MINUTES SENATE COMMITTEE ON FINANCE Interim Subcommittee on ERS and TRS Employee Benefit Issues Wednesday, March 22, 2000 1:30 p.m. Capitol Extension, Room E1.036 ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Finance Interim Subcommittee on ERS and TRS Employee Benefit Issues was held on Wednesday, March 22, 2000, in the Capitol Extension, Room E1.036, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Steve Ogden, Chairman Senator John Carona Senator Gonzalo Barrientos Senator Mario Gallegos Senator Jon Lindsay ***** The chair called the meeting to order at 1:45 p.m. The following business was transacted: Invited Testimony The chair recognized the following witnesses to provide testimony on Employee Retirement System and Teacher Retirement System benefit issues: Craig Hudgins, representing the Legislative Council, provided an overview of state law regarding provision of health insurance benefits through the Employees Retirement System, the Texas A&M University System and the University of Texas System. John Wielmaker, representing the Legislative Budget Board, provided an overview of appropriations for health insurance programs at the Texas A&M University System and the University of Texas System and related budgeting issues. Debbie Baisden, representing the Legislative Budget Board, served as a resource witness. Dan Stewart and Robert Molloy, representing the University of Texas System, provided an overview of UTS health insurance program and budget; funding performance and projections; health insurance costs and trends; related issues particular to UTS. Steve Hassel, representing the Texas A&M University System, provided an overview of TAMUS health insurance program and budget; funding performance and projections; health insurance costs and trends; related issues particular to TAMUS. Stephanie Coates, representing the Legislative Budget Board, provided an overview of appropriations to the Employees Retirement System, the Texas A&M University System and the University of Texas System regarding health insurance and related budgeting issues. Sheila Beckett and Philip Dial, representing Employees Retirement System of Texas, provided an overview of ERS health insurance programs and budget; most recent funding performance and projections; health care costs and trends; funding alternatives and related costs/savings; HMO bidding and competition; optional long-term care benefit coordinated with the Texas A&M University System. Other invited witness included: Tracy Baroni, representing the Pharmaceutical Research and Manufacturers of America Tom Kowalski, representing Texas Healthcare and Bioscience Institute Tim Williamson, representing ILEX Oncology Inc. Brenda Bassett, George Bognar and Carol Nick-Kresl, representing Merck-Medco Managed Care; and Gary Anderson, representing Texas Public Employees Association Public Testimony The chair recognized the following witness to provide testimony on ERS and TRS benefit issues: Ted Melina Raab, representing the Texas State Employees Union. There being no further business, at 5:30 p.m. Senator Lindsay moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. ______________________ Senator Steve Ogden, Chair ______________________ Amber Martin, Clerk