Funding for Higher Education Group Insurance totaled $937.1 million in General Revenue, which is an increase of $140.9 million or 17.7 percent over the 2004-05 spending level. The funding level also provides an additional $0.1 million in State Highway Fund 006 for the Texas Transportation Institute. The funding increase is intended to provide approximately 50 percent of the projected increase in health care costs. For the Texas A&M Health Insurance Program, the appropriation increased by $14.3 million, or 10.6 percent.
This appropriation provides funding for the General Revenue health insurance contributions from the state for the three higher education health insurance providers in higher education: The Texas A&M University System, The University of Texas System and the Employees Retirement System. The ERS administers the health insurance program for all of higher education, including the community colleges, other than the A&M and UT Systems. The funding increases among these three programs vary depending on the actual snapshot enrollment of the employees and retirees in each system as of December 1, 2004. In addition, for the general academic institutions, the proportionality between General Revenue and Other Educational and General Income was based on a proportionality calculation submitted to the LBB during the session that used the Accounting Policy Statement 011 format, but excluded indirect cost recovery from the calculations. See a more detailed explanation under the general academics.