C.S.H.B. 88 78(R)    BILL ANALYSIS


C.S.H.B. 88
By: McClendon
Pensions & Investments
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

 It is well known that smoking causes more morbidity and  mortality than
any other single cause, with a devastating impact on the state's insurance
and health care costs.  There are approximately 270,000 state employees.
An estimated 62,000 state employees are smokers.  
It is clear that a greater emphasis on prevention is needed, and smoking
cessation is one of the most important and most effective of the State's
public health and preventive medicine initiatives.   

 Data suggests that as many as 80% of smokers would like to quit smoking,
and that many have tried to quit one or more times.  There is strong and
consistent evidence that prescription pharmaceuticals, such as Zyban and
nicotine replacements, are highly effective tools for smoking cessation,
especially when used in conjunction with counseling and other regimens.
However, current state employee insurance programs do not cover
prescriptions for smoking cessation despite that fact that the long term
health care savings are well documented. 

 As the State is the largest single employer of Texans, it is of paramount
importance for 
 the State to assist its employees in their efforts to quit smoking.  The
purpose of CSHB 88 is to ensure that Texas state employee insurance
programs provide coverage for prescription medicines designed to assist
with smoking cessation. 

RULEMAKING AUTHORITY

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


ANALYSIS

SECTION 1.  Amends Section 1551.205, Insurance Code, to provide that the
board of trustees administering the Employees Retirement System of Texas
may not approve a state employee health insurance plan that provides
coverage for prescription drugs to assist in stopping smoking at a lower
benefit level than is provided for other prescription drugs. 

SECTION 2.  Provides that this Act applies to coverage contracted for on
or after September 1, 2004. 

SECTION 3.  Effective date.


EFFECTIVE DATE

This Act takes effect September 1, 2003.


COMPARISON OF ORIGINAL TO SUBSTITUTE

There are no substantial changes between the original bill and the
committee substitute.  The substitute bill is a Texas Legislative Council
draft and uses Council language to accomplish the same result behind the
originally filed bill.