LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 2, 1995 TO: Honorable David Sibley, Chair IN RE: Committee Substitute Committee on Economic Development for Senate Senate Bill Austin, Texas No. 202 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 Number of State Insurance Department of Employees from Operating Fund 036 Insurance FY 1995 GR Consolidated Operating Fund 036 GR Consolidated 1996 $195,311 $93,750 4.0 1997 1,175,585 93,750 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