LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
April 29, 2007

TO:
Honorable John T. Smithee, Chair, House Committee on Insurance
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2668 by Zerwas (Relating to coverage for bariatric surgical procedures for certain state employees.), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for HB2668, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2009.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008 $0
2009 $0
2010 ($10,901,095)
2011 ($11,849,016)
2012 ($12,974,673)




Fiscal Year Probable (Cost) from
GENERAL REVENUE FUND
1 		Probable (Cost) from
GR DEDICATED ACCOUNTS
994 		Probable (Cost) from
OTHER SPECIAL STATE FUNDS
998 		Probable (Cost) from
STATE HIGHWAY FUND
6
2008 $0 $0 $0 $0
2009 $0 $0 $0 $0
2010 ($10,901,095) ($568,499) ($57,089) ($2,533,711)
2011 ($11,849,016) ($617,933) ($62,053) ($2,754,034)
2012 ($12,974,673) ($676,637) ($67,948) ($3,015,667)

Fiscal Year Probable (Cost) from
FEDERAL FUNDS
555
2008 $0
2009 $0
2010 ($2,409,446)
2011 ($2,618,963)
2012 ($2,867,765)

Fiscal Analysis

The bill would amend the Government Code relating to coverage for bariatric surgical procedures for certain state employees.

The bill would apply to health plans delivered or renewed beginning in the 2010-2011 plan year.  The bill would take effect September 1, 2007.


Methodology

Currently the health benefit plan administered by the Employees Retirement System (ERS) does not include coverage for bariatric coverage. The bill would require the removal of that exclusion for state employees with at least 5 years of creditable services. Based on the analysis of ERS, it is assumed the bill would increase costs for ERS health plans by the amounts in the table above.

Based on the analysis of the Texas Department of Insurance (TDI), there may be a one-time revenue gain of $3,700 in fiscal year 2008 to General Revenue Dedicated Account Fund 36 associated with approval filings filed as a result of the bill. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all revenue generated would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year. As a result, this revenue is not reflected in the table above. Also, it is assumed that any costs TDI would realize associated with implementing the provisions of the bill could be absorbed within existing resources.


Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance
LBB Staff:
JOB, JRO, MW, SK, KJG