BILL ANALYSIS Senate Research Center S.B. 2577 By: Jackson, Mike State Affairs 9/24/2009 Enrolled AUTHOR'S / SPONSOR'S STATEMENT OF INTENT For the last two years, stakeholders and the Employees Retirement System of Texas (ERS) have been working towards a solution that would provide bariatric surgery for state employees, while not placing a burden that might result in a loss to the ERS trust fund or increase the cost of health insurance for state employees. S.B. 2577 amends current law relating to bariatric surgery coverage for state employees. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the board of trustees of the Employees Retirement System of Texas in SECTION 1 (Section 1551.225, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter E, Chapter 1551, Insurance Code, by adding Section 1551.225, as follows: Sec. 1551.225. BARIATRIC SURGERY COVERAGE. (a) Requires the board of trustees of the Employees Retirement System of Texas (board of trustees) to develop a cost-neutral or cost-positive plan for providing under the group benefits program bariatric surgery coverage for employees eligible to participate in the program under Section 1551.101 (Participation Eligibility: State Officers and Employees). (b) Authorizes the board of trustees to adopt rules as necessary to implement this section. SECTION 2. Requires the board of trustees to implement the plan required by Section 1551.225, Insurance Code, as added by this Act, as soon as practicable, but not later than September 1, 2010. SECTION 3. Effective date: September 1, 2009. BILL ANALYSIS Senate Research Center S.B. 2577 By: Jackson, Mike State Affairs 9/24/2009 Enrolled AUTHOR'S / SPONSOR'S STATEMENT OF INTENT For the last two years, stakeholders and the Employees Retirement System of Texas (ERS) have been working towards a solution that would provide bariatric surgery for state employees, while not placing a burden that might result in a loss to the ERS trust fund or increase the cost of health insurance for state employees. S.B. 2577 amends current law relating to bariatric surgery coverage for state employees. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the board of trustees of the Employees Retirement System of Texas in SECTION 1 (Section 1551.225, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter E, Chapter 1551, Insurance Code, by adding Section 1551.225, as follows: Sec. 1551.225. BARIATRIC SURGERY COVERAGE. (a) Requires the board of trustees of the Employees Retirement System of Texas (board of trustees) to develop a cost-neutral or cost-positive plan for providing under the group benefits program bariatric surgery coverage for employees eligible to participate in the program under Section 1551.101 (Participation Eligibility: State Officers and Employees). (b) Authorizes the board of trustees to adopt rules as necessary to implement this section. SECTION 2. Requires the board of trustees to implement the plan required by Section 1551.225, Insurance Code, as added by this Act, as soon as practicable, but not later than September 1, 2010. SECTION 3. Effective date: September 1, 2009.