LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 8, 2025 TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2750 by Harris (Relating to use of a pharmacy benefit manager in which a health benefit plan issuer has a financial interest.), As Introduced Potential fiscal implications to state pension fund rates of returns and the effect on capitation rates for Medicaid and Children's Health Insurance Plan managed care organizations cannot be determined. No other significant fiscal implication to the State is anticipated. According to the Teacher Retirement System and the Employees Retirement System, certain investment limitations under the bill could affect potential rates of return, but the fiscal impact cannot be calculated.While this analysis assumes that any costs to the Health and Human Services Commission associated with the bill could be absorbed using existing resources, according to the agency, the bill could increase administrative costs for Medicaid and Children's Health Insurance Plan managed care organizations, and the potential impact on capitation rates cannot be estimated.This analysis assumes that costs to other state agencies and institutions of higher education could be absorbed using existing resources. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: b > td > JMc, AAL, ASA, ENA, NV, BFa LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 8, 2025 TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2750 by Harris (Relating to use of a pharmacy benefit manager in which a health benefit plan issuer has a financial interest.), As Introduced TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2750 by Harris (Relating to use of a pharmacy benefit manager in which a health benefit plan issuer has a financial interest.), As Introduced Honorable Jay Dean, Chair, House Committee on Insurance Honorable Jay Dean, Chair, House Committee on Insurance Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB2750 by Harris (Relating to use of a pharmacy benefit manager in which a health benefit plan issuer has a financial interest.), As Introduced HB2750 by Harris (Relating to use of a pharmacy benefit manager in which a health benefit plan issuer has a financial interest.), As Introduced Potential fiscal implications to state pension fund rates of returns and the effect on capitation rates for Medicaid and Children's Health Insurance Plan managed care organizations cannot be determined. No other significant fiscal implication to the State is anticipated. Potential fiscal implications to state pension fund rates of returns and the effect on capitation rates for Medicaid and Children's Health Insurance Plan managed care organizations cannot be determined. No other significant fiscal implication to the State is anticipated. According to the Teacher Retirement System and the Employees Retirement System, certain investment limitations under the bill could affect potential rates of return, but the fiscal impact cannot be calculated.While this analysis assumes that any costs to the Health and Human Services Commission associated with the bill could be absorbed using existing resources, according to the agency, the bill could increase administrative costs for Medicaid and Children's Health Insurance Plan managed care organizations, and the potential impact on capitation rates cannot be estimated.This analysis assumes that costs to other state agencies and institutions of higher education could be absorbed using existing resources. While this analysis assumes that any costs to the Health and Human Services Commission associated with the bill could be absorbed using existing resources, according to the agency, the bill could increase administrative costs for Medicaid and Children's Health Insurance Plan managed care organizations, and the potential impact on capitation rates cannot be estimated.This analysis assumes that costs to other state agencies and institutions of higher education could be absorbed using existing resources. While this analysis assumes that any costs to the Health and Human Services Commission associated with the bill could be absorbed using existing resources, according to the agency, the bill could increase administrative costs for Medicaid and Children's Health Insurance Plan managed care organizations, and the potential impact on capitation rates cannot be estimated. This analysis assumes that costs to other state agencies and institutions of higher education could be absorbed using existing resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: b > td > 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: b > td > JMc, AAL, ASA, ENA, NV, BFa JMc, AAL, ASA, ENA, NV, BFa