LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 29, 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.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3039, 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. *
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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 *
* Texas Department of Texas Department of FY 1999 *
* Insurance Operating Insurance Operating *
* Account/ Account/ *
* GR-Dedicated GR-Dedicated *
* 0036 0036 *
* 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 27 to the Insurance Code providing for
collective negotiation by competing physicians of certain terms and
conditions of contracts with health 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 Texas Department of
Insurance (TDI). TDI 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 Commissioner of Insurance to collect
reasonable fees from physician representatives to cover the cost of
administering this program.
Methodology
TDI estimates the need for 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 TDI to recover all costs associated with
this program.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TH, RT, DP