LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 22, 1999 TO: Honorable John Smithee, Chair, House Committee on Insurance FROM: John Keel, Director, Legislative Budget Board IN RE: HB1919 by Gallego (Relating to a review of and moratorium on requirements that health care benefits be provided under certain health benefit plans.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1919, As Introduced: 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 $(132,296) 2.0 * * 2001 (120,866) 2.0 * * 2002 (83,644) 1.3 * * 2003 (64,469) 1.3 * * 2004 (64,469) 1.3 * *************************************************************************** Fiscal Analysis The bill would require the Texas Health Care Information Council (HCIC), on request of the Governor, the Lieutenant Governor, the Speaker of the House of Representatives, a legislative research organization, or the Legislative Budget Board, to provide a written analysis of any proposed health care benefit mandate, including an evaluation of ten specified criteria. The bill would also create a Health Care Benefit Mandate Review Board (the Board), an advisory committee composed of the Commissioner of insurance (or his designee) and six other individuals appointed by the Governor. The Board would be allowed to employ staff and enter into contracts with public and private entities for the collection and analysis of data. The Board would be required to review existing health care benefit mandates and submit a written report with recommendations to the Governor, the Lieutenant Governor, and the Speaker of the House of Representatives no later than January 1, 2001. The Board would be established effective September 1, 1999, and would be abolished on December 31, 2001. Methodology TDI estimates a need for two additional FTEs and associated operating costs in 2000 and 2001, and 1.34 additional FTEs from 2002 through 2004 to review and analyze the impact of mandated benefits. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TH, RT, DP