LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 10, 1995
TO: Honorable John Smithee, Chair IN RE: Senate BillNo. 202,
Committee on Insurance as engrossed
House of Representatives By:Patterson, Jerry
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
202 (relating to the provision of certain services provided
through health maintenance organizations) 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 Insurance Code provisions known as the Texas
Health Maintenance Organization Act to include mental health
services and substance abuse services within the scope of single
health service plans.
Implementation of the provisions of the bill would result in cost
and revenue implications. The Department of Insurance estimates
that at least 25 mental health and chemical dependency entities
would be subject to licensure. Additional workload would be
related to reviewing applications for licensure, monitoring
financial solvency and on-site examinations.
Additional revenue would be generated from licensure application
filing fees.
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 Cost Out Probable Revenue Change in
Year of Department of Gain to Department Number of State
Insurance of Insurance Employees from
Operating Fund 036 Operating Fund 036 FY 1995
GR Consolidated GR Consolidated
1996 $198,958 $97,500 4.0
1997 189,581 90,000 4.0
1998 111,052 2.0
1999 111,052 2.0
2000 111,052 2.0
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: Department of Insurance
LBB Staff: JK, RM, RR