LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 8, 1997
TO: Honorable David Sibley, Chair IN RE: House Bill No. 1173, As Engrossed
Committee on Economic Development By: Coleman
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1173 ( Relating
to coverage by certain health benefit plans for certain serious
mental illnesses.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1173-As Engrossed
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 amend Article 3.51-14 of the Insurance Code
to expand the definition of serious mental illness, as covered
by a health benefit plan.
This bill would be applicable
to Health Maintenance Organizations (HMOs) participating in
the state managed care system and only to health benefit plans
that are delivered, issued for delivery, or renewed on or after
January 1, 1998. As a result, the bill would increase HMO costs
for the Employee Retirement System (ERS) by $250,000 in fiscal
year 1999, $263,000 in fiscal year 2000, $276,000 in fiscal
year 2001, and $289,000 in 2002.
Methodolgy
This analysis is based on the following assumptions:
1.
HMO premiums would increase as a result of providing the expanded
coverage that is required by the bill; and,
2. Increased
HMO premiums would increase expenses to the Uniform Group Insurance
Plan (UGIP), Fund 973.
Increased costs to Fund 973 were
calculated by ERS' health actuary.
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
1998 (250,000)
2000 (263,000)
2001 (276,000)
2002 (289,000)
Net Impact on General Revenue Related Funds:
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 ,TH ,BK