced health benefit options for state employees. The legislation (HB 417) would allow the State of Texas to offer certain employees the option of accessing veterans benefits under a TRICARE supplemental policy. The state would then pay the cost of the supplemental policy for the employees whose prior military service made them eligible for TRICARE.
The state saves money because the cost of providing the TRICARE supplement is less than what it costs to provide the state's standard benefits package. Depending upon the number of eligible employees and the participation rate, the savings can quickly climb into the millions each year.
“The key to this new benefit option is that it is truly optional," Delisi stated. "We can make the new TRICARE supplement policy available, but it the employee's decision to use it as their coverage. It has to be a great deal for them for this program to work."
Delisi became interested in offering state employees the TRICARE supplement option after seeing that both North and South Carolina had positive experiences with this new benefit offering. The overwhelming majority of large employers in the defense industry also offer this benefit plan, as their labor force contains a high number of military veterans.
The program has attracted broad support from military veterans who go to work in second careers. Since Texas has the third-highest number of military retirees in the nation, a TRICARE supplemental program should have great potential here.
"I saw a chance to save money for Texas' taxpayers while offering another item on the health care menu for our state employees with military service," Delisi said. "It is truly a win-win scenario."
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