LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

April 1, 2025

TO:	Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	SB884 by Kolkhorst (Relating to establishment of a shared savings program for certain managed care plans.), As Introduced

The fiscal implications of the bill cannot be determined due to the uncertainty of the impact of the bill on the sustainability of the network administered by the Employees Retirement System of Texas through the Group Benefits Plan.

The bill would amend the Insurance Code to establish a shared savings program for certain managed care plans.  According to the Employees Retirement System of Texas (ERS) the cost of the bill cannot be determined due to the uncertainty of the impact of the bill on the sustainability of the network administered by the Group Benefits Plan (GBP).  According to ERS, the provisions of the bill have the potential to result in cost increases over time, but those costs cannot be estimated.

According to the Texas Department of Insurance, the Health and Human Services Commission, the University of Texas System Administration, and the Texas A&M University System Administration, no significant fiscal impact is anticipated from implementing the provisions of the bill.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

327 Employees Retirement System, 454 Department of Insurance, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration

LBB Staff:

JMc, NPe, LCO, JPO, NV