BILL ANALYSIS

Senate Research Center	S.B. 842
	By: Hinojosa
	Health & Human Services
	4/25/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Bariatric surgery reduces the amount of food you can eat and absorb by shrinking the stomach. Currently under the state employees group benefits program, coverage for this surgery and all related bariatric surgeries (such as a revisional bariatric surgery to repair or change a previous surgery) is only available to active employees. Retirees and former state employees are unable to access coverage for these procedures. Revisions, for example, would cost $17,000 in out-of-pocket fees to a retired employee of the state.

S.B. 842 extends coverage to two additional groups: annuitants (or individuals who retire under the jurisdiction of the Employees Retirement System of Texas), and certain former state employees. Without this bill, it is estimated it would cost $17,000 in out-of-pocket fees to a retired employee of the state.

As proposed, S.B. 842 amends current law relating to health benefit coverage for bariatric surgery under the state employees group benefits program.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1551.225(a), Insurance Code, as follows:

(a) Requires the board of trustees of the Employees Retirement System of Texas to develop a cost-neutral or cost-positive plan for providing under the group benefits program bariatric surgery coverage for:

(1) creates this subdivision from existing text;

(2) annuitants eligible to participate in the program under Section 1551.102 (Participation Eligibility: Annuitants); and

(3) former state employees eligible to participate in the program under Section 1551.108 (Continuing Eligibility of Certain Persons with Legislative Service or Employment).

Makes nonsubstantive changes.

SECTION 2. Makes application of this Act prospective to January 1, 2024.

SECTION 3. Effective date: September 1, 2023.