TO:	Honorable Robert Duncan, Chair, Senate Committee on State Affairs
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB2772 by Farabee (Relating to health savings accounts and high-deductible health plans implemented as a part of the group benefits program of the Employees Retirement System of Texas.), Committee Report 2nd House, As Amended

The bill would direct the Employees Retirement System of Texas (ERS) to evaluate and report on the long-term impact of implementing a health reimbursement account program or a health savings account and high-deductible health plan program as a part of the group benefits program. The proposal would require ERS to submit the report, including findings and recommendations relative to a health reimbursement account program or a health savings account and high-deductible health plan program within the group benefits program, not later than December 31, 2006.
 
The bill, if enacted, will have no actuarial effect because it does not propose to change the funding or obligations of any public retirement system.