Honorable Tom Oliverson, Chair, House Committee on Insurance
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4067 by Vo (Relating to examinations of health maintenance organizations and insurers by the commissioner of insurance regarding compliance with certain utilization review and preauthorization requirements; authorizing a fee.), As Introduced
The fiscal implications of the bill cannot be determined due to unknown elements relating to the potential fee assessment and the affect on capitation rates within Medicaid and Children's Health Insurance Plan managed care organizations.
This bill would amend the Insurance Code to require annual examinations of health maintenance organizations and insurers by the Commissioner of Insurance regarding compliance with certain utilization review and preauthorization requirements. This bill authorizes a fee.
According to the Health and Human Services Commission, the bill would increase administrative costs for Medicaid and Children's Health Insurance Plan managed care organizations, however the fiscal implications cannot be determined at this time due to a lack of information regarding the potential fee and its affect on capitation rates.
Based on the analysis of the Teacher Retirement System of Texas, Employees Retirement System, Department of Insurance, Texas A&M University System Administrative & General Offices, and the University of Texas System Administration, any duties and responsibilities associated with implementing the provisions of the bill could be accomplished by the agencies utilizing existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 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