BILL ANALYSIS

Senate Research Center                                                                                                     H.B. 2772

79R10444 DLF-D                                                                                           By: Farabee (Duncan)

State Affairs

5/18/2005

Engrossed

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

Health Savings Accounts (HSAs) were created in federal legislation to be used in conjunction with High Deductible Health Plans (HDHPs) in 2003.  The federal government has implemented an HSA option for public employees and non-Medicare eligible retirees.  The current group benefits program under the Employees Retirement System of Texas (ERS) does not provide for HSAs and HDHPs.  As such, there is insufficient information available to determine the impact of implementing HSAs and HDHPs within ERS' group benefits program.  

H.B. 2772 directs ERS to evaluate the long-term impact of implementation of HSAs and HDHPs within the group benefits program on future costs and benefits and access to quality health care and provider availability.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  EVALUATION AND REPORT.  (a)  Requires the Employees Retirement System of Texas (ERS) to evaluate the long-term impact of implementing health savings accounts and high-deductible health plans as a part of the group benefits program on certain issues.

            (b)  Requires ERS, not later than December 31, 2006, to submit a report of the results of   the evaluation conducted under this section, including the system's findings and   recommendations, to the governor, lieutenant governor, and speaker of the house of            representatives.

            (c)  Provides that this section expires January 1, 2007.

SECTION 2.  Effective date:  upon passage or September 1, 2005.