LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 17, 1997
TO: Honorable John T. Smithee, Chair IN RE: Senate Bill No. 54, Committee Report 2nd House, Substituted
Committee on Insurance By: Shapiro
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB54 ( This
bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB54-Committee Report 2nd 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 allow female health care plan participants direct
and unlimited access to an obstetrician or gynecologist without
referral by a primary care physician. The provisions of the
bill also preclude health care plans from imposing a copayment
or deductible for direct access to the services of an obstetrician
or gynecologist unless a copayment or deductible is imposed
for access to other heath care services provided under the plan.
This bill would be applicable to health maintenance organizations
(HMOs) participating in the state managed care system beginning
January 1, 1998. As a result, the bill is expected to increase
expenses to the Uniform Group Insurance Plan (UGIP) by $510,000
in fiscal year 1999, $535,000 in fiscal year 2000, $565,000
in fiscal year 2001, and $590,000 in fiscal year 2002.
Methodolgy
These increased costs to ERS were calculated by ERS' health
actuary, under the following assumptions:
1. HMO premiums
would increase as a result of providing the coverage that is
required by the bill.
2. These increased premiums would
increase expenses to UGIP.
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 (510,000)
2000 (535,000)
2001 (565,000)
2002 (590,000)
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 ,TH ,BK