1. (a) Eligibility. An individual eligible to participate in the Program may elect to waive health coverage in the method and form specified by the System:

   1. (1) during the initial period of eligibility;
   2. (2) after a qualifying life event; or
   3. (3) during annual enrollment.
2. (b) Re-enrollment in health coverage. An individual who has waived health coverage is subject to the eligibility and enrollment provisions of this chapter, including evidence of insurability requirements, should the individual elect to apply for health coverage in the Program.

3. (c) Incentive Credit.

   1. (1) An employee or retiree eligible to participate in the Program and who waives health coverage may be eligible for an incentive credit in lieu of the state contribution up to the amount specified in the General Appropriations Act if the individual:

      1. (A) would otherwise have been eligible to receive the state contribution; and
      2. (B) demonstrates, in a manner specified by the System, coverage by another health benefit plan with substantially equivalent coverage to the basic plan; or
      3. (C) is eligible for and enrolled in the TRICARE military health system.

   2. (2) The incentive credit may be applied only toward the cost of:

      1. (A) eligible optional coverage, as determined by the System; or
      2. (B) TRICARE Supplement for participants under age 65.
   3. (3) Coverage under the TRICARE Supplement will be canceled at the end of the month in which the participant reaches the age of 65. A participant whose TRICARE Supplement is canceled will have the incentive credit applied, if applicable, toward eligible optional coverage in which the participant is currently enrolled.
   4. (4) Notwithstanding any other provisions of this chapter, optional coverage is not considered voluntary coverage for purposes of the incentive credit in lieu of the state contribution.
4. (d) Solely with regard to eligible participants waiving health coverage to enroll in the TRICARE Supplement, this Section shall become effective only after the Board has contracted with one or more Carriers to make a TRICARE Supplement health coverage plan available pursuant to §81.3(c) of this chapter (relating to Administration).

Source Note:The provisions of this §81.8 adopted to be effective May 3, 2006, 31 TexReg 3588.