Opinion No.

Mr. Clayton T. Garrison Executive Director Employees Retirement System of Texas P.O. Box 13207 Austin, Texas 78711

Re: Authority of the Employees Retirement System and the State Board of Insurance in regard to health maintenance organizations

Dear Mr. Garrison:

You ask several questions about the authority of the Employees Retirement System of Texas (ERS) to contract with health maintenance organizations (HMOs). Specifically, you ask about the authority of an HMO and the ERS to enter into a contract that contains provisions that would require the HMO to contravene rules promulgated by the State…