LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 28, 1999
TO: Honorable Sherri Greenberg, Chair, House Committee on
Pensions & Investments
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3007 by Greenberg (Relating to health benefits plan
coverage for children of certain employees paid by state
appropriated money), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3007, Committee Report 1st House, Substituted: negative impact *
* of $(13,151,791) through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 (13,151,791) *
* 2002 (14,203,934) *
* 2003 (15,340,249) *
* 2004 (16,567,469) *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from General from All from Federal from Other *
* Revenue Fund GR-Dedicated Funds Funds *
* 0001 Accounts 0555 8042 *
* 8021 *
* 2000 $0 $0 $0 $0 *
* 2001 (13,151,791) (1,021,930) (5,081,587) (4,129,812) *
* 2002 (14,203,934) (1,103,684) (5,488,114) (4,460,197) *
* 2003 (15,340,249) (1,191,979) (5,927,163) (4,817,013) *
* 2004 (16,567,469) (1,287,337) (6,401,336) (5,202,374) *
***************************************************************************
Fiscal Analysis
The bill would increase the state's contribution for the cost of
dependent child health insurance coverage to 80% for children who would
otherwise qualify for the Children's Health Insurance Program, but are
excluded because they are children of state employees. Currently, the
state pays 50% of the costs of coverage of dependent children
participating in the Uniform Group Insurance Program, and 80% of the
cost of coverage of dependent children participating in the health
insurance programs administered by the University of Texas System and
the Texas A&M System. The Department of Human Services would be
responsible for screening for eligibility. The increased contributions
for health insurance would begin September 1, 2000.
Methodology
The Employees Retirement System (ERS) estimates that approximately 20,600
of the 209,000 state employees covered by ERS' health insurance program
would have dependent children and have family incomes low enough to be
covered by this bill. The annual cost per employee for covering
dependent children is estimated at $2,064 in FY2001, increasing by 8.0%
per year to $2,600 in FY2004. The number of state employees is estimated
to remain constant. It is also assumed that 50% of the employees
covered by this bill have already enrolled their dependent children, and
therefore the state is already paying part of the cost. For the other
50% of affected employees, the increased cost to the state would be for
the cost of paying 80% of the premiums.
The University of Texas System and the Texas A&M System estimate that
approximately 11,900 employees covered by their health insurance programs
would have dependent children and have family incomes low enough to be
covered by this bill. The Legislature already appropriates funds to the
UT and A&M Systems with the intent that 80% of dependent coverage be
paid, so no additional costs for UT and A&M employees are included in
this analysis.
This analysis assumes that eligibility screening would occur during
FY2000, with the increase in the state's contribution beginning in
FY2001.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, PE, SC