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, 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.
   2. (2) The incentive credit may be applied only toward the cost of eligible optional coverage, as determined by the System.
   3. (3) 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.

Source Note:The provisions of this §81.8 adopted to be effective May 3, 2006, 31 TexReg 3588; amended to be effective June 5, 2008, 33 TexReg 4332; amended to be effective December 22, 2011, 36 TexReg 8574.