LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 12, 1999
TO: Honorable John Smithee, Chair, House Committee on
Insurance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3603 by Thompson (Relating to the control of health
insurance fraud; providing civil penalties.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3603, 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 Savings/(Cost) from Change in Number of State *
* Year Texas Department of Insurance Employees from FY 1999 *
* Operating Account/ GR-Dedicated *
* 0036 *
* 2000 $(114,541) 2.0 *
* 2001 (102,461) 2.0 *
* 2002 (102,461) 2.0 *
* 2003 (102,461) 2.0 *
* 2004 (102,461) 2.0 *
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Fiscal Analysis
The bill would amend Chapter 3, of the Texas Insurance Code relating to
the control of health insurance fraud by adding Subchapter K allowing
health insurers to adopt antifraud plans. Health insurers would be
required to file such plans with the Texas Department of Insurance Fraud
(TDI) Unit. Such plans should include a description of the insurer s
procedures for reporting fraudulent insurance acts to the insurance fraud
unit.
The bill would act takes effect September 1, 1999.
Methodology
TDI estimates the largest health insurers, defined as having premiums
over $100 million, would participate in the voluntary program that would
be created by the bill. Currently, there are approximately 50 health
insurers meeting this criteria. TDI estimates the need for two
additional FTEs and associated operating costs in fiscal years 2000
through 2004 to implement the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 327 Employees Retirement System, 454 Department
of Insurance
LBB Staff: JK, TH, DP