LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 13, 1995 TO: Honorable John Smithee, Chair IN RE: Committee Substitute Committee on Insurance for House of Representatives House Bill Austin, Texas No. 369 FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 369 (relating to the operation and funding of small employer health benefit plans) this office has determined the following: The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Insurance Code to change some provisions of the Small Employer Health Insurance Availability Act. The changes would address minimum participation and contribution requirements, open enrollment, and the required prototype benefit plans. A "Benefits Planning Committee" would be established to develop benefit provisions for the catastrophic care plan and the basic coverage plan; committee members would be authorized to receive reimbursement of expenses. Implementation of the bill would increase the number of health insurance form submissions to the Department of Insurance to bring the forms into compliance with bill provisions. However, agency costs for reviewing the additional form filings would be addressed with existing staff. Fees associated with the additional form filings would also result in a revenue gain during fiscal year 1996. The amount of any revenue gain, however, would be subject to potential shifts among currently insuring employers to more basic levels of coverage in order to achieve savings. Reimbursement of expenses for advisory committee members would be subject to legislation enacted during the Seventy-third Regular Session (Senate Bill 383 codified as V.A.C.S. 6252-33) relating to the existence, composition and expenses of state agency advisory committees. Specifically, the manner and amount of reimbursement for expenses may be prescribed only by the General Appropriations Act or through the budget execution process. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Revenue Year Gain to Department Insurance Operating Fund 036 1996 $108,000 1997 0 1998 0 1999 0 2000 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Comptroller of Public Accounts, Department of Insurance LBB Staff: JK, RM, RR