LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 16, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: HB811 by Jones, Jesse (relating to the services included in home health care services), Committee Report 1st House, Substituted ************************************************************************** * Two-year Net Impact to General Revenue Related Funds for HB811, * * Committee Report 1st House, Substituted: impact of $0 through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year Texas Department of Insurance Employees from FY 1999 * * Operating Account/ GR-Dedicated * * 0036 * * 2000 $(142,971) 3.0 * * 2001 (125,826) 3.0 * * 2002 (125,826) 3.0 * * 2003 (125,826) 3.0 * * 2004 (125,826) 3.0 * *************************************************************************** Technology Impact Included above in FY 2000 costs are $10,485 for personal computer hardware and software. Fiscal Analysis The bill would amend the Health Maintenance Organization Act, HMO (Chapter 20A, Vernon s Texas Insurance Code) and Article 3.70-3C, of the Insurance Code to require prompt payment of physicians and providers. The bill provides that if an HMO violates Subsection (c), the HMO is liable to the physician or provider for interest of 10% a year or reasonable attorney's fees (in addition to the amount owed for services provided). The HMO is also liable for any other penalty or remedy authorized by the Insurance Code or another insurance law of Texas. The administrative penalty under Article 1.10E, of the Insurance Code, may not exceed $1,000 for each day the invoice remains unpaid in violation of Subsection (c). Subsection (g) states that this section does not apply to a capitation payment under an agreement to provide medical care of health care services under a health care plan. The bill takes effect September 1, 1999. Methodology The Texas Department of Insurance estimates a 50 percent increase in complaints received from physicians and providers against HMO plans between 1999 and 2000. It is estimated that complaints will increase 5 percent per year between 2001 and 2004. The Texas Department of Insurance estimates the need for an additional 3 FTEs, equipment, and other operating expenses to address this additional workload. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 454 Department Of Insurance LBB Staff: JK, TH, RT, DP