LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 15, 1999
TO: Honorable John Smithee, Chair, House Committee on
Insurance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3039 by Smithee (relating to the regulation of
physician collective negotiation), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3039, 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. *
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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:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 1999 *
* 0001 0001 *
* 2000 $(418,212) $418,212 6.0 *
* 2001 (383,141) 383,141 6.0 *
* 2002 (383,141) 383,141 6.0 *
* 2003 (383,141) 383,141 6.0 *
* 2004 (383,141) 383,141 6.0 *
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Fiscal Analysis
The bill would add Chapter 29 to the Insurance Code providing for
collective negotiation by competing physicians of certain terms and
conditions of contracts with certain health benefit plans. Prior to
engaging in negotiations, a person or organization representing
physicians would be required to file a plan of operation, including the
procedures to be used to ensure compliance with this section, with the
Office of the Attorney General (OAG). The OAG would also be required to
receive reports of all negotiations between physicians and health plans
and to review them for compliance within thirty days of filing.
The bill would also authorize the OAG to collect reasonable fees from
physician representatives to cover the cost of administering this
program.
Methodology
The Texas Department of Insurance (TDI) estimates administration of this
program would require an additional six FTEs and associated operating
costs to review documents associated with 292 negotiations per year, and
to open an estimated thirty additional enforcement cases per year.
TDI also estimates the need for additional consultant contracts in 2000
associated with the first year of the program.
Revenues are estimated to allow the OAG to recover all costs associated
with this program.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, TH, RT, DP