LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 26, 2015 TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB966 by Crownover (Relating to the creation of an optional consumer-directed health plan for certain individuals eligible to participate in the group benefits program provided under the Texas Employees Group Benefits Act and their qualified dependents.), As Passed 2nd House No significant fiscal implication to the State is anticipated. The bill would amend Insurance Code to require the Employees Retirement System to establish a consumer-directed health plan, which would include a high deductible health plan and a health savings account as an option for Group Benefit Program participants. Participation in the program would be voluntary. The bill directs the state to contribute the difference, if any, between the full state contribution for HealthSelect and the coverage cost of the high deductible plan, to a health savings account. ERS reports that these amounts would be adjusted to neutralize any additional cost to the state. The bill would require ERS to conduct a study on the implementation of the consumer-directed health plan, with the results of the study reported to the Governor, Lieutenant Governor, Speaker of the House, and all members of the legislature by January 1, 2020. ERS indicates that any additional administrative costs associated with tracking and reporting on the usage and cost-effectiveness of the consumer-directed health plan, as well as performing the study, could be absorbed within existing resources. The bill would take effect September 1, 2015, with coverage beginning September 1, 2016. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:327 Employees Retirement System LBB Staff: UP, AG, EMo, KFa, EP
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 26, 2015
TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB966 by Crownover (Relating to the creation of an optional consumer-directed health plan for certain individuals eligible to participate in the group benefits program provided under the Texas Employees Group Benefits Act and their qualified dependents.), As Passed 2nd House
TO: Honorable Joe Straus, Speaker of the House, House of Representatives
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB966 by Crownover (Relating to the creation of an optional consumer-directed health plan for certain individuals eligible to participate in the group benefits program provided under the Texas Employees Group Benefits Act and their qualified dependents.), As Passed 2nd House
Honorable Joe Straus, Speaker of the House, House of Representatives
Honorable Joe Straus, Speaker of the House, House of Representatives
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB966 by Crownover (Relating to the creation of an optional consumer-directed health plan for certain individuals eligible to participate in the group benefits program provided under the Texas Employees Group Benefits Act and their qualified dependents.), As Passed 2nd House
HB966 by Crownover (Relating to the creation of an optional consumer-directed health plan for certain individuals eligible to participate in the group benefits program provided under the Texas Employees Group Benefits Act and their qualified dependents.), As Passed 2nd House
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Insurance Code to require the Employees Retirement System to establish a consumer-directed health plan, which would include a high deductible health plan and a health savings account as an option for Group Benefit Program participants. Participation in the program would be voluntary. The bill directs the state to contribute the difference, if any, between the full state contribution for HealthSelect and the coverage cost of the high deductible plan, to a health savings account. ERS reports that these amounts would be adjusted to neutralize any additional cost to the state. The bill would require ERS to conduct a study on the implementation of the consumer-directed health plan, with the results of the study reported to the Governor, Lieutenant Governor, Speaker of the House, and all members of the legislature by January 1, 2020. ERS indicates that any additional administrative costs associated with tracking and reporting on the usage and cost-effectiveness of the consumer-directed health plan, as well as performing the study, could be absorbed within existing resources. The bill would take effect September 1, 2015, with coverage beginning September 1, 2016.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 327 Employees Retirement System
327 Employees Retirement System
LBB Staff: UP, AG, EMo, KFa, EP
UP, AG, EMo, KFa, EP