LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 24, 1997
TO: Honorable Bob Bullock IN RE: Senate Bill No. 163, As Passed 2nd House
Lieutenant Governor Zaffirini
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB163 ( 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 SB163-As Passed 2nd House
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 be applicable
to health maintenance organizations (HMOs) participating in
the state managed care system beginning January 1, 1998.
The
only coverage required by this bill that is not provided by
participating HMOs is for podiatric appliances for the prevention
of complications associated with diabetes. As a result, the
bill is expected to increase expenses to the Uniform Group Insurance
Plan (UGIP) 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
These increased costs to ERS were calculated by ERS' health
actuary, under the following assumptions:
1. HMO premiums
will increase as a result of providing the coverage that is
required by the bill.
2. This will 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 $0
1998 (175,000)
2000 (185,000)
2001 (195,000)
2002 (205,000)
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:
LBB Staff: JK ,BB