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