LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
January 28, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 172
Committee on Health & Human Services By: Zaffirini
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB172 ( Relating to coverage
for childhood immunizations under certain health benefit plans.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by SB172-As Introduced
The bill adds Article 21.53F to the Insurance Code which would require that
health benefit plans provide coverage for children for immunizations against certain
diseases. The bill would require coverage for children from birth up to age six. The
benefits required by this bill could not be made subject to a deductible, copayment,
or coinsurance requirement. This bill would create some additional costs to the
Employees Retirement System (ERS), per Employees Retirement System estimate.
Potential costs associated with this bill are not necessarily significant in relation to
the size of the Employees Life, Accident, Health Insurance and Benefits Trust Account.
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
Article 21.53F, Section 4, as added by this bill, states that benefits required to be
provided cannot be subject to a deductible, copayment, or coinsurance requirement.
Based on information provided by ERS, the restriction on copayment charges would
create the costs identified below.
Methodolgy
1. The bill does not appear to apply to the Health Select plan, so any costs associated
with conforming Health Select to the provisions of this bill are not included. It is
assumed that the provisions of the bill apply to all HMO and other health benefit
plans administered by ERS.
2. The fiscal implications of the bill would begin in FY 1999.
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 (450,000)
2000 (450,000)
2001 (450,000)
2002 (450,000)
The probable negative fiscal implications to General Revenue related funds
during the first five years is estimated to be ($292,500) from 1999 through 2002.
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: 454 Department of Insurance
327 Employees Retirement System
501 Department of Health
LBB Staff: JK ,BB ,BK