BILL ANALYSIS

S.B. 2577

By: Jackson, Mike

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

For the last two years, stakeholders and the Employees Retirement System of Texas (ERS) have been working towards a solution that would provide bariatric surgery for state employees while not placing a burden that might result in a loss to the ERS trust fund or increase the cost of health insurance for state employees.

S.B. 2577 requires the board of trustees of the Employee Retirement System of Texas to develop a cost-neutral or cost-positive plan for providing bariatric surgery coverage to eligible state employees.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the board of trustees of the Employees Retirement System of Texas in SECTION 1 of this bill.

ANALYSIS

S.B. 2577 amends the Insurance Code to require the board of trustees of the Employees Retirement System of Texas to develop a cost-neutral or cost-positive plan for providing under the group benefits program bariatric surgery coverage for employees eligible to participate in the program. The bill authorizes the board to adopt rules as necessary to implement such a plan and requires the board to implement the plan as soon as practicable, but not later than September 1, 2010.

EFFECTIVE DATE

September 1, 2009.