Continuing Employee Health Insurance

Q: If an employee resigns at the end of the school year, do we have to pay his or her health insurance during the summer?

A: Yes, if an employee works until the end of the school year, he or she is eligible for health insurance up to the beginning of the next school year. This applies no matter how many months the employee was scheduled to work. For example, a custodian who works year round and resigns at the end of the school year could continue health insurance with the district and be eligible for the district contribution up to the beginning of the next school year as long as he or she pays the employee portion of the premium. If the employee elects to end coverage or does not pay the employee portion of the premium, then coverage ends.

The requirement for districts to continue the same health insurance benefits through the summer for employees who resign or retire effective the end of the school year is found in Texas Education Code §22.004 (k)(l) which was passed as HB 973 during the 80th Texas Legislature. The provision went into effect at the start of the 2007–08 school year. It’s important to note that the statutory language refers to school years, not health plan renewal dates. Furthermore, it applies to all employees, not just 10-month employees or teachers.