TO: | Honorable Dianne White Delisi, Chair, House Committee on State Health Care Expenditures, Select |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB2015 by Menendez (Relating to prescription drug benefits under the group health benefit programs for certain governmental employees and retired employees.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $7,749,000 |
2005 | $15,499,000 |
2006 | $15,499,000 |
2007 | $15,499,000 |
2008 | $15,499,000 |
Fiscal Year | Probable Savings/(Cost) fromGENERAL REVENUE FUND 1 |
Probable Savings/(Cost) fromOTHER FUNDS 997 |
---|---|---|
2004 | $7,749,000 | $2,136,000 |
2005 | $15,499,000 | $4,270,000 |
2006 | $15,499,000 | $4,270,000 |
2007 | $15,499,000 | $4,270,000 |
2008 | $15,499,000 | $4,270,000 |
The bill would implement recommendation C in HHS 8 from the Comptroller's e-Texas report, Limited Government, Unlimited Opportunity.
The bill would require the Employees Retirement System of Texas (ERS), the Teacher Retirement System of Texas (TRS), and the Texas Public School Employees Group to expand their use of prior authorization for drugs not on their formulary, particularly for gastrointestinal drugs, cholesterol-lowering drugs, anti-inflammatory drugs, antihistamine drugs, and antidepressant drugs.
The Comptroller of Public Accounts (CPA) stated the estimated fiscal impact of this bill reflects assumptions based on fiscal year 2002 law and practice. To the extent that those assumptions no longer apply, the fiscal impact could change.
Cost estimates are derived from the CPA's following assumptions:
1. To achieve the savings identified, the affected agency appropriations would have to be reduced accordingly.
2. The estimates for fiscal year 2004 assume that the Employees Retirement System of Texas (ERS) the Teacher Retirement System of Texas (TRS) would phase in the expansion of prior authorization over six months. This amount of time should be more than adequate because both agencies have a contract with a pharmacy benefit manager that has experience with prior authorization.
3. The estimate reduces ERS and TRS savings by 10 percent to account for increased administrative costs. Fifty-nine percent of ERS savings would accrue to the General Revenue Fund 0001, and the remaining 41 percent to other funds. All TRS savings would accrue to Fund 0001.
4.This bill would apply the same requirements to the Texas Public School Employees Group. However, data are not available to estimate the savings from the Texas Public School Employees Group.
Source Agencies: | 304 Comptroller of Public Accounts, 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance
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LBB Staff: | JK, MS, ZS, JO, EB
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