A new report by Texas Comptroller Susan Combs examines where health care dollars go and why costs are growing, and analyzes various cost saving proposals the Legislature is considering to meet the state budget challenge.

“Health care accounts for more than 34 percent of all Texas government spending from state, federal and other funds,” Combs said. “The state cannot afford to let cost increases consume more and more of our budget. I hope this report will provide useful information and guidance as the Legislature makes difficult choices to rein in costs and deliver services more efficiently.”

The report focuses on the largest categories of health care expenditures by state agencies and identifies the major cost drivers for each. Combs noted, “by focusing on these programs, state lawmakers can more effectively control costs without adversely affecting the delivery of vital health care services.”

Combs’ report looks at a number of cost saving proposals, including expanding the use of managed care in the Medicaid program; instituting a statewide smoking ban; requiring state employees who use tobacco to pay more for health insurance than non-users; and requiring state employees and retirees to pay a greater share of the cost of their health insurance benefits.

The Health Care Cost Drivers in Texas report can be found on the Comptroller’s website at http://www.window.state.tx.us/specialrpt/healthcare/.