LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 18, 1997
TO: Honorable Hugo Berlanga, Chair IN RE: House Bill No. 750, Committee Report 1st House, Substituted
Committee on Public Health By: Berlanga
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB750 ( Relating
to coverage under health benefit plans for certain supplies
and services associated with the treatment of diabetes.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB750-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill would require health plans that provide benefits for
the treatment of diabetes and associated conditions to include
coverage for diabetes equipment, diabetes supplies, and diabetes
self-management training programs. This bill would apply to
health maintenance organizations (HMOs) participating in the
state managed care system beginning September 1, 1998.
The
only coverage required by this bill that is not provided by
HMOs participating in the Employees Retirement System (ERS)
is for podiatric appliances for the prevention of complications
associated with diabetes. As a result, the bill is expected
to increase HMO costs for ERS by $175,000 in fiscal year 1999,
$185,000 in fiscal year 2000, $195,000 in fiscal year 2001,
and $205,000 in fiscal year 2002.
Methodolgy
This analysis is based on the assumption that HMO premiums will
increase as a result of providing the coverage that is required
by the bill which will increase expenses to the Uniform Group
Insurance Plan (UGIP). The costs were calculated by the health
actuary for ERS.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable
Savings/(Cost)
from Employee Life
0973
1998 $0
1998 (175,000)
2000 (185,000)
2001 (195,000)
2002 (205,000)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 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: Agencies:
327 Employees Retirement System
LBB Staff: JK ,BB