LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 13, 1997
TO: Honorable John T. Smithee, Chair IN RE: Senate Bill No. 976, Committee Report 2nd House, Substituted
Committee on Insurance By: Madla
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB976 ( Relating
to managed care plans issued by managed care organizations under
Medicare risk-sharing contracts; imposing administrative penalties.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB976-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 amend the Texas Insurance Code by adding Article
21.52(G). Section 5 of the bill would require TDI to provide
an ombudsman to assist Medicare recipients enrolled in a managed
care plan and to ensure that managed care organizations subject
to this Article are in compliance. This would require the addition
of one FTE, at a cost of $51,478 in FY 1998 and $46,332 in FYs
1999 though 2002 to General Revenue Dedicated Fund 036.
Methodolgy
Cost to General Revenue Dedicated Fund 036 were estimated based
on the fact that there are approximately 210,000 Medicare recipients
enrolled in managed care plans. Not all would require the services
of the ombudsman and of those who do, requests for ombudsman
services would be staggered.
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 Change in Number
Savings/(Cost) of State
from Texas Employees from
Department of FY 1997
Insurance
Operating
Account/
GR-Dedicated
0036
1998 ($51,478) 1.0
1998 (46,332) 1.0
2000 (46,332) 1.0
2001 (46,332) 1.0
2002 (46,332) 1.0
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: 454 Department of Insurance
LBB Staff: JK ,TH ,BK